About the procedure for taxation of one-time pension payments from the UAPF for the purpose of improving housing conditions and paying for treatment

About the procedure for taxation of one-time pension payments from the UAPF for the purpose of improving housing conditions and paying for treatment

An online platform for accepting applications for the use of pension savings from the population has been launched in Kazakhstan since January 23, 2021.

One-time pension payments can be used independently. And if the UAPF depositor does not plan to use these payments himself, he can assign them to his close relative and/or spouse.

One-time pension payments for the purpose of improving housing conditions and (or) paying for treatment, as defined by the rules, can be used for different purposes and an unlimited number of times.

According to the rules for the use of lump-sum pension payments for improving housing conditions, these payments can be used for the following purposes::

- Repayment of mortgage debt

- Purchase of housing without a mortgage (full purchase).

- Obtaining a housing mortgage loan under the system of housing construction savings in Otbasy Bank.

- Making a down payment to get a mortgage loan.

- Partial or full repayment of debt under long-term lease agreements of housing with the right to purchase, provided under housing construction programs and anti-crisis programs.

- Construction of an individual residential building (including the purchase of a land plot).

You can specify the available amount of pension savings on the portal of the UAPF of the Republic of Kazakhstan. Before submitting an application, you must have a valid electronic digital signature (EDS) with the current validity period.

It is necessary to log in to the Internet resource of the authorized operator (bank) by means of EDS or other electronic means, open your personal account and apply for opening a special account.

Available for use will be the funds accumulated in the pension account in excess of the sufficiency threshold and minus the personal income tax (individual income tax) in the case of choosing to pay the personal income tax without deferral.

At the same time, recipients may be granted a deferral on the payment of the PII. In this case, the client can use the entire amount of pension savings above the sufficiency threshold.

In this regard, we receive appeals from citizens on the taxation of lump-sum pension payments, on the double taxation of pension payments.

Mandatory pension contributions withheld by agents (employers) from individuals are not subject to individual income tax (IIT), and the same procedure applies to mandatory professional pension contributions. Due to the fact that the deduction of the amount of pension contributions is not subject to PII, the amount of pension savings is subject to payment once, respectively, double taxation does not arise.

On the procedure for taxation of lump-sum pension payments in the second way. This method provides for the monthly retention of the PPI in equal shares for no more than 16 years according to the schedule established by the UAPF (from the next month in which the pension transfer is started).

Here is an example:

The amount of pension savings on the depositor's IPS = 7,500,000 tenge,

the sufficiency threshold = 3,500,000 tenge,

a one-time pension payment = 4,000,000 tenge (7,500,000 - 3,500,000),

the amount of the calculated IPN = 4,000,000 (in full) * 10%= 400,000 tenge,

the amount of income in the form of a one-time pension payment = 4,000,000 tenge,

The PPI will be deducted from the pension as follows:

The amount of the calculated PPI is divided into 16 years, i.e. 192 months.

So, 400,000/ 192 = 2,083 tenge-the amount of deferred personal income tax will be deducted from the pension every month.

"If an individual decides to leave for permanent residence outside the Republic of Kazakhstan or transfer pension savings to an insurance company, the amount of the deferred PPI will be withheld in full by a one-time payment.

In the event of the death of an individual, the amount of the deferred personal income tax will be deducted at the same time from the pension savings of such an individual inherited by the heirs."

If you have any questions, you can contact the territorial state revenue authorities at your location.

 

Department of Analysis and Risks of the State Revenue Department in Almaty region