Property Tax in Kazakhstan in 2024: What Individuals, Sole Proprietors, and LLCs Need to Know

Every year, individuals and legal entities in Kazakhstan who own taxable property are required to pay property tax. This article will clarify what types of property are subject to taxation and identify those who are exempt from payment.

What is Taxable Property?

In 2024, property tax in Kazakhstan combines two types of taxes: the real estate tax and the land tax. Taxable objects under these categories include:

• Real Estate: This category encompasses not only residential properties but also includes taxes on premises owned, garages, summer houses, and parking spaces.
• Land Plots: Note that not all types of land plots are taxable. Exceptions include specially protected areas, forest funds, and reserve lands. Land used for public purposes (parks, streets, roads) is not subject to taxation.

Only objects located within the territory of the Republic of Kazakhstan are taxable.

Taxpayers should also be aware of the income tax on property sales, applicable when citizens sell real estate or land for a profit, provided they have owned the property for less than a year (excluding properties used for commercial purposes or lands designated for purposes other than residential, summer housing, garages, gardening, or personal subsidiary farming). This tax is levied only on the profit made, with a rate of 10% for Kazakhstan residents.

How is the Tax Calculated?

Property owners, individuals, can find out the amount of property tax from the tax office. Tax officials calculate the amount by July 1 of the year following the reporting year (thus, in 2024, the tax for 2023 will need to be paid).

The calculation uses a formula that considers the rates of property tax for individuals in Kazakhstan and the value of the property. To determine the property price, another formula is applied, accounting for the basic cost per square meter of housing (which varies by region), the living area, the depreciation coefficient, and zoning.

For example, let’s consider the tax for a one-bedroom apartment in Kazakhstan in 2024. The individual owns an apartment with one living room. The property area is 34 square meters. The apartment is on the 4th floor of a five-story building built in 1987 in Almaty, in the Aksay-4 microdistrict.

First, the value of the property is calculated by multiplying the following factors:

• Basic price per square meter in Almaty: 60,000 tenge.
• Property area: 34 square meters.
• Physical depreciation: The building is 37 years old, resulting in a physical depreciation of 37% (1% per year of operation).
• Functional depreciation: The apartment gets a coefficient of 1 for being on neither the first nor the last floor, another 1 for not being a corner apartment, and 1 for the panel construction and presence of all necessary utilities. Multiplying these numbers gives a final functional depreciation coefficient of 1.
• Zoning coefficient: For Almaty (Aksay-4 microdistrict), it is 1.46.
• Change in MCI: In 2023, 1 MCI was 3,450 tenge, and in 2024 it became 3,692 tenge, a change of 1.07 times (3,692 divided by 3,450).

These factors and coefficients are tabulated in the tax code of Kazakhstan (Article 529).

Multiplying these figures results in a total value of 1,179,148.56 tenge.

Since this amount is less than 2 million tenge, the property tax rate in Kazakhstan is 0.05%. Thus, the tax payable by the owner is calculated by multiplying 1,179,148.56 tenge by 0.05%, which equals 589.57 tenge.

A similar approach is used for calculating land tax, considering the base rate of land tax in Kazakhstan, location of the plot, area, presence of structures, etc.

Who is Exempt from Paying Tax?

In 2024, land and property tax in Kazakhstan does not apply to the following categories of individuals: Heroes of the Soviet Union, Heroes of Socialist Labor, people honored with state titles and awards, and WWII veterans. Payments are also exempt for:

• Orphans and children without parental care until they turn 18.
• One parent of a child with a disability or a person with a disability.
• Mothers of many children who hold the title “Mother-Heroine.”s

Some entrepreneurs are also exempt. The tax does not apply to sole proprietors whose property is used in their business activities.

Each category has its benefits. For instance, Heroes of the USSR can reduce the calculated property value by 1,000 MCI, while people with disabilities are entitled to a reduction of up to 1,500 MCI.

When to Make Payments?

As noted, the tax calculation by the tax authorities is completed by July 1 of the year following the reporting year. Payment is due by October 1 of the following year, meaning the property tax for 2023 must be paid by October 1, 2024.

For legal entities, property tax in Kazakhstan is paid quarterly, on or before February 25, May 25, August 25, and November 25 of the current year, according to the calculation of current (advance) payments. Legal entities submit calculations and declarations to the tax authorities independently.

Failure to pay on time or at all can lead to penalties. For individuals, this might mean accrued interest for late payment or even a travel ban, while for legal entities, it could result in fines for not submitting or delaying the submission of payment calculations or declarations.

How to Pay Property Tax in Kazakhstan?

The amount calculated by the tax office will be indicated on the utility payment receipt. It can be confirmed on the e-government portal Egov.kz or in banking applications.

For individuals, the easiest way to pay is through banking apps, such as the mobile application of Bank CenterCredit bcc.kz. Other online payment options include the State Revenue Committee's website or the Egov.kz portal. Payments are also accepted at bank branches or Kazpost offices.

For legal entities, paying the tax on commercial real estate is easiest by transferring funds from their account using online banking or a mobile app for corporate clients.

Funds collected from property tax payments go into local budgets, allowing the state to fulfill its primary functions: providing social support to citizens, maintaining the education and healthcare systems, and developing urban infrastructure.

This article has been translated from its original language using neural network-based translation technology.