1) Hello, I am an active pensioner, can I withdraw my pension savings for medical treatment?
According to paragraph 1 of Article 30 of the Law (Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan"), pension benefits from the UAPF are made from pension savings formed from compulsory pension contributions (CPC), compulsory occupational pension contributions (COPC), in the form of monthly pension payments according to the established schedule and (or) insurance payments from the insurance company in accordance with the pension annuity agreement 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) payment for treatment to persons specified in paragraph 1-1 Article 31, in paragraph 1-1 of Article 32 of the Law.
Thus, paragraph 1-1 of Article 31 and paragraph 1-1 of Article 32 of the Law provide that the right to one-time pension benefits at the expense of CPC and (or) COPC, including in order to pay for treatment for oneself or a spouse, or close relatives have individuals who have pension savings in the UAPF, if one of the following conditions is met:
if the amount of pension savings at the expense of CPC and (or) COPC, available in the individual pension saving account (IPSA) of the contributor, exceeds the threshold of the minimum sufficiency of pension savings;
if the size of the pension, and for retired judges, the amount of the pension and monthly allowance ensures the replacement rate of the recipient'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. When calculating the replacement rate of the average monthly income, the recipient's income is taken into account before the date of retirement, but not more than the average monthly income in the republic;
if the contributor has entered into a pension annuity agreement with an insurance organization.
It should be noted that the Rules for the use of lump-sum pension payments for treatment, which regulate the procedure for the use of lump-sum pension payments for treatment, establish, among other things, a list of medical services paid for by lump-sum pension payments, which includes:
- treatment of orphan diseases;
- dental services;
- reconstructive and restorative operations (plastic);
- radionuclide treatment and radioiodine therapy;
- radiosurgical treatment;
- proton therapy;
- ophthalmological services.
Considering the foregoing, if you belong to one of the above categories of persons entitled to lump-sum pension payments, then you can see information about the amount of pension savings available for withdrawal in the extract from the IPSA, which can be viewed in your personal account on the website and the UAPF mobile application (note that the amount available for withdrawal is reflected automatically), or on the e-government website or application.
2) Hello! I have recently heard on the news that there is no need to write an application to open an account with the UAPF. How do you get information about a citizen if the account is opened without his participation?
Yes, indeed, all individual pension accounts in the UAPF are opened automatically.
This automatic procedure for opening individual pension saving accounts (IPSA) for accounting pension contributions applies to:
- compulsory pension contributions (CPC) - from January 8, 2019;
- voluntary pension contributions (VPC) - from May 1, 2021;
- compulsory occupational pension contributions (COPC) - from October 26, 2021.
The identification of an individual in whose favor the pension contribution was transferred is carried out according to his personal data (full name, IIN, date of birth) specified in the payment order. In this case, all the necessary information about the details of the current identity document of an individual, and the place of permanent residence, the UAPF receives other information from the relevant information systems of state agencies.
3) Good afternoon! I am preparing to receive my retirement savings ahead of schedule and I am interested in the issue of paying individual income tax. Will I be paying it in full now? How will my remaining savings be paid after retirement? Are there any deductions?
In order to determine the procedure for taxation of the amounts of one-time pension payments from the UAPF by article 351-1 of the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code) "dated December 25, 2017. No. 120-VI (hereinafter - the Tax Code) provides for the specifics of calculating, withholding and paying individual income tax (hereinafter - IIT) from lump-sum pension payments in order to improve housing conditions and (or) payment for treatment (hereinafter - LSPP), carried out in accordance with pension legislation of the Republic of Kazakhstan.
In this case, the IIT is calculated by applying the rates established by Article 320 of the Tax Code (in the amount of 10%) to the amount of the LSPP.
Withholding and transferring the IIT from the LSPP amounts in accordance with paragraph 2 of Article 351-1 of the Tax Code are made by the UAPF by the statement of an individual on withholding the IIT in one of the following ways:
1) at a time, no later than the day the lump-sum pension payment is made in the manner prescribed by Article 351 of the Code;
2) monthly in equal installments for no more than sixteen years according to the schedule established by the UAPF for pension payments.
Withholding of the IIT is made based on an application for withholding the IIT submitted by an individual to a tax agent represented by the UAPF in the prescribed form.
Thus, when an individual applies to withholding the IIT from the LSPP in accordance with subparagraph 2) of paragraph 2 of Article 351-1 of the Tax Code, withholding and transferring the IIT will be carried out by the UAPF upon reaching the retirement age according to the schedule for pension payments established by the UAPF.
Please note that under the clarifications received from the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, given that the UAPF is recognized as a tax agent and calculates the IIT from the LSPP, tax deductions provided for in subparagraph 1) of paragraph 1 of Article 345 of the Tax Code, as well as standard tax deductions do not apply to the LSPP.
Upon retirement, subsequently, the recipient retains the right to apply tax deductions for pension payments from the UAPF in the manner prescribed by subparagraph 1) of paragraph 3 of Article 353 of the Tax Code.
So, in accordance with subparagraph 1) of Article 326 of the Tax Code, it is determined that income in the form of taxable pension payments includes payments made by the UAPF from pension savings, including through compulsory pension contributions (hereinafter referred to as CPC) and compulsory occupational pension contributions (hereinafter - COPC).
At the same time, the calculation of income tax withholding is carried out in aggregate for pension payments for all types of contributions within a calendar year.
According to subparagraph 1) of paragraph 3 of Article 353 of the Tax Code, the amount of taxable income in the form of pension payments from the UAPF is determined in the following order:
the amount of taxable income in the form of pension benefits,
minus
the amount of the adjustment for individual income tax provided for by paragraph 1 of Article 341 of this Code,
minus
the amount of tax deductions in the manner and amount specified in paragraph 1 of Article 345 and subparagraphs 2) and (or) 3) of paragraph 1 of Article 346 of this Code.
According to paragraph 1 of Article 345 of the Tax Code, a tax deduction in the amount of one minimum wage (minimum wage) established by the law on the republican budget and in effect on the date of accrual of income in the form of a pension payment is applied to taxable income in the form of pension payments for each month, for which the pension payment is made.
At the same time, in accordance with clause 7 of Article 353 of the Tax Code, the amount of unused tax deductions is transferred to subsequent tax periods within a calendar year.
We also note that paragraph 1 of Article 320 of the Tax Code provides that the taxpayer's income is taxed with IIT at a rate of 10 percent.
Let's give an example:
The monthly pension payment from the UAPF is 50,000 tenge. When determining taxable income in the form of pension payments, a tax deduction is applied in the amount of 1 minimum wage - 42,500 tenge. The IIT calculation is as follows: (50,000- 42,500) * 10% = 750 tenge.
Thus, the recipient will receive an amount of 49,250 tenge (50,000 tenge - 750 tenge = 49,250 tenge).
However, if there are tax liabilities for the payment of a deferred IIT upon reaching retirement age, for example, I previously withdrew 5,000,000 tenge with a deferred IIT from my retirement account, then the amount of IIT with an IIT calculated in equal shares for no more than 16 years according to the established UAPF to the schedule for pension payments - 2604.17 tenge (5,000,000.00 * 10%): 192, where 192 is the number of months (16 years * 12). The amount to be paid is 46,645.83 tenge (50,000.00 –750-2604.17).
4) Good afternoon! I have been a pensioner for the third year already, but recently I found a small part-time job as a watchman. Now I have a question, will my employer transfer 10% of my salary to the UAPF? After all, I’m already receiving retirement payments from you.
No, your employer will not transfer pension contributions to the UAPF for you. In accordance with the provisions of paragraph 2 and paragraph 3 of Article 24 of the Law on Pension Provision, individuals who have reached retirement age are exempted from paying compulsory pension contributions and (or) compulsory occupational pension contributions to the UAPF.
5) Hello! I am a citizen of the Russian Federation, but I live and work in Kazakhstan, how is the issue of my pension provision being resolved?
In accordance with the Treaty on the EAEU of 05/29/2014. Pensions for workers of the EAEU member states and family members are regulated by the legislation of the state of permanent residence, as well as under a separate international agreement between the EAEU member states. Such an international treaty is the Agreement on Pension Provision of Workers of the Member States of the Eurasian Economic Union dated December 20, 2019 (hereinafter referred to as the Agreement), which entered into force on January 1, 2021.
The main purpose of the Agreement is to form the pension rights of workers of the EAEU member states on the same conditions and in the same manner as the citizens of the state of employment, that is, each EAEU member state must guarantee to citizens of other EAEU member states the number of pension rights equal to the scope of rights granted to its citizens on similar terms.
It should be noted that Article 12 of the Agreement, containing transitional provisions, provides that the appointment and payment of pensions are carried out in the following order:
for the length of service acquired after the entry into force of the Agreement, the pension is assigned and paid by the EAEU member state, in the territory of which the corresponding length of service was acquired;
for the length of service acquired before the entry into force of the Agreement, the pension is assigned and paid in accordance with the legislation of the EAEU member states and the Agreement on guarantees of the rights of citizens of the member states of the Commonwealth of Independent States in the field of pension provision of March 13, 1992, and for the Republic of Belarus and Russian Federation - Agreement between the Russian Federation and the Republic of Belarus on cooperation in the field of social security dated January 24, 2006.
Thus, the provisions of the Agreement will apply only to the length of service acquired by the worker in the period after the entry into force of the Agreement, subject to the official employment of citizens of the EAEU member states temporarily carrying out labor activities in the territory of another EAEU member state with the conclusion of an employment or civil contract. with the employer of the state of employment and with mandatory payment of pension (insurance) contributions to the pension system of the state of employment.
At the same time, subparagraph 2.3 of paragraph 2 of Article 2 of the Agreement establishes that in the Republic of Kazakhstan the Agreement applies to pension payments from the UAPF at the expense of formed pension contributions:
1) upon reaching the retirement age;
2) when establishing disability of the first and second groups, if the disability is established for an indefinite period;
3) a lump sum payment to heirs.
Thus, in the Republic of Kazakhstan:
At the same time, citizens of the EAEU countries, including the Russian Federation, will have the right to apply for pension payment to the UAPF, which is the competent authority in Kazakhstan for the implementation of the Agreement, or to the competent authority of the state of residence, for example, to the Pension Fund of the Russian Federation with the provision of documents established by law. Republic of Kazakhstan.