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Kazakhstan's tax authorities are reminding citizens that deliberately undervaluing vehicle sales can lead to significant consequences. The State Revenue Committee is urging sellers to accurately report the sale price of their vehicles to prevent tax evasion and future complications.

Why Accurate Pricing Matters

A common tactic employed by some individuals seeking to evade taxes is to list their vehicles or other assets for sale at a nominal price, such as 1,000 or 2,000 tenge. However, tax officials emphasize that the seller remains responsible for the declared value. For instance, if a car is sold for a minimal amount and the seller subsequently purchases a new vehicle shortly after, questions may arise regarding the source of the funds.

"Therefore, we always advise accurately stating the actual sale price, as well as the purchase price, when selling your assets. This helps prevent future inquiries," stated Dina Kussainova, head of the Non-Tax Revenue Administration Department at the State Revenue Committee.

Tax Implications of Undervaluation

If an individual sells a vehicle for 1,000 tenge and later sells it for 15 million tenge, their profit is calculated based on the higher amount (15 million tenge minus the initial 1,000 tenge). This profit is then subject to income tax.

It's important to note that a new Tax Code will take effect in Kazakhstan from January 1, 2026. Under the new regulations, individuals must own property for more than two years (previously one year) to be exempt from paying personal income tax (PIT) on its sale. Selling residential property or other assets before this holding period expires will result in PIT liability.

Furthermore, the tax rate on profits from property sales varies. If the profit does not exceed 36 million tenge, a 10% tax rate applies. For profits exceeding this amount, the tax rate increases to 15%.

This information was reported by the Infohub.kz news agency.