Universal declaration: current status, prospects and problematic issues

Universal declaration: current status, prospects and problematic issues

Nurzhan Kuandykov, Director of the Department of Administration of Non-Production Payments, Individuals and Special Tax Regimes of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, reported on the current state, prospects and problematic issues of universal declaration during a press conference.

 

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. About 3.9 million individuals are planned.

 

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.

 

What information should I include in the declaration?

 

The universal declaration system consists in providing all citizens with an "entrance" declaration, which reflects all foreign assets, movable, immovable property of an individual. Such as:

 

• Real estate and transport abroad;

 

• money in a foreign bank over 8.2 thousand US dollars (1,000 MCI);

 

• participation in a foreign company;

 

• securities, digital assets (bitcoins, etc.);

 

• equity participation agreement (share in a residential building);

 

• investment gold (bullion gold);

 

• objects of intellectual property and copyright;

 

• cash in the range of 36.9 million tenge (10,000 MCI );

 

• notarized loan agreements with other persons. Such debts can be notarized before filing a declaration (no later than September 15, 2024). At the same time, the transfer of money must be completed before December 31, 2023.

 

• other property (optional), worth over 3.4 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 (form 270.00) is submitted annually, 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 annual income and property declaration reflects:

 

• income (from leasing, sale of 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 participation agreement (share in a residential building)

 

• investment gold (bullion gold)

 

• 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)

 

Do I need to declare gifts?

 

In the "entrance" declaration of assets and liabilities (form 250.00), 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 36.9 million tenge (10,000 MCI);

 

• shares in housing construction, securities, digital assets, investment gold, intellectual property

 

• other property – is reflected at will if the cost per unit of such a gift exceeds 3.4 million tenge (1000 MCI). Such an assessment should be carried out by an independent appraiser as of December 31, 2023.

 

In the annual declaration of income and property (form 270.00), valuable gifts are reflected if received in the form of:

 

• real estate, transport, shares in a foreign company, securities and other property registered abroad;

 

• money as income subject to taxation on its own.

 

• gratuitously received property located in the Republic of Kazakhstan and abroad. Information on gratuitous receipt is indicated by civil servants and persons equated to them, as well as their spouses.

 

If the gifts are received from individuals and are not intended for business purposes, they are not subject to income tax.

 

How do I declare pets and farm animals?

 

In the declaration of assets and liabilities, citizens can optionally declare expensive breeds of animals and birds, the cost of which exceeds the cost of 3.6 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.

 

The state revenue authorities will receive information on agricultural and domestic animals from the authorized bodies.

 

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. About 99% of citizens submitted declarations in electronic form. Citizens also have the right to submit a declaration in hard copy by mail or in person.

 

 

Administrative responsibility of individuals

 

A warning is provided for failure to submit a declaration for the first time, and a fine of 55,380 tenge (15 MCI) is imposed for repeated violation during the year.

 

For submitting incomplete, unreliable information in the declaration for the first time – a warning, for repeated violation during the year – a fine of 11,076 tenge (3 MCI).

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%.

 

How is the tax control of personal income carried out?

 

In the beginning, desk control is carried out – monitoring of expenses of individuals as follows:

 

the presence/absence of the 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.

Department of State Bodies for the district of Beimbet Mailin