Regarding the development of criteria for classifying transactions carried out on bank accounts of individuals as transactions that have signs of receiving income from entrepreneurial activities

The Ministry of Finance of the Republic of Kazakhstan approved the Order of the Minister of Finance of the Republic of Kazakhstan “On approval of the criteria for classifying transactions carried out on bank accounts of individuals as transactions that have signs of receiving income from entrepreneurial activities, the Rules, the form and deadline for submission by second-tier banks and organizations engaged in separate types of banking operations, information on operations carried out on bank accounts of individuals, classified as operations that have signs of receiving income from entrepreneurial activities” (hereinafter referred to as the Order).

       The criteria for classifying transactions that have signs of receiving income from entrepreneurial activities include the following criteria:

• Receipt by 1 (one) individual during each of 3 consecutive calendar months from 100 (one hundred) or more different persons of funds to a bank account not intended for business activities.

       As part of the Tax Code, it is envisaged that by 2025 second-tier banks will transfer information to the state revenue authorities in stages for the following categories of individuals, supplementing the already existing categories:

        Stage 1 (from January 1, 2022 to January 1, 2023):

- for civil servants and their spouses, as well as persons equated to them and their spouses.

       Stage 2 (from January 1, 2023 to January 1, 2024):

- for employees of the public sector and their spouses, as well as employees of subjects of the quasi-public sector and their spouses.

       Stage 3 (from January 1, 2024 to January 1, 2025):

- for managers, founders (participants) of legal entities and their spouses, individual entrepreneurs and their spouses.

        Stage 4 (from 01.01.2025) - for all remaining categories of the population.

         In 2023, second-tier banks and organizations carrying out certain types of banking operations plan to provide information on stage 1 persons.

We note that the Order does not affect personal transfers of individuals, bona fide taxpayers and is aimed at increasing efficiency in tax monitoring, compliance with the laws of the Republic of Kazakhstan, and preventing damage from tax evasion.

State Revenue Department for Beimbet Mailin District