Kazakhstan - Legislative Alert
Recent Changes to Kazakhstan’s Pension Fund Legislation
EY Kazakhstan would like to draw your attention to Kazakhstan’s recent legislative amendments and additions concerning obligatory pension fund contributions (OPFC), obligatory professional pension fund contributions (OPPFC) and obligatory social insurance contributions (OSIC).
On 11 May 2018, Decree No. 239 dated 4 May 2018 “On amendments and additions to certain decisions of the Government of Kazakhstan” (Decree), was published. The Decree outlines amendments to the following normative acts:
1. Rules and terms for calculating, withholding (accruing) and transferring OPFC and OPPFC to the Unified Accumulative Pension Fund and penalties for them, approved by Decree No. 1116 of the Government of Kazakhstan, dated 18 October 2013;
2. OPPFC Rules, approved by Decree No. 255 of the Government of Kazakhstan, dated 26 March 2014;
3. Rules for calculating and transferring OSIC, approved by Decree No. 683 of the Government of Kazakhstan, dated 21 June 2004.
In addition to updated references to new provisions in the Tax Code and other changes, according to these amendments compensation for unused vacation is now subject to OSIC, OPFC and OPPFC charges, retroactively from 1 January 2018.
In this regard, it is necessary to re-check the calculation of taxation of compensation for unused vacation from 1 January 2018. If necessary, recalculate OSIC, OPFC and OPPFC, pay the incurred obligations and provide additional tax reporting for the 1st quarter of 2018.
We hope you find this overview helpful. For additional information, please contact the following specialists:
Director, People Advisory Services
Tel.: +7 727 258 5960