Оn applying tax deductions when calculating PIT since January 1, 2025
10 February 2025 Astana city
Since January 1, 2025, the Tax Code provides that individuals have the right to apply the following most discussed types of tax deductions in determining taxable income:
1) tax deduction for large families (with 4 and more minor children) – not more than 282 MCI (1 108 824 tg) per year ;
2) other tax deduction, including:
tax deduction for costs of tuition to your advantage and persons under 21 (preschool education and training, specialized secondary and higher education), dependent persons - not more than 118 MCI (463 976 tg) per year ;
tax deduction for medicine - not more than 118 MCI (463 976 тг) per year ;
tax deduction for on interest on mortgage housing loan - not more than 118 MCI (463 976 tg) per year.
For reference: total amount of tax deductions for large families and other deductions for the year should not exceed 564 MCI (2,217,648 tenge) to the total amount of income at the source of payment and in case of self-taxation.
These deductions can be applied by individuals independently or by a tax agent (employer).
A special feature of applying other deductions to the income of an individual employee is that the individual submits to the employer an application for applying only the preliminary amount of other deductions for the calendar year in the amount of not more than 282 MCI (1,108,824 tenge).
Then such a person is required to submit a declaration of income and property (f. 270.00) based on the results of the calendar year with copies of confirming documents. At the same time, in case of PIT excess, an individual has the right to require the state revenue bodies to credit or refund the amount of the PIT excess.
In order to credit and/or refund of PIT excess, the state revenue bodies will check legality of applying other tax deductions. The audit will be conducted within one year after the final date to submit the declaration of income and property, after which a decision on the PIT will be made (for the obligations 2025, the refund will be made before September 15, 2027, when confirming the correctness of the applying other deductions.).
It should be noted that the Concept of transition to universal declaration of income and property by citizens of the Republic of Kazakhstan and persons with a residence permit (Resolution of the Government of the RK dated 23 September 2010 № 975) called for a reform of the list and amount of tax deductions for PIT taxation purposes, since in connection with the transition to universal declaration, it becomes possible to implement a mechanism for applying tax deductions when calculating personal income tax directly by individuals when making a declaration within the universal declaration. At the same time, there was a possibility of applying additional social tax deductions for individuals.
In this regard, the Tax Code in 2017 provides for additional tax deductions with a suspensive effect from 01.01.2025 in order to ensure the social interest of individuals in the annual declaration of income and property. (for large families, expenses for education, medicine, interest for housing mortgage loans) simultaneously with the full transition to universal declaration of income and property of individuals. At the same time, an individual has the right to apply these tax deductions independently when submitting a declaration of income and property. A part of these tax deductions can be applied by the tax agent in the form of a preliminary amount of tax deductions.
However, applying these tax deductions imposes additional obligations on individuals:
- collection and storage of documents confirming tax deductions;
- annual submission of a declaration of income and property with a reflection of all income received for the calendar year, with the application of tax deductions and the calculation of the actual PIT amount for payment or offset (refund).
In turn, as is known, the Head of State instructed to avoid declaring remaining category of citizens from 01.01.2025. (пpensioners, employees, private structures, students, etc..), related to the fourth stage of the declaration.
In order to meet this mandate, approaches have been developed to optimize the procedure for declaring the fourth stage, under which individuals receiving income subject to taxation at the source of payment are exempt from submitting an annual income and property declaration (TRF 270.00) (salaries, pensions, scholarships, pension, insurance payments, etc..).
Taken together with this approach, considering that applying additional tax deductions introduced from January 1, 2025 imposes additional responsibilities for submitting declarations, storing documents, and checking them by state revenue bodies, interested government agencies, including deputy corps, the issue of the need to simplify the institution of tax deductions for individuals. and extending to 2025 the mechanism laid down in the draft new Tax Code is discussed (a fixed amount of 30 MCI for all categories of citizens).
Approval of this approach will have a positive effect and will allow tax deductions to be applied without having to be validated with documents and their storing, or carrying out the checking operations, and will apply to a larger number of individuals without regard for their status and category.
press service of the State Revenue Committee of the MF RK