Universal mandatory declaration from 1 January 2024

January 2024

Starting from 1 January 2024, the III Phase of the universal declaration begins, in connection with which the declaration of assets and liabilities (Form 250) will have to be submitted by citizens, as well as their spouses, who as of 1 January 2024 are:

• individual entrepreneurs;

• heads of legal entities;

• founders (participants) of legal entities.

Please note that the mandatory declaration requirement also applies to inactive and temporarily suspended IEs and legal entities.

From 1 January 2025, the obligation to file a declaration will apply to all citizens of the Republic of Kazakhstan.

The declaration of assets and liabilities/income and property shall be submitted at the place of residence (stay):

1. In case of submission on paper - not later than 15 July of the current year in which the obligation to submit the declaration arose;

2. If submitted electronically, not later than 15 September of the current year in which the obligation to submit the declaration arose.

According to subparagraph 2) of paragraph 1 of Article 631 of the Tax Code of the Republic of Kazakhstan, the declaration shall include all property owned by an individual in the Republic of Kazakhstan and abroad, including "...intellectual property objects, copyright".

In accordance with Article 961 of the Civil Code of the Republic of Kazakhstan, intellectual property ("IP") includes:

1. Results of intellectual creative activity, which include:

1) works of science, literature and art;

2) performances, productions, phonograms and broadcasts of broadcasting and cable broadcasting organisations;

3) inventions, utility models, industrial designs;

4) breeding achievements;

5) integrated circuit topologies;

6) undisclosed information, including trade secrets (know-how);

7) other results of intellectual creative activity.

II. Means of individualisation of participants of civil turnover, goods, works or services:

1) business names;

2) trade marks (service marks);

3) geographical indications;

4) appellations of origin of goods;

5) other means of individualisation of participants of civil turnover, goods and services.

Among all IP objects, declarants subject to universal declaration may not declare only the rights to broadcasts of broadcasting and cable broadcasting organisations, undisclosed information, including trade secrets (know-how), and trade names. All other available IP objects must be declared.

The declaration will need to reflect the name of the IP object, the number of the registration document, the date of registration, the country of registration, and preferably the estimated value of the object.

All assets located in the Republic of Kazakhstan and abroad, including IP objects, should be declared as truthfully as possible, because in subsequent annual declarations (Form 270.00) from 01 January 2025, it will be necessary to reflect all income received for the calendar year of use of previously declared property, information on the acquisition or alienation of property, both in Kazakhstan and abroad, as well as the sources of covering the costs of their acquisition.

In this regard, it is recommended to carry out a reconciliation of information on IP objects, which may include a search of all registered IP objects both in the Republic of Kazakhstan and abroad, to carry out an assessment of IP objects in order to properly reflect information about them in the declaration.

Please note that a warning is provided for late submission of a declaration for the first time. In case of repeated violation within a year - a fine of 15 MCI (55,380 tenge in 2024). Failure to submit a declaration for the first time is punishable by a warning, and a fine of the same amount for a repeated offence within a year.

For submission of incomplete, inaccurate information in the declaration for the first time - a warning, for a repeated offence within a year - a fine of 3 MCI (11,076 tenge in 2024).

For concealment of objects of taxation for the first time during the year – a fine of 200% of the amount of unpaid taxes, for a repeated offence – a fine of 300%.

It is also important to note that within the framework of the multilateral agreement of competent authorities on automatic exchange of financial information with the countries of the Organization for Economic Co-operation and Development (OECD), Kazakhstan actively exchanges and analyses data on financial accounts of residents and non-residents.

Specialists of Bolotov & Partners LLP and Rödl & Partner LLP will help you to identify, locate and value your IP objects in the Republic of Kazakhstan and abroad, properly reflect information about such objects in the declaration of assets and liabilities, and will be glad to advise you on any issues of identification and registration of IP objects and taxation.

We draw your attention to the fact that IP objects have been registered for managers and participants in legal entities for various reasons, and sometimes for no good reason. In these cases, we recommend registering the transfer of IP objects from the participants to their companies, which will eliminate the need for declaration, where it is appropriate to conclude license agreements that monetize the available IP objects and allow to receive or regularly receive income from their use.

It will also allow to streamline the use of IP objects by companies themselves, which will remove suspicions of unjust enrichment of companies due to gratuitous use of other people's IP objects, most often trademarks, patents, software.