Good afternoon!
Please tell me how to correctly calculate the amount of IPN from property income?
Situation:
I am the owner of an apartment in which 1/3 of the part was given to me by my daughter in May 2020, that is, I own 1/3 of the part for less than a year.
In August 2020, I am selling this apartment for 12,700,000 tenge, with an estimated cost of 12,521,000 tenge.
According to the Tax Code of the Republic of Kazakhstan:
Article 330. Property income
1) income from the increase in value when an individual sells property in the Republic of Kazakhstan specified in Article 331 of this Code;
Article 331. Income from the increase in value in the sale of property in the Republic of Kazakhstan by an individual
1) dwellings, dacha buildings, garages, objects of personal subsidiary farming located on the territory of the Republic of Kazakhstan on the right of ownership for less than a year from the date of registration of the right of ownership;
The provisions of this paragraph do not apply to income from value gains in the sale of gratuitously received property, which is determined in accordance with paragraphs 5, 6 and 7 of this Article.
At the same time, such market value must be determined by the taxpayer no later than the deadline set for submitting an individual income tax declaration for the tax period in which such property is sold. For the purposes of this paragraph the market cost is cost defined in the report on the assessment carried out by agreement between an appraiser and taxpayer in accordance with Kazakhstan legislation on appraisal activity.
In my situation, the positive difference between the sale price of the property and the market value of the property being sold is 12 700 000 – 12 521 000 = 179 000 tenge.
BUT! This is the total difference from the entire apartment, and not from 1/3 of the part that I own for less than a year, so the amount of property income from this part (1/3 given to me by my daughter) is 179,000 * 1/3 = 59,667 tenge, respectively, the amount of IPN to be paid is 59,667 tenge * 10% = 5,967 tenge.
Question: Is the amount of income tax calculated correctly?
The answer:Hello Mersianova Tamara!
The procedure for calculating income from the increase in the sale of property in the Republic of Kazakhstan by an individual is regulated by Article 331 of the Tax Code.
Thus, according to subparagraph 1 of paragraph 1 of this article of the Tax Code, income from value gains arises when selling an apartment located on the territory of the Republic of Kazakhstan on the right of ownership for less than a year from the date of registration of the right of ownership.
In accordance with paragraph 6 of article 331 of the Tax code, in cases of implementation of individual houses, built by his implements, and the property specified in subparagraphs 1) – 7) of paragraph 1 of this article, received in the form of inheritance, charity support (except for the case stipulated by paragraph 5 of this article), income from capital gain is the positive difference between the price (cost) of the sale of the property and the market value of the property sold on the date when the right of ownership.
Under paragraph 7 of article 331 of the Tax code, in the case referred to in paragraph 6 of this article, in the absence of a market value, determined on the date of emergence ownership right on the sold property specified in subparagraphs 1) – 7) of paragraph 1 of this article, or failure to observe the deadline for determining the market cost specified in paragraph 6 of this article, and in other cases, lack of price (cost) of acquisition of property not specified in paragraph 6 of this article, income from capital gain is:
1) for the property specified in subparagraph 1) of paragraph 1 of this Article – a positive difference between the price (value) of the sale of the property and the estimated value. In this case, the estimated value is the value determined for the calculation of property tax by the State Corporation "Government for Citizens", as of January 1 of the year in which the right of ownership of the sold property arose.
Thus, the provisions of paragraph 6 of Article 331 of the Tax Code on determining the market value of realizable property apply to property received in the form of inheritance or charitable assistance.In this case, due to the fact that the apartment was donated, it is not necessary to determine the market value of the property. Income from capital gain is 1/3 of the positive difference between the price (cost) sales of property and estimated value (i.e. value determined for calculating property tax).