Simplifying Payroll Tax and Social Contribution Calculations - FCHAIN

Simplifying Payroll Tax and Social Contribution Calculations

Kazakhstan continues its efforts to simplify tax administration for entrepreneurs. During a recent meeting of the Project Office for the implementation of the new Tax Code, the State Revenue Committee presented a new digital service that will allow employers to calculate and pay all payroll-related taxes and social contributions with a single click.

 

What Changes Are Being Proposed?

Currently, employers are required to calculate several mandatory payments for employees, including:

1. Individual Income Tax (IIT);
2. Mandatory Pension Contributions (MPC);
3. Social Contributions;
4. Mandatory Social Health Insurance (MSHI);
5. Social Tax and other payroll-related payments.

Each payment has its own calculation methodology, rates, benefits, and limitations, making payroll administration a complex process for businesses and accountants. The new service in the Taxpayer Cabinet will automate the entire process. The system will independently calculate all required payments based on current legislation, available benefits, and employee status, while also generating payment documents for submission to banks.

 

Benefits for Businesses

According to the State Revenue Committee, the new service will:

• ~ reduce the time required to calculate payroll taxes and social contributions;
• ~ minimize calculation and reporting errors;
• ~ decrease the administrative burden on accountants;
• ~ improve transparency between employers and employees;
• ~ automate timekeeping and personnel administration processes.

In addition, the authorities are considering eliminating the requirement to submit Form 200.00 for businesses using the service, which would further simplify compliance for small and medium-sized enterprises.

 

Integration with Government Information Systems

Through integration with government databases, the service will automatically determine employee status and apply the appropriate calculation rules. The platform is also expected to include timesheet management functionality, enabling automatic payroll and contribution calculations based on working hours.

 

When Will the Service Be Available?

According to the State Revenue Committee:

1. a pilot launch is scheduled for September 2026;
2. full implementation is expected in January 2027 following successful testing.

Initially, the service will be available to small and medium-sized businesses and will later be expanded to large enterprises through integration with accounting software systems.

 

Other Important Decisions

The Project Office also reviewed several additional initiatives:

1. expanding the list of income exempt from individual income tax when personal loan obligations are terminated under the mortgage refinancing program;
2. considering additional tax relief measures for individuals affected by fraudulent lending schemes;
3. resuming the issuance of Kazakhstan tax residency certificates to foreign citizens.

The latter initiative is particularly important for second-tier banks, which require accurate determination of foreign clients’ tax residency status for applying the appropriate taxation rules to bank deposits and other financial products.

 

What Does This Mean for Entrepreneurs?

The digitalization of tax administration in Kazakhstan continues to gain momentum. These initiatives are aimed at reducing bureaucracy, simplifying business operations, and improving tax compliance.

However, even with automated systems, employers remain responsible for proper personnel administration, payroll calculations, and compliance with tax regulations. Therefore, professional accounting and legal support remains essential for minimizing risks and avoiding penalties.

 

FChain Business Services

Would you like to ensure your company remains fully compliant with tax and legal requirements? FChain provides comprehensive business support services in Kazakhstan, including:

• ~ accounting and tax administration;
• ~ payroll processing and HR administration;
• ~ tax reporting preparation and submission;
• ~ LLP and sole proprietorship registration and support;
• ~ legal support for businesses;
• ~ contract drafting and legal review;
• ~ tax and labor law consulting.

Contact FChain today for professional accounting, HR, and legal support tailored to your business needs.

 

IE or LLP for Foreigners: Registration Rules

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

 📩 almaty@f-chain.com
📱 WhatsApp: +7 771 214 1820