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5.7 trillion tenge legalized in Kazakhstan over the campaign period

by January 10, 2017 Market

Minister of Finance Bakhyt Sultanov reported at a regular Government meeting on interim results of legalization in Kazakhstan.

More than 140 thousand people took the campaign opportunities. The total legalized amount is 5.7 trillion tenge, including 4.1 trillion tenge in cash and 1.6 trillion tenge of funds. About 151 thousand houses and 213 equity shares in legal entities are legalized, the Minister said.

According to the speaker, the greatest activity was observed in the last months of the campaign � 53% of the funds were legalized in the fourth quarter of 2016.

This is due to the amendments adopted in late 2015, which facilitated the procedure and provided additional guarantees to citizens, B.Sultanov added.

Assets legalized in the country amounts to 5 trillion tenge, foreign assets � 0.7 trillion tenge (614 billion tenge in cash and 70 billion tenge in property). 11,821 accounts were opened in total for the legalization.

The campaign carried out gave a positive effect. 9,500 of 151,000 legalized objects are registered as commercial property. This increases the supply of the property tax by 800 million tenge a year. Secondly, the involvement of 4.1 trillion tenge into the legal turnover generates 150 billion tenge of taxes per year. In other words, the legalization of 5.7 trillion tenge supported the main economic indicators.

According to the minister, 1.9 billion tenge are still on the bank accounts, which is an additional source of funding of banks and economic lending. 22 billion legalized tenge were withdrawn from the bank accounts of citizens. They were also directed to investment, consumption or savings. 1.6 billion tenge of legalized real estate is a potential collateral to obtain loans.

Leaders in legalizations: Almaty (3,981,000,000,000 trillion tenge), Astana (533 billion tenge) and Almaty region (390 billion tenge).

According to the Minister of Finance, the current legislation binds the citizens to declare in Kazakhstan income derived from foreign sources. For example, in 2015, Kazakhstanis declared foreign global income in the amount of $700 million.

Additionally will be continued the implementation of the action plan aimed at combatting the shadow economy, which is approved by the Government for 2015-2017, B.Sultanov concluded.

The law on property legalization issues entered into force in September 2014. Later, in order to improve the dynamics of the ongoing events, the Head of State tasked to revise the property legalization terms and to provide additional guarantees to the legalization subjects. The relevant law was adopted on November 13, 2015, and entered into force in December 2015.

Source: Government of the Republic of Kazakhstan