Topical questions about UAPF
Can I get my pension savings from the UAPF at a time?
The rights of individuals to pension assets in accordance with the provision of Article 50 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan (hereinafter referred to as the Law) belong to the category of real rights provided for by the Law, and can be used exclusively for the purposes specified by the Law, including for implementation of pension benefits, lump-sum pension benefits in order to improve housing conditions and (or) pay for medical treatment in accordance with the legislation of the Republic of Kazakhstan.
The rights of individuals and legal entities to pension assets formed at the expense of compulsory pension contributions, compulsory occupational pension contributions and voluntary pension contributions belong to the category of real rights provided for by the Law.
In accordance with the provisions of the Law, pension payments from the UAPF are made from pension savings formed at the expense of compulsory pension contributions (CPC), compulsory occupational pension contributions (COPC) in the form of monthly pension benefits according to the established schedule and (or) insurance benefits from an insurance company in accordance with the contract pension annuity at the expense of pension savings, as well as in the form of lump-sum pension benefits in order to improve housing conditions and (or) pay for medical treatment.
In this case, if the amount of pension savings of persons, due to reaching retirement age or the presence of disability groups 1 and 2 for an indefinite period on the date of the beneficiary's application for benefit, does not exceed twelve times the minimum pension established by the law on the republican budget for the corresponding financial year, this amount is paid to the beneficiary from the UAPF at a time (in 2023 this amount is 636,912 tenge (12 * 53,076 tenge)).
Prior to retirement age, persons with disabilities of group 1 or 2, established indefinitely, can also start receiving pension benefits according to the schedule.
Lump-sum pension benefits from the UAPF are also paid in the manner and terms established by the legislation of the Republic of Kazakhstan, namely in order to improve housing conditions and (or) pay for medical treatment if one of the following conditions exists:
if the amount of pension savings at the expense of CPC and (or) COPC, available on the individual pension saving account (s) (IPSA) of the contributor, exceeds the minimum pension savings adequacy threshold;
if the amount of the pension, and for retired judges, the amount of the monthly allowance ensures the replacement rate of the beneficiary's average monthly income at a level of at least 40 percent, determined in the manner determined by the Government of the Republic of Kazakhstan;
if the contributor has entered into a pension annuity agreement with an insurance company.
Pension benefits from the UAPF to foreigners and stateless persons who have left for a permanent place of residence outside the Republic of Kazakhstan, who have submitted documents determined by the legislation of the Republic of Kazakhstan, confirming the fact of departure, are made at a time.
In the event of the death of a beneficiary, as well as a person who has pension savings in the UAPF and has not reached retirement age, his family or the person who performed the burial, the UAPF is paid a lump sum benefit for burial within the amount of 52.4 times the monthly calculation index established for the corresponding financial year by the law on the republican budget, but not more than the funds available for the IPSA.
In the event that the balance of pension savings on the beneficiary's IPSA after the lump-sum benefit for burial amounts to an amount not exceeding the minimum pension established for the corresponding financial year by the law on the republican budget, this balance is paid as a payment for burial.
The heirs of a deceased person who has pension savings in the UAPF, as well as persons who have applied for pension savings recognized as escheat by a judicial act, are paid from the UAPF at a time.
I heard that from the UAPF you can receive benefit payments for the burial of a deceased contributor. What is needed for this?
In accordance with the provisions of the Law, in the event of the death of a beneficiary, as well as a person who has pension savings and has not reached the generally established retirement age, his family or the person who performed the burial, the UAPF is paid a lump-sum benefit for burial within the amount of 52.4 times the monthly calculation index established on the corresponding financial year by the law on the republican budget (MRB), but not more than the funds available in the IPSA (in 2023 this amount is 180,780 tenge (52.4 * 3,450)).
In the event that the balance of pension savings on the beneficiary's IPSA after the lump-sum benefit for burial amounts to an amount not exceeding the minimum pension established for the corresponding financial year by the law on the republican budget, this balance is paid as a payment for burial (in 2023 this amount is 53 076 tenge).
If pension savings remain on the beneficiary's IPSA after the lump-sum benefit for burial, they are inherited in the manner prescribed by the legislation of the Republic of Kazakhstan.
So, on the UAPF website at www.enpf.kz there are:
I am temporarily not working, I would like to make compulsory pension contributions to the UAPF. What is needed for this?
The period of participation in the pension system when granting the state basic pension benefit includes, among other things, the period for which compulsory pension contributions (CPC) were made.
At the same time, individuals who independently carry out activities for the production (sale) of goods, works and services in order to generate income without state registration of their activities, with the exception of individual entrepreneurs (IE), persons engaged in private practice (PE), founders (participants) of business partnership and founders, shareholders (participants) of a joint-stock company, members of a production cooperative, are self-employed or independent workers. In other words, these are those who earn their living without an officially concluded employment contract with employers. Self-employed citizens can transfer CPC in their favor as part of a single cumulative payment (SAP)[1].
SAP payers are individuals who carry out entrepreneurial activities without registering as an individual entrepreneur, who simultaneously meet the following conditions:
1) paid a single cumulative payment;
2) do not use the labor of employees;
3) provide services exclusively to individuals who are not tax agents, and also comply with the requirements established by the legislation of the Republic of Kazakhstan, and (or) sell exclusively to individuals who are not tax agents, agricultural products of personal subsidiary plots of their own production, with the exception of excisable products.
At the same time, the amount of income of the SAP payer, received as a result of the activities specified in subparagraph 3) of paragraph 1 of Article 774 of the Tax Code[2], for a calendar year should not exceed 1175 times the amount of the monthly calculation index (MCI) established by the law on the republican budget and effective on January 1 of the relevant financial year.
Individuals are recognized as SAP payers from the date on which such payment is made until the last day of the month for which SAP is paid.
SAP includes payable amounts of personal income tax and CPC, social contributions paid in accordance with the Law of the Republic of Kazakhstan On Compulsory Social Insurance, deductions and contributions for compulsory social health insurance paid in accordance with the Law of the Republic of Kazakhstan On Compulsory Social Health insurance.
SAP size:
1 MCI - for individuals living in cities of republican and regional significance, the capital (3,450.00 tenge in 2023);
0.5 MCI - for individuals living in other settlements (1,725.00 tenge in 2023).
When SAP paid in terms of CPC, such contributions are counted towards the period of participation in the pension system when presenting the state basic pension benefit.
The SAP must be paid at the place of residence of the payer by depositing SAP in cash or by bank transfer to the bank account of the State Corporation "Government for Citizens" through banks and organizations that carry out such types of banking operations. At the same time, SAP can be paid for the current and subsequent months of the calendar year.
I am an individual entrepreneur and 8 people work in my furniture shop. I heard that they have now simplified the payment of taxes and other obligatory payments for our employees. Is it so?
From January 1, 2023, a single payment has been introduced in Kazakhstan.
The Tax Code was supplemented with the section "Single Payment". According to Article 776-1 of the Tax Code, the single payment includes payable amounts of individual income tax, compulsory pension contributions (CPC), social contributions, contributions and contributions to compulsory social health insurance.
The object of taxation with a single payment is the income of an employee accrued by an employer that is a micro-entrepreneurship and small business entity that applies special tax regimes (STR): on the basis of a simplified declaration; for agricultural producers.
Tax agents are individual entrepreneurs and legal entities that are subjects of micro-entrepreneurship and small business, applying the STR.
The single payment rate is:
from January 1, 2023 - 20.0%;
from January 1, 2024 - 21.5%;
from January 1, 2025 - 23.8%;
from January 1, 2026 - 24.8 %;
from January 1, 2027 - 25.8 %;
from January 1, 2028 - 26.3 %.
For single payment payers, the share of CPC in the single payment rate is:
from January 1, 2023 - 50.0%;
from January 1, 2024 - 46.5%;
from January 1, 2025 - 42.0%;
from January 1, 2026 - 40.3%;
from January 1, 2027 - 38.8%;
from January 1, 2028 - 38.0%.
The term for transferring a single payment is monthly no later than the 25th day following the reporting one - in the total amount through second-tier banks or organizations engaged in certain types of banking operations, to the bank account of the State Corporation "Government for Citizens".
The tax period for the calculation of a single payment by tax agents is a calendar month.
The introduction of a single payment should make it easier for micro and small businesses working on STR to pay taxes and other mandatory payments from the income of employees, which will now be carried out in one payment. It is also a plus that in aggregate the total amount of this payment is less than with separate payment.
At the same time, the tax agent in the relevant declaration independently determines the unified procedure for taxing the income of employees subject to taxation at the source of payment. The chosen procedure for taxing the income of employees subject to taxation at the source of payment in the initial or next declaration is not subject to change during the tax period.
I am a pensioner for the second year. In January, he received a pension benefit more than in December last year. Was there a recalculation and how are pension benefits calculated?
Yes, from January 1, 2023, last year's pension benefits from the UAPF are indexed by 5%.
Pension benefits from the UAPF are calculated in accordance with the Methodology approved by the Decree of the Government of the Republic of Kazakhstan dated October 2, 2013 No. 1042 (as amended from April 1, 2021) (hereinafter referred to as the Methodology).
According to the Methodology, in the first year of receiving pension benefits, the amount of pension savings is multiplied by the pension savings payout rate of 6.5% and divided by 12. For beneficiaries of certain categories (persons with a disability of group 1 or 2, if the disability is established indefinitely, as well as beneficiaries of pension benefits for whom the COPC has been paid in the aggregate for at least sixty months), the Methodology provides for adjustment factors.
Each subsequent year, the size of the monthly pension benefit increases by the indexation rate of pension payments - 5%.
At the same time, the monthly pension benefit from the UAPF is made in the amount of at least 70% of the subsistence minimum established for the corresponding financial year by the law on the republican budget (in 2023, the subsistence minimum was 40,567 tenge). Accordingly, since the beginning of the current year, the minimum payment from the UAPF increased by 8.5% compared to last year (in 2022 - 26,172.3 tenge) and amounted to 28,396.9 tenge (70% * 40,567).
For persons who exercised their right to receive pension benefits from the UAPF before January 1, 2018, pension benefits are paid according to a previously selected schedule (annually, quarterly, monthly) in the amount of at least thirty times the minimum pension established for the corresponding financial year by the law on the republican budget (in 2023 30 x 53,076 = 1,592,280 tenge).
Recall that pension benefits from the UAPF are paid until the exhaustion of pension savings on the IPSA.
Also, from January 1, 2023, the calculation of the solidarity old-age pension has changed. Now the value of the maximum income used to calculate pension benefits by age (solidarity pension) is 55 MCI. At the same time, for completed pensioners, the recalculation of the solidarity pension will be made if the average monthly income for any three consecutive years, regardless of interruptions in work from January 1, 1998, previously submitted to the State Corporation for calculating the amount of the pension, was above 46 MCI.
In addition, the minimum amount of the basic pension has been increased, which today is 24,341 tenge (60% of the subsistence minimum = 60% * 40,567).
As a result, since the beginning of 2023, the total amount of pensions of Kazakhstanis has increased.
[1] valid until 01.01.2024 in accordance with the Law of the Republic of Kazakhstan dated 12/26/2018 No. 203-VI
[2] Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget” (Tax Code) dated December 25, 2017 No. 120-VI