4.4.6. Social tax

 

Who is the payer of social tax?

According to Article 315 of the Tax Code of the Republic of Kazakhstan, legal entities, residents of the Republic of Kazakhstan, as well as non-residents that carry out an activity in the Republic of Kazakhstan via their permanent establishments, individual entrepreneurs, private notaries and lawyers shall be deemed the payers of social tax.

 

What is an object of taxation by social tax?

According to Article 316 of the Tax Code, the expenses of the employer payable in the form of employees’ income, except for some payments as stipulated for by this Article shall be deemed the objects of taxation for legal entities. The number of the employees, including the payers shall be deemed the object of taxation by social tax for the individual entrepreneurs, private notaries and lawyers.

 

What is a procedure to calculate and pay social tax?

According to Article 318 of the Tax Code the payers (except for the legal entities and private entrepreneurs using the special tax regimes) shall do calculation of social tax on a monthly basis applying the tax rates to the object of taxation by social tax.

Legal entities, residents of the Republic of Kazakhstan (except for the legal entities and individual entrepreneurs using the special tax regimes), as well as non-residents performing activity in the Republic of Kazakhstan via permanent establishment shall pay social tax at the rate of 21%. Exclusion is payment of social tax for foreign specialists of administrative and management, technical and engineering staff, the rate of 11% shall be applied to.

Individual entrepreneurs (except for those using special tax regimes), private notaries and lawyers shall pay social tax in amount of three monthly calculated index for them and in amount of two monthly calculated index for each employee. Specialized organizations the disabled people with disorders of locomotor apparatus, hearing, aphasia, visually handicapped work for shall pay social tax for disabled people at the rate of 6.5%.

The payers shall file declaration on social tax on a quarterly basis not later than the 15 days of a month following the reporting quarter. The payers (except for the legal entities and individual entrepreneurs using special tax regimes) shall carry out tax payment not later than 15 days of a month following the reporting one.

 

4.4.7. Land tax

Who is a payer of land tax?

Individuals and legal entities having the objects of taxation in their ownership, permanent use or primary charge-free temporary use shall be deemed the payers of land tax. Certain categories of taxpayers as stipulated for by Article 324 of the Tax Code shall not be deemed the payers of land tax (payers of single land tax, religious associations, etc.).

 

 

What is an object of land tax and tax base?

According to Article 326 of the Tax Code, a land plot, except for the land plots of common use of populated areas, land plots occupied by a network of state motor roads of common use, and the land plots occupied by the objects suspended upon the decision of the Government of the Republic of Kazakhstan shall be deemed the object of taxation.

An area of land plot shall be deemed a tax base to determine the land tax.

 

What are the rates of land tax?

According to Article 323 of the Tax Code, for the purpose or taxation and depending on special-purpose designation al lands shall be classified into categories. Thus, only the land of agricultural designation, populated areas and industrial land shall be subject of taxation by land tax. The remained categories of land shall be subject to taxation only in case of their transfer to permanent or primary charge-free temporary land use.

On the basis of such classification, Chapter 54 of the Tax Code establishes the basic rates of land tax. Thus, for example, the basis rates of land tax on lands of agricultural designation shall be established in proportion to the yield class number on 1 hectare and shall be differentiated by quality of soils from 0.48 KZT up to 202.65 KZT.

According to Article 338 of the Tax Code, the local representative bodies shall have a right to reduce or increase the rates of land tax but not more than by 50% of the basic rates of land tax pursuant to the land zoning projects (schemes) carried out in accordance with the land legislation of the Republic of Kazakhstan. Certain categories of taxpayers, for example, nonprofit organization, apply 0.1 coefficient to the corresponding rates when calculating the tax.

 

What is a procedure to calculate and pay the land tax?

A taxpayer (except for legal entities that make settlements with the budget using the special tax regime for legal entities, the producers of agricultural products) shall calculated taxes by applying the relevant tax rate to the tax base individually on each land plot.

Legal entities shall calculate and pay current payments on land tax during a tax period. The amounts of current payments shall be paid in equal parts within the deadlines not later than 20 February, 20 May, 20 August, 20 November of the current year. The final calculation and payment of land tax shall be carried out within a period not later than 10 days upon the deadline to submit the tax return for a tax period (calendar year) occurs. Declaration on land tax shall be submitted (except for legal entities that carry out payments to the budget using the special regime for the producers of agricultural goods) to the Territorial Tax Authorities in the place of location of objects of taxation by 31 March of a year following a reporting one.

On the basis of the corresponding tax rates and tax base, Tax Authorities shall carry out assessment of land tax payable by individuals by 1 August. Individuals shall pay a land tax to the budget by 1 October of the current year.