What Is Depreciation in the Republic of Kazakhstan?
In 2026, there is no single depreciation period for all property, plant and equipment in the Republic of Kazakhstan: for tax accounting purposes, depreciation deductions are calculated for individual Group I assets and for the value balance of Groups II, III and IV using rates established by the taxpayer in the tax register within the limits prescribed by the Tax Code (Article 280 of the Tax Code of the Republic of Kazakhstan). For accounting purposes, an organization separately determines the useful life of a specific asset and records the adopted decision in its accounting documents.
Depreciation in accounting is the systematic allocation of the depreciable amount of an item of property, plant and equipment or another non-current asset over its useful life. Accounting depreciation, tax depreciation deductions and the physical wear and tear of property should not be confused: these indicators are calculated for different purposes.
Depreciation makes it possible to recognize an asset's cost as expenses as it is used, rather than automatically at the time of acquisition. Before beginning the calculation, the accountant determines whether the asset has been recognized, how its initial cost was determined and the date from which it is ready for use. For tax accounting purposes, it is also necessary to determine whether the asset qualifies as a fixed asset and the group to which it belongs.
How to Determine the Depreciation Period
In accounting, the depreciation period generally corresponds to the established useful life. This is not merely the expected physical service life: an asset may remain operational, but its continued use may change due to technology, its intended purpose or operating conditions.
To determine the depreciation period of property, plant and equipment, you should:
- Identify the asset, its intended purpose and its place of operation.
- Estimate the period over which the organization expects to use it.
- Consider its technical condition and the mode and intensity of operation.
- Review the manufacturer's documentation and internal data on similar assets, if available.
- Determine the expected residual value if it is provided for by the accounting policy.
- Establish the depreciation method and document the adopted decision in the accounting records.
- Periodically compare the initial estimates with the actual conditions of use.
No single mandatory accounting period can be specified for a vehicle, production equipment or compactor without information about the specific asset. The period is established with regard to its characteristics and anticipated operating conditions. If the period stated in the technical documentation is used as a reference, it is compared with the organization's planned period of operation. The selected period and the basis for its calculation are documented.
Depreciation Rate and Calculation Example
In accounting, the depreciation rate indicates the proportion of the depreciable amount allocated over a particular period and depends on the selected method and useful life. For tax accounting purposes, the taxpayer establishes the rates in the tax register, but they may not exceed the maximum rates for the relevant fixed-asset groups (Article 280 of the Tax Code of the Republic of Kazakhstan).
Using the straight-line method, the calculation can be presented as follows:
Depreciable amount = initial cost − residual value.
Annual depreciation = depreciable amount ÷ useful life.
Annual depreciation rate = 100% ÷ useful life in years.
Illustrative accounting example: an asset costs 1 200 000 tenge, its residual value is determined at 120 000 tenge, and its useful life is 6 years. The depreciable amount will be 1 080 000 tenge, while annual depreciation under the straight-line method will be 180 000 tenge. This is an illustration of the calculation, not a rate or mandatory period established by the Tax Code.
If the source figures are not supported by documents, the information concerning the asset's recognition must be restored and a substantiated estimate documented. The annual accounting amount should not be calculated using an arbitrarily selected percentage, while the tax rate must be recorded in the tax register and limited to the prescribed maximum.
Depreciation of Property, Plant and Equipment and Depreciation Groups
Accounting uses indicators for property, plant and equipment, their cost and accumulated depreciation, while for tax calculation purposes the Tax Code refers to fixed assets and their groups. Therefore, the accounting carrying amount of an asset and the value balance in the tax register may differ.
Four groups are provided for tax depreciation: I — buildings and structures, excluding oil and gas wells, as well as transmission facilities; II — machinery and equipment, excluding oil and gas production equipment, computers and information-processing equipment; III — computers, software and information-processing equipment; IV — fixed assets not included in other groups. The maximum rates are 10%, 25%, 40% and 15%, respectively (Article 280 of the Tax Code of the Republic of Kazakhstan).
Depreciation deductions are calculated separately for each Group I asset and collectively for each of Groups II, III and IV. The rate established by the taxpayer is applied to the value balance of a Group I asset or the relevant group at the end of the tax period (Article 280 of the Tax Code of the Republic of Kazakhstan). Therefore, the tax group, rate and tax calculation result are not automatically transferred to the accounting inventory card.
Before accounting depreciation begins, the following must be established:
- the initial cost and depreciable amount;
- the date on which the asset is ready for use;
- the useful life;
- the residual value, if applicable;
- the depreciation method;
- the department, project or type of activity in which the asset is used;
- the procedure for recognizing expenses and accumulated depreciation.
Not every asset with a service life exceeding one year is depreciated for corporate income tax purposes. Assets not subject to tax depreciation include, in particular, land plots, construction in progress, uninstalled machinery and equipment, investment gold, securities, equity interests and assets whose cost has been fully deducted (Article 250 of the Tax Code of the Republic of Kazakhstan). The result from the disposal of land plots, construction in progress, uninstalled machinery and equipment, and other miscellaneous assets listed in the article is determined for each transaction in accordance with Article 254 of the Tax Code of the Republic of Kazakhstan.
Subsequent expenditure on an asset is analyzed based on the substance of the transaction. Expenses for maintaining working condition and costs that change the asset's characteristics are recognized with regard to the nature of the work, supporting documents and the provisions of the accounting policy.
Accounting and Tax Treatment of Depreciation
Accounting depreciation and tax depreciation deductions are calculated separately. Depreciation deductions for fixed assets calculated in accordance with Article 280 of the Tax Code of the Republic of Kazakhstan are accepted as tax deductions. Differences from the accounting amounts are recorded in the relevant registers.
Where accounting depreciation is recognized depends on the asset's intended purpose. The amount is allocated to the relevant category of costs or included in the cost of an asset being created when this is provided for by the adopted accounting methodology. The Chart of Accounts of the Republic of Kazakhstan assigns property, plant and equipment to subsection 2400 and intangible assets to subsection 2700 of the non-current assets section.
After the calculation, the property, plant and equipment register, inventory cards, general ledger and tax registers should be reconciled. Particular attention must be paid to assets that are idle, under repair, being upgraded, relocated, disposed of or fully depreciated. A zero carrying amount does not in itself confirm the disposal of property: disposal is documented on the basis of the relevant documents.
Amortization of Intangible Assets
For an intangible asset, its useful life and the method of allocating its cost are determined for accounting purposes. Amortization begins when the asset is ready for use, and the selected parameters are recorded in the organization's accounting documents.
For tax accounting purposes, software is included in Group III together with computers and information-processing equipment. The taxpayer establishes the rate in the tax register, but it must not exceed 40% (Article 280 of the Tax Code of the Republic of Kazakhstan).
For example, acquired 1C software may be recognized as an intangible asset if it meets the criteria established by the accounting methodology adopted by the organization. The specific period of its accounting amortization must be substantiated and recorded in the accounting documents; the tax calculation is performed in accordance with the rules for the relevant fixed-asset group.
How to Check Depreciation in 1C
To calculate depreciation in 1C, you must check the asset card and the accounting and tax accounting settings. Command names and section locations may differ depending on the software configuration and release.
- Check the initial cost, recognition date and date on which the asset became ready for use.
- Verify the useful life, depreciation method, residual value and cost allocation category.
- Check whether the asset has been recognized for accounting and tax accounting purposes, as well as its tax group and rate.
- Run the scheduled depreciation calculation for the required period.
- Check the generated entries, expense analytics, remaining carrying amount and tax register.
If a fully amortized intangible asset remains in use or its accounting parameters have been changed, the asset card, change documents and results of the scheduled operation must be separately reconciled. If no calculation is generated after the settings have been checked, analyze the software messages, the document posting sequence and the parameters of the specific infobase.
To dispose of an item of property, plant and equipment due to physical wear and tear, obsolescence or liquidation, the “Write-off of Property, Plant and Equipment” document may be used in a standard configuration. Before posting it, check the disposal date, asset, grounds for write-off, and accounting and tax accounting data.
What to Check in 2026
When transitioning from 2025 to 2026, the accounting period or depreciation rate should not be changed automatically solely because a new calendar year has begun. The accounting parameters must be compared with the actual use of the property, documents relating to acquisition, modernization and disposal must be checked, and the accounting policy must be reviewed to ensure that it remains up to date.
In the tax register for 2026, the allocation of fixed assets among groups, their value balances at the end of the tax period and the rates established by the organization must be checked. For Group I, the calculation is performed for each asset; for Groups II, III and IV, it is performed collectively for each group. The rates must not exceed 10%, 25%, 40% and 15%, respectively (Article 280 of the Tax Code of the Republic of Kazakhstan).
Land plots, construction in progress, and uninstalled machinery and equipment are not included in the tax depreciation calculation because they are assets not subject to depreciation (Article 250 of the Tax Code of the Republic of Kazakhstan). Upon their disposal, the rules for determining the result from the disposal of the relevant type of asset apply (Article 254 of the Tax Code of the Republic of Kazakhstan).
Frequently Asked Questions
What depreciation period is established in the Republic of Kazakhstan? — There is no single accounting period for all assets. The useful life of a specific asset is established with regard to its expected use. For tax accounting purposes, calculations are performed for Group I assets and for Groups II, III and IV using rates within the prescribed limits (Article 280 of the Tax Code of the Republic of Kazakhstan).
How is the depreciation period of a vehicle or equipment determined? — The expected period of use, technical specifications, condition and operating mode must be assessed, after which the adopted decision must be documented. For tax accounting purposes, the fixed-asset group and a rate within the limits of Article 280 of the Tax Code of the Republic of Kazakhstan must also be determined.
Are depreciation and wear and tear the same? — No. Depreciation is the accounting allocation of cost, while physical wear and tear characterizes the condition of the property. The asset's actual working condition and the amount of accumulated accounting depreciation may change differently.
What should be done with a fully depreciated asset? — Check its existence, condition and continued use. If the asset remains in use, its details are retained in the accounting records until its disposal is documented.
What maximum rates apply in tax accounting? — The limits established for Groups I, II, III and IV are 10%, 25%, 40% and 15%, respectively. The taxpayer establishes the specific rate in the tax register without exceeding the relevant limit (Article 280 of the Tax Code of the Republic of Kazakhstan).
Why is depreciation not calculated in 1C? — Check the asset's recognition, the date on which it became ready for use, its useful life, depreciation method, tax group and cost allocation settings. The names of operations depend on the configuration and release.
Sources
- Tax Code of the Republic of Kazakhstan, Article 250 “General Provisions” concerning assets not subject to depreciation.
- Tax Code of the Republic of Kazakhstan, Article 254 “Income from an Increase in Value of Other Assets Not Subject to Depreciation.”
- Tax Code of the Republic of Kazakhstan, Article 280 “Calculation of Depreciation Deductions.”
- Standard Chart of Accounts — non-current assets