The tax period for the assessment of individual income tax that is non-taxable at source is a calendar year. The tax period for the assessment of individual income tax from income taxable at source is a calendar month.
Tax agents are required to file quarterly payroll tax reports (Declaration on Individual Income Tax and Social Tax, jointly for Kazakhstan citizens, foreigners, and individuals working on a Civil Contract basis) in respect of income paid/assessed to its employees/individuals and respective payroll taxes/contributions withheld at source or paid accordingly. The statutory deadline for submission of payroll tax reports is the 15th day of the second month following the reporting quarter (15 May, 15 August, 15 November, and 15 February).
There is also a self-assessment system whereby all taxpayers who have income from Kazakhstan and other sources that is non-taxable at source (in the absence of a tax agent) are required to submit an annual declaration on individual income tax by 31 March of the year following the reporting year.
Kazakhstan will launch a 4-phase universal declaration for individuals in the period between 2021 and 2025. Phase 1 begins on 1 January 2021.
In 2021 reporting year:
- Declaration on individual income tax and property (Form 230.00): No longer applicable after 31 December 2020.
- Declaration on individual income tax (Form 240.00): No changes.
- Declaration on assets and liabilities (Form 250.00): To be introduced on 1 January 2021.
As of 1 January 2021, the following individuals will be required to file the Form 250.00:
- Government employees and similar individuals, individuals authorised to perform governmental functions, individuals equated to personnel authorised to perform governmental functions, and their spouses.
- Individuals that are required to file declaration on individual income tax and property (230.00) within the law on 'election law', 'anti-bribery law', 'banks and bank activity', 'insurance', and 'securities market' law.
Previously, these individuals submitted Form 230.00 (which will not be applicable after 31 December 2020 in connection with the introduction of the universal declaration).
If Forms 250.00 and 240.00 reflect similar information (e.g. information on the availability of real estate, securities, share in the authorised capital of a legal entity located outside of Kazakhstan), an individual needs to submit only Form 250.00.
Form 250.00 is submitted at the place of residence (stay) of an individual in Kazakhstan as follows:
- Hard copy: No later than 15 July of the year following the reporting year.
- Electronic form: No later than 15 September of the year following the reporting year.
Payment of tax
Tax agents withhold income tax no later than the date of income payment to the individual. Tax is due prior to the 25th day of the month following the month of payment.
In case of self-assessment, individual income tax should be paid within ten calendar days after the official deadline for the annual tax return submission (i.e. by 10 April). If the deadline falls on the weekend, it will generally be scheduled for the following Monday.
Statute of limitations
In Kazakhstan, the statute of limitations for tax liability is three years. The statute of limitations extends to five years in exceptional cases.