Kazakhstan legalized 5.7 trillion tenge for campaign period

10 January 2017, 12:09

At the regular meeting of the Government, Minister of Finance Bakhyt Sultanov reported on the interim results of legalization in Kazakhstan.

"More than 140 thousand citizens benefited from opportunities of the campaign. 5.7 trillion tenge was legalized in total, including cash - 4.1 trillion tenge and assets - 1.6 trillion tenge. About 151 thousand houses, and 213 shares in legal entities were legalized," the head of the finance department said.

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

"The amendments,adopted in late 2015 contributed to this; it will facilitate the procedure and provide additional guarantees to citizens," B. Sultanov said.

5 trillion tenge of assets were legalized within the country, foreign - 0.7 trillion tenge, the money - 614 billion tenge, assets - 70 billion tenge. 11,821 accounts were just opened for money legalization.

The campaign gave a positive effect. 9.5 thousand objects out of 151 thousand legalized houses were put on the account as a commercial property. It increases property tax revenues for about 800 million tenge per year. Secondly, the involvement of the legal turnover 4.1 trillion tenge generates an estimated 150 billion tenge of taxes per year. In other words, the legalization of 5.7 trillion tenge, of course, supported the main economic indicators.

According to Minister of Finance, 1.9 billion tenge remain on the bank accounts, which is an additional source of funding of banks and lending to the economy. 2.2 billion tenge legalized money withdrawn from the bank accounts of citizens. They also went to investment, consumption or savings. 1.6 billion tenge legalized real estate - it is a potential collateral to obtain loans.

Leaders in terms of legalization are generally Almaty - 3 trillion 981 billion tenge, Astana - 533 billion tenge and Almaty oblast - 390 billion tenge.

According to the Minister of Finance, the current legislation requires Kazakhstan citizens to declare income derived from foreign sources. For example, nationals declared 700 million dollars of foreign "global" income in 2015.

"In addition, the implementation of the Action Plan to combat the shadow economy will be continued; it is approved by the Government for 2015-2017," B. Sultanov concluded.

It should be reminded that the law on property legalization entered into force in September 2014. Later, in order to improve the dynamics of the ongoing events, the Head of State instructed to revise the terms of property legalization and to provide additional guarantees to subjects of the legalization. The relevant Law of Kazakhstan was signed on 13 November 2015 and entered into force in December 2015.