Social security contributions
Social tax is payable by employers in respect of employees (both locals and expatriates) at 9.5% on top of the employee’s gross remuneration.
Obligatory social insurance contributions
Obligatory social insurance contributions are payable by employers at the rate of 3.5% to the State Pension Centre of Pension Payments. Obligatory social insurance contributions are capped at 3.5% of seven times the minimum monthly wage (approximately 26 United States dollars [USD]) per month, and are deductible from social tax. Only Kazakhstan citizens, foreigners holding a residence permit in Kazakhstan, and citizens of member countries (i.e. Russia, Belarus, Armenia, and Kyrgyzstan) of the Eurasian Economic Union (EAEU or EEU), who have a local employment agreement are subject to obligatory social insurance.
Obligatory medical insurance contributions (OMIC)
Starting from 1 January 2020, employer’s OMIC are increased to the rate of 2%. All employers, including branches and representative offices, should pay OMIC for all their employees, including Kazakhstan citizens and foreigners holding Kazakhstan residence permit, or citizens of member countries of the Eurasian Economic Union. The monthly income accepted for calculating deductions and contributions should not exceed ten times the minimum monthly wage (in 2019, the calculation of income is not more than KZT 425,000). Until 2019, the maximum limit was 15 times the minimum monthly wage.
And starting from 1 January 2021, employee OMIC are withheld at a rate of 2% out of employees' gross income and paid to the Social Health Insurance Fund. The gross income subject to employee OMIC is capped at 10 times the minimum monthly wage per employee per month. Subject to employee OMIC are Kazakhstan citizens, foreigners holding Kazakhstan residence permit, and citizens of member countries of the Eurasian Economic Union.
Obligatory pension contributions (OPC)
OPC are withheld at a rate of 10% out of employees’ gross income and paid to the State Pension Centre of Pension Payments. The gross income subject to OPC is capped at 50 times the minimum monthly wage (approximately USD 8,215) per employee per month. Only Kazakhstan citizens and foreigners holding a residence permit in Kazakhstan are subject to OPC.
In addition, individuals who are working under a service agreement (providing services on a Civil Contract basis) should not make OPC to the State Pension Centre in their own favour. Starting from 2019, OPC for these individuals should be done by a tax agent (company with which the contract is concluded).
Besides that, the employer is required to allocate 5% of one's own resources as OPC to the employees engaged in jobs with harmful (especially harmful) work conditions.
Net wealth/worth tax
There are no net wealth/worth taxes in Kazakhstan.
Inheritance, estate, and gift taxes
There are no inheritance, estate, and gift taxes in Kazakhstan.
Property tax is assessed annually at a general rate of 1.5% of the average net book value of immovable property.
Local non-income taxes
Single Cumulative Payment (SCP)
The new SCP has been introduced in 2019 and applies to employees of private households, unpaid workers of family enterprises, and entrepreneurs without employees with turnover less than 1,175 Monthly Calculated Index (MCI) per year (2,917 Kazakhstan tenge [KZT] from 1 January 2021). SCP can be applied only when services are rendered to other individuals or sale of agricultural products of one's own production to other individuals.
SCP cannot be applied if activity is carried out on the territory of commercial trade objects (owned or rented), if the individual is leasing the property (except housing), if the individual is an individual entrepreneur or carries out private practice, or is a foreigner or individual without citizenship (except Oralmans).
SCP should be paid on a monthly basis and is set in the amount of 1 MCI for residents of capital and cities of republican and regional significance and 0.5 MCI for individuals living in other parts.
Once SCP is paid, the authority distribute it as follows:
- 10% individual income tax.
- 20% social contributions.
- 30% OPC.
- 40% OMIC.
No tax reporting is applied for SCP payers.