State Revenue Committee

of the Ministry of Finance of the Republic of Kazakhstan

Press Release

From January 1, 2019, the Unified Cumulative Payment is being introduced

The Law of the Republic of Kazakhstan No. 203-VI dated December 26, 2018 “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Employment” provides for the introduction of the Unified Cumulative Payment from January 1, 2019.

According to the relevant amendments to the Tax Code, individuals who carry out entrepreneurial activities without being registered as an individual entrepreneur are recognized as the payers of the Unified Cumulative Payment (hereinafter referred to as the UCP), who simultaneously meet the following conditions:

1) paid the Unified Cumulative Payment;

2) do not use the labor of employees;

3) provide services exclusively to individuals who are not tax agents, and (or) sell exclusively to individuals who are not tax agents, agricultural products of subsidiary household plots of their own production, with the exception of excisable goods.

Thus, the UCP will be paid by individuals providing services and (or) selling the products from their subsidiary household plots to other individuals. For example, if the services will be provided to a legal entity and (or) to an individual entrepreneur, then such an individual - the service provider may not apply the UCP.

In addition, we would like to draw attention to the fact that a number of restrictions are provided for by the law.

In particular, the following persons are not recognized as the UCP payers:

1) persons engaged in the specified types of activities on the territory of commercial real estate objects, as well as commercial objects, including those on the right of ownership, lease, use, trust management;

2) persons providing property for renting (lease), except for housing units;

3) private practitioners;

4) foreigners and stateless persons, except for oralmans (repatriants);

5) persons having state registration as an individual entrepreneur.

Consequently, persons registered as individual entrepreneurs or engaged in private practice, as well as persons operating through stationary points (commercial objects – retail facilities, markets, etc.) who rent out property (except for housing units)

shall not be the UCP payers.

Separately, the size of the income of the UCP payer for the calendar year should not exceed 1,175-fold monthly calculation index established by the law on the republican budget and valid as of January 1 of the corresponding fiscal year.

Individuals are recognized as the UCP payers from the date on which such payment was made until the last day of the month for which the UCP was paid.

The Unified Cumulative Payment includes the amounts of individual income tax and social payments to be paid.

The UCP rate:

- 1 MCI - for cities of republican and regional significance, the capital;

- 0,5 MCI – for other settlements.

For ease of distribution of payments between the budget and funds, the UCP will be paid by self-employed citizens in a total amount by transferring through banks or organizations carrying out certain types of banking operations with one payment order to a separate bank account of the State Corporation “Government for Citizens”, which distributes the UCP as follows:

-  Personal Income Tax (10% to the budget);

- social contributions (20% to the State Social Insurance Fund);

- pension contributions (30% to the Unified Pension Savings Fund);

- contributions for mandatory social health insurance (40% to the Social Health Insurance Fund).

Press Service

of the State Revenue Committee MF RK

(Zhenis Ave, 11)