STATE REVENUE COMMITTEE

OF THE REPUBLIC OF KAZAKHSTAN MINISTRY OF FINANCE

Press release

Using the Е-gov.kz service you can get information pre-filled in the declaration from the state databases

Today, on March 6 this year, Central Communications Service held a briefing on the implementation of an overall tax declaration. The speakers were Vice Minister of Finance Ruslan Yensebayev and acting Deputy Chairman of the State Revenue Committee MF RK Talgat Mamayev.

World practice proves that the use of the overall declaration contributes to the expansion of tax base and growth of revenues to the state budget. This allows the state to invest more in the country development and solving social projects.

      R.S. Yensebayev has noted in his speech that there is no need to be afraid of the overall declaration. On the contrary, transition to the overall declaration is a positive aspect for conscientious taxpayers and individuals in need of social support.

In international practice, an overall declaration is not only a fiscal tool, but also allows to determine socially vulnerable segments of population and to build a balanced state support policy.

In addition to the international experience analysis, in preparation for the implementation of the overall declaration, a pilot was conducted on the submission of declarations by individuals in Osakarov district of Karaganda region.

3 rural districts with varying degrees of remoteness were identified to conduct the pilot (r/d Ansari, r/d Yesil, r/d Ozernoe). Elements of pre-filling were worked out during the pilot.

2 153 declarations were accepted, of which 114 (5,4%) taxpayers had discrepancies with the competent authorities information, and also a questionnaire survey was conducted with 1,725 individuals, which established that:

- 78.1% of the population would prefer to submit tax reports electronically or through a mobile application, the rest - on paper.

In case of problematic issues on filling in the tax declaration:

- 39.6% would prefer to apply to PSC;

- 32% - to state revenue department;

- 20.9% - to the “1414” contact centre.

According to the pilot results, as well as taking into account international experience, the State Revenue Committee has carried out the following work.

First. A declaration form has been streamlined and the volume has been reduced from 15 to 2 sheets.

Second.  Service of filling in an electronic declaration form is implemented on the “Electronic government” Portal (Е-gov.kz) in the test mode. At the end of my speech, I would like to show you the work of the service.

Service allows you to use EDS to get information pre-filled in the Declaration from the state databases. This functionality is a test one and there are no tax consequences on the accrual of taxes and the accountability it carries.

Using this functionality, everyone can check the relevance of asset information in еgov.kz account.

Third. In order to prepare for a large-scale clarification of the provisions on the overall declaration, a Single Contact Centre for tax and customs issues has been launched.

SRC contact centre will operate on the platform of the already known number of the Unified Republican contact centre E-gov 1414. First of all, setting-up of the Contact centre on the issues of the overall declaration will be carried out.

Fourth. Regarding the data update. In general, 19.6 million data has been received across the country from the authorized state bodies, of which 26.1% contain errors.

During 2018, a lot of work was carried out to update the information of state bodies. As a result, about 99% of errors were corrected out of 5.1 million unreliable data. The remainder is only the information for which correction requires individual participation.

Fifth. Mechanisms of tax deductions application on the basis of integration with the authorized state bodies systems have been improved. For the qualitative administration of the tax deductions application for large families, medical services, education and housing mortgage costs, appropriate integrations have been implemented.

Analysis of the problems identified during the pilot has shown that they are typical for all regions of Kazakhstan.

Successful implementation of the overall declaration requires additional time to solve such problems.

In this regard, the Ministry of Finance is working on the phased implementation of the overall declaration.

At the first stage, declaration will be submitted by public officials, their spouses and individuals equated to them.

Remaining categories of citizens will be covered by the declaration in the next stages within 5 years.

It is too early to name the exact dates of the stages. As we work with all interested parties, we will make appropriate changes to the legal acts. At the same time, it is important to note that the results of each stage will be analysed, problems will be identified and measures will be taken to improve the methodology and information systems.

Press Service

of the State Revenue Committee MF RK

(Zhenis Ave, 11)