The pension payments from the Unified Accumulative Pension Fund in Kazakhstan will be exempt from personal income tax, as announced by Prime Minister Olzhas Bektenov in response to a senatorial inquiry. The Tax Code currently imposes a 10% individual income tax on these payments, but the government has decided to change this approach due to the social significance of the issue. The exemption will result in a revenue loss of 4.1 billion tenge. However, this exemption will only apply to recipients residing in Kazakhstan, with those moving abroad or heirs of the funds still subject to IIT.
Members of parliament emphasize the need to adjust pension and social payments from the fund to account for IIT arising from one-time payments for improving living conditions or medical expenses. They express concerns that without such adjustments, there could be a reduction in pensions, leading to social discontent.
Earlier, the Unified Accumulative Pension Fund provided key indicators of the fund as of April 1, 2024.
