Depreciation of Fixed Assets: How to Distinguish Between Accounting and Tax Accounting

In 2026, accounting depreciation is calculated according to accounting rules, while tax depreciation deductions are calculated according to the rules of the Tax Code of the Republic of Kazakhstan: for CIT purposes, an asset is first recognized as a fixed asset, then assigned to the relevant tax group, and the rate established by the taxpayer is applied within the limits provided for by the Code (Articles 275, 280 of the Tax Code of the Republic of Kazakhstan). Therefore, the accounting depreciation amount and the tax deduction may differ.

Depreciation of Fixed Assets in Kazakhstan: Where to Begin

Before depreciation begins to be charged, it is necessary to make sure that the item has been recognized as property, plant and equipment in accounting and, for CIT purposes, to determine whether it qualifies as a fixed asset. Fixed assets include, in particular, property, plant and equipment recognized upon receipt in accounting in accordance with the applicable standards and intended for use in activities aimed at generating income in the reporting or future periods (Article 275 of the Tax Code of the Republic of Kazakhstan). The mere fact of purchasing equipment, furniture, a vehicle, or other property does not in itself determine how it should be treated for accounting and tax purposes.

The initial cost in accounting may include not only the purchase price but also directly attributable costs recognized under the applicable accounting standards. The composition of such costs is determined with regard to the specific transaction and the adopted accounting policy. Current expenses should not automatically be included in the cost of the asset: for each type of cost, its nature and connection with the acquisition, creation, or preparation of the item for use must be established.

Before commissioning an item, it is recommended to document:

• the receipt and acceptance of the asset;
• the assignment of an inventory number;
• the place of use and the responsible person;
• the initial cost;
• the useful life;
• the selected depreciation method;
• the residual value, if determined;
• the date on which the item is ready for use.

Depreciation of fixed assets in accounting is linked to the moment when the asset is ready for its intended use in accordance with the applicable accounting rules, rather than solely to the date of payment or receipt of an invoice. If an item has been delivered but requires installation, adjustment, or other preparation, the date on which it is ready for use must be determined and supported by documents.

For tax accounting purposes, it is important to separately establish the date of receipt or disposal of a fixed asset and the tax group to which it belongs. The asset accounting card helps compile the information, but the tax calculation is performed according to the rules of the Tax Code of the Republic of Kazakhstan and recorded in the fixed asset tax register (Articles 275, 280 of the Tax Code of the Republic of Kazakhstan).

Fixed Asset Depreciation Rates and Useful Life

The query “fixed asset depreciation rates” may refer to different indicators. In accounting, the amount of depreciation is determined based on the depreciable amount, useful life, and selected method. Separate rules apply to CIT tax accounting: depreciation deductions on fixed assets calculated in accordance with the Tax Code of the Republic of Kazakhstan are deductible (Article 280 of the Tax Code of the Republic of Kazakhstan).

The useful life in accounting is determined based on the expected use of the asset. Consideration is given to the expected intensity of operation, capacity, shift patterns, technical service life, operating conditions, obsolescence, repair policy, and legal restrictions on the use of the item. It is advisable to support the decision with technical documentation, an expert opinion, or a decision of an internal commission.

If expectations regarding the use of an asset change, the accountant assesses whether the useful life, method, or residual value needs to be revised under the applicable accounting rules. The grounds and results of the revision should be documented and applied consistently. Indicators must not be changed solely to obtain a desired expense amount.

The term “fixed asset depreciation group” has a specific meaning for tax accounting purposes. Group I items are accounted for individually, while fixed assets in groups II, III, and IV are accounted for collectively within the relevant group. Depreciation deductions are calculated by applying the rate established by the taxpayer in the tax register to the value balance of a Group I item or the relevant group at the end of the tax period (Article 280 of the Tax Code of the Republic of Kazakhstan).

These rates are maximum rates: the taxpayer establishes the applicable rate in the tax register, but it must not exceed the limit for the relevant group (Article 280 of the Tax Code of the Republic of Kazakhstan). Accounting classifications and useful lives must not be mechanically transferred to the tax calculation.

Not every long-term asset is depreciated for CIT purposes. Non-depreciable assets include, in particular, land plots, construction in progress, uninstalled machinery and equipment, investment gold, as well as assets specified by the Code with a useful life of more than one year that do not qualify as fixed assets or inventories (Article 254 of the Tax Code of the Republic of Kazakhstan).

Charging Depreciation: Main Methods and Calculation Review

The accounting depreciation method is selected based on the expected pattern of consumption of the economic benefits from the item and the requirements of the applicable accounting standards. In practice, methods involving the straight-line allocation of the depreciable amount, methods with a declining base, and methods linked to the volume of output or work performed are used. The selected approach is established in the accounting policy and applied consistently.

Where benefits are consumed evenly, a method that systematically writes off the depreciable amount over the useful life is appropriate. If the use of an item is linked to the actual volume of output or work performed, the calculation may be based on a reliably measurable production indicator. The selected method must reflect the nature of the use of the specific item or homogeneous group of items.

To review depreciation charges, it is useful for an accountant to go through a short checklist:

• the item exists, has been recognized, and is ready for use;
• the initial cost is supported by documents;
• the depreciable amount has been calculated taking the adopted estimate into account;
• the useful life and method have been approved and recorded in the accounting system;
• the depreciation commencement date has been determined correctly;
• expenses have been allocated to the relevant accounts or accounting objects;
• modernization, revaluation, impairment, and disposal have been accounted for separately;
• the group, value balance, and rate have been determined for tax accounting purposes;
• the accounting and tax calculations have not been combined.

Depreciation should be considered separately from impairment and other changes in carrying amount. Repairs, subsequent costs, partial liquidation, revaluation, and full disposal require separate assessment under the applicable accounting rules. When an item is written off due to physical deterioration or obsolescence, its cost, accumulated depreciation, and the result of disposal must be correctly recognized on the basis of properly executed source documents.

In the tax calculation, depreciation deductions are determined at the end of the tax period. For Group I, the calculation is performed for each item, while for groups II, III, and IV it is based on the group’s value balance. This differs fundamentally from accounting depreciation charged on individual inventory items and explains some of the discrepancies between the two types of accounting (Article 280 of the Tax Code of the Republic of Kazakhstan).

Fixed Assets and Depreciation in 1C

The specific steps depend on the software configuration and release, but accounting begins with a correctly completed fixed asset card. The recognition date, department, responsible person, account, depreciation parameters, and method of expense recognition should be checked. An error in a single field may recur each time the period is closed.

To review the result in 1C, you can use the “Fixed Asset Depreciation Statement for the Period (Accounting)” report in the “Fixed Assets and Intangible Assets” section, if it is available in the configuration being used. The report makes it possible to compare the cost of items, accumulated depreciation, and depreciation charges for the selected period.

If a fixed asset is disposed of due to physical deterioration or obsolescence, or is liquidated due to extraordinary circumstances, the standard configuration uses the “Fixed Asset Write-Off” document in the “Fixed Assets and Intangible Assets” — “Fixed Asset Write-Offs” section. Before posting the document, it is important to check the disposal date, carrying amount, accumulated depreciation, reason for the write-off, and the set of source documents.

If the calculated and expected amounts differ, first check the asset card parameters, the date on which the asset was ready for use, the routine operations performed, and the method of expense recognition. Then compare the depreciation statement with the turnovers in the relevant accounts. The tax result should also be reconciled with the fixed asset tax register because the rates and calculation base are established separately for CIT purposes (Article 280 of the Tax Code of the Republic of Kazakhstan).

Correcting the result with a manual entry without identifying the cause is risky: an incorrect setting may also affect subsequent periods. First, it is necessary to establish whether the discrepancy relates to the asset’s source data, accounting depreciation, expense recognition, or tax classification, and then make the correction in the relevant accounting area.

Frequently Asked Questions

When does depreciation of fixed assets begin? — In accounting, the relevant point is when the item is ready for its intended use in accordance with the applicable accounting rules. For the tax calculation, the rules for recognizing the fixed asset, its group, and its value balance are taken into account separately (Articles 275, 280 of the Tax Code of the Republic of Kazakhstan).

Can the same useful life be established for all fixed assets? — A single useful life that does not take the characteristics of the items into account may distort accounting figures. The useful life is determined based on the expected use of each item or homogeneous group, and the decision is documented.

Does accounting depreciation coincide with tax depreciation in the Republic of Kazakhstan? — Not necessarily. In tax accounting, groups II, III, and IV are depreciated based on the group’s value balance, while Group I is depreciated item by item, and the rates are established by the taxpayer within the limits provided for by the Tax Code of the Republic of Kazakhstan (Article 280 of the Tax Code of the Republic of Kazakhstan). Accounting uses parameters determined in accordance with the applicable standards and accounting policy.

How can fixed asset depreciation be checked in 1C? — Generate a fixed asset depreciation statement for the required period, check the asset cards, and compare the depreciation charges with the account turnovers. For CIT purposes, separately compare the data with the fixed asset tax register.

Are all items with a useful life of more than one year depreciated for tax purposes? — No. First, it is necessary to establish whether the asset qualifies as a fixed asset under Article 275 of the Tax Code of the Republic of Kazakhstan. Land plots, construction in progress, uninstalled machinery and equipment, and other assets specified in the Code are classified as non-depreciable assets (Article 254 of the Tax Code of the Republic of Kazakhstan).

What should be taken into account when depreciating fixed assets in 2026? — Check the recognition of the item in accounting, its readiness for use, its useful life, and the depreciation method. For CIT purposes, determine whether the item is a fixed asset, whether the correct group has been selected, whether the value balance has been formed, and whether the rate has been established within the limits of Article 280 of the Tax Code of the Republic of Kazakhstan.