Social taxSocial insurance contributionsGift, wealth, estate, and/or inheritance taxReal estate taxSales/VAT taxUnemployment taxOther taxes
Are there social security/social insurance taxes in Kazakhstan? If so, what are the rates for employers and employees?
Employers in Kazakhstan, including Kazakh companies and representative offices and branches of foreign legal entities, are required to pay social tax for their employees. The social tax is borne entirely by the employer and is not withheld from employees’ salaries.
Social tax is levied on all income, irrespective of whether it is received in cash or in-kind. In addition, representative offices and branch offices of foreign legal entities must pay social tax for their head office’s employees who receive any remuneration for work in Kazakhstan.
There is no maximum threshold for the social tax base. Obligatory contributions to pension funds in Kazakhstan and a few other minor allowances, such as compensation for unused vacation, are exempt from social tax. These allowances include the following:
- payments received from an employer or insurance company as compensation for occupational injuries
- reimbursements of medical expenses (with the exception of cosmetic surgery expenses), within the overall deduction limit of KZT139,512 in 2012
- reimbursements of business trip expenses
- payments received from an employer for relocation
- the value of training, professional development and retraining related to the employer's business activity
- the value of accommodation provided to rotational employees
- meals provided to rotational employees, up to KZT9,708 per day starting from January 2012
- payment received from an employer upon the termination of an employment contract in the event of liquidation of a company or reduction in staff numbers, up to the amount of the average monthly salary of the terminated employee
- payment received for unused vacation
- employer-paid premiums for occupational injury insurance.
Social tax applies to all employees, including foreign personnel, at a flat rate of 11 percent.
Social tax payments are due by the 25th day of the month following the month of income payment. An income tax and social tax report is due quarterly by the 15th day of the second month following the calendar quarter.
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Social insurance contributions
Employers in Kazakhstan must make contributions to the State Social Insurance Fund. Contributions are required for local employees as well as for expatriate personnel with a Kazakhstan permanent residence permit. A foreign individual without a permanent residence permit is not subject to this contribution requirement.
Employers must make contributions individually for each employee. Contributions are based on an employee’s monthly gross salary, up to a maximum monthly income KZT174,390 in 2012. For 2012, contributions are computed at the rate of 5 percent of applicable gross salary.
Social insurance contributions are fully creditable against an employer’s social tax liabilities and therefore do not represent an additional tax burden on the employer.
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Gift, wealth, estate, and/or inheritance tax
Are there any gift, wealth, estate, and/or inheritance taxes in Kazakhstan?
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Real estate tax
Are there real estate taxes in Kazakhstan?
Individuals owning residential properties, garages, and other buildings and constructions in Kazakhstan are subject to property tax. The tax is assessed on the value of real estate as appraised by the authorized governmental body as of 1 January each year.
The following table indicates property tax rates applicable to individuals in 2012.
|Up to 1,000,000
|From 1,000,001 to 2,000,000
||500 + 0.08% of property value exceeding 1,000,000|
|From 2,000,001 to 3,000,000
||1,300 + 0.10% of property value exceeding 2,000,000|
|From 3,000,001 to 4,000,000
||2,300 + 0.15% of property value exceeding 3,000,000|
|From 4,000,001 to 5,000,000
||3,800 + 0.20% of property value exceeding 4,000,000|
|From 5,000,001 to 6,000,000
||5,800 + 0.25% of property value exceeding 5,000,000|
|From 6,000,001 to 7,000,000
||8,300 + 0.30% of property value exceeding 6,000,000|
|From 7,000,001 to 8,000,000
||11,300 + 0.35% of property value exceeding 7,000,000|
|From 8,000,001 to 9,000,000
||14,800 + 0.40% of property value exceeding 8,000,000|
|From 9,000,001 to 10,000,000
||18,800 + 0.45% of property value exceeding 9,000,000|
|From 10,000,001 to 50,000,000
||23,300 + 0.50% of property value exceeding 10,000,000|
|From 50,000,001 to 120,000,000
||223,300 + 0.75% of property value exceeding 50,000,000|
||748,300 + 1.00% of property value exceeding 120,000,000|
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Are there sales and/or value-added taxes in Kazakhstan?
An individual who is registered as an individual entrepreneur and has taxable revenues in excess of KZT48,540,000 in any period of 12 consecutive months should register as a VAT payer and pay VAT. VAT registration is optional for all other persons.
The standard VAT rate in 2012 is 12 percent and applies to revenues derived from the sale of goods or services within Kazakhstan and to the import of goods into Kazakhstan. Tax law provides special rules for determining when and where various types of transactions are deemed to occur.
Certain activities are exempt from VAT. The list of exempt activities includes, among others, the lease or sale of residential buildings (except for buildings or portions thereof used for hotel services) and the lease or sale of land and land use rights (except for land used for parking passenger vehicles).
Registered VAT payers must charge VAT on their taxable output and may claim a credit for input VAT they pay to suppliers who are registered VAT payers in Kazakhstan.
Kazakhstan VAT payers are required to charge VAT to themselves on taxable transactions they conduct in Kazakhstan with non-residents that are not VAT payers in Kazakhstan. Taxpayers may claim a credit for this self-charged VAT.
The VAT base for imported goods includes the declared customs value of the goods and any excise duties, customs duties, and customs clearance fees payable upon customs clearance of the goods. Importers must pay import VAT before goods are cleared through customs. VAT exemptions at the time of import are available for certain types of equipment, pharmaceuticals, raw materials and spare parts.
VAT declarations and payments are due quarterly. The amount due to the state is the difference between the total amount of output VAT that a taxpayer charges during the tax period and the total amount of input and/or import VAT that the taxpayer pays during the tax period.
Certain activities are subject to VAT at a rate of zero percent. The list of such activities includes, among others, exports of goods from Kazakhstan, sales of refined precious metals to the National Bank of Kazakhstan, international transportation services, sales of goods on the territory of special economic zones, sales of certain self-produced goods to petroleum or mining business whose subsoil use contract grants them exemption from import VAT, and sales of certain self-produced goods to companies that entered into infrastructure investment contracts with the government of Kazakhstan, if the sales take place during the construction of new facilities.
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Are there unemployment taxes in Kazakhstan?
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Are there additional taxes in Kazakhstan that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, etc.
Various local taxes, including land tax and vehicle tax, may apply to individuals.
1According to Law No. 136-1 of the Republic of Kazakhstan on Pension Security in the Republic of Kazakhstan, dated 20 June 1997 (hereinafter, the “Pension Law”) and the Tax Code.