CIT Deductions: Which Business Travel Expenses Are Deductible? - FCHAIN

CIT Deductions: Which Business Travel Expenses Are Deductible?

Business travel is a common part of many companies’ operations. Negotiations with partners, meetings with clients, participation in conferences, visits to branches, and work at project sites often require employees to travel on business. In such cases, businesses frequently ask whether these expenses can be deducted when calculating Corporate Income Tax (CIT) and what requirements must be met for the expenses to qualify as tax deductions. The answer is provided by the Tax Code of the Republic of Kazakhstan. However, in practice, it is equally important not only to understand the legal requirements but also to properly document and substantiate the expenses incurred.

 

What Does the Tax Code Say?

According to Article 257 of the Tax Code of the Republic of Kazakhstan, taxpayers are entitled to deduct actual expenses incurred if they are directly related to income-generating activities and supported by appropriate documentation. In other words, a business trip alone does not automatically qualify for a tax deduction. The company must demonstrate that the trip was necessary for its business activities and directly connected with generating income.

 

Which Business Travel Expenses Can Be Deducted?

Provided that the requirements of the tax legislation are met, the following business travel expenses may be deductible for Corporate Income Tax purposes:

1. transportation expenses to and from the destination;
2. accommodation expenses;
3. daily allowances (per diem);
4. expenses for visa processing, consular services, and mandatory medical insurance.

These expenses may reduce the company’s taxable income if they are incurred in connection with income-generating activities and are properly documented.

 

Supporting Documentation

One of the key requirements is documentary evidence of the expenses incurred. Without sufficient supporting documentation, the tax authorities may reject the deduction when determining taxable income.

Supporting documents generally include:

1. Documents confirming transportation expenses: airline tickets, railway tickets, etc.
2. Documents confirming accommodation expenses: Certificate of Completed Services (Acceptance Certificate), Electronic Invoice, or hotel invoice.
3. Documents confirming payment: fiscal receipt, bank statement, or payment order.
4. Documents confirming visa and insurance expenses: receipts for consular or visa fees, insurance policy, receipts, and invoices issued by visa application centers.

The more complete the supporting documentation, the lower the risk of questions during a tax audit.

 

Connection Between Expenses and the Taxpayer’s Business Activities

Another mandatory requirement is that the expenses must be directly related to the taxpayer’s own business activities.

The expenses should be incurred in the interests of the taxpayer and contribute to conducting business operations or fulfilling obligations to clients and business partners.

 

Which Expenses Are Not Deductible?

It should be noted that not all expenses incurred during a business trip may reduce the Corporate Income Tax base.

In particular, expenses incurred solely in the interests of another independent legal entity and unrelated to the taxpayer’s own business activities cannot be treated as the taxpayer’s expenses and therefore are not deductible.

For this reason, companies should clearly define the purpose of each business trip, document it properly, and retain evidence confirming that the trip was necessary for the company’s operations.

 

Why Is Proper Documentation Important?

Practice shows that errors in documenting business travel expenses may result in the rejection of tax deductions, additional tax assessments, and questions from the tax authorities.

Therefore, accounting departments should not only collect supporting documents in a timely manner but also ensure compliance with internal business travel procedures, including issuing the necessary orders, reports, and other documents required by legislation and the company’s accounting policies.

Properly prepared documentation confirms the economic justification of expenses and significantly reduces the company’s tax risks.

 

Accounting, Tax and HR Services by FChain

Proper accounting and tax compliance are essential for maintaining financial stability and minimizing tax risks. FChain provides comprehensive accounting and tax support services for businesses in Kazakhstan, allowing entrepreneurs to focus on business growth while we take care of accounting and compliance.

Our services include:

• business registration in Kazakhstan;
• accounting and tax support in compliance with the legislation of the Republic of Kazakhstan;
• payroll and tax calculations, preparation and timely submission of tax and statistical reports;
• proper expense accounting and application of tax deductions, including consultations on CIT, VAT, and other taxes;
• HR administration support and consultations on labor legislation.

The FChain team supports businesses comply with legal requirements, optimize internal processes, and fulfill all tax obligations on time. If your company needs professional accounting support, business registration services, or tax consulting, contact our specialists—we will provide a solution tailored to your business needs.

 

Updated 2026 Production Calendar and Working Time Balance in Kazakhstan

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

  📩 almaty@f-chain.com
📱 WhatsApp: +7 771 214 1820