Taxation of income from renting an apartment

Dear taxpayers, the Department of State Revenues for the Karaganda region reminds that leasing real estate is an entrepreneurial activity. Income from it is taxed, for the evasion of which administrative liability is threatened. There are four ways to organize a legitimate rental business: two tax regimes require registration as an individual entrepreneur (individual entrepreneur) and two exempt from this.

Each of them has its own conditions and limitations. With IP registration Individual entrepreneurs can rent out housing under a patent or on the basis of a simplified declaration.

1. Patent Tax 1% of income (not paid until January 1, 2023) + mandatory contributions. Form 911.00 is filled out for payment. Basic conditions: - personal entrepreneurship without the involvement of employees; - income no more than 3528 MCI (10.8 million tenge) per calendar year.

2. Simplified declaration For landlords registered as sole proprietorships: - tax - 3% of income, this part is canceled until January 1, 2023 + mandatory deductions. Basic conditions: - number of employees for the tax period up to 30 people; - income no more than 24,038 MCI (73.6 million tenge); - the presence of a cash register. The declaration (form 910.00) is submitted to the tax office at the location of the payer twice a year: no later than August 15 and February 15.

You can register as an individual entrepreneur in one day through the portal eGov.kz, elicense.kz or using mobile applications of banks. Without IP registration Landlords who do not employ employees may not be registered as individual entrepreneurs. At the same time, annual income limits will be significantly lower.

Tax regimes for individuals: - single cumulative payment (CAP); - personal income tax return.

1. ESP is a fixed payment that includes income tax, social security contributions, pension and medical insurance. It is paid monthly. Terms: - there are no hired workers; - services are provided exclusively to individuals; - annual income up to 1175 MCI (3.6 million tenge). If there was no income in any of the months, the ESP can not be paid. ESP cannot choose (Article 774 of the Tax Code of the Republic of Kazakhstan): - IP; - who works in commercial and retail facilities; - leasing non-residential property; - engaged in private practice; - foreigners and stateless persons, with the exception of candases.

2. Personal income tax return 10% income tax. Payment - once a year, until April 10 in the form 240.00 (surrendered before March 31 following the reporting tax period). For failure to submit tax reports on time and engaging in entrepreneurial activities without registration, measures of administrative responsibility are provided.

For lack of reporting - first a warning, then a fine of 15 MCI (45 945 tenge).