From April 01, 2020; the minimum calculation index (MCI) in Kazakhstan for 2020 is increased to KZT 2,778. MCI for January 01, 2020 to March 31, 2020 was KZT 2,651.
The increase of MCI will impact the calculation of the maximum thresholds for tax deductions and exemptions, which are based on MCI. The caps of payroll taxes and social payments (i.e. PIT, OPFC, OPPFC, OSMI payments, OSMI contributions, Social tax and Social contributions) are not MCI-based. Hence, the maximum limits of payroll taxes and social payments are not changed.
B. Statutory Compliance Release Date: N.A.
C. Effective Date: April 01, 2020
On April 21, 2020, the Government of Kazakhstan unveiled response package to limit the impact of COVID- 19 pandemic on the economy. The details are summarized below:
a. The correction coefficient “0” is established to the rates of the following social security contributions / payments:
- Social tax, Obligatory pension fund contributions, Obligatory professional pension fund contributions, Social insurance contributions, Obligatory social medical insurance payments and contributions, except for the ones paid by sole proprietors for themselves.
b. The above correction coefficient is applicable to the following entities and within the period specified below:
- Individuals engaged into private practice and subjects of micro, small and medium enterprises, which carry out activities, as prescribed, for the above-mentioned contributions / payment deadline falling in the period April 01, 2020 - October 01, 2020.
- Subjects of large enterprises, which carry out activities, as prescribed, for the above-mentioned contributions / payment deadline falling in the period April 01, 2020 - July 01, 2020.
c. Whereas large enterprises with specified types of activities are not liable to pay for the above- mentioned contributions / payment deadline for the period April 01, 2020 to July 01, 2020.
B. Statutory Compliance Release Date: April 21, 2020
C. Effective Date: April 01, 2020 to September 30, 2020
Kazakhstan's State Revenue Committee recently clarified the applicable medical (health) insurance contribution rates for 2020 and future changes. For 2020 the contributions rates are:
- 1% for employees (withheld by employer) and
- 2% for employers (employer cost)
The employee rate will be increased to 2% from 2021 and the employer rate will be increased to 3% from 2022.