BI Group Pays Tax Debts of Contractors

BI Group announces that it has paid tax liabilities related to transactions with counterparties flagged as potentially non-compliant by the State Revenue Committee of the Ministry of Finance of Kazakhstan. During investigations, violations of tax legislation by certain contractors were identified. To prevent further disputes and ensure the stability of work processes, BI Group decided to cover their outstanding tax debts. In collaboration with the State Revenue Committee, BI Group continues to reconcile data regarding contractors operating under the special tax regime.

The company remains committed to principles of legality and tax compliance, supporting government initiatives aimed at ensuring transparency and fair competition in the industry. During working meetings with representatives of the Government and the Ministry of Finance of Kazakhstan, BI Group proposed measures to enhance financial transparency in the construction sector.

Recognizing the challenges faced by the state in ensuring a reliable and secure construction market, BI Group has proposed the development of digital solutions to fully monitor financial flows and address non-transparent practices. The proposed measures include:

• Linking tax obligations to the volume of construction and installation works, calculated per each square meter completed.
• Registering all transactions through the creation of a unified digital registry of real estate transactions, seamlessly integrated into Kazakhstan's general system for asset and income declaration.
• Introducing online registration of sales contracts with the integration of the KazReestr system with banks and the E-Gov platform.
• Transitioning to a fully cashless system for real estate purchases.

BI Group is prepared to take the lead in developing and co-financing significant digitization efforts in partnership with leading developers. These tools will be transferred to state management. The goal is to establish a transparent and secure market with stable tax revenues.

Aydin Rakhimbaev, CEO of BI Group:
" Being transparent with the government and society is the cornerstone of a trustworthy business. Digitalization and regulatory frameworks in the construction market will ensure maximum transparency, strengthening trust among clients and partners. This approach will not only foster the industry's overall development but also safeguard the reputation of conscientious developers in the long term."

Over the past five years, BI Group has paid over 200 billion tenge in taxes and plans to contribute at least an additional 250 billion tenge over the next three years. In 2024, one of the holding’s divisions, BI Development Ltd., received a BB credit rating from the international agency Fitch Ratings, reaffirming its high level of transparency and corporate governance. Since 2015, all structural divisions of the holding have undergone an annual consolidated financial audit conducted by E&Y and KPMG.

For further information, please contact the BI Group press office.