Property tax for Kazakhstanis who received housing in the line of the KMC will be significantly reduced since January 2016
Mortgage Organization “Kazakhstan Mortgage Company” Joint Stock Company (hereinafter – MO KMC JSC/the Company), a branch subsidiary of “Baiterek” National Management Holding JSC (hereinafter – the Holding), provides housing with and without a repurchase option as part of implementation of the Regions Development Program until 2020 (hereinafter – the Program).
In case of lease with repurchase, housing is owned by MO KMC JSC until complete payment by the lessee of rental payments or the advance redemption of the dwelling.
In case of lease without repurchase, rental housing remains in the ownership of MO KMC JSC, but it is provided to the Program participants for long-term rent.
As MO KMC JSC is a legal entity, according to the Tax Code of the RoK, the property tax on the provided rental housing today is 1.5% of the apartment value. Given that rental housing is granted to socially vulnerable segments of the population, the work on introduction of necessary amendments to the Tax Code of the RoK was conducted this year in order to decrease the financial burden on lessees and reduce the bottom-line cost of rental housing. According to the amendments which will take effect from January 1, 2016, the physical entities that received rental housing under the Program will pay the property tax until the end of 2015 as legal entities in the amount of 1.5 %, and from January 1, 2016 – as physical entities.
The said amendments are applicable only to the KMC customers.
For example, if today the property tax for the one-room apartment in the region, with the total area of 42 sq.m and the cost of 6.3 million KZT, is about 95,000 KZT a year, then since January 2016 it will be about 5,000 KZT a year. This shall significantly ease the cast loading on lessees.
MO Kazakhstan Mortgage Company JSC is a financial market player since December 2000, and presents itself a stable, dynamically developing financial institution, and, simultaneously, a socio-oriented organization. The Company’s Shareholder is “Baiterek” National Management Holding JSC. The principal activities include the repurchase of the rights of claims on loan portfolios from second-tier banks, implementation of the state and its own programs on the development of rental house, as well as mortgage lending.