4.4.2. Individual income tax

 

Who is a payer of individual income tax?

According to Article 141 of the Tax Code of the Republic of Kazakhstan, individuals having the objects of taxation shall be deemed the payers of individual income tax.

What is an object of individual income tax?

Income subject to taxation at the source of income (income of the employee, income from lump sum payments, income from dividends and other income as stipulated for by Article 146 of the Tax Code) and income not subject to taxation at the source of income (property tax, taxable income of individual entrepreneur and other income as stipulated for by Article 163 of the Tax Code) shall be deemed the object of taxation by the individual income tax. At the same time, Article 144 of the Tax Code determines a list of individuals’ income not subject to taxation, in particular, an addressed social aid, remuneration on bank deposits, income on transactions with state securities and some other types of income.

 

What is the procedure to calculate and pay the individual income tax?

An amount of individual income tax shall calculated by applying the rate from 5 to 30% (depending on amount of income) to the income reduced by the amount of obligatory pension payment to the accumulative pension funds. Income from dividends, remuneration (except for insurance premium paid on accumulative insurance agreements), winnings shall be taxed at the rate of 15%.

According to Article 147 of the Tax Code, the tax agents, who withhold tax at the source of income (except for the tax agents applying the special tax regimes), shall pay tax within 5 working days following the last day of tax payment of the reporting month.

Individual income tax on income not subject to taxation at the source of payment shall be calculated individually by the taxpayer and shall be paid on the results of the tax year not later than within ten working days from 31 March of a year following the reporting one.

An amount of individual income tax on the income of lawyers and private notaries shall be calculated on a monthly basis by applying the rate of 10% to the amount of income received and shall be paid not later than 5^th days of the month following the reporting one.

 

 

 

Whether all individuals shall file tax return on individual income tax?

Only certain categories of the taxpayers, including people having the income not subject to taxation at the source of payment, individuals having money on foreign banks’ accounts and the other categories of people as stipulated for by Article 171 of the Tax Code shall file a tax return on individual income tax not later than 31 March of a year following the tax one.

 

4.4.3. Value added tax

 

What is the value added tax?

According to Article 205 of the Tax Code of the Republic of Kazakhstan, VAT is a payment to the budget of a part of the cost of the taxable turnover on disposal, added in the process of production and circulation of goods (works, services), as well as payments when importing goods to the territory of the Republic of Kazakhstan. VAT payable to the budget on taxable turnover shall be determined as a difference between the amounts of VAT assessed to the disposed goods (works, services) and the amounts of VAT payable for the goods (works, services) received.

 

W ho is a VAT taxpayer?

According to Article 207 of the Tax Code, persons, who are registered or are obliged to register for VAT purposes in the Republic of Kazakhstan, shall be deemed the VAT taxpayers. The payers of VAT on import of goods shall be deemed persons, which import these goods in the territory of the Republic of Kazakhstan in accordance with the Customs legislation of the Republic of Kazakhstan.

 

What is a VAT taxable object?

According to Article 206 of the Tax Code, taxable turnover and taxable import shall be a VAT taxable object. Turnover on disposal of goods (works, services) in the Republic of Kazakhstan carried out by the VAT taxpayer, except for the turnover exempted from VAT, shall be deemed a taxable turnover. The goods being imported or imported in the territory of the Republic of Kazakhstan (except for the VAT exempted ones), subject to declaring in accordance with the Customs legislation of the Republic of Kazakhstan shall be deemed the taxable import.

 

What are the VAT rates?

According to Article 245 of the Tax Code, the VAT rate on taxable turnover and taxable import shall equal to 16%. A turnover on disposal of goods for export (except for export of non-ferrous metal and iron-and-steel scrap), as well as execution of works, rendering services associated with international transportation shall be subject to VAT at a zero rate.

Turnover on disposal of goods (works, services) as stipulated for by Articles 225 – 233 of the Tax Code and including, in particular, contributions to the authorized capital, financial services, property transfer to the financial leasing, exploration work shall be VAT exempted. According to Article 234 of the Tax Code, import of some goods, including import of goods by individuals in compliance with the duty-free import of goods standards, import of foreign currency, medical remedies and the other goods as stipulated for by the present Article shall be VAT free.

 

What is a procedure to pay value added tax?

According to Article 248 of the Tax Code, a VAT taxpayer shall pay a tax to the budget for each tax period before and on a day of established period to file the VAT return. VAT return for each tax period shall be filed not later than 15 day of a month following the tax period.

At the same time, a calendar month shall be deemed a tax period for value added tax, however, if a average monthly VAT amount payable to the budget for a previous quarter is less than 1000 monthly calculated indexes, then the quarter shall be deemed a tax period. For VAT taxpayers using the special tax regime for legal entities – producers of agricultural products, a tax year shall be deemed a tax period on VAT payable to the budget from the income gained from the activity the mentioned special tax regime is applied for.

VAT on import shall be paid on a day as determined by the Customs legislation of the Republic of Kazakhstan to pay the customs payments. At the same time a deadlines to pay VAT on import may be change in accordance with the procedure as stipulated for by the Tax Code.