Question: What taxes and payments are withheld from environmental payments?
Answer: According to the Paragraph 1) of Article 13 of the Law of the Republic of Kazakhstan "On social protection of citizens suffered from nuclear tests at the Semipalatinsk nuclear test site" dated December 18, 1992, No. 1787-XII, citizens residing in territories including the cities of Semey and Ust-Kamenogorsk are provided with:
additional monthly remuneration – 1, 5 MCI;
annual additional paid leave – 10 calendar days. In accordance with the norms of the Tax Code of the RK and the Social Code of the RK, individual income tax, mandatory pension contributions, and employer's mandatory pension contributions to the UAPF are not withheld from the specified amounts of environmental allowances upon submission of an application and copies of supporting documents by an individual, and these payments are also exempt from social tax and social contributions. Mandatory professional pension contributions are calculated from these payments.
At the same time, the Law "On compulsory social medical insurance of the RK" provides that payments for annual additional paid leave and additional monthly remuneration are subject to contributions and/or payments to the compulsory social medical insurance fund.