On the practice of taxation of subjects of natural monopolies
In order to clarify the practice of taxation of subjects of natural monopolies (SEM), the following is reported.
According to the information of the Committee on Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan, the formation of tariffs for regulated services is carried out in accordance with Article 118 of the Entrepreneurial Code of the Republic of Kazakhstan and the legislation on natural monopolies.
In accordance with subparagraph 13) of Article 4 of the Law of the Republic of Kazakhstan "On Natural Monopolies", regulated services are goods, works and services provided by subjects of natural monopolies and subject to state regulation.
At the same time, the investment program, according to subparagraph 7) of Article 4 of the said Law, is a set of investment measures aimed at developing, modernizing and maintaining infrastructure, as well as achieving established technical, economic and environmental indicators.
In accordance with paragraph 6 of Article 21 of the Law, the implementation of the investment program, as well as the repayment of borrowed funds raised for its implementation, is carried out at the expense of profits and depreciation included in the tariff.
Thus, the profit and depreciation deductions included in the tariff have a strictly targeted purpose and should be used exclusively for the implementation of approved investment programs. The use of these funds in a free or residual manner within the framework of the costly tariff method is not provided.
In addition, the tariff estimate includes other expenses necessary for the implementation of regulated activities, including labor costs, mandatory deductions, acquisition of strategic resources (coal, fuel oil, electricity, water, and others), depreciation, repairs, and investment measures.
Consequently, the tariff provides for the reimbursement of economically justified costs and the formation of funds allocated for the development of infrastructure and the implementation of investment programs.
In this regard, the application of the tax and budget legislation of the Republic of Kazakhstan should be carried out taking into account the requirements of the relevant legislation on natural monopolies and the specifics of the targeted use of funds.
We note that the tariff is a monetary expression of the cost of a regulated service, formed on the basis of economically reasonable costs, and is used exclusively for tariff regulation purposes. At the same time, the tariff estimate cannot be considered as a basis for determining tax obligations.
At the same time, if deviations are detected between the indicators provided for in the tariff estimate and the actual costs incurred, such facts are subject to reflection and analysis in accordance with the established procedure.

Source : https://www.gov.kz/memleket/entities/kgd-kostanay/press/news/details/1191283?lang=kk