On the fulfillment of tax obligations when renting out housing

Landlords who are not registered as an individual entrepreneur (hereinafter referred to as the sole proprietor), in accordance with the conditions of application, can fulfill tax obligations by paying a single aggregate payment (hereinafter referred to as the ESP) or by submitting an individual income tax declaration (hereinafter referred to as the IPN).
An individual entrepreneur, when renting out housing, has the right to use a special tax regime (hereinafter referred to as the SNR) based on a patent or a simplified declaration when calculating with the budget.
At the same time, each of the methods has its own advantages and limitations on application.

Declaration on IPN for individuals

Individuals who rent out housing and are not registered as sole proprietors annually, no later than March 31 of the year following the reporting tax period, submit a declaration on IPN (form 240.00) and pay IPN in the amount of 10% of the income received no later than ten calendar days after the deadline set for submitting the declaration.
Individuals can submit a declaration on IPN (form 240.00) through the mobile application "e-Salyq Azamat" or through the Taxpayer's Office on the web portal cabinet.salyk.kz .
If the housing is rented to a tax agent (IE, a person engaged in private practice, a legal entity, its structural divisions, a non-resident legal entity), calculation, withholding and payment to the budget of the IPN are carried out at the source of payment by the tax agent.

ESP payers

Individuals can fulfill tax obligations by paying the ESP in the amount of 1 MCI for residents of cities of republican and regional significance, the capital and 0.5 MCI for residents of other settlements. Such individuals will be recognized as ESP payers from the day on which the payment was made until the last day of the month for which the payment was made. At the same time, the amount of income for the calendar year of the ESP payer should not exceed 1,175-fold MCI.

Sole proprietors applying the SNR on the basis of a patent or a simplified declaration

Sole proprietors applying the SNR on the basis of a patent or a simplified declaration calculate the IPN at the rate of 1% or 3% of the income received, respectively (exempt from payment of the IPN until 2023), and also pay social payments (social contributions, mandatory pension contributions, contributions and contributions to the OSMS) at the rates established by the laws "On Compulsory Social Insurance", "On Pension provision" and "On compulsory social health insurance".

Responsibility for failure to submit tax reports on time

In accordance with Articles 272 and 275 of the Code of Administrative Offences of the Republic of Kazakhstan, failure to submit tax reports, as well as concealment of taxable items and other property subject to reflection in tax reporting, entails administrative penalties, including in the form of a monetary fine.
Below is a memo indicating tax rates, tax period, deadlines for submitting tax reports and payment deadlines.

"Note"
If the housing is rented to a tax agent (IE, a person engaged in private practice, a legal entity, its structural divisions, a non-resident legal entity), calculation, withholding and payment to the budget of the IPN are carried out at the source of payment by the tax agent.