The Key Changes in the Procedure for Applying Tax Deductions to an Individual’s Income

On 1 January 2025, Sections 8 and 9 of the Code of the Republic of Kazakhstan No. 120-VI On Taxes and Other Mandatory Payments to the Budget (Tax Code) dated 25 December 2017 (the “Tax Code”) came into force in the version that was previously suspended.

According to the current version of the Tax Code, all tax deductions are divided into two types based on the method of their application:
(i) tax deductions applied at the source of payment by the tax agent; and (ii) other tax deductions applied by the individual independently. 

The tax deductions applied by the tax agent include:

• The amounts of obligatory pension fund contributions
• The amounts of obligatory social medical insurance contributions
• The standard tax deductions in the amount of:
  - 14 MCI (monthly calculation index) per month
  - 882 MCI per year for WWII veterans, persons with disabilities (a detailed list of persons is specified in Article 346.1.2 of the Tax Code)
  - 882 MCI per year for parents/guardians of children with disabilities, for adoptive parents, foster parents (a detailed list of persons is specified in Article 346.1.3 of the Tax Code) 
  
• The deduction for multi-child families that have four or more minor children as of 1 January 2025 in the amount of 23 MCI if the deduction is applied by one parent, or in the amount of 12 MCI if the deduction is applied by both parents. As supporting documents, the employee is required to provide copies of the children’s birth certificates.

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