Dear Readers,
Starting from 1 January 2024, employers in Kazakhstan must pay a new component of the accumulative pension system – employer’s obligatory pension contributions (the EPC) – to the Unified Accumulative Pension Fund. A governmental resolution[1] introduced the procedure for calculating and remitting the EPC to the Unified Accumulative Pension Fund.
Tax agents will be required to calculate and remit the EPC for employees and individuals receiving income under service contracts, except for those exempted from the EPC payments. Among the exempted individuals, as established by the Social Code, are retired persons and individuals born before 1 January 1975.
The taxable base for the EPC includes all forms of monetary remuneration and other income and capped at 50 times the minimum monthly salary.
The EPC will be borne entirely by tax agents. The EPC rate will gradually increase as follows:
- From 1 January 2024 - 1.5%;
- From 1 January 2025 - 2.5%;
- From 1 January 2026 - 3.5%;
- From 1 January 2027 - 4.5%;
- From 1 January 2028 - 5%.
For tax agents opting for the unified payroll tax, the share of the EPC in the unified payroll tax rate is:
- From 1 January 2024 - 7%;
- From 1 January 2025 - 10.5%;
- From 1 January 2026 - 14.1%;
- From 1 January 2027 - 17.4%;
- From 1 January 2028 - 19%.
The EPC is payable to the Unified Accumulative Pension Fund by the 25th day of the month following the month of income payment. Tax agents are required to report the EPC calculation and payment information on the payroll tax declarations.
The governmental resolution will come into effect on 1 January 2024.
1 A Governmental Resolution No. 540 On the Approval of Rules and Deadlines for Calculating and Remitting Obligatory Pension Contributions of Employers to the Unified Accumulative Pension Fund and Penalties for Them, dated 3 July 2023