Transport Tax for Businesses and Individuals in Kazakhstan in 2024

In Kazakhstan, individuals who own a car are required to pay an annual transport tax, and 2024 is no exception. This obligation also extends to legal entities.

Why is the transport tax needed? How is it calculated for individuals and legal entities in Kazakhstan? When must the payment be made, and what happens if payment is delayed?

Does the transport tax in the Republic of Kazakhstan apply to everyone in 2024?

The transport tax is governed by the Tax Code (Section 13). It falls under the category of local taxes, meaning it is paid into the local budget (i.e., where the vehicle is registered).

Who is subject to the tax? For individuals, it’s straightforward: all individuals who have registered a vehicle must pay the tax. There are also three categories of legal entities subject to the tax:

1. Companies with vehicles on their balance sheets. Note that the vehicle may be owned by the company or may have been transferred to the organization for management or business operations.
2. Company subdivisions where a vehicle is registered. Subdivisions are taxpayers if such a decision is made by the head organization.
3. Companies that have acquired a vehicle through a leasing agreement (financial lease).

Note that among individuals, there are groups exempted from taxation (specifically – one vehicle is exempt). These include WWII participants, disabled individuals, and mothers with many children. There are also exceptions for legal entities – the tax does not apply to:

• Organizations producing agricultural products. Note that in this case, the transport tax is not paid for equipment described in the 2018 Order.
• State institutions.
• Public organizations of disabled individuals. These associations are not taxpayers only if they have one car with an engine volume up to 3 cubic meters and one bus.

It should be noted that smaller entrepreneurs (specifically representatives of peasant farms) may not pay the tax if they use a vehicle within the limit. If the limit is exceeded, the payment must be made to the budget.

Is every vehicle subject to taxation?

The Tax Code states that all vehicles registered in the Republic of Kazakhstan are subject to taxation (except trailers). However, there are nuances. For example, the 2024 tax in Kazakhstan does not apply to the following vehicles:

• Cars used for medical assistance.
• Quarry dump trucks. Only heavy special equipment with a lifting capacity exceeding 40 tons is exempt from the tax.
• Marine vessels.
• Special vehicles. Such cars are subject to tax, but not a transport tax, but a property tax.

What does this mean in the end? All other vehicles not included in the above list are subject to taxation. This includes trucks and passenger cars, yachts, aircraft, buses, and even snowmobiles.

How is the transport tax calculated in Kazakhstan?

The amount is tied to the Monthly Calculation Index (MCI): as the MCI changes every year, so does the tax amount. From January 1, 2024, the MCI is 3,692 tenge.

In addition, the calculation of current payments for the transport tax in Kazakhstan depends on the following factors:

The engine volume of the vehicle.

The rule is simple: the more powerful the vehicle, the higher the tax.

For example, small cars with engines of less than 1,100 cm³ are valued at 1 MCI, meaning such a car “weighs” in at 3,692 tenge. If you own an average car with an engine of 2–2.5 thousand cm³, the tax for it in Kazakhstan in 2024 will reach 6 MCI, that is, 22,152 tenge. For a powerful truck with an engine volume exceeding 4,000 cm³, the tax will be 117 MCI – 463,554 tenge.

Note two nuances:

• If the engine volume exceeds 1,500 cm³, 7 tenge is added to the amount for each cm³ exceeding the limit.
• Not only category B cars are considered passenger cars, but also more powerful models – pickups, crossovers, and SUVs.

Place of manufacture of the vehicle and the date of its release.

For models produced in Kazakhstan and imported into the Republic after December 31, 2013, special rates are provided.

For example, a car with an engine of 3 to 3.2 thousand cm³ is “valued” at 35 MCI, which is equivalent to 129,220 tenge. A powerful model of more than 5,000 cm³ “weighs” in at 200 MCI (738,400 tenge).

Individuals in Kazakhstan will not have to calculate the tax themselves – the tax authorities will take care of this task. Legal entities, however, do their own calculations. The simplest and fastest way to do this is to use the car tax calculator, which is available on the website of the State Revenue Committee, for example.

The transport tax calculator requires necessary data to be input – the system calculates the amount automatically. This service is also useful for individuals as it allows them to verify the tax amount assessed by the tax inspector.

When should the transport tax be paid?

Individuals must pay the tax by April 1. Legal entities have until July 5, 2024. However, there is a nuance. If a company acquires a vehicle after July 1, payment must be made within 10 days after submitting the declaration. The declaration for 2024 will be submitted by March 31, 2025.

What if the car tax in Kazakhstan is not paid on time?

If the transport tax is not paid on time, sanctions will be imposed on the vehicle owner:

• The most common “punishment” is that a penalty is charged for each day of delay. The penalty “countdown” begins when the debt exceeds 1 MCI. If the vehicle owner, even after receiving a notice from the tax authority, does not settle the debt, the payment will be made at the expense of their property.
• In addition, the tax authorities may restrict the ability to open bank accounts or even leave the Republic of Kazakhstan. Individual vehicle owners will only be able to open accounts to receive benefits and other social payments.
  
  

No fines are provided.

Where can you check your vehicle’s transport tax? How can it be paid?

It’s very convenient to check the transport tax amount for individuals in Kazakhstan online. There are three resources available for this:

• The State Revenue Committee’s website Kgd.gov.kz.
• The Electronic Government portal Egov.kz.
• The Biznesinfo.kz website.
  
  

There are several ways to pay as well. Individuals often prefer to have the amount included in the utility bill. Payment can also be made through an online bank or mobile banking application, at a bank or post office, or on the Kazpost website.

Legal entities transfer money from their bank account. However, there is a peculiarity: companies conduct transactions throughout the year and then – after submitting the declaration form 700.00 – make the final settlement (they have 10 days to do so).

The increase in the transport tax in 2024 is mainly due to the rise in the MCI. All the funds that enter the budget will be used to improve the transport infrastructure – building new roads and repairing old communications.

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