Tax deductions
When determining employee income that is taxed at the source of payment, the following shall be deductible for each month over the course of the tax year :
- an amount equal to the monthly index factor established by a legislative act of the Republic of Kazakhstan for the corresponding month in which income was earned;
- an amount equal to the monthly index factor for each family member who is dependent on the employee, beginning with the month in which the dependent relationship took effect. Said deductions shall be applied to the income of just one taxpaying member of a family;
- a family shall be understood to mean spouses, children and parents (including those who are temporarily absent) residing together and maintaining a common household;
- a dependent shall mean a member of a taxpayer’s family who is supported by the taxpayer’s income and has no independent source of monthly income in excess of the monthly index factor;
- mandatory pension contributions to pension savings funds in an amount established by the legislation of the Republic of Kazakhstan;
- voluntary pension contributions made on one’s own behalf, in an amount not to exceed 10 times the monthly index factor established by the law of the Republic of Kazakhstan on the republican budget for the respective fiscal year;
- using insurance premiums contributed on his own account by an individual under savings insurance agreements;
When determining income taxable at the payment source of an employee that has worked less than half of a month, deductions in the amount of a monthly index factor as established by the law on the republican budget for the relevant fiscal year shall not be made.
The right to take a deduction shall be granted to a taxpayer for income received from one of his employers on the basis of an application submitted by him and supporting documents (for dependents) presented by the taxpayer.