The Project Office for Tax Code Implementation, led by Deputy Prime Minister Serik Zhumangarin, discussed a proposal from the ARDFM and the Association of Financiers of Kazakhstan to fully exempt citizens from personal income tax when banks write off bad loans, including fraudulent borrowings.
Under the current Tax Code, the written-off debt amount is recognized as borrower income and subject to personal income tax, with exemptions granted only in specific cases under Article 368. Zhumangarin stressed the need to distinguish between commercial risks faced by banks and difficult life circumstances of borrowers, noting that citizens who fell victim to fraudsters or found themselves in genuinely dire situations should be completely exempt from PIT. Following the discussion, officials were instructed to refine the issue and draft relevant proposals.