Income from capital gains on immovable property located in the Republic of Kazakhstan arises upon the sale or transfer of such property as a contribution to the charter capital of a legal entity if the property has been held under the right of ownership for less than two years.

Income from capital gains on immovable property received free of charge and located outside the Republic of Kazakhstan arises upon its sale or transfer as a contribution to the charter capital of a legal entity, regardless of the period for which it has been held under the right of ownership.

Capital gain from immovable property is defined as:

-upon sale – the positive difference between the sale price and its initial cost;

-upon transfer of property as a contribution to the charter capital – the positive difference between the value at which the property is transferred as a contribution to the charter capital, but not exceeding the amount against which such property is contributed, and its initial cost. The value of the property at which it is transferred as a contribution to the charter capital is determined on the basis of a document confirming the acceptance and transfer of such property.

The initial cost of an immovable property is the documented:

purchase price of the property;

purchase price of immovable property that is sold (transferred) after a change in its functional and/or designated purpose during the period from the date of acquisition to the date of its sale (transfer).

The initial cost of property received free of charge is:

the value previously included in income as property received free of charge, where the value of the property received free of charge was included in the taxable income of an individual entrepreneur or the taxable income of an individual;

market value;

appraised value;

cadastral (appraised) value – in the case of the sale (transfer) of a land plot;

zero value – in all other cases.

The initial cost of immovable property located in a state with preferential taxation is equal to zero.