The Department of State Revenue for Mangystau Region clarifies.
Question. My employer withholds individual income tax (IIT) from my salary. By what deadline must the employer transfer the withheld IIT to the budget, and what liability applies if the deadline is missed?
Clarification. Under Article 440 of the Tax Code of the Republic of Kazakhstan, IIT on income taxable at source is calculated by the tax agent (employer) when the income is accrued. IIT is withheld no later than the day the income is paid.
The tax agent must transfer the withheld IIT to the budget at its place of location no later than twenty-five calendar days after the end of the month in which the income was paid (in practice, no later than the 25th day of the month following the month of salary payment).
For employees of structural subdivisions, IIT is transferred to the relevant budgets at the location of those subdivisions.
Liability. Under part 2 of Article 279 of the Code of Administrative Offences, failure to transfer, or incomplete transfer of, withheld tax within the statutory deadline entails a fine of:
- 5 MCI for private notaries, private bailiffs, attorneys, small-business entities or non-profit organisations;
- 10 MCI for medium-sized business entities;
- 20 MCI for large-business entities.
Liability does not apply if the amounts were identified by the tax agent independently, reported in additional tax reporting and transferred to the budget no later than three working days from the date such reporting was filed.