Pension payments from the Unified Accumulative Pension Fund in Kazakhstan may be exempt from income tax. This is stated in the response of Prime Minister Olzhas Bektenov to the Senate request.
In his response to the senators’ request, the head of government said that in accordance with subparagraph 1) of paragraph 3 of Article 353 of the Tax Code, pension payments from the Unified Pension Fund are classified as income taxed at the source of payment with individual income tax.
“Taking into account the social significance of the issue, as well as international practice on deductions and concessions, it is proposed that pension payments from the Unified Pension Fund be exempted from paying personal income tax (the amount of losses on personal income tax is 4.1 billion tenge),” the response says.
It is envisaged that the benefit will apply only to recipients living in Kazakhstan, that is, citizens traveling abroad and heirs of funds from the UAPF will be subject to personal income tax.
“After additional elaboration of your proposals, the final approaches will be reflected in the draft of the new Tax Code,” the Prime Minister added.
Pylyp is an experienced private banker and asset manager.