4.4.6. Social tax

Who is the payer of social tax?

According to Article 315 of the Tax Code of the Republic of Kazakhstan, legal entities, residents of the Republic of Kazakhstan, as well as non-residents that carry out an activity in the Republic of Kazakhstan via their permanent establishments, individual entrepreneurs, private notaries and lawyers shall be deemed the payers of social tax.

What is an object of taxation by social tax?

According to Article 316 of the Tax Code, the expenses of the employer payable in the form of employees’ income, except for some payments as stipulated for by this Article shall be deemed the objects of taxation for legal entities. The number of the employees, including the payers shall be deemed the object of taxation by social tax for the individual entrepreneurs, private notaries and lawyers.

What is a procedure to calculate and pay social tax?

According to Article 318 of the Tax Code the payers (except for the legal entities and private entrepreneurs using the special tax regimes) shall do calculation of social tax on a monthly basis applying the tax rates to the object of taxation by social tax.

Legal entities, residents of the Republic of Kazakhstan (except for the legal entities and individual entrepreneurs using the special tax regimes), as well as non-residents performing activity in the Republic of Kazakhstan via permanent establishment shall pay social tax at the rate of 21%. Exclusion is payment of social tax for foreign specialists of administrative and management, technical and engineering staff, the rate of 11% shall be applied to.

Individual entrepreneurs (except for those using special tax regimes), private notaries and lawyers shall pay social tax in amount of three monthly calculated index for them and in amount of two monthly calculated index for each employee. Specialized organizations the disabled people with disorders of locomotor apparatus, hearing, aphasia, visually handicapped work for shall pay social tax for disabled people at the rate of 6.5%.

The payers shall file declaration on social tax on a quarterly basis not later than the 15 days of a month following the reporting quarter. The payers (except for the legal entities and individual entrepreneurs using special tax regimes) shall carry out tax payment not later than 15 days of a month following the reporting one.