Property tax for legal entities and individual entrepreneurs

Property tax payers, according to Article 517 of the Tax Code of the Republic of Kazakhstan, are:

1) legal entities that have the object of taxation on the right of ownership, economic management or operational management in the territory of the Republic of Kazakhstan;

2) individual entrepreneurs who have the object of taxation on the right of ownership in the territory of the Republic of Kazakhstan;

3) a concessionaire who has the right to own and use the object of taxation that is the object of the concession in accordance with the concession agreement;

4) persons specified in Article 518 of the Tax Code of the Republic of Kazakhstan.

          Property tax payers are not:

1) individual entrepreneurs who apply a special tax regime for peasant or farm farms, according to the objects of taxation that are available on the right of ownership, directly used by them in the process of production of agricultural products, their storage and processing;

The taxpayers specified in this sub-clause shall pay property tax on the objects of taxation that are not used directly in the process of production, storage and processing of their own agricultural products in accordance with the procedure established by this section.;

2) state institutions and state educational institutions of secondary education;

3) state enterprises of correctional institutions of the authorized state body in the field of execution of criminal penalties;

4) religious associations.

          According to Article 519 of the Tax Code of the Republic of Kazakhstan, the object of taxation for individual entrepreneurs and legal entities is located on the territory of the Republic of Kazakhstan:

1) buildings, structures related to such in accordance with the classification established by the authorized state body implementing state regulation in the field of technical regulation, parts of such buildings accounted for as part of fixed assets, real estate investments in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

2) buildings classified as such in accordance with the classification established by the authorized state body implementing state regulation in the field of technical regulation, parts of such buildings provided to individuals under long-term housing lease agreements with the right to purchase, accounted for in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting as long-term accounts receivable;

3) buildings, structures that are objects of the concession, the rights of ownership, the

use of which are transferred under the concession agreement;

4) assets specified in Article 260 of the Tax Code of the Republic of Kazakhstan;

5) buildings, structures related to such in accordance with the classification established by the authorized state body implementing state regulation in the field of technical regulation, parts of such buildings accounted for in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting as part of the assets of second-tier banks, transferred to ownership as a result of foreclosure on property acting as collateral, other security, with the exception of buildings (parts of buildings) and structures specified in Clause 1, clause 519 of the Tax Code of the Republic of Kazakhstan;

6) buildings and structures specified in paragraph 6 of Article 518 of the Tax Code of the Republic of Kazakhstan.

2. The object of taxation for individual entrepreneurs who do not maintain accounting records and prepare financial statements in accordance with the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" is recognized as buildings and structures located on the territory of the Republic of Kazakhstan that are classified as such in accordance with the classification established by the authorized state body that carries out state regulation in the field of technical regulation, and are fixed assets in accordance with subparagraph 9) of Article 201 of the Tax Code of the Republic of Kazakhstan.

          The property tax of legal entities and sole proprietors engaged in accounting is calculated according to the formula: Tax base*tax rate, where:

- The tax base is the average annual book value of taxable objects according to accounting data, for individual entrepreneurs who do not keep accounting, the tax base is the total cost of their acquisition, production, construction, installation, installation, as well as reconstruction and modernization;

- The average annual book value of taxable items is defined as 1/13 of the amount received when adding up the book values of taxable items on the 1st day of each month of the current tax period and the 1st day of the month of the tax period following the reporting one.

          Property tax rates (Article 521 of the Tax Code of the Republic of Kazakhstan):

1. Legal entities calculate property tax at the rate of 1.5 percent of the tax base.
2. Individual entrepreneurs and legal entities applying a special tax regime on the basis of a simplified declaration calculate property tax at the rate of 0.5 percent of the tax base
3. The legal entities listed below calculate the property tax at the rate of 0.1 percent of the tax base:

1) non-profit organizations;

2) organizations that carry out activities in the social sphere;

3) organizations that provide library services;

4) legal entities for objects of reservoirs, hydroelectric facilities that are state-owned and financed from the budget;

5) legal entities on the objects of hydro-reclamation facilities used for irrigation of the lands of legal entities - agricultural producers and peasant or farm farms;

6) legal entities for drinking water supply facilities;

9) legal entities on runways at airfields and airport terminals, with the exception of runways at airfields and airport terminals in the cities of Nur-Sultan and Almaty;

10) technology parks;

11)an organization engaged in the organization and holding of an international specialized exhibition on the territory of the Republic of Kazakhstan.

          Legal entities that have a tax rate of 0.1%, pay tax at the rate of 1.5%, if the objects of taxation are transferred to them for use, trust management or lease.

          The zero property tax rate applies only to autonomous educational organizations and legal entities operating in the territories of special economic zones.

          According to Article 700 of the Code of the Republic of Kazakhstan on Taxes, producers of agricultural products, agricultural cooperatives applying a special tax regime, have the right to reduce by 70 percent the amount of property tax, vehicle tax-on taxable objects used in the implementation of activities specified in paragraph 2 of Article 698 of the Code of the Republic of Kazakhstan on Taxes.

          Taxpayers, with the exception of individual entrepreneurs who apply special tax regimes for small businesses, pay the amounts of current tax payments in equal installments no later than February 25, May 25, August 25 and November 25 of the tax period (paragraph 7, Article 522 of the Tax Code of the Republic of Kazakhstan).

          The tax period for calculating property tax is the calendar year from January 1 to December 31. For state-owned enterprises of correctional institutions and religious associations, the tax period is determined from the moment of transfer of taxable objects for use, trust management or lease until the end of such use (Article 524 of the Tax Code of the Republic of Kazakhstan).

          Tax reporting ( Article 525 of the Tax Code of the Republic of Kazakhstan)

1. Individual entrepreneurs (with the exception of individual entrepreneurs who apply a special tax regime for small businesses) for taxable items used (to be used) in business activities, and legal entities submit to the tax authorities at the location of the taxable items the calculation of current tax payments no later than February 15 of the current tax period.
2. The taxpayer shall submit, no later than ten calendar days before the next (during the tax period) due date for the payment of current payments: the calculation of current payments-if tax liabilities arise during the tax period, with the exception of those arising after the last due date for the payment of current payments; the additional calculation of current payments with the appropriate adjustment of the amount of such payments and their distribution in equal shares for the upcoming payment terms-if the tax liabilities for the tax period change.

In this case, the calculation of current payments or an additional calculation of current payments is presented for objects for which tax liabilities have arisen or changed as of the first day of the month of the next deadline for payment of current payments.

          If tax liabilities arise after the last deadline for the payment ofcurrent payments, taxpayers do not present the calculation of current payments.

3. The tax return is submitted to the tax authorities at the location of the objects of taxation no later than March 31 of the year following the reporting tax period.:

1) legal entities;

2) individual entrepreneurs-for tax liabilities determined by the objects of taxation used (subject to use) in business activities;

3) individuals (including persons engaged in private practice) - for tax liabilities determined by the objects of taxation used (subject to use) in business activities and (or) in activities related to such private practice.