Your SlideShare is downloading. ×
Kazakhstan Payroll Taxes and Costs 2013
Kazakhstan Payroll Taxes and Costs 2013
Kazakhstan Payroll Taxes and Costs 2013
Kazakhstan Payroll Taxes and Costs 2013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Kazakhstan Payroll Taxes and Costs 2013

279

Published on

Despite an increase in the number of the economically active population and a gradual decline in the unemployment rate, highly qualified personnel are still sought after by employers in Kazakhstan. …

Despite an increase in the number of the economically active population and a gradual decline in the unemployment rate, highly qualified personnel are still sought after by employers in Kazakhstan. The labor market in Kazakhstan may thus be of interest to both foreign companies willing to do business and foreign highly qualified professionals willing to work in this country. You can get an overview of the main terms and legal guarantees for employees in Kazakhstan by reading our research on this topic.

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
279
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Awara Direct Search www.awara-search.com Global call center for all countries: +7 495 225 3038 Email: info@awara-search.com Moscow, St. Petersburg, Tver, Yekaterinburg, Kyiv, Helsinki Kazakhstan Payroll Taxes and Costs 2013
  • 2. 1. Personal income tax 2. Insurance contributions and insurance The personal income tax rate is 10%. Income in the form of dividends received from sources in and outside Kazakhstan are taxed at a rate of 5% (Article 158 (1),(2) Code of the Republic of Kazakhstan No. 99-IV On Taxes and Other Mandatory Payments to the Budget dated December 10, 2008). The income of individuals in the form of taxable and non- taxable income at the source of payment is subject to personal income tax. The tax period for tax agents to calculate personal income tax on income taxable at the source of payment is the calendar month. The tax agent is to calculate and withheld the personal income tax on the income of non-residents taxable at the source of payment no later than the date of payment of income. In case of payment of income in a foreign currency, the taxable income is to be converted into Kazakhstan tenge using the exchange rate applicable at the date of payment of income (Article 201 (1) Code of the Republic of Kazakhstan No. 99-IV On Taxes and Other Mandatory Payments to the Budget dated December 10, 2008). Contributions to Pension Fund Mandatory pension contributions of 10% are withheld from employees’ monthly income (Article 25 (1) Kazakhstan Law No. 105-V On Pension Benefits in the Republic of Kazakhstan dated June 21, 2013). Employers are required by law to withhold and transfer pension contributions. Voluntary pension contributions can also be made to a pension savings fund and/or a voluntary pension savings fund. Contributions to Social Insurance Fund As a general rule, employees and self-employed, including foreign nationals and stateless individuals, permanently residing and carrying out income-generating activities in Kazakhstan are to pay mandatory social insurance (Article 8 Kazakhstan Law No. 405-II On Mandatory Social Insurance dated April 25, 2003). Mandatory social insurance is to provide benefits in case of: • disability; • loss of a breadwinning spouse; • loss of work; • loss of income due to pregnancy and childbirth; • loss of income due the adoption of newborn child(ren); • loss of income due to childcare provided to a child up to the age of 1. Social contributions represent 5 % of the payment of salaries (Article 14 Kazakhstan Law No. 405-II On Mandatory Social Insurance dated April 25, 2003). This rate applies to the amounts paid as income to employees. Themonthlyincometakenintoaccountforthecalculationofsocial contributions does not exceed the tenfold sum of the minimum wage set by law (Article 15 (2) Kazakhstan Law No. 405-II On Mandatory Social Insurance dated April 25, 2003 (as amended on 03.07.2013)). As of January 1, 2013 the minimum wage amounted to 18,660 tenge (Article 9 Kazakhstan Law No. 54-V On the National Budget for 2013-2015 dated November 23, 2012). Accident insurance Employers must enter into an accident insurance policy for their employees within 10 working days from the date of registration of the company (Article 8 (2 (1-1)) Kazakhstan Law N 30 Compulsory Insurance Against Accidents Upon Performance of Work Duties dated February 7, 2005). The insurance premium under the accident insurance policy is determined by agreement of the parties on the basis of a special insurance rate, which is dependent on the professional risks, multiplied by the wage fund for a particular staff category (Article 17 (1, 2) Kazakhstan Law N 30 Compulsory Insurance Against Accidents Upon Performance of Work Duties dated February 7, 2005). Salary Survey Kazakhstan 2013 Awara Direct Search Awara Direct Search www.awara-search.com Global call center for all countries: +7 495 225 3038 Email: info@awara-search.com Moscow, St. Petersburg, Tver, Yekaterinburg, Kyiv, Helsinki
  • 3. 3. Social tax 4. Overtime, weekend pay and vacation The payment of salaries to employees is subject to social tax (Article 357 (2) Code of the Republic of Kazakhstan No. 99-IV On Taxes and Other Mandatory Payments to the Budget dated December 10, 2008). The social tax rate for resident legal entities and for non-resident legal entities operating through a permanent establishment is 11%. This rate applies to the amounts paid as income to employees. The amount of social tax payable to the budget is determined as the difference between accrued social tax and the amount of social contributions accrued as prescribed by the Kazakhstan law On Mandatory Social Insurance. If the amount of social contributions to the Social Insurance Fund exceeds the amount of accrued social tax, the amount of social tax payable to the budget is deemed to be zero (Article 359 (3) Code of the Republic of Kazakhstan No. 99-IV On Taxes and Other Mandatory Payments to the Budget dated December 10, 2008). Overtime Overtime means the work performed by an employee at the employer’s initiative beyond the established working hours (Article 1 (79 (1)) Kazakhstan Labor Code). In case of a 5-day working week, the duration of a working day may not exceed 8 hours for a standard working week of 40 hours. In case of a 6-day working week, the duration of a working day may not exceed 7 hours for a standard working week of 40 hours (Article 82 (1,2) Kazakhstan Labor Code). As a general rule, employees may be invited to work overtime only with their written consent (Article 88 (2) Kazakhstan Labor Code) and pregnant women and employees under the age of 18 may not work overtime. Overtime may not exceed 2 hours in a day and 1 hour for heavy work or work with hazardous working conditions. Overtime may not exceed 12 hours per month and 120 hours per year. If employees are paid by the hour, overtime is paid at least one and a half times the regular hourly rate. If employees are paid by the piece, overtime is paid at least 50% of the employee’s salary (Article 127 Kazakhstan Labor Code). Work on weekends and public holidays As a general rule, employees are not permitted to work on weekends and public holidays without their written consent (Article7 (9(1)) Kazakhstan Labor Code). The work performed on weekends and public holidays is paid at least double the daily (hourly) rate usually paid to the employee (Article 128 Kazakhstan Labor Code). Vacation Employees are entitled to paid annual leave, which is divided into main paid annual leave and additional paid annual leave (Article 100 Kazakhstan Labor Code). Annual leave is paid on the basis of the average salary for the 12 months preceding the leave (Item 2 Rules of Calculation of Average Salary approved by Decree N 1394 of the Government of the Republic of Kazakhstan dated December 29, 2007). Salary Survey Kazakhstan 2013 Awara Direct Search Awara Direct Search www.awara-search.com Global call center for all countries: +7 495 225 3038 Email: info@awara-search.com Moscow, St. Petersburg, Tver, Yekaterinburg, Kyiv, Helsinki
  • 4. Awara Direct Search www.awara-search.com Global call center for all countries: +7 495 225 3038 Email: info@awara-search.com Moscow, St. Petersburg, Tver, Yekaterinburg, Kyiv, Helsinki Salary Survey Kazakhstan 2013 Awara Direct Search Recruitment Service in Kazakhstan with Awara Direct Search Awara Direct Search is a leading international recruitment and executive search firm in Russia, CIS and Ukraine, operating also in Kazakhstan, offering case by case tailored recruitment and executive search services to multinational large and middle-size companies and entrepreneurs across industries. We possess the solidexperienceneededtoprovidequalityservicesinKazakhstan, relying on a global arena for our searches, covering not only the local and nearby market but also Scandinavia, the Baltics and Central and Eastern Europe for this growing and attractive market. Our method of matching the best professionals with the best jobs is always Direct Search. This customized search is designed to meet the challenge of the particular search assignment, in order to identify on the wide market the unique professional who is in demand. Genuine expertise in headhunting and recruitment is the fundament of our successful placements, based on our staff’s extensive experience in serving leading global organizations across industries since the crack of market reforms in Russia, CIS and Ukraine. Awara Direct Search is the recruitment arm of Awara Group. As an organization operating across Russia, CIS and Ukraine, Awara Group prides itself in an international background with a superior knowledge of local market practices. We offer a wide array of advisory services for strategic business development, establishment and investment, and the implementation and execution of our advice, covering all areas of corporate management, management consulting, law, accounting, audit, financial administration, IT-development, recruitment and executive search, HR services, training and development, marketing and market research. The synergy of the various areas of expertise is leveraged in order to provide an exceptionally value-added service to our clients and help them meet their specific needs. Further, combining consulting and implementation significantly enhances business operations and helps to overcome the administrative burden. No other recruitment or executive firm can boast with presence of own staff all over the wide geographic area covering nine time zones and 300 million people. For over twenty years Awara has developed a wide network and flexible working methods by which we are able to fulfill our client’s business needs all over this vast geographic area. We are happy to provide your company with a tailored salary survey to fit your needs. Please order one, or get in touch to discuss how we can help your business grow. It would be our pleasure to work with you! Yours truly, Awara Direct Search www.awara-search.com Global call center for all countries: +7 495 225 3038 Email: info@awara-search.com Moscow, St. Petersburg, Tver, Yekaterinburg, Kyiv, Helsinki

×