According to the law, Kazakhstani employees can receive tax deductions, that is, save money by reducing payments to the state budget. About how the taxpayers of Fingramota benefit from it.kz tells.
A tax deduction is a decreasing amount of income from which the tax is paid. It can also be called a preferential or supportive state, which allows you to return previously paid tax within one year or pay less taxes.
Tax deductions in Kazakhstan:
- when calculating personal income tax in the amount of 10% of total income;
- for each month during which the employee's income is calculated, in some cases on the basis of the employee's application for the application of tax payments in the form established by the authorized body and documents, the list of which must be submitted to you in the personnel service.
What determines the amount of deductions?
Since 2022, on behalf of the President of the Republic of Kazakhstan, tax deductions have been transferred from a calculated indicator, such as the minimum wage (minimum wage), to another indicator – the MCI. It was also instructed to exclude the use of the minimum wage as a calculated indicator not only in tax, but also in social and other spheres. Thus, each year the amount of the deduction varies depending on the MCI.
For example, for incomes that do not exceed 25 MCI (in 2022 - 76,575 tenge), a 90% reduction in taxable income is provided. That is, the real IPN rate is 1%. Therefore, when the salary is lower than this amount, for example, by 60 thousand tenge:
- 10% or 6 thousand tenge OPV,
-2% of this amount or 1200 tenge OSMS;
- Standard tax deduction in the amount of 14 MCI or 42,882 tenge;
- 90% of the remaining amount (9,918 tenge).
As a result, the IPN is 1% or 99 tenge (991.8 tenge * 10%).
And if, for example, the amount of wages is higher than 25 MCI, that is, more than 76,575 thousand tenge, then the calculations of the IPN will be slightly different. So, if we receive a salary of 100 thousand tenge, the same taxes will be deducted from it:
- OPV-10 thousand tenge
- OSMS-2 thousand tenge
- standard tax deduction - 14 MCI – 42,882 tenge.
The amount received for taxation is 45 118 tenge.
As a result, the amount of the IPN will amount to 4,512 tenge (45,118* 10%).
For more information, you can contact the State Revenue Committee of the Republic of Kazakhstan (website https://kgd.gov.kz ).
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Paragraph 2 of Article 346 of the Tax Code establishes that the standard deductions provided for in subparagraphs 2) and 3) of paragraph 1 of this Article are applied in the calendar year in which there were, were or were grounds for the application of these tax deductions.
Also, the tax legislation of Kazakhstan provides for other tax deductions, which include:
- deduction for voluntary pension contributions;
- deduction for medicine;
- deduction of remuneration.
For example, a tax deduction for medicine is applied by an individual resident of Kazakhstan for expenses for medical services performed in his favor (except cosmetology).
The remuneration tax deduction is applied by an individual resident of the Republic of Kazakhstan for expenses incurred in his favor for the payment of remuneration on mortgage housing loans received from housing construction savings banks for carrying out measures to improve housing conditions on the territory of the Republic in accordance with the legislation of the Republic of Kazakhstan On housing construction savings.
How do I get tax deductions?
In accordance with the Tax Code of the Republic of Kazakhstan, tax deductions are provided in a strictly defined sequence. To receive them, citizens must submit an application and copies of supporting documents to the State Revenue Department at their place of residence.
For example, in order to receive a tax deduction for voluntary pension contributions, a document confirming the payment of the corresponding conditional and voluntary pension contributions must be provided as proof.
In addition, standard tax deductions include deductions in the amount of 882 MCI established for certain categories of citizens, including persons with disabilities, WWII participants, parents or guardians of disabled children.
Thus, a tax deduction in the amount of 882 MCI is granted to a citizen on the date of application of such paragraphs of the Tax Code on the basis that the person is as follows:
- a person with a disability of the first, second or third group;
- a child with a disability.
- one of the parents, guardians, guardians of a disabled child - for each such disabled child until they reach the age of 18;
– for each such person during the life of a person recognized as disabled due to "disabled since childhood" - one of his parents, guardians, trustees;
- for each such person before the adopted child reaches 18 years of age - one of the adoptive parents;
-for each such person during the period of validity of the agreement on the transfer of orphans and children left without parental care to a foster family –to a family receiving orphans, children left without parental care.
The provisions of this subparagraph:
- with respect to employees of the administrations of relevant educational organizations, medical organizations, social protection organizations, who are guardians and trustees of persons in need of guardianship and guardianship, due to their presence in labor relations with such organizations;
- In relation to persons married to the mother or father of the adopted child (children) in accordance with the marriage and family legislation of the Republic of Kazakhstan.
Let 's take an example
If your salary is 200 thousand tenge, the calculation of the personal income tax when applying for a deduction in the amount of 14 MCI is carried out as follows:
1) mandatory pension contributions (OPV) amount to 10% of the salary, which is 20 thousand tenge.
2) contributions to compulsory social health insurance (OSMS) amount to 2% of the salary, which is 4 thousand tenge.
3) individual income tax (IIT) is calculated according to the formula: (salary-OPV-OSMS-14 MCI) * 10% = (200 000 – 20 000 – 4 000 – 42 882) * 10% = 13 312 tenge.
Thus, the IPN is equal to 13,312 tenge. That is, the salary you receive 200 000 – 20 000 – 4 000 – 13 312 = 162 688 tenge is the amount of your salary minus pension contributions, contributions to the OSMS and income tax.
Now let's make a calculation taking into account the mortgage tax deduction. For example, you have issued a mortgage for 15 years, pay 80 thousand tenge monthly, including the bank's remuneration of 50 thousand tenge. The formula for calculating the IPN, taking into account the deduction, will be as follows: (salary-OPV – OSMS – 14 MCI – the amount of remuneration in monthly mortgage payments (% on the loan). Thus, taking into account the deduction of the IPN will amount to 8,312 tenge. You receive 167,688 tenge less OPV, OSMS and IPN.
Let's compare how much difference there will be after and before the remuneration tax deduction: 162,688 tenge – 167,688 tenge = 5 thousand tenge.
Your monthly profit will be exactly the same, which means that every month you "save" this amount, which will not be written off to your tax budget, but will remain with you.
In addition, there are standard tax deductions, including monthly ones in the amount of 14 MCI.
The standard deduction is applied to each calendar month. At the same time, the total amount of the standard deduction for one calendar year should not exceed 168 times the monthly calculation index established by the law On the republican budget and effective on January 1 of the corresponding financial year (in 2022: 168 MCI * 3063 = 514 584 tenge).
MCI is a monthly calculation indicator. Its size in 2022
It amounted to 3,063 tenge. Accordingly, the amount of the standard tax deduction (14aek * 3063) in 2022 will amount to 42,882 tenge.
What types of tax deductions are there?
According to the law, the following types of income are taxed: income of an employee, including a resident immigrant and a housekeeper; income from the sale of goods, services, works; income of a third party in the form of payment for work performed, services rendered, the cost of goods; income in the form of work or services performed to repay debts; free of charge received property, forgiven debt or income from reduction of claims against the debtor; pension payments and scholarships; income from accumulative insurance; dividends, remuneration, winnings, remuneration for repo operations; income of a person engaged in a PC or private practice; income from a subsidiary farm.
The employee can be provided with the following types of deductions for IPN:
– deduction in the form of mandatory pension contributions (OPV) - in the amount established by the legislation of the Republic of Kazakhstan" About pension provision";
- deduction for contributions to compulsory social health insurance (OSMS) – in the amount established by the legislation of the Republic of Kazakhstan On compulsory social health insurance;
- deduction for pension payments and cumulative insurance contracts;