State Revenue Committee

of the Ministry of Finance of the Republic of Kazakhstan

Press Release

What tax liabilities arise in the sale of housing?

Income from the increase in value in the sale of property by an individual arises from the sale of housing units, summer cottages, garages, and subsidiary household facilities located on the territory of the Republic of Kazakhstan on the right of ownership for less than a year from the date of registration of the right of ownership.

It should be taken into account that the income from the increase in value in the sale of such property is the positive difference between the price (cost) of the sale of property and the price (cost) of its acquisition.

Example: A citizen purchased an apartment in January 2018 for 10 million tenge, and later, in September 2018, sold the same apartment for 12 million tenge. Let’s calculate the increase in value:

12 million tenge - 10 million tenge = 2 million tenge (PIT = 2 million tenge *10% = 200 thou.tenge).

If the property received free of charge is sold, then the increase in value is determined in other ways.

In cases of sale of an individual residential house built by the person selling it, as well as a housing unit received in the form of inheritance, charitable assistance, the income from the increase in value is the positive difference between the price (cost) of the sale of property and the market value of the property sold at the date of occurrence of the title to the property.

The market value is the value determined in the valuation report conducted under the agreement between the appraiser and the taxpayer in accordance with the legislation of the Republic of Kazakhstan on appraisal activities.

Such market value must be determined by an individual not later than the deadline established for the submission of the declaration on the individual income tax for the tax period in which such property is sold.

In the absence of market value, determined at the date of occurrence of the title of the property sold, or if the deadline for determining the market value is not met, as well as in other cases of absence of price (cost) of the property acquisition, the income from increase in value is the positive difference between the price (cost) of the property and estimated cost.

In this case, the estimated cost is the value determined for calculating the property tax by the State Corporation “Government for Citizens” as of January 1 of the year in which the title of the property sold occurred.

When an individual sells an apartment acquired through share participation in housing construction, property income arises. The income from the increase in value in the sale of such apartment will be a positive difference between the price (cost) of the sale of the apartment and the price of the agreement on share participation in housing construction.

In case of receiving income from the increase in value, the taxpayer must pay individual income tax at a rate of 10%. In determining the cost of the apartment acquisition, the cost of repairs and furniture is not taken into account.

An individual who has received property income must submit a Declaration on Personal Income Tax (Form 240.00) by March 31 of the year following the year in which the property income was received.

PIT must be paid by April 10 of the year following the year in which property income was received.

Press Service

of the State Revenue Committee MF RK

(Zhenis Ave, 11)