Kazakhstan cracks down on secret apartment rentals to curb tax evasion
Kazakhstan is tightening its grip on tax evaders, particularly those secretly renting out apartments. Initial fines for hiding rental income have been set between 39,300 and 58,900 tenge after warnings are issued. The Ministry of Finance, in collaboration with the police, is leading this crackdown through the 'Amt für Betrugsbekämpfung', an office dedicated to preventing fraud and uncovering tax evasion.
The tax authorities will employ a two-pronged approach to verify citizens' income. Firstly, they will track bank transfers to identify rental income. Secondly, local police will assist in determining apartment usage, helping to uncover secret rental activities.
The public has expressed concern, arguing that the government should first regulate rental prices. Currently, landlords are not required to register as entrepreneurs but must file an annual tax declaration or pay a flat rate of 4% of their rental income if employed. Those caught concealing rental income face fines ranging from 40,000 to 60,000 tenge.
The Ministry of Finance, working with law enforcement, aims to identify and penalise those hiding rental income. Administrative penalties are expected to help expose shadow businesses in the rental market, ultimately boosting the country's tax revenue. This crackdown signals Kazakhstan's commitment to addressing tax evasion and fostering a fairer tax system.
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