The main changes introduced in the Tax Code on the declaration of assets and liabilities (f 250.00) and the declaration of income and property (f 270.00)

Since January 1, 2021, Kazakhstan has introduced a phased universal declaration.

The main objective of universal declaration is:

• ensuring fair taxation and improving social policy;
• creating an effective mechanism for monitoring the income of individuals;

* Reducing corruption and the shadow economy.

Since January 1, 2021, civil servants and their spouses, as well as their equivalents, have submitted their "entry" declarations.

In the second stage, in 2023, employees of state institutions and the quasi-public sector, as well as their spouses, submitted their declarations.

In the third stage, starting from January 1, 2024, the declaration was submitted by the heads and founders (participants) of legal entities, individual entrepreneurs, and their spouses.

The fourth stage, starting from January 1, 2025, requires the following individuals to submit an asset and liability declaration (Form 250.00):

1) persons who are required to submit a declaration of assets and liabilities in accordance with the laws of the Republic of Kazakhstan;

2) citizens and residents of the Republic of Kazakhstan who own the following assets (claims) outside the Republic of Kazakhstan:

• assets for which rights and (or) transactions are subject to state or other registration with the competent authority of a foreign country;
• money in bank accounts in foreign banks in an amount that exceeds 1,000 times the minimum wage for all bank deposits.

* Investment gold;

• shares in the authorized capital of a legal entity established outside the Republic of Kazakhstan;
• shares in housing construction;
• securities issued by issuers registered outside the Republic of Kazakhstan, except for derivative securities whose underlying asset is a security issued by an issuer registered in the Republic of Kazakhstan;
• money in foreign brokerage accounts;
• intellectual property and copyright outside the Republic of Kazakhstan.
• debts of other persons to an individual (accounts receivable) and (or) debts of an individual to other persons (accounts payable) outside the Republic of Kazakhstan;
• other property with a unit value exceeding 1,000 times the minimum wage, if the value is determined on December 31 of the reporting tax period in an assessment report conducted under a contract between an appraiser and a taxpayer in accordance with the legislation of the Republic of Kazakhstan on valuation activities or the legislation of a foreign state;

3) citizens and residents of the Republic of Kazakhstan in the case of digital assets;

4) individuals engaged in private practice.

 

 Changes made to Article 631 "Features of Preparing a Declaration on Assets and Obligations"

 In the declaration on assets and liabilities, an individual may indicate other property with a unit value exceeding 1,000 times the monthly calculation index, provided that the value as of December 31 of the reporting tax period is determined in an assessment report conducted under a contract between an appraiser and a taxpayer in accordance with the legislation of the Republic of Kazakhstan on appraisal activities or the legislation of a foreign country.

In this case, the estimated value must be determined no later than the deadline for submitting the declaration.

Also, the debt of other persons to an individual (accounts receivable) and (or) the debt of an individual to other persons (accounts payable) formed as of the date of the declaration:

1) between individuals - in the presence of a notarized contract (transaction, agreement) that is the basis for the emergence of an obligation or claim concluded with an individual.

The debt specified in this subparagraph must be notarized no later than the deadline for submitting the declaration.

2) between an individual and a legal entity and (or) an individual entrepreneur, including a non-resident, in the presence of an act of reconciliation and a civil law contract, except for debts to banks and organizations carrying out certain types of banking operations, microfinance organizations established in accordance with the legislation of the Republic of Kazakhstan;

3) confirmed by a court decision that has entered into force.

 

 

 

 

 

 Individuals who provide a Declaration on Income and Property (Form 270.00):

1) persons who, in accordance with the Law of the Republic of Kazakhstan "On Combating Corruption", are required to submit a declaration of income and property;

2) major participants of the bank, insurance (reinsurance) organizations that manage the investment portfolio in accordance

with the laws of the Republic of Kazakhstan "On Banks and Banking Activities

in the Republic of Kazakhstan", "On Insurance activities", "On the Securities Market", as well as their resident spouses;

3) heads, founders (participants) of legal entities who own more than 10 percent of the authorized capital (shares of joint-stock companies), as well as their resident spouses, except for founders (participants) of non-profit organizations;

4) individuals engaged in private practice;

5) individuals who received income during the reporting tax period that is subject to personal taxation,

except for income from entrepreneurial activities;

6) individuals who, as of December 31 of the reporting tax period, have money in bank accounts in foreign banks located outside the Republic of Kazakhstan in an amount that exceeds 1,000 times the monthly calculation index;

7) individuals who, as of December 31 of the reporting tax period, have property for which rights and (or) transactions are subject to state or other registration with a competent authority of a foreign state in accordance with the legislation of a foreign state;

8) individuals who own digital assets as of December 31 of the reporting tax period;

9) individuals who acquired property worth more than 20,000 times the monthly calculation index established by the law on the republican budget and valid as of December 31 of the reporting tax period in the Republic of Kazakhstan and (or) abroad during the reporting tax period:

10) individuals who submitted an application to the tax agent for the application of tax deductions in the form of a preliminary amount of other deductions;

Changes made to Article 634 "Features of Preparing a Declaration on Income and Property"

In the declaration on income and property, information on the acquisition and (or) disposal of property, as well as on the sources of covering the expenses for the acquisition of property during the reporting tax period, including outside the Republic of Kazakhstan, is reflected:

1) persons who are required to submit a declaration on income and property in accordance with the Law of the Republic of Kazakhstan "On Countering Corruption";

2) major participants of a bank, insurance (reinsurance) organization, managing an investment portfolio in accordance with the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", "On Insurance Activities", "On the Securities Market", as well as their resident spouses;

3) heads, founders (participants) of legal entities owning more than 10 percent of the authorized capital (shares of joint-stock companies), as well as their resident spouses, except for founders (participants) of non-profit organizations;

9) persons who, during the reporting tax period, acquired property worth more than 20,000 times the monthly calculation index established by the law on the republican budget and valid as of December 31, 2022, in the Republic of Kazakhstan and (or) abroad:

real estate subject to state or other registration, as well as property for which rights and (or) transactions are subject to state or other registration;

mechanical vehicles and trailers subject to state registration;

shares in the authorized capital of a legal entity;

securities;

derivative financial instruments (except for derivative financial instruments that are executed by purchasing or selling the underlying asset);

shares in housing construction;

investment gold.