Vehicle Tax

Abdykalykov N.
Outline
• What is a vehicle tax?

• Payers of vehicle tax, objects of taxation, tax base,

tax rate, tax period and deadlines for payment of
vehicle tax.

• Calculation of vehicle tax using an example.

What is vehicle tax

Definition of vehicle tax.

Vehicle tax is a tax that must be paid for a

vehicle owned by an individual or legal
entity.
In the case of a legal entity, the enterprise
is obliged to pay vehicle tax not only for
vehicles that are owned but also for the
right of operational management.
Taxpayers of vehicle tax
Payers of vehicle tax:
According to Article 490 of Chapter 57 of the Tax Code of the Republic of Kazakhstan, vehicle
tax payers are:
• Individuals with the right of ownership (owner);
• Legal entities having objects under the right of ownership or operational management;
• Legal entities for taxable objects transferred under a financial leasing agreement (lessee)

Do not pay vehicle tax:

• Legal entities producing agricultural products;
• Government institutions (for example Ministries, Akimats);
• State educational institutions of secondary education (schools);
• Public associations of persons with disabilities (engine capacity no more than 3000 cubic
centimeters) and WWII veterans.
Objects of taxation for vehicle tax
According to Article 491 of Chapter 57 of the
Tax Code of the Republic of Kazakhstan, the
objects of taxation are vehicles (except for
trailers) registered in the Republic of
Kazakhstan.
The following are not subject to taxation:
• Mining dump trucks with a carrying capacity
of 40 tons and above;
• Specialized medical vehicles;
• Sea vessels registered in the international
ship register of the Republic of Kazakhstan;
• Special vehicles subject to property tax
Tax base for calculating vehicle tax and
tax rate
The tax base for calculating vehicle tax is:
1. Cubic sentiments;
2. Tons of lifting capacity;
3. Seats (for buses);
4. Horsepower (for boats, ships) and others.
Vehicle tax rates:
According to Article 492 of Chapter 58 of the Tax Code of the Republic of Kazakhstan, vehicle tax is
calculated differently for each taxable object. Below is a table of tax rates for passenger cars after
December 31, 2013.
№ Легковые авто со следующей градацией по объему двигателя (куб. Tax rate MCI (МРП)
см):
1 Свыше 3000 до 3200 включительно 35
2 Свыше 3200 до 3500 включительно 46
3 Свыше 3500 до 4000 включительно 66
4 Свыше 4000 до 5000 включительно 130
5 Свыше 5000 200
Tax rates (continue)
Other taxable items, including vehicle that was imported into the Republic of Kazakhstan before
December 31, 2013, are calculated as follows (abbreviated table):
№ Объект налогообложения Налоговая ставка
(МРП)
1 Легковые авто со следующей градацией по объему двигателя (куб. см): -
1.1 До 1100 включительно 1
1.2 Свыше 1100 до 1500 включительно 2
1.3 Свыше 1500 до 2000 включительно 3
1.4 Свыше 2000 до 2500 включительно 6
1.5 Свыше 2500 до 3000 включительно 9
1.6 Свыше 3000 до 4000 включительно 15
1.7 Свыше 4000 117
2 Грузовые, специальные автомобили со следующей градацией по
грузоподъемности (без учета прицепов):
2.1 До 1 тонны включительно 3
2.2 Свыше 1 тонны до 1,5 тонны включительно 5
2.3 Свыше 1,5 до 5 тонн включительно 7
2.4 Свыше 5 тонн 9
Tax period and deadlines for payment
of vehicle tax
Tax period for vehicle tax:
According to Article 495 of Chapter 59 of the Tax Code of the Republic of Kazakhstan, the tax period for
CIT is the calendar year from January 1 to December 31.
Deadlines for payment of vehicle tax:
According to Article 496 of Chapter 59 of the Tax Code of the Republic of Kazakhstan, the taxpayer is
obliged to submit calculations of current payments no later than July 5 of the current year, as well as a
tax return no later than March 31 of the year following the reporting year.
According to Article 494 of Chapter 58 of the Tax Code of the Republic of Kazakhstan, the taxpayer is
obliged to pay the vehicle tax no later than July 5 of the tax period (for legal entities).
According to Article 494 of Chapter 58 of the Tax Code of the Republic of Kazakhstan, an individual is
obliged to pay vehicle tax no later than April 1 of the year following the reporting year.
Practical example №1
Scenario #1
Arman has a Hyundai car, which was registered in the Republic of Kazakhstan and released in 2020.
The volume of this car is 1,996 cubic centimeters.
Required: calculate the vehicle tax, which applies to 2022, and the period for payment of the vehicle
tax.
Solution:
According to Article 492 of Chapter 58 of the Tax Code of the Republic of Kazakhstan, the tax on vehicle
over 1500 to 2000 cubic centimeters inclusive is 3 MCI.
According to the law on the Republican Budget for 2023, the MCI is 3,450 tenge.
vehicle tax = tax rate x MCI (2023) = 3 x 3450 = 10,350 tenge, this tax must be paid on April 1, 2023.
Practical example №2
Scenario #2
Karasai LLP operates on the territory of the Republic of Kazakhstan and has a bus with 20 seats.
Required: calculate the vehicle tax, which relates to 2022 and the period of payment of the vehicle tax.
Solution:
According to Article 492 of Chapter 58 of the Tax Code of the Republic of Kazakhstan, the tax on vehicle
from 12 to 25 seats inclusive is 14 MCI.
According to the law on the Republican budget for 2022, the MCI is 3180 tenge.
Vehicle tax = tax rate x MCI = 14 x 3180 = 44,520 tenge, this tax must be paid before July 5, 2022.