AIFC participants prepare tax reports on CIT according to the forms and in accordance with the procedure approved in accordance with the tax legislation of the Republic of Kazakhstan, depending on a type of services rendered. The Constitutional Statute does not provide for special provisions on the procedure for submitting tax reporting forms (hereinafter – TRF), in connection with which the AIFC participant submits TRF in a generally established manner. For AIFC participants engaged exclusively in financial or ancillary activities, a simplified TRF 180.00 is provided, which is submitted with simultaneous compliance with the following conditions: - carry out activities in the Republic of Kazakhstan only within the AIFC; - receive exclusively the income exempt in accordance with paragraphs 3, 4 and 7 of article 6 of the Constitutional Statute; - are not trustees in accordance with article 40 of the Tax Code. The deadline for submitting TRF 180.00 is identical to the generally established deadline for TRF 100.00 - no later than March 31 of the year following the reporting tax period. In cases of failure to comply with the conditions for submission of the TRF 180.00, the TRF 100.00 is submitted, where the following is provided for the AIFC participants:  special form application 100.12;  special lines 100.00.040IV and 100.00.046II. All other TRFs shall be submitted according to generally established forms and within generally established deadlines.

Since one of the conditions for drawing up and submitting TRF 180.00 is the fact of receiving exclusively income exempt from CIT in accordance with paragraphs 3, 4 and 7 of article 6 of the Constitutional Statute, in the case of also receiving income subject to CIT taxation in a generally established manner, such AIFC participant: - does not submit TRF 180.00; - submits TRF 100.00, which reflects both the preferential income and income taxed by CIT

It is necessary to be guided by the Tax Code and the IFRS. For purposes of accounting, an AIFC participant is required to keep records in accordance with Standard 38 of IFRS (IAS) "38" Intangible Assets". Regarding tax accounting, an intangible asset with an indefinite period of use, for which depreciation is not accrued, is not recognised as a fixed asset (sub-para. 2) of para. 2 of article 266 of the Tax Code). At the same time, the costs for revision of an intangible asset are recognised as subsequent costs, which (sub-para. 2) of para. 2 of article 272 of the Tax Code): - increase the value balance of the group (subgroup) corresponding to the type of asset, or - in the absence of the value balance of the group (subgroup) corresponding to the type of asset - the value balance of the group (subgroup) corresponding to the type of asset is formed at the end of the current tax period (para. 2 of article 272 of the Tax Code). Thus, if an intangible asset is not depreciated in accounting, then it is not a fixed asset for tax purposes and its value is subject to accounting only at the time of its sale in accordance with the procedure defined by article 228 of the Tax Code, and the amount of subsequent costs for its revision is included in the cost balance and amortised in a generally established manner. If an intangible asset is amortised in accounting, then it is included in fixed assets, including the costs of revision, the cost of which is deducted through depreciation deductions for tax purposes (sub-para 1) of para. 1 of article 266 of the Tax Code, para. 2 of article 272 of the Tax Code, para. 1 of article 271 of the Tax Code).

In case of receiving exclusively income exempt from CIT in accordance with paragraphs 3, 4 and 7 of article 6 of the Constitutional Statute, as well as compliance with the other two conditions (the participant's activities in the Republic of Kazakhstan only within the AIFC, and also if the participant is not a trustee in accordance with article 40 of the Tax Code), the AIFC participant has the right to submit a TRF 180.00. Otherwise, the TRF 100.00 is submitted. According to paragraph 13 of the Regulations on keeping separate accounting of income subject to exemption of corporate income tax and subject to taxation, and expenses subject to allocation to deductions by the participants of AIFC, approved by the joint order of the AIFC Governor dated 08.12.17, the Minister of Finance of the Republic of Kazakhstan dated 11.12.17 and the Minister of National Economy of the Republic of Kazakhstan dated 12.12.17, (hereinafter referred to as the Regulations), the amount of direct and indirect expenses is recognised as expenses subject to activities for obtaining income subject to exemption from CIT in accordance with paragraphs 3 and 4 of article 6 of the Constitutional Statute. In accordance with paragraph 14 of the Regulations, the amount of other and third-party expenses is recognised as expenses subject to deductions for income-generating activities subject to taxation. Thus, since the amount of direct and indirect expenses in paragraph 14 of the Regulations is not included in the expenses to be deducted, such expenses are not deductible. In this regard, taking into account the absence of income taxed by the CIT in a generally established manner, based on these provisions of the Regulations, it is assumed that there is no amount of other and third-party expenses to be deducted, which, accordingly, causes the absence of the fact of losses.

Until 1 January 2066, natural and legal persons are exempt from individual and corporate income tax on income received from the following: - profits from the sale of shares or stakes in the capital of AIFC Participants that are legal persons registered under the Acting Law of the AIFC (paragraph 7 (2) of article 6 of the Constitutional Statute). - dividends from shares or stakes in the capital of AIFC Participants that are legal persons registered under the Acting Law of the AIFC (paragraph 7 (4) of article 6 of the Constitutional Statute). In other cases, taxation is carried out in a generally established manner.

In order to provide an answer to these questions, it is necessary to distinguish between entities that are recipients of income. In particular, there are 2 subjects in the situation under consideration: 1) investment fund; 2) a management company that is a member of the AIFC and has the appropriate license of the Astana Financial Services Authority. Regarding taxation of income of investment funds The provisions of the Constitutional Statute do not provide for any special preferential provisions for the income of investment funds directly, and therefore, on the basis of paragraph 1 of article 6 of the Constitutional Statute, the taxation procedure for them is generally established and determined by the Tax Code. Thus, the Tax Code was amended with effect from January 2021 in part: 1) exceptions from the total annual income of investment income received by investment funds registered in accordance with the Acting Law of the AIFC and accounted for by the custodian or the management company of the investment fund (sub-para. 11) of para. 1 of article 241 of the Tax Code); 2) VAT exemption for operations of investment funds registered in accordance with the Acting Law of the AIFC, as well as services for the management of these funds (sub-para. 20) of para. 2 of article 397 of the Tax Code). Thus, if investment funds registered in accordance with the Acting Law of the AIFC have received investment income recorded by the custodian or the management company, then such income is subject to exemption from corporate income tax and value added tax. Regarding the taxation of the management company's income - Until January 1, 2066 AIFC participants are exempt from CIT and VAT on income received from providing investment management services for assets of investment funds, accounting and safekeeping services for investment funds, as well as service related to issuing, offering, trading, purchase and redemption of securities of investment funds in territory of the AIFC (sub-para. 3) of para. 3 of article 6 of the Constitutional Statute); - In addition, until January 1, 2066 AIFC participants are exempt from CIT and VAT on income received from the providing financial services in the territory of the AIFC (sub-para. 5) of para. 3 of article 6 of the Law), determined by the Joint Order of the AIFC, the Ministry of Finance of the Republic of Kazakhstan and the Ministry of National Economy of the Republic of Kazakhstan “On approving the List of financial services provided by participants of the Astana International Financial Centre, the income from which is exempt from payment of corporate income tax, value-added tax” (the List). This List applies to legal entities registered in the AIFC or recognised by the AIFC as its participants in accordance with the Acting Law of the AIFC and licensed by the Astana Financial Services Authority to provide financial services, and is mandatory for them if the latter apply paragraphs 3 and/ or 8-2 of article 6 of the Constitutional Statute. Note that the List includes the following financial services: "Managing Collective Investment Scheme (managing an investment fund)" (see sub-para. 4 of para. 5 of the List); "Providing Fund Administration" (see sub-para. 8 of para. 5 of the List); "Acting as the Trustee of a Fund" (sub-para. 9 of para. 5 of the List). In addition, the above services are exempt from VAT under paragraph 8-2 of article 6 of the Constitutional Statute.

Until 1 January 2066, natural and legal persons are exempt from individual and corporate income tax on income received from the following: - profits from the sale of securities listed, on the day of their sale, on the official list of the stock exchange (sub-para. 1) of para. 7 of article 6 of the Constitutional Statute); - dividends and interest from securities listed, on the day of their accrual, on the official list of the stock exchange (sub-para. 3) of para. 7 of article 6 of the Constitutional Statute). In other cases, taxation is carried out in accordance with the current legislation of the Republic of Kazakhstan. It should be noted that the stock exchange (AIX) is a legal entity, incorporated as a company limited by shares, that provides organisational and technical support for the trading of financial instruments in the AIFC (sub-para. 2) of article 1 of the Constitutional Statute).

A special tax regime based on a simplified declaration may be applied by small business entities - individual entrepreneurs and legal entities-residents of the Republic of Kazakhstan. Thus, obtaining the status of AIFC participant itself is not an obstacle to the application of special tax regimes for SMEs, including based on a simplified declaration. At the same time, most types of income exempt from CIT in accordance with paragraphs 3 and 4 of article 6 of the Constitutional Statute are income from activities incompatible with the application of special tax regimes for SMEs. In particular, a special tax regime is not applied for SMEs providing a number of types of work and services. This list, in particular, includes consulting services; activities on accounting or auditing; financial, insurance and intermediary activities of an insurance broker and insurance agent; activities in the field of law and justice; activities in the framework of financial leasing. In addition, legal entities are also not entitled to apply a special tax regime (hereinafter referred to as the STR) based on a simplified declaration: - having business units, as well as other separate business units and/or tax entities in different localities; - providing services based on agency contracts (agreements). Thus, after receiving the status of AIFC participant, a legal entity can apply a special tax regime based on a simplified declaration in accordance with generally established criteria and conditions. The competence to check for such compliance, as well as in general for compliance with tax legislation, is available only to the tax authorities of the Republic of Kazakhstan. We note that the deletions from the Tax Code specified in the Constitutional Statute do not provide for any provisions on the STR. In this regard, it is necessary to be guided by the Tax Code.

Yes. Property, in addition to money, may be contributed to the payment of the placed paid (partially or completely) shares of a private company, according to the conditions stipulated by the AIFC Companies Regulations (Article 45 of the AIFC Companies Regulations).

The tax regime in the territory of AIFC is established by the Tax Code, except for the exemptions provided by article 6 of the Constitutional Statute. Since this issue is not regulated by the exemptions provided in the Constitutional Statute, it is necessary to refer to the Tax Code. It follows from this that the cost of software received by a tax resident of Kazakhstan (including AIFC participant) as a contribution to the authorised capital is not considered for tax purposes as income (based on sub-para. 1) of para. 2 of article 225 of the Tax Code). Also, in this case, for VAT purposes, there is no turnover on the sale of goods (based on sub-para.1) of para. 1 of article 372 of the Tax Code).

CIT and VAT exemptions are provided for AIFC participants providing financial services, a specific list of which is specified in paragraph 3 of article 6 of the Constitutional Statute (see the previous answer). In addition, CIT exemptions are provided for AIFC participants providing ancillary services, a specific list of which is specified in paragraph 4 of article 6 of the Constitutional Statute (see the previous answer). In other cases, taxation is carried out in a generally established manner.

The tax regime in the territory of AIFC is established by the Tax Code, except for the exemptions provided by article 6 of the Constitutional Statute. The exemptions are the following tax benefits for AIFC participants: 1. Corporate income tax, Value added tax (CIT, VAT): on income received from the provision of financial services within the AIFC (if there is a license obtained from the Astana Financial Services Authority): 1) Islamic banking services; 2) reinsurance and insurance brokerage services; 3) investment management services for assets of investment funds, accounting and safekeeping services for investment funds, as well as services related to issuing, offering, trading, purchase and redemption of securities of investment funds; 4) brokerage, dealer or underwriting services; 5) any other financial services determined by a joint act of the AIFC and the Ministry of National Economy and the Ministry of Finance. 2. Corporate income tax (CIT): on income received from legal, auditing, accounting, consulting services provided to AIFC bodies, as well as to AIFC participants that provide financial services, the list of which is specified in paragraph 3 of article 6 of the Constitutional Statute (see above). For exemption from CIT, AIFC participants must keep separate records in accordance with the Regulations on keeping separate accounting of income subject to exemption of corporate income tax and subject to taxation, and expenses subject to allocation to deductions by the participants of AIFC. These Regulations are posted on the AIFC website in the "Tax Administration" section. 3. Property tax and land tax on facilities located in the territory of the AIFC for AIFC participants that provide financial and ancillary services, the list of which is specified in paragraphs 3 and 4 of article 6 of the Constitutional Statute (see above). 4. Foreign nationals who are employees of an AIFC participant that provide financial and ancillary services the list of which is specified in paragraphs 3 and 4 of article 6 of the Constitutional Statute, are exempt from personal income tax on income received from activities in the AIFC under their employment contracts with the AIFC Participant. 5. Natural and legal persons are exempt from individual and corporate income tax on income received from the following: - profits from the sale of securities listed, on the day of their sale, on the official list of the stock exchange; - profits from the sale of shares or stakes in the capital of AIFC participants that are legal persons registered under the Acting Law of the AIFC; - dividends and interest from securities listed, on the day of their accrual, on the official list of the stock exchange; - dividends from shares or stakes in the capital of AIFC participants that are legal persons registered under the Acting Law of the AIFC.