Who is to pay tax on mobile bank transfers in Kazakhstan?

Photo: Tauekelov
Finance Ministry gave response to Majilis deputies’ inquiry about tax on mobile bank transfers in Kazakhstan, reports.

The Ministry notes that due to the development of banking products, most of the cash turnover has moved to a non-cash environment. At the same time, there is a rapid decline in cashing out funds with the use of payment cards - from 89.6% in 2015 to 32.6% at the end of 2020.

Instant transfers, intended exclusively for transactions between individuals, have begun to be widely used in business. At the same time, according to the terms of the bank agreement, the client undertakes not to use the account and card in business. Thus, the banking service is used as a tool to hide real turnovers, which is conductive to the development of shadow turnovers.

Due to the wide spread of transfers for commercial purposes, the ministry, together with the National Bank, the Agency for the Financial Market Regulation and Development, the Association of Financiers and second-tier banks, are working to legislatively regulate separation of mobile transfers into personal and business purposes, while maintaining the existing mechanism, it is stated.

The following proposals and legislative initiatives have been made:

- using a separate account for business activities;

- transfer of information on them to the state revenue authorities (by analogy with the current provision of the Tax Code on the transfer of information via POS terminals);

- definition of the concept of "mobile payment";

The planned amendments do not apply to personal transfers of individuals, bona fide taxpayers, but are aimed at increasing efficiency in tax monitoring, compliance with the legislation of the Republic of Kazakhstan, and preventing damage from tax evasion.

It is noted that these amendments and the timing of their enforcement will be discussed with the business community.

15:53, 7 April 2021