Kazakh Senate adopts amendment on personal income tax deferral for using pension savings

Kazakh Senate adopts amendment on personal income tax deferral for using pension savings

The Senate of the Kazakh Parliament adopted new amendments to the tax code. According to them, Kazakh citizens will now be able to use part of their pension savings without paying the income tax all at once, Senate Speaker Maulen Ashimbayev announced. He said that President of Kazakhstan Kassym-Jomart Tokayev had previously instructed to enable Kazakh citizens to use part of their pension savings already from 2021. However, this caused a public outcry as it required the citizens to make a one-time payment of the income tax from that money. Ashimbayev conveyed the Senate members’ proposals to postpone tax payments to a later date.

“In case part of the pension savings is withdrawn early, 10 percent of them is withheld as a one-time tax. The Senate members find this to be difficult for citizens currently. It is therefore proposed that the tax be paid not upon receipt of pension savings, but only after retirement. Moreover, it will not be a one-off payment. The bill introduces a provision on installments within 16 years,” said Ashimbayev.

 

Photo: inbusiness.kz


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