The draftLaw"OnAmendmentsandAdditions to theCode of the Republic of Kazakhstan"OnTaxesandOtherMandatoryPayments to theBudget"(TaxCode)and the laws of the Republic of Kazakhstanonitsintroduction", which is under considerationin the Senate of the Parliament of the Republic of Kazakhstan,provides for the followingamendmentsandadditions to theCode of the Republic of Kazakhstan"OnTaxesandOtherMandatory Payments to the Budget". payments to thebudget"(TaxCode),plannedto be implementedfromJanuary1, 2025.
As is known, the Head of Stateinstructed to exemptfromuniversaldeclaration from January1, 2025 the remainingcategory of citizens(pensioners,employees of privatestructures,students,etc.)belongingto the fourthstage of declaration,and to reviewapproachestouniversaldeclaration.In this regard, aspart of the optimizationof the declaration procedure, individualswhoreceiveincomesubject to withholdingtax(salaries,pensions,scholarships,pension,insurancepayments,etc.) are exemptfromsubmitting an annualdeclaration of form270.00, with theexception of civil servantsandpersonsequatedtothem,theirspouses,majorparticipants in the financialsector,foundersandheads of organizations,personsengaged in privatepractice,personswithpropertyorbankaccountsabroad,aswell as otherpersons who have receivedincome, taxable by an individual on their own,aswell as those who purchasedpropertyinexcess of 20,000times the monthlycalculationindex(MCI) during the reportingperiod.
Considering the aboveapproaches,which are changing the administrationin terms of the use of taxdeductions by individuals, it is envisaged to replace a number of taxdeductions(in the amount of 14MCI,foreducation,formedicine,forhousingmortgageloansandforlargefamilies) with asinglebasicdeductionof30MCIpercalendarmonth,thatis, 360MCIper calendar month. a calendaryearthat is providedon the basis of an application for theapplication of taxdeductionsinanyform.
These deductions will be provided for application from January 1, 2025 for all individuals by income of employees, individual entrepreneurs applying the generally established taxation regime, as well as persons engaged in private practice (private notaries, lawyers, private bailiffs, professional mediators). Additionally, for individuals engaged in private practice, the personal income tax rate has been reduced from 10% to 9% instead of excluding professional deductions and a monthly payment of personal income tax is provided.
An additionaltaxdeduction is also being introduced for theamount of withheldsocialcontributionsforindividuals who receiveincomeundercivilcontracts, thesubject of whichis the performance of work(provision of services)–in the amountestablished by the legislation of the Republic of Kazakhstanonsocialprotection.
These changes are introduced in order to simplify the procedure for applying tax deductions by individuals, which eliminates the additional obligations of individuals to collect and store documents confirming tax deductions, as well as the annual submission by an individual of an income and property declaration reflecting all income received for a calendar year with the application of tax deductions and self-calculation of the actual amount of income tax payable. to the budget, conducting inspections by state revenue authorities regarding the legality of the application of tax deductions, etc. In addition, due to the introduction of these standards retrospectively, transitional provisions are provided regarding the procedure for calculating personal income tax and applying tax deductions for the period from January 1, 2025 to the date of the Law's entry into force.