4.4.2. Individual income tax

Who is a payer of individual income tax?

According to Article 141 of the Tax Code of the Republic of Kazakhstan, individuals having the objects of taxation shall be deemed the payers of individual income tax.

What is an object of individual income tax?

Income subject to taxation at the source of income (income of the employee, income from lump sum payments, income from dividends and other income as stipulated for by Article 146 of the Tax Code) and income not subject to taxation at the source of income (property tax, taxable income of individual entrepreneur and other income as stipulated for by Article 163 of the Tax Code) shall be deemed the object of taxation by the individual income tax. At the same time, Article 144 of the Tax Code determines a list of individuals’ income not subject to taxation, in particular, an addressed social aid, remuneration on bank deposits, income on transactions with state securities and some other types of income.

What is the procedure to calculate and pay the individual income tax?

An amount of individual income tax shall calculated by applying the rate from 5 to 30% (depending on amount of income) to the income reduced by the amount of obligatory pension payment to the accumulative pension funds. Income from dividends, remuneration (except for insurance premium paid on accumulative insurance agreements), winnings shall be taxed at the rate of 15%.

According to Article 147 of the Tax Code, the tax agents, who withhold tax at the source of income (except for the tax agents applying the special tax regimes), shall pay tax within 5 working days following the last day of tax payment of the reporting month.

Individual income tax on income not subject to taxation at the source of payment shall be calculated individually by the taxpayer and shall be paid on the results of the tax year not later than within ten working days from 31 March of a year following the reporting one.

An amount of individual income tax on the income of lawyers and private notaries shall be calculated on a monthly basis by applying the rate of 10% to the amount of income received and shall be paid not later than 5^th days of the month following the reporting one.

Whether all individuals shall file tax return on individual income tax?

Only certain categories of the taxpayers, including people having the income not subject to taxation at the source of payment, individuals having money on foreign banks’ accounts and the other categories of people as stipulated for by Article 171 of the Tax Code shall file a tax return on individual income tax not later than 31 March of a year following the tax one.