Mobile Transfers in Kazakhstan

Since the beginning of the year, mobile transfers have become a significant topic among Kazakhstani citizens. This is largely due to the fact that, starting January 1st, tax authorities began scrutinizing these transfers to identify entrepreneurs evading taxes. Some small business owners, concerned about these inspections, have already stopped using mobile transfers and have shifted to cash-only transactions, leading to an increase in cash circulation. However, it is important to understand under what conditions an entrepreneur may come under the scrutiny of tax authorities and what consequences this could entail. We will discuss this in our article.

Why Are Mobile Transfers Being Inspected?

The State Revenue Committee notes that the main goal of checking money transfers is to combat the grey economy and tax evasion. For example, some shop owners accept payments via mobile transfers without using cash registers or POS terminals, which leaves such transactions outside the official turnover and untaxed. Moreover, this practice infringes on the buyer's rights: if a customer wants to return a product or file a complaint for any reason, they will not be able to prove the purchase without a receipt.

Who Will Be Inspected?

Not all mobile transfers made by Kazakhstanis are subject to inspection. Tax authorities primarily focus on accounts that have received transfers from 100 or more people within a three-month period. Representatives of the committee also specify that an inspection will be conducted if the amount received exceeds three times the minimum wage (which is 255,000 tenge in 2024).

Kazakhstan's Minister of Finance, Nurlan Baybazarov, clarified that the specified amount aligns with the provisions of the Entrepreneurial Code of Kazakhstan. He emphasized that mandatory state registration as an individual entrepreneur (IE) is required for individuals whose annual income from entrepreneurial activities exceeds 12 times the minimum wage (about 1 million tenge).

Nevertheless, this does not mean that citizens cannot transfer money to their loved ones. Individuals not engaged in business can freely transfer money to friends, relatives, and other people for personal purposes and also receive money. There are no restrictions on this. However, if an account receives money from 100 different people within three months, the account holder may attract the attention of tax authorities.

How Will the Inspections Be Conducted?

If signs of entrepreneurial activity are detected during an inspection, the account holder may be placed under desk audit (cameral supervision). As part of this supervision, tax authorities will check for registration of the individual, declaration of income, and changes in property status. This inspection is aimed at giving the individual the opportunity to rectify legal violations, such as registering as a private enterprise and declaring received transfers as income. If the account holder disagrees with the inspection’s conclusions, they can provide documents proving they are not engaged in business activities.

If warnings are ignored, tax authorities may request detailed information about the individual's account from banks and decide whether there are any legal violations.

What Are the Penalties for Tax Evasion?

According to tax authorities, administrative penalties include fines ranging from 15 to 100 monthly calculation indices (MCI) for those who operated as a private enterprise without registration. Additionally, concealing income can result in fines equal to 200% of the income, and for repeated offenses, up to 300%. Failure to issue a receipt can also lead to fines ranging from 15 to 50 MCI.

How to Avoid Being Monitored by the State Revenue Committee?

To avoid being inspected by tax authorities, representatives of the State Revenue Committee recommend that entrepreneurs receiving income via mobile transfers open a special account for conducting business activities.

Additionally, the Tax Code provides simplified taxation conditions for micro and small businesses, with rates varying from 1% to 4%, depending on the chosen tax regime. Entrepreneurs can choose the most suitable regime for themselves, including the patent tax (1%), simplified declaration (3%), or partial tax regime (4%). These regimes can be activated through the e-salyq Business mobile app, which automatically calculates and pays taxes and social contributions.

By the way, is it legal to require cash payments only?

It is also important to consider the legality of requiring cash payments only. According to Article 25 of the Law of Kazakhstan "On Payments and Payment Systems," various payment methods are provided, including bank cards, QR payments, or cash.

A refusal by an entrepreneur to accept cashless payments is illegal and violates the rights of the buyer. In such cases, the entrepreneur may be held administratively liable. For the first violation, a warning is issued, and for repeated violations, according to Article 194 of the Administrative Code, a fine of 40 MCI is imposed.

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