The Legal Department of the Department of State Revenue for the Mangystau region summed up the results of judicial work for 2025. Due to the professional and principled position of the Department, 15 lawsuits in the amount of 937.5 million tenge were satisfied in favor of the state.

One of the most significant cases was the confrontation with LLP "A". The company disputed the notification based on the results of the tax audit for 700.2 million tenge, trying to justify deductions for depreciation of fixed assets. However, the court completely sided with the tax authority.

Why did the court reject the taxpayer?

LLP "A" (a branch of a non-resident foreign company) tried to deduct the depreciation costs of a floating drilling rig and equipment that was not purchased by the branch and was not owned by it. The property was transferred by the parent company as an internal relocation.

The court found:

- The branch is not an independent legal entity and cannot recognize assets belonging to the parent organization in tax accounting.

- According to Article 242 of the Tax Code of the Republic of Kazakhstan, deductions include only real expenses of the taxpayer, confirmed by documents.

- Temporarily imported goods must remain unchanged (Article 303 of the Tax Code of the Republic of Kazakhstan).

- Double depreciation on the same equipment is unacceptable.

"A branch has no right to write off depreciation charges on property owned by the parent company," the court stressed, fully supporting the Department's position.

(Unofficial translation)

Source : https://www.gov.kz/memleket/entities/kgd-mangistau/press/news/details/1253254?lang=ru