According to the Law on Pension Provision, a lump-sum pension benefit is the amount of pension savings formed from compulsory pension contributions and (or) compulsory occupational pension contributions, withdrawn by the contributor (beneficiary) from the UAPF in order to improve housing conditions and (or) pay for medical treatment.
Pension savings - money of the contributor (beneficiary), recorded in his individual pension saving account with the UAPF, including pension contributions, investment return, interest and other receipts.
Pension contributions are not subject to individual income tax (IIT) upon receipt on the contributor's individual pension saving account. Pension savings are tax deductible upon payment.
In order to determine the procedure for taxing the amounts of lump-sum pension benefits, the Tax Code has been supplemented with Article 351-1 Specifics of calculating, withholding and paying individual income tax from a lump-sum pension benefit in accordance with the legislation of the Republic of Kazakhstan on pension provision.