Social taxes
Learning objectives:
To become familiar with the methods of computation and
payment of social tax and presentation of social tax
report.
Payers
1) individual entrepreneurs;
2) private notaries, advocates;
3) resident legal persons of the Republic of Kazakhstan;
4) non-residents carrying out activity in the Republic of
Kazakhstan through a permanent establishment.
The procedure of social tax calculation
1. Determining the object of taxation:
Object of taxation = incomes of employees –income of
employees that are not subject to taxation.
2. Computation of social tax:
Computed social tax = object of taxation * social tax rate
3. Social tax to be paid to the budget:
Social tax to be paid to the budget= computed social tax –
social contributions –social allowances for temporary
incapability
Worked example
Let’s say that an employee has a salary for the amount of
75350
1) in order to calculate the tax base of social tax we have to
find the amount of pension contribution.
75350 *10%= 7535
2) From the total amount of salary we have to deduct it:
75 350- 7535= 67 815
3) So, we multiply 67 815 * 11%= 7460
4) From this tax base we have to calculate social contributions
: 67 815 * 5%=3391
5) Finally, we deduct form social tax computed the amount of
social contributions:
7460- 3391 = 4069 is the social tax to be paid to the budget in
this case
Objects of taxation
Objects of taxation of the social income tax are:
▪For legal entities –expenses paid to the employees in
the form of their income;
▪If the object of taxation comprise the amount less than
minimum amount of wages, the object of taxation is
determined based on the minimum amount of wages.
Objects of taxation
Worked example #1:
An employee asked for unpaid vocation for 15 working
days. His salary for the 7 days that he worked comprised
12 000 tenge.
Required:
Determine the object of taxation
Objects of taxation
