Kazakhstan Payroll Taxes and Costs 2013

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Kazakhstan Payroll Taxes and Costs 2013

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
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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).
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+7 495 225 3038

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+7 495 225 3038
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Kazakhstan Payroll Taxes and Costs 2013

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Kazakhstan Payroll Taxes and Costs 2013