Car Sale Tax in Kazakhstan: When to Pay and How to Avoid It

When selling a car in Kazakhstan, it's important to know when you become liable for individual income tax (IIT). Unlike real estate, the rules for cars remain unchanged, but there are nuances related to vehicle registration, reports the website infohub.kz.

Kazakhstan has a new Tax Code that changed IIT payment rules, mainly for real estate. When selling real estate, tax is due if the owner sells the property within two years and at a higher price than the purchase price. Previously, the minimum holding period was one year, and for housing purchased before January 1, 2026, it remains one year.

However, selling a car can also trigger an IIT obligation. As noted by the Department of State Revenues of Almaty, the rules for cars have not changed: for vehicles registered in Kazakhstan, the minimum holding period is one year. If you sell the car earlier, you'll have to pay IIT at 10% of the capital gain. For cars with foreign registration, there is no minimum holding period – you always pay 10% of the capital gain upon sale.

A capital gain arises if you sell the property for more than you paid. You pay IIT on that amount. For example, if a citizen bought a car for 8 million tenge and sold it four months later for 9 million tenge, their income is 1 million tenge. They must pay IIT at 10%, which is 100,000 tenge.

If a car registered in Kazakhstan is sold 13 months after purchase, no tax is due, even if sold at a higher price. For cars with foreign registration, there is no such exemption – IIT is always payable.

For cars imported from abroad, the initial cost is determined including customs clearance expenses, such as duties, VAT, excise taxes, and recycling fees. These payments can reduce the final tax amount.

To avoid IIT when selling property, follow simple rules: for real estate, hold it for two years (or one year if purchased before January 1, 2026); for a car with Kazakhstani plates, hold it for one year. However, there are cases where tax is always paid: when selling commercial real estate, real estate abroad, and cryptocurrency. For cryptocurrency, special rules apply, considering not only profits but also losses.

Recall that when selling housing, an increased tax may be charged: if the income is too large, the rate can rise from 10% to 15% of the capital gain. Also, Kazakh citizens have already been assessed property tax, which must be paid by October 1, 2026, for 2025.