In 2026, taxes on renting out property cannot be determined under a single general provision: Articles 317, 833, 837 and 839 of the Tax Code of the RK regulate specific matters concerning subsoil use, refunds of excess VAT and the preservation of investment contract terms, but do not establish the taxation procedure for ordinary leases (Articles 317, 833, 837, 839 of the Tax Code of the RK).
Renting Out Property: What Taxes Arise
To determine tax liabilities relating to rent, an accountant needs the provisions of the Tax Code of the RK governing the income of the relevant category of landlord. The taxation procedure cannot be determined solely from the name of the agreement: it is first necessary to establish who is renting out the property—an individual, an individual entrepreneur or a legal entity.
For proper accounting, the accountant will need:
- the lease agreement and supplementary agreements;
- the property acceptance and transfer certificate;
- documents confirming the landlord’s right to dispose of the property;
- the schedule and documents relating to the accrual of rent;
- terms concerning utilities, operating costs and other reimbursable expenses;
- information on the tax status of both parties;
- information on VAT registration and the applicable tax regime.
If the landlord conducts business activities, the accountant compares the rental income with the rules of the applicable tax regime and the relevant tax reporting requirements. When making a payment to an individual who is not registered as an IE, the recipient’s status and each party’s obligations in respect of the specific payment must be determined separately.
Rental income and the leased property itself should be analysed separately. Conclusions regarding each tax require the provisions of the Tax Code of the RK concerning the relevant tax, the landlord’s status and the characteristics of the property. Articles 317, 833, 837 and 839 of the Tax Code of the RK do not contain such rules for ordinary leases.
IE Tax Filing: What the Accountant Should Check
If the property is rented out by an IE, the entrepreneur’s registration details, declared type of activity and the terms of the applicable tax regime must first be checked. The accountant then determines the procedure for recognising rental income, the list of source documents and the tax reporting requirements under the provisions applicable to the selected regime.
The practical workflow may be as follows:
- Check the IE’s registration details and applicable tax regime.
- Compare the subject matter of the agreement with the property actually transferred.
- Separate the rent, security deposit, utility payments and reimbursement of expenses.
- Determine when income is recognised under the rules of the applicable regime.
- Check the preparation of accounting documents and the landlord’s VAT status.
- Record the transaction in the tax register and tax reporting for the relevant period if required by the applicable provisions.
The security deposit requires particular attention. Its accounting treatment cannot be determined solely by its name: the contractual terms governing the refund, offset and use of the amount are relevant. If the deposit is subsequently applied towards rent or repayment of debt, the offset should be documented and recorded separately from the initial receipt.
Utility expenses should also be expressly addressed in the agreement. When the tenant transfers them to the landlord together with payment for the use of the property, the accountant must separate the purposes of the payments and prepare supporting documents. A bank statement confirms the transfer of money, but the components of the settlements should be compared with the agreement and source documents.
Renting Out Property and Property Tax
When a property is leased, the accountant identifies its owner and checks who is recognised as the taxpayer under the property tax provisions. The mere fact that the tenant uses premises or other property is insufficient to determine who bears the tax obligation.
The accountant must check:
- who owns the property;
- whether it is taxable property for the particular person;
- how the property is accounted for and used;
- which rules apply to the relevant category of property;
- who bears the property maintenance expenses under the agreement.
A contractual term requiring the tenant to reimburse the amount of property tax determines the settlements between the parties. The specific property tax provisions of the Tax Code of the RK are required to determine the taxpayer, tax base, calculation procedure and fulfilment of the obligation to the state budget; Articles 317, 833, 837 and 839 do not regulate these matters.
The search queries “renting out property tax” and “property tax filing” combine two different tasks: calculating tax on the property and submitting tax reporting. Before making the calculation, the accountant must determine the taxpayer, taxable property, tax base, applicable reporting form and reporting period under the property tax provisions effective in 2026.
What to Do Before the First Rent Payment
Before settlements begin, the parties should specify in writing the amount and components of the rent, the accrual frequency, the procedure for paying utility charges, the terms for refunding or offsetting the security deposit, and the list of closing documents. If the price is stated as a single amount without a breakdown, it is more difficult for the accountant to separate rent, reimbursements and additional services.
The landlord’s accountant should create separate analytical records for the agreement and property, establish the income accrual procedure and monitor outstanding debt. The tenant’s accountant should verify the counterparty’s authority, accept the property under a certificate, determine the purpose of the expenses and monitor the availability of the documents stipulated by the terms of the transaction.
Before submitting tax reporting, it is advisable to reconcile the following:
- the amount of accrued rent corresponds to the agreement;
- receipts and outstanding debt are allocated to the relevant periods;
- the deposit is separated from the current rent;
- utility and operating payments are supported by documents;
- the taxpayer’s VAT status has been established as at the transaction date;
- obligations relating to the property have been considered separately from the taxation of rental income;
- the forms and rules effective in 2026 have been used.
If the agreement was amended in the middle of a period, the supplementary agreement should be compared with the date on which the payment actually changed. A payment of the new amount without documentary formalisation creates discrepancies between the terms of the agreement, source documents and accounting records.
Frequently Asked Questions
What taxes are paid when renting out property? — There is no single answer for all landlords. In 2026, the taxation of income, obligations relating to the property and the application of VAT must be determined separately, taking into account the landlord’s status, the type of property and the tax regime. Articles 317, 833, 837 and 839 of the Tax Code of the RK do not establish these rules for ordinary leases.
Can an IE rent out property? — For tax accounting purposes, the transaction must be compared with the IE’s registration details, declared type of activity and the terms of the tax regime applied in 2026. The cited specific provisions of the Tax Code of the RK do not regulate the renting out of property by an IE.
Who pays property tax on leased property? — The taxpayer is determined under the specific property tax provisions of the Tax Code of the RK, taking into account rights to the property and the property category. Contractual reimbursement relates to settlements between the parties and does not in itself determine the taxpayer.
Is a security deposit taxed as income? — The terms governing the refund, offset and actual use of the amount are relevant for accounting purposes. The security deposit should be separated from the current rent in the agreement and accounting records, and any change in its purpose upon offset should be documented.
Must VAT be charged on rent? — In 2026, the accountant checks the landlord’s VAT status and the provisions applicable to the specific transaction. Article 833 of the Tax Code of the RK concerns applications and claims for refunds of excess VAT submitted before 1 January 2026, while Article 839 concerns the VAT exemption for imports of raw materials and supplies under certain investment contracts; these articles do not establish the procedure for charging VAT on ordinary leases (Articles 833, 839 of the Tax Code of the RK).
Sources
- Tax Code of the RK 2026, Article 317—deduction of a subsoil user’s expenses for training Kazakhstani personnel and developing the regions’ social infrastructure.
- Tax Code of the RK 2026, Article 833—transitional procedure for considering applications and claims for refunds of excess VAT submitted before 1 January 2026.
- Tax Code of the RK 2026, Article 837—preservation of the terms of certain investment contracts and agreements concluded before 1 January 2026.
- Tax Code of the RK 2026, Article 839—preservation of the VAT exemption for imports of raw materials and supplies under certain investment contracts.