Individual+income+tax | Course Paper

Section 6. Personal Income Tax

▪Tax payers;

▪Object of taxation;

▪Income that shall not be recognized as income of

natural person;

▪Calculation procedure ;

▪Deductions ;

Payers

✓Natural persons (such as individual entrepreneurs,

private notaries, advocates receiving their income in

Kazakhstan);

✓Payers of gambling business tax, fixed tax shall not

be payers of personal income tax.

✓Individual entrepreneurs enjoying the special tax

regime for peasant or farmer holdings shall not be

payers of personal income tax on income from the

performance of an activity which is subject to such

special tax regime.

Objects of taxation

Personal income

tax

Income taxable

at source of

payment

Income not

taxable at source

of payment.

The following shall not be recognised as

income of natural persons:

1) targeted social assistance, benefits and

compensations that are paid at the expense of budget

funds in the amounts established by the legislation of

the Republic of Kazakhstan;

2) compensation of harm caused to lives and health

of natural persons in accordance with the legislation

of the Republic of Kazakhstan;

The following shall not be recognised as

income of natural persons:

3) compensations in case of business trips, unless

otherwise established by this Article:

➢expenses actually incurred on the outward and

return journeys of the business trip, including any

reservation expenses on the basis of documents

confirming the expenses on journeys and reservation

(including electronic ticket in the availability of a

document confirming the fact of payment of their

value);

➢expenses actually incurred for accommodation,

including the payment for reservation on the basis of

documents confirming the expenses on

accommodation and reservation;

The following shall not be recognised as

income of natural persons:

➢per diems not more than 6-times amount of the

monthly assessment index established for the

relevant financial year by the law concerning the

republic’s budget, per day for the period when they

are on a business trip within the Republic of

Kazakhstan up to forty days;

➢per diems not more than 8-times amount of the

monthly assessment index established for the

relevant financial year by the law concerning the

republic’s budget, per day for the period when they

are on a business trip beyond the boundaries of the

Republic of Kazakhstan up to forty days;

The following shall not be recognised as

income of natural persons:

5) Expenses incurred by the taxpayer in the

execution of an entry visa (visa fee, costs of consular

services, obligatory medical insurance) on the basis of

documents confirming the costs of execution of entry

visa (visa fee, costs of consular services, obligatory

medical insurance);

The following shall not be recognised as

income of natural persons:

7. Compensations in case of business trips which are

paid by state-owned institutions maintained at the

expense of funds of the budget and the estimate of the

National Bank of the Republic of Kazakhstan in

amounts and in accordance with the procedure

specified in the legislation of the Republic of

Kazakhstan;

8. Compensation of expenses confirmed by

documents in respect of travel, carriage of property,

hire of accommodation for a period not more than

thirty calendar days in case of a transfer (or

relocation) of employees to work in another area

together with the employer;

The following shall not be recognised as

income of natural persons:

9. Field allowances for employees engaged in

geological prospecting, topographic-geodesic survey

and research operations in field conditions, in

amounts established by the legislation of the

Republic of Kazakhstan;

10. Costs relating to carriage of employees from a

place of their housing (accommodation) in the

Republic of Kazakhstan to a place of work and back

The following shall not be recognised as

income of natural persons:

11. Insurance payments under obligatory insurance

agreements on the employer’s liability for causing

harm to lives and health of employees when they

perform their work (service) duties;

12. Amounts of compensation for material damage

that are awarded by court decisions;

13. Amounts of dividends, interest, winnings which

were previously taxed with personal income tax at

source of payment where documents confirming the

withholding of such tax at source of payment are

available;

The following shall not be recognised as

income of natural persons:

14. Price of providing with special clothes, special

footwear, other personal protection items and first

medical aid items, soap, disinfecting chemicals, milk

or other equal-value foodstuffs for medical preventive

nourishment according to the standards established

by the legislation of the Republic of Kazakhstan;

15. Capital gain from selling housing, dachas,

garages, items of personal accessory farms which are

held in accordance with ownership rights for one year

and more from the moment of registration of

ownership rights

The following shall not be recognised as

income of natural persons:

16. Value of assets received in the form of

humanitarian assistance;