Article 353-1. The specifics of calculating, withholding and paying individual income tax on a lump sum pension payment in accordance with the legislation of the Republic of Kazakhstan on social protection, taxes and other mandatory payments to the budget (Tax Code) of the Republic of Kazakhstan
1. In case of a one-time pension payment in accordance with the legislation of the Republic of Kazakhstan on social protection, the tax agent calculates the individual income tax upon transfer by the unified accumulative pension fund to the bank account of the recipient of pension payments and (or) an authorized operator.
Individual income tax is calculated by applying the rates established by Article 320 of this Code to the amount of taxable income at the source of payment, determined in accordance with paragraph 1-2 of Article 356 of this Code.
2. Unless otherwise provided for in paragraphs 4, 5, 6 and 7 of this Article, the deduction of the amount of the individual approach tax is carried out by a tax agent using one of the following methods at the choice of an individual:
1) in accordance with the procedure provided for in Article 353 of this Code;
2) monthly in equal installments for no more than sixteen years according to the schedule for pension payments established by the unified accumulative pension fund.
The deduction specified in the first part of this paragraph is made on the basis of an application for withholding individual income tax submitted to the tax agent in the form established by the authorized body in coordination with the authorized body in the field of social protection of the population.
3. The tax agent transfers the withheld amount of individual income tax no later than twenty-five calendar days.:
1) the following month in which the lump sum pension payment was made, in the case specified in subparagraph 1) of the first paragraph of paragraph 2 of this Article.;
2) the following month, in which the transfer of pension payments is initiated and carried out in accordance with the schedule for pension payments established by the unified accumulative pension fund, in the case specified in subparagraph 2) of the first paragraph of paragraph 2 of this Article.;
3) the following month, in which the amount of individual income tax has been withheld at a time, in the cases specified in paragraphs 4, 5, 6 and 7 of this Article.
4. When an individual leaves the Republic of Kazakhstan for permanent residence, the amount of individual income tax not withheld or transferred by the tax agent from a lump sum pension payment is subject to withholding in a lump sum in accordance with the procedure provided for in Article 353 of this Code from the amount of the pension payment.
5. When paying to a person who inherited pension savings in accordance with the procedure established by the legislation of the Republic of Kazakhstan, the amount of individual income tax not withheld or transferred by a tax agent from a lump sum pension payment is subject to withholding in a lump sum in accordance with the procedure provided for in Article 353 of this Code from the amount of pension payment.
6. If an individual has a pension annuity agreement concluded with an insurance company, the individual income tax on the amount of the lump sum pension payment is subject to withholding by the tax agent in a lump sum in accordance with the procedure provided for in Article 353 of this Code in the following cases:
1) when transferring pension savings to an insurance company – from the amount of pension savings;
2) when previously applying the provisions of subparagraph 2) of the first part of paragraph 2 of this article to income in the form of a one–time pension payment - from the amount of pension savings;
3) one-time pension payment – from the remaining amount in the individual pension account of an individual in the unified accumulative pension fund.
7. In case of a one-time pension payment to an individual who is a recipient of pension payments for years of service, the individual income tax is withheld by the tax agent in a lump sum in accordance with the procedure provided for in Article 353 of this Code.
The provisions of this paragraph shall also apply in the case of the earlier application to the income of an individual of the method of withholding individual approach tax provided for in subparagraph 2) of the first part of paragraph 2 of this article, with the deduction of an individual approach tax on the amount of pension savings.
8. For the purposes of this article, a single accumulative pension fund is recognized as a tax agent.
The Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI SAM.
This Code establishes the fundamental principles of taxation, regulates power relations for the establishment, introduction, amendment, cancellation, procedure for calculating and paying taxes and other mandatory payments to the budget, as well as relations related to the fulfillment of tax obligations.
President
Republic of Kazakhstan
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