STATE REVENUE COMMITTEE OF THE

MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

PRESS RELEASE

CITIZENS OF KAZAKHSTAN CAN CONDUCT BUSINESS

WITHOUT REGISTRATION

The system enabling informally employed persons to carry out business activities without registration as an individual entrepreneur, referred to as the "Single aggregate payment" (SAP), has been operating in Kazakhstan since the beginning of 2019.

This type of payment applies to individuals engaged in informal activities in order to generate income that do not use the labor of employees, provide services exclusively to individuals, sells agricultural products derived from the operation of a personal subsidiary farm for consumption by individuals.

It should be noted that the payment of the SAP gives an opportunity to participate in the system of mandatory social health insurance and get access to medical services, with the right to choose a medical institution after the introduction of the MSHI.

Also, the SAP provides income in the pension system and receiving the basic pension payment, depending on the length of participation in the system.

In addition to the replenishment of their pension savings in the Single Savings Pension Fund, for the payers of the SAP it is possible to receive a basic pension in an increased amount due to the fact that the work experience will be recorded.

At the same time, the payment of the SAP provides social benefits in cases of disability, loss of breadwinner, pregnancy and childbirth, adoption of a child, child care.

Payment of the SAP is made on a voluntary basis.

HOW MUCH TO PAY?

SAP is calculated from the size of the monthly calculation indicator, for urban residents - 1-fold size of MCI (2525 tenge) and 0.5-fold size (1263 tenge) MCI for rural residents (according to the registration at the place of residence). 

HOW TO SUBMIT REPORTING FOR THE PAYMENT OF SAP?

         Payers of SAP do not provide tax reports.

WHERE FUNDS ARE SENT FROM THE PAYMENT OF SAP?

SAP consists of the following shares:

- 10% for individual income tax;

- 20 % on social contributions to State Social Insurance Fund;

- 30% on pension contribution to Single Savings Pension Fund;

- 40% on deductions in MSHI.

HOW TO PAY?

Payment of SAP is carried out in a single payment in any Bank of the second level to the account of NJC State Corporation "Government for citizens" on the following details: 

DO NOT use SAP if:

Carry out your activities on the territory of commercial real estate, on the territory of commercial facilities (own or leased);

Provide property (except housing) to property lease (rental);

Belong to one of these categories: the individual entrepreneur, a person engaged in private practice, a foreigner or a stateless person (except oralmans).

IMPORTANT!

For the application of the SAP, the amount of income received for a calendar year should not exceed 1,175 MCI.

If for your services or products you receive less than 1,175 MCI per year, then you are entitled to apply this tax regime.

Example:

In 2019, the MCI – 2,525 tenge.

The maximum annual income for the SAP in 2019 is 2,966,875 tenge. If your income exceeds the indicated amount during the year, then you are not entitled to apply SAP. 

Press-office

State Revenue Committee

Ministry of Finance of the RK

(Zhenis avenue, 11)