InfoHub Logo

A growing number of Kazakh citizens are finding themselves unexpectedly liable for property taxes on real estate they no longer own، or in some cases، never did. The State Revenue Committee (SRC) has been issuing tax notices for properties sold years ago or for assets that were never acquired، causing confusion and financial concern.

Understanding Property Income Tax

The tax in question is officially known as Personal Income Tax (PIT) on property income. It applies when real estate is sold، but only under specific conditions: if the property was owned for less than the legally stipulated period and if the sale price exceeded the purchase price. Crucially، the tax is levied only on the profit made from the difference between the sale and purchase prices.

Ownership Periods and New Regulations

The ownership period is calculated from the date of state registration of ownership rights، not from the date of notarization. Starting January 1، 2026، new regulations will extend the minimum ownership period for taxation purposes. For ready-built housing، this period will be two years، and for shares in residential complexes under construction، it will be three years. These new rules will only apply to transactions registered after January 1، 2026.

Tax Notices and Potential Errors

The SRC receives information about property transactions from notaries. If an individual sells property within a year، the tax authority may issue a PIT notice. The tax rates are set at 10% for profits up to 8،500 MCI (approximately 36.8 million tenge in 2026) and 15% for profits exceeding this amount.

However، errors in tax calculations are not uncommon. For instance، a citizen who bought a dacha plot in 2015 and sold it in 2024، having owned it for nine years، received a PIT notice despite meeting all exemption criteria. Such mistakes can occur، but they are contestable with the correct actions.

How to Contest an Incorrect Tax Assessment

It is vital not to ignore tax notices. First، verify two key points: the duration of property ownership and whether any actual profit was realized from the sale. If the ownership period meets the exemption criteria or if there was no profit، there is no basis for taxation.

To dispute an incorrect assessment، file an application through the e-Otinish portal using your Electronic Digital Signature (EDS). Select the 'Other' category، specify the tax department that issued the notice، and attach copies of the purchase and sale agreements. The tax authority is obligated to respond within 15 working days.

Following a review، the SRC will issue a notification of the results. If the assessment was indeed erroneous، the tax will be canceled. You can check for any outstanding debts or penalties through the 'Taxpayer Cabinet' or via mobile banking apps using your Individual Identification Number (IIN) and the relevant budget classification codes.

When the Tax is Correctly Assessed

If the tax liability is legitimate، you must submit a declaration (Form 270.00) by September 15 of the year following the transaction. The PIT amount should be calculated and paid by September 25. Failure to file the declaration on time can result in a fine، and late payment of the tax incurs penalties.

Declarations can be submitted in paper format at a tax office or Public Service Center (سون)، or electronically via the eGov.kz portal، the eGov-mobile app، the 'Taxpayer Cabinet،' or e-Salyq Azamat، as well as through mobile banking services. Tax payments can be made through mobile banking apps، terminals، the eGov.kz portal، and Kazpost branches.

Key Takeaways for Taxpayers

While incorrect tax assessments do occur، ignoring notices can lead to accumulating penalties and frozen bank accounts. Prompt and correct action can result in the cancellation of erroneous taxes. If the tax is valid، timely declaration and payment are essential to avoid fines and penalties.

With regulations set to become stricter and clearer in 2026، citizens must remain vigilant، carefully review all tax notifications، and act promptly to prevent financial losses and legal complications.