Since January 1, 2021, Kazakhstan has introduced a phased universal declaration.
The main task of universal declaration is:
* Ensuring fair taxation and improving social policy;
* creation of an effective mechanism for controlling the income of individuals;
* Reducing the level of corruption and the shadow economy.
So, since January 1, 2021, the "entrance" declaration has been submitted by civil servants and persons equated to them, as well as their spouses - 580 thousand individuals.
At the second stage, in 2023, employees of state institutions and the quasi-public sector, as well as their spouses, represented 2.1 million people.
At the third stage, from January 1, 2024, the declaration will be submitted by the heads and founders (participants) of legal entities, individual entrepreneurs, as well as their spouses. It is planned to reach 3.9 million individuals.
At the fourth stage, from January 1, 2025, other categories of citizens will be represented (for example, employees of private structures, pensioners, housewives, students and others). It is planned to cover more than 6.4 million individuals.
In total, about 13 million people should enter the VD system.
Who should submit a declaration of assets and liabilities in 2024 as part of the third stage?
Starting from January 1, 2024, the declaration must be submitted by the heads and founders (participants) of legal entities, individual entrepreneurs, as well as their spouses.
This requirement also applies to inactive and suspended persons.
Since, according to the norms of the Civil Code, branches and representative offices are not legal entities, the heads of branches and representative offices do not have an obligation to submit a declaration in 2024 (paragraph 3 of Article 43 of the Civil Code).
Also, in 2024, the declaration of assets and liabilities is not submitted by persons engaged in private practice.
What information should be indicated in the declaration?
The universal declaration system consists in providing all citizens with a declaration of assets and liabilities, which reflects all foreign assets, movable, immovable property of an individual. Such as:
* real estate and transport abroad;
* money in a foreign bank over 3.5 million tenge (1,000 MCI);
* participation in a foreign company;
* securities, digital assets (bitcoins, etc.);
* equity agreement (share in a residential building);
* investment gold (gold bullion);
* objects of intellectual property and copyright;
* cash within KZT 34.5 million (10,000 MCI );
* notarized loan agreements with other persons.
* other property (optional), worth over 3.5 million tenge (cultural values, jewelry, pedigreed animals, etc.) – an assessment must be made before the deadline for submitting the declaration (no later than September 15, 2024) as of 12/31/2023.
Subsequently, a declaration of income and property is submitted annually (form 270.00), which reflects the income received for the calendar year, information on the acquisition or alienation of property both in Kazakhstan and abroad, as well as sources of covering the costs of their acquisition.
Thus, the income and property declaration reflects:
* income (from renting, selling real estate, transport, securities, income from abroad, etc.)
* tax deductions (medical expenses. services, education, mortgage payments, deduction for large families)
* acquisition/alienation of property, including gratuitously received (real estate, transport, securities, digital assets, etc.)
* sources of acquisition of expensive property
* securities, digital assets (bitcoins, etc.)
* equity agreement (share in a residential building)
* investment gold (gold bullion)
* notarized loan agreements for individuals
* participation in a foreign company
* Real estate and transport abroad
* money in a foreign bank over 7.3 thousand US dollars (1,000 MCI)
How and when to submit the declaration?
The declaration must be submitted by September 15, 2024 at the place of residence. The declaration can be submitted through the web portals "Taxpayer's Office", "Electronic Government", mobile applications "e-salyqAzamat", Halyk, Bank Centercredit. Citizens also have the right to submit a declaration in hard copy by mail or in person.
How do I prepare for filing a declaration?
It is necessary to declare assets located abroad and in Kazakhstan as reliably as possible. In the future, the value of assets will be taken into account when determining taxable income.
Therefore, before filling out the declaration, we recommend:
1) prepare the appropriate supporting documents;
2) place funds (over 34.5 million tenge) in bank accounts before 12/31/2023;
3) notarize debts and claims available on December 31, 2023, before the date of filing the initial declaration;
4) to carry out an assessment of the property, the unit value of which as of December 31, 2023 is over 3.5 million tenge, before submitting the declaration;
5) you can check the availability of assets and liabilities in Kazakhstan on the websites:
on securities https://portal.kacd.kz;
under agreements on equity participation in housing construction https://homeportal .kz; https://www.gov.kz/services/3910?lang=ru;
on objects of intellectual property, copyright https://gosreestr.kazpatent.kz;
on the property transferred to the trust management https://egov.kz/cms/ru/services/pass077_mu;
According to the presence of accounts receivable/payable (loan agreement), it is necessary to send a request to the Republican Notary Chamber through the Doculite system.
Declaration of an individual's debt
One of the conditions for completing the "entry" declaration of assets and liabilities is to reflect the debts and claims available as of December 31, 2023.
That is, citizens must reflect in the declaration their debts to other individuals or legal entities. Debts payable to this individual by other persons are also reflected.
According to the norms of the Tax Code, loan agreements must be notarized (clause 2 of Article 631 of the Tax Code).
Notarization of contracts will ensure a reliable reflection of the amount of debt and obligations of an individual.
The procedure for certifying contracts is regulated by Chapter 8 of the ZRK "On Notaries", the timing of notarial actions is determined by Article 40 (on the day of presentation of all necessary documents and payment of the state fee).
Thus, contracts and other documents must be notarized before the initial declaration is submitted (the deadline for submission is September 15, 2024). The Republican Notary Chamber confirmed the right of individuals to certify these contracts (concluded before December 31, 2023) in the period up to September 15, 2024.
Please note that the reflection of debts and obligations is possible only in the initial declaration, additions will not be accepted (subclause 7) of clause 5 of Article 211 of the Tax Code).
Bank loan agreements are not subject to reflection in the declaration.
At the same time, the remaining contracts concluded with legal entities (including microfinance organizations) are subject to reflection in the declaration.
For all questions related to the procedure for certifying loan agreements, it is necessary to contact the regional notary chambers for advice (addresses of notary chambers are posted on the website www.notariat.kz ).
Declaration of cash
Universal declaration should ensure fair taxation of citizens based on the amount of their income. The identification of tax evaders will reduce the level of the shadow economy.
One of the effective methods of reducing shadow turnover is the transition to non-cash payments, which have become an integral part of the lives of our citizens.
According to the results of 9 months, the share of non-cash payments in Kazakhstan increased to 86% (last year - 82%), according to the Association of Financiers of Kazakhstan.
In addition to adults, non-cash payments are also actively used by children from 6 years old, 41.4% of parents issued a card for their children (data from the Center for Sociological Research Kursiv Research).
The safety of citizens' bank deposits is ensured by the state deposit guarantee system, in which 19 banks participate. The return of deposits in the amount of 20 million tenge is guaranteed by the state.
Placing money on deposits guarantees not only their safety, but also protection from inflation.
In this regard, the number of deposits of individuals in banks increased from 16.9 million to 19.8 million, the annual increase was 14.3%, the total volume of deposits amounted to 18.6 trillion tenge. (data from the Kazakhstan Deposit Guarantee Fund).
Given the insignificant amount of cash in the country's turnover, when declaring, each citizen can reflect cash in the amount of no more than 34.5 million tenge (10,000 MCI). The availability of other funds is confirmed by second-tier banks.
The Tax Code provides for the obligation of banks to submit information on taxpayers' bank accounts to the tax authorities (Article 26 of the Tax Code).
This requirement does not contradict the norms of the Constitution, since restrictions on this right are allowed in cases and in accordance with the procedure directly established by law (paragraph 2 of article 18 of the Constitution).
In this regard, the provisions of the Law "On Banks and Banking Activities" (Article 50) and the Tax Code (Article 30) provide for the disclosure of banking secrecy for tax purposes.
Please note that it is necessary to declare assets located abroad and in Kazakhstan as reliably as possible. In the future, the value of assets will be taken into account when determining taxable income.
Declaration of other property and gifts
Citizens can optionally indicate valuable property worth over 3.5 million tenge (1,000 MCI) per unit in the declaration of assets and liabilities.
Such property includes any expensive property located both in the Republic of Kazakhstan and abroad, for example, cultural values, jewelry, pedigreed animals and other valuable property, as well as objects of unfinished construction.
The specified property is declared if there is an estimated value as of December 31, 2023. At the same time, an assessment must be made before the declaration is submitted (no later than September 15, 2024).
Valuable gifts are declared if they are received in the form of:
real estate and transport registered abroad, shares in a foreign company. At the same time, the apartment, transport, and shares in the authorized capital of a legal entity registered in Kazakhstan do not need to be reflected;
cash in the range of 34.5 million tenge (10,000 MCI);
Shares in housing construction, securities, digital assets, investment gold.
other property – is reflected at will if the cost per unit of such a gift exceeds 3.5 million tenge (1000 MCI). Such an assessment should be carried out by an independent appraiser as of December 31, 2023.
Declaration of animals and birds
In the declaration of assets and liabilities, citizens can optionally declare animals and birds of expensive breeds, the cost of which exceeds the cost of 3.5 million tenge (1000 MCI) per unit. For example, a thoroughbred horse, an exotic animal or a bird.
Animals and birds do not need to be declared for breeding or use for their own needs. State revenue authorities receive information on agricultural and domestic animals from authorized bodies.
How do tax authorities find out about income from foreign sources?
Since 2021, the Ministry of Finance has been receiving information on the income of Kazakhstani citizens who have entered accounts with foreign banks. This information is received in accordance with the Multilateral Agreement of the competent Authorities on the Automatic Exchange of Information on Financial Accounts (hereinafter – CRS) within the framework of the Convention on Mutual Administrative Assistance in Tax Matters (Strasbourg, January 25, 1988).
Information is received annually from 80 countries, the main countries are the UAE, Great Britain, Turkey, France and others.
The information received is used exclusively for tax administration in order to determine the tax liability for individual income tax.
Correction of the declaration
Citizens have the right to eliminate any errors or inaccuracies independently by submitting an additional declaration within the limitation period provided for by the Tax Code.
How is the tax control of personal income carried out?
At first, automatic desk control is carried out – monitoring of expenses of individuals as follows:
the presence / absence of a declaration is checked;
the fact of non-reflection of income and property in the declaration and understatement of income is revealed.
Then, a tax audit is conducted against citizens who have not eliminated violations based on the results of desk control.
What are the guarantees for ensuring information security and preventing data leakage?
The information systems of the State Revenue Committee operate in a closed loop, without access to the Internet. This ensures the safety of all information received from taxpayers.
On a quarterly basis, the State Technical Service monitors the information security of the systems of the State Revenue Committee.
In addition, a limited number of employees have access to the declarations, who are personally responsible, including administrative and criminal liability.
Administrative responsibility of individuals
For failure to submit a declaration for the first time, a warning is provided, for repeated violation during the year – a fine of 51,750 tenge (15 MCI).
For submitting incomplete, unreliable information in the declaration for the first time – a warning, for repeated violation during the year – a fine of 10,350 tenge (3 MCI) (art. 272 Administrative Code).
For concealing objects of taxation for the first time during the year – a fine of 200% of the amount of unpaid taxes, for repeated violation – a fine of 300% (Article 275 of the Administrative Code)
What happens if an individual does not want to submit a declaration and is ready to pay an administrative fine every year?
Since 2025, failure by an individual to submit a declaration of assets and liabilities, income and property is considered confirmation of the absence of such an individual:
income subject to taxation by an individual independently;
the fact of acquisition, alienation, gratuitous receipt of property (Article 633 of the Tax Code).
In the case of acquisition of property by such a person, its value will be recognized as income and subject to income tax (Article 72 of the Tax Code).
At the same time, a fine of 200% of the amount of unpaid taxes is provided for concealment of taxable objects, and a fine of 300% for repeated violation.