4.4.9. Tax on property

а)Tax on property of legal entities and individual entrepreneurs

Who are the taxpayers?

Legal entities having the objects of taxation in ownership, economic or operational management within the territory of the Republic of Kazakhstan, as well as individual entrepreneurs, having the object of taxation in ownership within the territory of the Republic of Kazakhstan shall be deemed the payers of tax on property. Legal entities, non-residents of the Republic of Kazakhstan, shall be deemed the payers of tax on the objects of taxation located in the territory of the Republic of Kazakhstan.

Certain categories of entities as stipulated for by Article 351 of the Tax Code shall not be deemed the payers of tax on property. They are, in particular, the payers of single land tax within the quotas established, religious associations, etc.

What is an object of taxation by tax on property, and what is a tax base?

Capital assets and intangible assets shall be deemed the object of taxation for legal entities and individual entrepreneurs. At the same time, Article 353 of the Tax Code stipulates the property, which is not the object of taxation, such as land, transport vehicles and any other property.

The average depreciated cost of the objects of taxation determined on the basis of the accounting data shall be deemed the tax base on the objects of taxation for legal entities and individual entrepreneurs.

What is a procedure to assess and pay tax on property?

Taxpayers (except for legal entities that carry out payments to the budget using the special tax regime for legal entities, producers of agricultural goods) shall individually assess tax applying the corresponding tax rate to the tax base.

According to the general rule, legal entities and individual entrepreneurs shall assess tax on property at a rate of 1% applied to the average annual cost of the objects of taxation. Certain categories of legal entities as listed in Article 355 of the tax Code (in particular, nonprofit organizations and organizations that perform an activity in a social sector) shall calculate tax on property at the rate of 0.1%.

Payers of the tax shall be obliged to carry out the current payments of tax on property within a tax period (calendar year). The amounts of current payment of tax shall be paid by the taxpayers in equal parts not later that 20 February, 20 May, 20 August and 20 November of the reporting period.

Final calculation and payment of tax on property shall be made within a period but not later than a period to submit a declaration for a reporting period occurs. At the same time the declaration on tax on property shall be submitted by 31 March of a year following the reporting one.

b)Tax on property of individuals

Who is a payer of tax on property of individuals?

Individuals having the object of taxation in ownership shall be deemed the payers of tax on property of individuals. At the same time, Article 361 of the Tax Code determines the certain categories of individuals, who are not the payers of the tax on property of individuals (including military servicemen, pensioners residing separately within the value of the objects of taxation equal to one thousand monthly calculated indexes, etc.).

What is an object of taxation and tax base?

Taxable object of tax on property of individuals, according to Article 363 of the Tax Code shall be deemed the living premises, summer residential construction, garages and any other constructions, buildings, premises located in the territory of the Republic of Kazakhstan, as well as the objects of constructions in process located in the territory of the Republic of Kazakhstan from the moment of residence (operation) owned by the individuals and not used in entrepreneurship activity.

Value of the objects of taxation determined on 1 January of each year by the authorized body appointed by the Government of the Republic of Kazakhstan shall be deemed the tax base.

What is a procedure to calculate and pay the tax?

Calculation of tax on the objects of taxation of individuals shall be carried out by the Tax Authorities at the place of location of the object of taxation regardless the place of residence of taxpayer by applying the corresponding tax rate to the tax base within a period not later than 1 August of the reporting period.

According to Article 365 of the Tax Code the rates of the tax on property of individuals shall vary from 0.1% up to 1% from the cost of the object of taxation. Tax shall be paid to the budget at the place of location of the objects of taxation not later than 1 October of the reporting tax period (calendar year).