Mandatory pension contributions (MPC) – funds contributed to the UAPF in accordance with the Social Code in the manner established by Rules No. 525[7], Rules No. 270[8], and Rules No. 392[9].
MPC rate – the amount of payment to the UAPF, expressed as a percentage of the contributor’s income used to calculate MPC and/or of insurance payments made as compensation for loss of earnings (income).
The MPC rate payable by the Internet platform operator for performers who are individual entrepreneurs applying a special tax regime using a special mobile application is determined at the performer’s choice: either 1% of the income accepted for calculating MPC or the amount specified in subparagraph 2) of paragraph 1 of Article 249 of the Social Code.
Income accepted for calculating MPC refers to the income earned by performers who are individual entrepreneurs applying a special tax regime using a special mobile application for services rendered or work performed.
At the same time, the income accepted for calculating MPC per month must not exceed 50 times the minimum wage established for the relevant financial year by the law on the republican budget.
Pension provision agreement funded by MPC (accession agreement) (Agreement) – an accession agreement, the terms of which are accepted by the MPC contributor only by joining the proposed Agreement in its entirety.
The MPC contributor and the agent responsible for paying MPC are considered to have joined the Agreement from the date the MPC or any penalties are credited to the open IRA for accounting of MPC.
The following are exempt from paying MPC to the UAPF:
- individuals who have reached the retirement age, in accordance with paragraph 1 of Article 207 of the Social Code;
- individuals with disabilities of groups I and II, if the disability is established permanently. Payment of MPC to the UAPF is made upon the request of the specified persons;
- military personnel (except for conscripted servicemen), employees of special state and law-enforcement agencies, civil protection authorities, the state courier service, as well as individuals whose rights to hold special ranks, class ranks, and wear uniforms were abolished as of January 1, 2012;
- recipients of pension payments for long service.
All types of remuneration in monetary form, as well as other income, are included in the income used for the calculation of MPC. MPC are paid to the UAPF in the manner and within the timeframes established by the Social Code, the Tax Code, Rules No. 525, Rules No. 270, and Rules No. 392:
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No.
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Agent for the payment of MPC
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Period
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Calculation base
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Rate, limits
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Deadline for transfer
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Note
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1
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Individual entrepreneurs and legal entities (except for the persons specified in paragraphs 2 and 3 of this table), persons engaged in private practice, with respect to income paid to employees, as well as to individuals under civil law contracts, the subject of which is the performance of work (provision of services).
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for each month of the tax period
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Monthly income of employees, individuals under civil law contracts, and persons holding other paid positions (elected, appointed, or approved).
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In the amount of 10% of the monthly income subject to the calculation of MPC. At the same time, the monthly income subject to the calculation of MPC from a single agent shall not exceed 50 times the minimum wage [10]established for the relevant financial year by the Law on the Republican Budget.
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no later than the 25th day of the month following the month in which the income is paid
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The agent’s obligation to withhold and pay MPC.
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2
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Individual entrepreneurs (except those specified in paragraph 3 of this table), peasant or farming enterprises, and persons engaged in private practice, in their own favor.
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for each month of the tax period
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Income received by a person, determined independently by them for the payment of social contributions, excluding income from which MPC are not payable, but not exceeding the income determined for tax purposes in accordance with the Tax Code.
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In the amount of 10% of the income accepted for calculating the MPC, except for cases provided for in paragraph 3 of Article 102-1 of the Social Code (internet platform operators).
At the same time, the monthly income subject to the calculation of MPC shall not exceed 50 times the minimum wage established for the relevant financial year by the Law on the Republican Budget. If the income is less than one minimum wage or in the absence of income, the individual shall have the right to pay MPC based on one minimum wage established for the relevant financial year by the Law on the Republican Budget.
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no later than the 25th day of the month following the reporting month
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The payment of the MPC is made independently.
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3
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Individual entrepreneurs who operate under a special tax regime based on a patent[11].
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Calendar year for the application of the tax regime
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Income received by a person, determined by them independently for the payment of social contributions, excluding income from which MPC are not paid, but not exceeding the income determined for tax purposes in accordance with the Tax Code.
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In the amount equal to 10% of the income subject to calculation of the MPC.
Income subject to the calculation of MPC shall mean income received by a person, determined independently by them for the payment of social contributions, excluding income from which no MPC is payable, but not exceeding the income determined for tax purposes in accordance with the Tax Code.
At the same time, the monthly income subject to the calculation of MPC shall not exceed 50 times the minimum wage established for the relevant financial year by the Law on the Republican Budget. If the income is less than one minimum wage or in the absence of income, the individual shall have the right to pay MPC based on one minimum wage established for the relevant financial year by the Law on the Republican Budget.
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within the time period stipulated by the tax legislation of the Republic of Kazakhstan for the payment of the patent value: the payment of the patent value shall be made by the taxpayer prior to submitting the calculation
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The payment of the MPC is made independently.
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4
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Individuals permanently residing in the territory of the Republic of Kazakhstan who receive income under civil law contracts, the subject of which is the performance of work (provision of services), concluded with individuals who are not tax agents[12].
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for each month of the tax period
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Income received under civil law contracts, the subject of which is the performance of work or the provision of services.
Income subject to the calculation of MPC shall mean income received by a person, determined independently by them for the payment of social contributions, excluding income from which no MPC is payable, but not exceeding the income determined for tax purposes in accordance with the Tax Code.
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In the amount equal to 10% of the income subject to calculation of the MPC.
At the same time, the monthly income subject to the calculation of MPC shall not exceed 50 times the minimum wage established for the relevant financial year by the Law on the Republican Budget.
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no later than the 25th day of the month following the month in which the income is paid
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The payment of the MPC is made independently.
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5
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Individuals permanently residing in the territory of the Republic of Kazakhstan who are employed in representative offices of international organizations in the Republic of Kazakhstan, as well as in diplomatic missions and consular offices of foreign states accredited in the Republic of Kazakhstan.
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for each month of the tax period
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Income received by a person, determined independently by them for the payment of social contributions, excluding income from which MPC are not payable, but not exceeding the income determined for tax purposes in accordance with the Tax Code.
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In the amount equal to 10% of the income subject to calculation of the MPC.
At the same time, the monthly income subject to the calculation of MPC shall not exceed 50 times the minimum wage established for the relevant financial year by the Law on the Republican Budget.
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no later than the 25th day of the month following the month in which the income is paid
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The payment of the MPC is made independently.
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6
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Tax agents who are payers of the single payment (SP) under Article 776-1 of the Tax Code: individual entrepreneurs and legal entities that are micro- and small business entities applying the special tax regimes provided for in paragraph 3 of Chapter 77, Chapters 77-2 and 78 of the Tax Code, making payments to an individual, excluding a non-resident individual, in the form of wages, and who have opted to fulfill the obligations of calculating, withholding, and transferring PIT[13] on such income as part of the SP.
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for each month of the tax period
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The income of an employee, excluding that of a non-resident employee as provided for in Article 322 of the Tax Code, accrued by an employer who is a micro or small business entity applying the special tax regimes set out in paragraph 3 of Chapter 77, Chapters 77-2 and 78 of the Tax Code.
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For single payment (EP) payers, the share of MPC in the EP rate is as follows:
from January 1, 2025 – 42.0 percent;
from January 1, 2026 – 40.3 percent;
from January 1, 2027 – 38.8 percent;
from January 1, 2028 – 38.0 percent.
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no later than the 25th day of the month following the reporting month
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The agent’s obligation to withhold and pay MPC.
The selected procedure for the taxation of employees’ income subject to withholding at the source, as declared in the initial or regular declaration, shall not be changed during the tax period.
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7
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The operator of an Internet platform is an individual entrepreneur or a legal entity that provides services through the Internet platform, offering technical, organizational (including services involving third parties for the provision of works or services), informational, and other capabilities using information technologies and systems to establish contacts and conclude transactions for the provision of services and execution of works between performers and customers registered on the Internet platform.
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for each month of the tax period
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Income received by performers who are individual entrepreneurs applying a special tax regime through a special mobile application, for services rendered or work performed.
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It is determined at the discretion of the performer in the amount of 1% of the income subject to the calculation of MPC, or in the amount specified in subparagraph 2) paragraph 1 of Article 249 of the Social Code (10%).
Income subject to the calculation of mandatory pension contributions shall mean income earned by performers who are individual entrepreneurs applying a special tax regime through a special mobile application, for services rendered or work performed.
At the same time, the income subject to the calculation of MPC per month shall not exceed 50 times the minimum wage established for the relevant financial year by the Law on the Republican Budget.
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no later than the 25th day of the month following the month in which the income is paid
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The agent’s obligation to withhold and pay MPC.
The performer may change the selected amount of social contribution rates in the special mobile application once per calendar month, no later than the 25th.
Social contributions are calculated starting from the first day of the month following the month in which the social contribution rates were changed, based on the established rate.
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The transfer of MPC is carried out by agents through non-cash payments, unless otherwise provided in the following paragraph.
Individuals engaged in private practice, individual entrepreneurs, as well as individuals who receive income under civil law contracts and do not have accounts with banks and organizations engaged in certain types of banking operations (hereinafter - banks), shall deposit MPC in cash to banks for subsequent transfer to the UAPF. Payment of MPC in cash or by wire transfer through banks shall be carried out in accordance with the procedure established by the Law of the Republic of Kazakhstan "On Payments and Payment Systems".
Withheld (accrued) MPC or penalties are transferred to the State Corporation using the following details:
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"Government for Citizens" State Corporation
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BIC: GCVPKZ2A
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IIC: KZ12009NPS0413609816
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BIN: 160440007161
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BC: 11
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PPC:[14] 010 Mandatory pension contributions
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PPC: 019 Penalty for the untimely transfer of mandatory pension contributions
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[7]Rules and deadlines for the calculation, deduction (accrual), and transfer of mandatory pension contributions and mandatory professional pension contributions to the Unified Accumulative Pension Fund, as well as for their collection, approved by Resolution No. 525 of the Government of the Republic of Kazakhstan as of June 30, 2023.
[8]Rules for the payment, transfer, and distribution, as well as the refund of excessively (erroneously) paid amounts of a single payment and/or penalties for late and/or incomplete payment of a single payment, approved by Order No. 270 of the Deputy Prime Minister – Minister of Labor and Social Protection of the Population of the Republic of Kazakhstan as of June 29, 2023.
[9] Rules for determining the contractor’s rates of social contributions, mandatory pension contributions, and contributions to compulsory social health insurance; for the deduction and transfer by the operator of the Internet platform of individual income tax, mandatory pension contributions, social contributions, and contributions to compulsory social health insurance; as well as for the distribution and transfer of amounts paid by the operator of the Internet platform and the refund of erroneously (unnecessarily) paid amounts of social contributions, mandatory pension contributions, contributions to compulsory social health insurance, and/or penalties for their late and/or incomplete payment, approved by Order No. 392 of the Minister of Labor and Social Protection of the Population of the Republic of Kazakhstan as of September 30, 2024.
[10]Minimum wage
[11] A patent is a special tax regime for conducting individual entrepreneurship without employees.
[12] a tax agent is an individual entrepreneur, a person engaged in private practice, a legal entity (including its structural subdivisions), as well as a non-resident legal entity that, in accordance with the Tax Code, is obliged to calculate, withhold, and transfer taxes withheld at the source of payment and/or a single payment, and also includes the operator of an Internet platform as defined by the Social Code of the Republic of Kazakhstan.\
[13] individual income tax.
[14] payment purpose code
