ASTANA – Beginning Jan. 1, 2020, every Kazakh adult citizen will be required to declare his or her income, property and even debts. The tax declarations will counteract the shadow economy, reduce the level of corruption in state bodies, expand the tax base and increase revenues to budget from individual income tax.
Experts also believe the declarations will increase the effectiveness of criminal investigations and improve the taxpayers’ culture.
Approximately 12.9 million citizens will start submitting declarations, according to the forecast by the Ministry of Finance state revenue committee. Nearly 7.4 million live in cities and towns and 5.5 million in rural areas, including adult citizens, ethnic Kazakhs who returned to their historical motherland, those with residence permits, working pensioners and students.
Citizens will have to declare real estate or shares in real estate, money in bank accounts and cash if the amounts exceed 500 minimum wages (14,142,000 tenge or US$38,500). Individuals will not be required to declare garden plots, livestock, art objects and jewellery.
Citizens will also need to declare debts beginning at 500 minimum wages (14,142,000 tenge US$38,500) and confirm them with a loan agreement, receipt or other document.
Checking declarations will be automated, with corresponding software to compare income and expenses. If a citizen fails to declare, he or she will receive a first warning, then be fined $20.
Declarations can be submitted at any Kazpost or state income management office, peoples service centre or through e-gov.kz.