Taxation of property in Kazakhstan

The object of taxation by this tax is real estate located in Kazakhstan, in particular:

• dwellings, buildings, country houses, garages, parking spaces and other buildings, structures, premises owned by the right of ownership (Article 528 of TC RK);
• land plots owned by individuals on the right of ownership.

Tax payers are individuals - owners of the specified real estate. At the same time, exemption from tax is provided, including for orphans, parents of disabled children, mothers of large families, as well as for apartment owners in relation to a land plot under an apartment building (Article 526 of TC RK).

Procedure for declaring and paying tax
The tax period is a calendar year (Article 533 of TC RK), that is, the tax is paid annually during the period of ownership of real estate.
Individuals do not need to submit a tax return, since the tax is calculated by the tax authority, which sends a notification to the taxpayer.
As a general rule, the tax is payable no later than October 1 of the year following the reporting tax period. However, in the case of the sale of real estate, the tax for the actual period of ownership in the current year must be paid no later than the day of state registration of the transfer of ownership - in this case, the tax base is determined based on the indicators for the previous year (Article 532 of TC RK).

Tax calculation
Property tax is calculated based on the value of the property, which depends on the type of property and its characteristics. In particular, to calculate the tax base for housing and summer cottages, indicators of the base cost per m2 (determined by the territories of Kazakhstan) are used, which is multiplied by the usable area and a number of coefficients (Article 529 of TC RK). The tax is calculated by the tax authorities no later than July 1 of the following year. If the property has been owned for less than a year, then the tax is calculated in proportion to the number of months, while the month of acquisition is considered a full month, and the month of disposal is not taken into account (Article 532 of TC RK).

The tax rate depends on the size of the tax base and is (Article 531 of TC RK):

• 0.05% with a base of up to 2 million tenge inclusive;
• 1000 tenge + 0.08% of the amount over 2 million tenge - with a base of more than 2 to 4 million tenge;
• 2600 tenge + 0.1% of the amount over 4 million tenge - with a base of more than 4 to 6 million tenge;
• 4600 tenge + 0.15% of the amount over 6 million tenge - with a base of more than 6 to 8 million tenge;
• 7600 tenge + 0.2% of the amount over 8 million tenge - with a base of more than 8 to 10 million tenge;
• 11,600 tenge + 0.25% of the amount over 10 million tenge - with a base of more than 10 to 12 million tenge;
• 16,600 tenge + 0.3% of the amount over 12 million tenge - with a base of more than 12 to 14 million tenge;
• 22,600 tenge + 0.35% of the amount over 14 million tenge - with a base of more than 14 to 16 million tenge;
• 29,600 tenge + 0.4% of the amount over 16 million tenge - with a base of more than 16 to 18 million tenge;
• 37,600 tenge + 0.45% of the amount over 18 million tenge - with a base of more than 18 to 20 million tenge;
• 46,600 tenge + 0.5% of the amount over 20 million tenge - with a base of more than 20 to 75 million tenge;
• 321,600 tenge + 0.55% of the amount over 75 million tenge - with a base of more than 75 to 100 million tenge;
• 321,600 tenge + 0.6% of the amount over 75 million tenge - with a base of more than 75 to 100 million tenge;
• 471,600 tenge + 0.65% of the amount over 100 million tenge - with a base of more than 100 to 150 million tenge;
• 796,600 tenge + 0.7% of the amount over 150 million tenge - with a base of more than 150 to 350 million tenge;
• 2,196,600 tenge + 0.75% of the amount over 350 million tenge - with a base of more than 350 to 450 million tenge;
• 2,946,600 tenge + 2% of the amount over 450 million tenge - with a base of more than 450 million tenge.

Vehicle taxation objects are vehicles registered and (or) registered in the Republic of Kazakhstan (Article 491 of TC RK).
Some types of vehicles (for example, special equipment, mining trucks, marine vessels) are not subject to this tax.
Tax payers are the owners of vehicles (individuals and legal entities). And if the car is leased, then the payers are the lessees (Article 490 of TC RK).

Procedure for declaring and paying tax
The tax period is a calendar year (Article 495 of TC RK). At the same time, individuals are not obligated to file a tax return on vehicles (Article 496 of TC RK).
Tax for the past year is payable by individuals no later than April 1 of the next year (clause 4, article 494 of TC RK).

Tax calculation
As a general rule, taxpayers calculate the tax on their own (Article 493 of TC RK). The tax on vehicles is calculated based on the characteristics of the type of vehicle (TC), in particular (Article 492 of TC RK):

• engine capacity in cm³ - for passenger cars;
• engine power in kW - for motor vehicles, small boats;
• carrying capacity in tons - for trucks and special vehicles (excluding trailers);
• gross tonnage in registered tons - for non-self-propelled water transport;
• vehicle unit - for tractors, agricultural, road-building equipment not intended for movement on public roads;
• number of seats - for buses.

To calculate the tax, a special indicator is used - the monthly calculation index (MCI), which is set for each year. In 2023, the MCI is 3,450 tenge. The tax amount is determined as a certain amount of MCI, depending on the characteristics of the vehicle.

In particular, the following scale of rates is established for cars (clauses 1, 2 of article 492 of TC RK):

• up to 1100 cm³ - 1 MCI;
• over 1100 to 1500 cm³ - 2 MCI;
• over 1500 to 2000 cm³ - 3 MCI;
• over 2000 to 2500 cm³ - 6 MCI;
• over 2500 to 3000 cm³ - 9 MCI;
• over 3000 to 3200 cm³ - 35 MCI;
• over 3200 to 3500 cm³ - 46 MCI;
• over 3500 to 4000 cm³ - 66 MCI;
• over 4000 to 5000 cm³ - 130 MCI;
• over 5000 cm³ - 200 MCI.

In addition, each unit exceeding the lower limit of the corresponding gradation in terms of engine volume over 1500 cm³ increases the amount of tax by 7 tenge (clause 5, article 492 of TC RK). That is, if the engine capacity is 1550 cm³, then the tax amount is calculated as follows: 3 MCI + 50 cm³ * 7 tenge.
If the vehicle has been owned for less than a year, then the tax is calculated in proportion to the number of months of ownership. Moreover, the month of acquisition is considered as a full month, and the month of disposal is not taken into account (Article 493 of TC RK).