Dearcolleagues,

Asanumberoferrors in preparation of tax reporting (returns) on individual income tax and property for previous periods have been identified, we would like to draw your attention to the following:

  1. Whilepreparingthe Form230.0, forthepurposeoffilling in “Income taxed at source” section, theemployee’sincometaxedatthe source of paymentiscalculatedasadifferencebetweentheemployee’staxableincomeaccruedbytheemployer, with due consideration of adjustments provided forin Article 156 of the Tax Code, and the amount of tax deductions provided for in Article 166 of the Tax Code, i.e. it is necessary to indicate the amount of income, which constitutes the base subject to income tax at the source of payment
  1. While preparing the Form 230.02, when filling in section “Property income”, it is necessary to state:

1)capitalgainsfromsaleofproperty;

2)income from property lease out to the persons that are not the tax agents

(Tax agent is an individual entrepreneur, private notary, private bailiff, lawyer, a legal entity, including non-resident legal entity, which according to the Tax Code are entrusted with the duty to calculate, withhold and transfer taxes charged at the source of payment).

Capital gains from sale of property include capital gains generated from sale of the following property:

1)livingaccommodations; countryhouses (dachas); garages; personal subsidiary economy facilities, which are beneficially owned for the period less than one year from the date of registration of the ownership right;

2)land plots and (or) parts of land plots provided for individual housing construction, holding a personal subsidiary economy, dacha construction, garage construction, on which the facilities mentioned in sub-point 1 of this point are located, which facilities are beneficially owned for period less than one year from the date of registration of the ownership right;

3)land plots and (or) parts of land plots provided for individual housing construction, holding a personal subsidiary economy, dacha construction, gardening, garage construction, on which the facilities mentioned in sub-point 1 of this point are located, in case when the period between the dates of preparing the title documents for acquisition and disposal of a land plot and (or) part of a land plot is less one year;

4)land plots and (or) parts of land plots provided for the purposes not specified in sub-points 2) and 3);

5)securities, investment gold as well as interest in a legal entity;

6)immovable property, except for the property specified un sub-point 1) – 4) of the point;

7)motor vehicles and trailers subject to state registration, which are beneficially owned for less than a year from the date of registration of the ownership right;

“Other income” section shall cover:

1)income generated from the sources outside the Republic of Kazakhstan;

2)income from provision of services, performance of works in the Republic of Kazakhstan for the diplomatic missions and missions equal thereto, which are accredited in the Republic of Kazakhstan and are not the tax agents;

3)income of domestic workers earned under the employment contracts signed in accordance with the labor legislation of the Republic of Kazakhstan;

4)income from assignment of right of demand of a share in a housing building under the contract of equity participation in housing construction.

If the above mentioned income is available, its amount should be determined in accordance with Articles 180 and 184 of the Tax Code.

  1. If tax returns are submitted by a person that submits the regular returns, the lines 230.03.002, 230.03.006, 230.03.007 are filled in as of 31 December of the reporting tax period.

Line230.03.006 isintendedtostatethebeneficiallyownedtransportvehicles, withspecificationofthemark andnumberplate in accordance with the title documents. Inthiscaseitisnecessarytostatealsothosetransport vehicles, which have been transferred to another person on the basis of the power of attorney for driving a transport vehicle, even if the tax is paid by said another person.

Line230.03.007 isintendedtostateproperty, with regard to which the rights and (or) transactions therewith are subject to state registration in accordance with the legislative acts of the Republic of Kazakhstan, with specification of the location of immovable property.

Immovableproperty (realestate) includeslandplots, buildings, constructionsandotherproperty, tightly fixed to the land, i.e. facilities which cannot be moved without causingdisproportionatedamage thereto.

Stateregistrationoftherightstoimmovablepropertyandtransactionstherewith (“stateregistration”) isamandatoryprocedureofrecognitionandconfirmationbythestateofthefactofarising, changeorterminationoftherights(encumbrance of the rights) to immovable property and other objects of state registration in the legal cadastral register in the manner and within the period set by the laws.

Therightstoimmovablepropertysubjecttomandatoryregistrationinthelegalcadastralregister arise from the time of their state registration, unless otherwise provided for by the legislative acts. Ifthestateregistrationis not denied, the time of state registration shall be considered the time of application submission.

Ifanyquestionsarise, youarestronglyrecommendedtoapply to the tax service bodies.

At the beginning of 2008 the first Call-center in the taxpayer support system of the Republic of Kazakhstan started its operations. The Call-center was established by the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan TO SERVE THE TAXPAYERS AND PROVIDE THEM WITH CORRECT AND TIMELY INFORMATION IN THE AREA OF TAX LEGISLATION.

The Call-center’s employeesreport over telephone the tax-related information required for the taxpayers.

CurrentlytheCall-centerprovidesservicestheindividualtaxpayers, including individual entrepreneurswhomaycalltophonenumber 8(7172) 58-09-09 inAstana; taxpayers from other regions of Kazakhstan are served on a payable basis.

Saidtelephoneinformationservicereceivesquestionsandapplicationsreadtotaxlegislation, considersthemandprovidespromptresponsesandrendersotherinformationservices.