I have recently registered as an individual entrepreneur. How can I transfer my pension contributions?
According to Article 25 of the Law of the Republic of Kazakhstan "On Pension Provision of the Republic of Kazakhstan "(hereinafter – The Law), for persons engaged in private practice, individual entrepreneurs, as well as individuals who receive income under contracts of a civil nature, the subject of which is the performance of work (provision of services), except for the case provided for in subparagraph 5) of paragraph 2 of Article 24 of the Law, mandatory pension contributions in their favor, payable to the UAPF, are set at 10 percent of the income received, but not less than 10 percent of the minimum wage and not more than 10 percent of the 50-fold minimum wage, established for the corresponding financial year by the law on the republican budget.
The income received is the income determined independently by a person engaged in private practice, as well as by an individual entrepreneur for calculating mandatory pension contributions to the UAPF in their favor. In the absence of income, persons engaged in private practice, as well as individual entrepreneurs, have the right to pay mandatory pension contributions to the UAPF in their favor at the rate of 10 percent of the minimum wage established for the corresponding financial year by the law on the republican budget.
In accordance with paragraph 8 of the Rules and Terms of Calculation, withholding (accrual) and transfer of mandatory pension contributions, mandatory professional pension contributions to the unified accumulative pension fund and Penalties for them, approved by the Decree of the Government of the Republic of Kazakhstan dated October 18, 2013 No. 1116, the transfer of mandatory pension contributions is made by the agent through non-cash payments. Lawyers, private bailiffs, private notaries, professional mediators, individual entrepreneurs, as well as individuals who receive income under civil contracts and do not have accounts in second-tier banks and organizations that carry out certain types of banking operations (hereinafter referred to as STBs), make mandatory pension contributions in cash to the STBs for their subsequent transfer to the UAPF. Payment of mandatory pension contributions in cash or by non-cash method through the STB is carried out in accordance with the procedure established by the Law of the Republic of Kazakhstan "On Payments and Payment Systems".