Since January 1, 2022, amendments to the Tax Code have come into force, which provide for the replacement of the minimum wage (minimum wage) by a monthly calculation index (MCI) in equivalent to the amounts previously in force. This was reported in the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan.
The Law of the Republic of Kazakhstan No. 85-VII of December 20, 2021 adopted amendments to the Tax Code, providing for the replacement of such values with MCI in the norms reflecting the minimum wage (Article 345, paragraph 1 of Article 346, paragraph 5 of Article 360, paragraph 4 of Article 484, Article 642 of the Tax Code) with the equivalent of the previously valid amounts. The changes came into force on January 1, 2022.
So, for example, earlier until 2022, in the Tax Code, the standard deduction, that is, the deduction that is excluded when an individual income tax (IIT) is imposed on the income of an individual, is defined at the amount of 1 minimum wage for each calendar month in which income is accrued.
Now, according to the innovations, a standard deduction of 14 MCI *3063 = 42,882 tenge has been established for 2022 (1 MCI in 2021 is about 14 MCI in 2022)
2021 year 2022 year
Tax deduction 42,500 tenge 42,882 tenge
Thus, in view of the changes made, the calculation procedure has not been changed, the amount of tax deductions has been changed.
Let's consider the calculation of IPN using examples.
Example #1. Calculation of IPN when the income of an individual
is 1 MZP (s/n less than 25 MCI)
For income, the amount of which does not exceed 25 MCI (in 2021 – 72,925 tenge, in 2022 – 76,575 tenge), a 90% reduction in taxable income is provided. That is, the actual IPN rate is 1%.
2021 year 2022 year
42,500 tenge – 4 250* – 850** –
42 500*** = 0 tenge x 10% =
0 tenge (IPN amount) 60,000 tenge – 6 000*– 1200**– 42 882**** – 90% ( if the s/n is less than
25 MCI) = 991.8 tenge x 10% =
99 tenge (amount of IPN)
TOTAL on hand: 37,400 tenge TOTAL on hand: 52,701 tenge
Example #2. Calculation of IPN when the income of an individual is 100,000 tenge (s/p more than 25 MCI)
2021 year 2022 year
100 000 tenge– 10 000* – 2000** – 42 500***= 45 500 KZT x 10% =
4 550 tenge (sum PPI) 100 000 tenge– 10 000*– 2000**– 42 882****= 45 118 KZT x 10% = 4 512 tenge (sum PPI)
TOTAL on hand: 83 450 tenge TOTAL arms: 83 488 tenge
* - OPV (10%)
** - OSMS contribution (2%)
*** - 1 minimum wage (in 2021)
**** - 14 MCI (from 2022).