ESP-state aid for the self-employed

ESP-state aid for the self-employed

From the first of January 2019, a single aggregate payment will begin to operate — a kind of tax benefit for self-employed Kazakhstanis.

In accordance with the instructions of the Head of state, the single aggregate payment, or ESP, is intended for those informally employed citizens whose income is lower than that of individual entrepreneurs. This means that if your income does not exceed 240,500 tenge per month (100 minimum wages for a calendar year), you can switch to this tax regime. The ESP for the self-employed will be 1 MCI for the urban population and 0.5 MCI in rural areas. The minimum calculated indicator from January 1, 2019 will be 2525 tenge per month.

The deducted ESP will be distributed in four directions: 10% - individual income tax, 20% - social contributions to the State social insurance Fund, 30% - pension payments to the Unified accumulative pension Fund, 40% - contributions to the social health insurance Fund.

A single aggregate payment will be available only to individuals who provide services to other individuals, while they must do without employees and sell agricultural products from the operation of a personal subsidiary farm. If a self-employed citizen also provides services to legal entities, they will have to pay taxes in full.

A single aggregate payment will not apply to:

individuals who provide services on the territory of commercial real estate, including retail properties (under lease agreements);
persons who lease (lease) property, except for housing;
individuals engaged in private practice;
foreigners or stateless persons, with the exception of oralmans;
persons who have state registration as individual entrepreneurs.

The introduction of ESP will provide an opportunity for busy people of Kazakhstan in full volume to receive medical care. After mandatory social health insurance is introduced, they will be able to participate in the funded pension system, receive a basic payment depending on the length of participation in the system, as well as social payments from the state social insurance Fund in cases of disability, loss of breadwinner, pregnancy and childbirth, adoption of a child, care for a child of one year or older.

The press service of the Department of coordination of employment

and social programs of the Akmola region.