The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan clarifies the procedure for applying the time limits for recognizing a non-resident's liabilities under advance payments (prepayments) received as income.
Before 1 January 2026, in accordance with tax legislation, a non-resident's liabilities under an advance payment (prepayment) received that were not fulfilled within 24 months from the date of payment of the advance were recognized as the non-resident's income from sources in the Republic of Kazakhstan.
As of 1 January 2026, paragraph 1 of Article 679 of the Tax Code of the Republic of Kazakhstan reduced this period from 24 to 12 months.
Accordingly:
- for advance payments (prepayments) paid to a non-resident before 1 January 2026, the 24-month period from the date of payment of the advance (prepayment) applies;
- for advance payments (prepayments) paid to a non-resident on or after 1 January 2026, the 12-month period from the date of payment of the advance (prepayment) applies.
Accordingly, if a non-resident fails to fulfill its liabilities under an advance payment received within the established period, the amount of such unfulfilled liabilities is recognized as the non-resident's income from sources in the Republic of Kazakhstan in the manner prescribed by tax legislation.
Example. If an advance payment to a non-resident was made in July 2025, the 24-month period applies for purposes of income recognition. If the advance payment was made in July 2026, the 12-month period applies.
The State Revenue Committee draws taxpayers' attention to the need to take into account the date of payment of the advance (prepayment) when determining the applicable period.
