Good afternoon! Can I make compulsory pension contributions for myself?
In accordance with the current pension legislation of the Republic of Kazakhstan, mandatory pension contributions are payable by contributors, by transfer by the contributor's agent (employer). At the same time, only the following individuals can pay mandatory pension contributions (MPC) in their favor by transferring them to the non-commercial joint-stock company State Corporation “Government for Citizens” (formerly SCPP):
- individual entrepreneurs;
- private notaries;
- private bailiffs;
- lawyers;
- professional mediators;
- individuals who receive income under civil law contracts;
- payers of a single aggregate payment.
Thus, if you do not belong to the above category of persons, then it is not possible to independently replenish an individual pension account formed at the expense of the MPC.
Note that in order to receive higher pension payments in the future, you can already now pay voluntary pension contributions (VPC) in your favor in parallel with the MPC. They can be made both by individuals in their favor, and by individuals and legal entities in favor of a third party. At the same time, the amount and frequency of payment of the VPC are established by an individual or legal entity independently.
One of the advantages of paying VPC is that when an individual pays VPC in his favor at the expense of his income, tax legislation provides for a tax deduction for the amount of VPC paid. In addition, from January 1, 2021, VPC paid by a tax agent (employer) at their own expense in favor of an employee is deductible when calculating corporate income tax. At the same time, the amounts of VPC paid by the employer in favor of the employee are not taken into account when taxing the employee's income.
In addition, the VPC, as well as the MPC, accrue investment income, which can significantly increase your savings.
It should be noted that from May 1 of this year, the basis for opening an individual pension account for accounting for VPC is, among other things, the first voluntary pension contribution received by the UAPF. Thus, the contributor (beneficiary) does not need to visit the office of the Fund, the identification of the individual in whose favor the VPCs are made will be carried out according to the personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring the VPCs, and all necessary information: about the details of a valid document proving the identity of an individual, about the place of permanent residence, other information will be received by UAPF from the relevant information systems of state bodies.
Payment of CPV to the UAPF can be made through second-tier banks (STB) or Kazpost JSC. Some STBs provide an opportunity to transfer contributions online (through a mobile application or self-service terminals). In addition, it is possible to submit an application to the employer, on the basis of which the latter will regularly transfer VPC to the UAPF in favor of the applicant or a third party.
In addition, if you do not have a permanent income and, accordingly, do not regularly replenish your individual retirement account, then in this case you can pay in your favor the Single Cumulative Payment (SCP), which provides for a simplified procedure for registering informally employed activities with the tax authorities.
It combines four mandatory types of payment:
individual income tax (IIT);
social contributions to the state social insurance fund;
pension payments in the UAPF;
deductions to the Compulsory Social and Medical Insurance Fund.
SCP size:
1 MCI - for individuals living in cities of republican significance, the capital and regional significance (2,917 tenge in 2021);
0.5 MCI - for individuals living in other settlements (1,458.5 tenge in 2021).