Charitable Deductions Increased in Kazakhstan


On December 13, 2004 the law amending the tax legislation of Kazakhstan was signed and on January 1, 2005 it came into full force and effect. This law increased the amount of deductions businesses can take for their charitable contributions to NGOs from 2% to 3%.

ICNL started to promote the necessity of such an increase in 2002 immediately after the new Tax Code was adopted with the 2% provision. ICNL cooperated with a variety of initiative groups focusing on tax matters and in particular with NGOs representing business interests such as business unions and business associations. During this time, ICNL also worked in cooperation with the Parliament working group and participated at their sessions, providing legal technical assistance and information on best practices. This new provision should increase donations to the NGO community, stimulate development of corporate philanthropy and help foster a more productive civil society sector in Kazakhstan.