Starting in 2024, Kazakhstan Implements Universal Declaration: What Is It and Who Does It Concern?

The new year 2024 brings yet another change for business owners in Kazakhstan: starting January 1, individual entrepreneurs and legal entities are required to undergo universal income declaration. This process, essentially a business assets census, applies to all entrepreneurs regardless of their industry. Thus, the submission of Declaration Form 250 is required for everyone from small shop owners and confectioners to large enterprise managers.

Declaration Forms 250 and 270: What Are They and What’s the Difference?

In 2024, individual entrepreneurs (IEs) and other business owners in Kazakhstan must submit a declaration of assets and liabilities using Form 250, also known as the entry declaration. This document reflects all business assets within and outside of Kazakhstan (property and money in accounts as of December 31, 2023) as well as liabilities. This form only needs to be filled out once, when the data of the IE are first entered into the declaration system.

Thereafter, each year, business owners in Kazakhstan will submit a declaration using Form 270. This document records income earned by the business over the year.

Forms 250 and 270 are necessary for tracking the development dynamics of entrepreneurship in Kazakhstan.

Who Must Submit the Universal Declaration Using Form 250 in Kazakhstan in 2024?

In 2024, the universal tax declaration using Form 250 must be submitted by the heads of IEs, LLPs, JSCs, and other forms of ownership in Kazakhstan. Even if the business is suspended, the entrepreneur still needs to fill out the form because the business is still considered registered. However, if the LLP or IE was closed by the end of 2023, these business owners are not required to participate in the universal declaration.

There are several important points to consider:

1. Starting in 2025, individuals will also join the universal declaration process. Therefore, even if you closed your business in 2023, you will need to submit an income declaration as an individual in 2025.

2. Entrepreneurs who establish an IE or LLP in 2024 are not required to fill out Form 250 in 2024.

3. In addition to business owners, their spouses (even if the spouse is a non-resident of Kazakhstan) must also submit the declaration. If a couple divorces in January 2024, they still need to fill out the form because they were married during the reporting period (i.e., in 2023).

What Should Be Included When Submitting Declaration Form 250 for IEs and LLPs?

When submitting the asset declaration using Form 250 in Kazakhstan in 2024, all assets (both movable and immovable) owned by the entrepreneur outside the country should be listed. This may include:

• Land.
• Real estate.
• Vehicles or special equipment, airplanes, ships.
• Securities.
• Money stored in foreign bank accounts totaling more than 1,000 MCI (monthly calculation index).
• Shares in the authorized capital of a company established in another country.

Thus, real estate and movable property registered in Kazakhstan do not need to be listed in the universal declaration. These data are already available to the authorized bodies, so duplication is unnecessary. The same applies to funds held in accounts in Kazakhstani banks.

However, there are some assets registered in Kazakhstan that must be included in the declaration. These are:

• Securities, derivative financial instruments, and digital assets.
• Objects of copyright or intellectual property.
• Shares in housing (under a shared participation agreement).
• Investment gold.
• Cash amounting to no more than 10,000 MCI. If the entrepreneur has more than this limit in cash, only the amount of 10,000 MCI should be listed in the declaration. The remaining cash is not recorded on the form, but it is advisable for the entrepreneur to deposit this cash into their bank accounts.
• Debts (owed to or by the entrepreneur). The debt is only recorded in the document if there is a notarized contract dated before December 31, 2023. The exception is debts owed by the entrepreneur to banks or organizations that conduct certain types of banking operations, as this information is available to the controlling authorities.
• Property transferred to the entrepreneur for trust management.

Other property, including that located in another country, if its value exceeds 1,000 MCI (with an assessment). This can be included in the declaration at the entrepreneur's discretion.

How to Submit the Declaration?

The form can be submitted in two ways—online or offline (in person). Let’s consider each method.

How to Submit Declaration Form 250 Through eGov in Kazakhstan?

The simplest and most convenient way to submit the data is through the e-government portal eGov.kz. Navigate to the appropriate section, fill in the data, and sign the document via SMS password or EDS (electronic digital signature).

By the way, eGov is not the only platform where you can fill out the declaration. You can also use the e-Salyq Azamat mobile application or the Taxpayer's Cabinet.

In the future, declarations using Form 270 can also be submitted through eGov and other platforms.

Additionally, on these resources, you can download the Form 250 declaration for free to review the document.

How to Submit Declaration Form 250 for IEs and LLP Directors in Kazakhstan in Person?

If you choose this option, you need to visit the CSC (Citizen Service Center) at your registration location and fill out the document on paper. The advantage of this method is that you can consult with a specialist on any questions you may have. Specialists will provide a sample of the tax declaration for Form 250 in Kazakhstan and assist if necessary. However, you will need to spend time visiting the state body.

You can also find answers to all your questions about universal declaration in the chatbot launched by the State Revenue Committee.

By What Date Must Form 250 Be Submitted?

Another important question concerns the deadline for submitting Form 250 in 2024. The documents can be submitted starting from January 1, with a final deadline of September 15, 2024.

What should you do if an entrepreneur in Kazakhstan has already submitted Form 250 but finds an error or forgot to include important information? In this case, additional declarations can be submitted in Kazakhstan. Entrepreneurs have up to three years to correct any errors.

What Are the Penalties for Failing to Submit Form 250?

Penalties are imposed on IEs and heads of legal entities for both failing to submit Form 250 in Kazakhstan and for providing incorrect information. What awaits violators?

If the violation occurs for the first time, the entrepreneur will receive a warning. In other cases, fines are imposed:

• If the violation is discovered a second time, the entrepreneur will be fined. A fine of 15 MCI will be levied if the form is not submitted, and 3 MCI if incorrect or incomplete information is provided.
• If the entrepreneur conceals assets, the fines increase significantly. Concealment on the first offense is penalized at 200% of the tax amount, and on the second offense, at 300%. Additionally, the entrepreneur must also pay the tax itself.
• For concealing assets and money abroad, the fine is up to 100 MCI. If the violation is not corrected within a year, an additional fine of 200 MCI must be paid.

Don’t assume that Kazakhstan’s tax authorities won’t learn about assets and funds abroad. Since 2014, Kazakhstan has been a participant in the Strasbourg Convention on Mutual Administrative Assistance in Tax Matters. In other words, the participating countries exchange information, including about entrepreneurs' accounts and assets. Therefore, it’s impossible to hide this data.

If the entrepreneur diligently and voluntarily corrects violations, the penalty system is not applied.

Certainly, universal declaration in Kazakhstan and the completion of tax declarations using Form 250 are new phenomena. It’s no surprise that entrepreneurs will have questions. However, answers can easily be found on specialized portals and at tax authorities at the place of registration. Moreover, the online process is simple and requires minimal time. Therefore, for entrepreneurs who conduct honest business and have nothing to hide, there should be no issues.

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