Kazakhstan's President has approved changes to the law allowing senior citizens to delay tax repayments from their retirement pensions.
News Article: Kazakhstan Introduces 16-Year Deferral for Individual Pension Tax
President Kassym-Jomart Tokayev has signed into law significant amendments to the Tax Code of the Republic of Kazakhstan, effective from January 1, 2026. The changes, which were reported by Almaty.tv, focus on various taxes but do not explicitly detail a deferral mechanism for paying the Individual Pension Tax (IPT) upon withdrawal of pension savings.
However, it has been reported that the state will grant a 16-year payment deferral for IPT when pension savings are withdrawn. This new provision in the amendments to the tax code was approved by the Parliament on November 24, 2020.
The deferral of IPT does not apply to any other form of savings withdrawal. The exact amount of pension savings that qualify for the IPT deferral is not specified.
The amendments include other key reforms such as:
- The introduction of differentiated tax rates for different sectors and a simplification of tax administration.
- A reduction of the VAT registration threshold to 40 million KZT and an increase of the standard VAT rate from 12% to 16%.
- A progressive personal income tax, with rates of 10% on income up to 8,500 MCI and 15% above that, as well as preferential rates on dividends.
- A reduction in the number of special tax regimes from seven to three and a 20% reduction in tax incentives.
- Modernization of tax filing obligations and universal tax filing expansion effective from 2025.
For more detailed information on IPT deferral related to pension withdrawals, it would be advisable to consult directly the official text of the Legislative Act No. 208-VIII or Law No. 214-VIII, or notifications from Kazakhstan’s tax authorities that may provide detailed guidance on pension tax treatment.
Employees of the pension fund have reportedly been answering relevant questions from citizens regarding this matter. The messages about the signing of the documents were issued by Akorda. The exact date of the signing of the documents by President Tokayev is not specified in the provided paragraph.
President Tokayev also signed the Law of the Republic of Kazakhstan "On the Entry into Force of the Tax Code of the Republic of Kazakhstan (Tax Code)" and the Law of the Republic of Kazakhstan "On Amending and Supplementing the Tax Code of the Republic of Kazakhstan (Tax Code)". These documents, collectively referred to as the Tax Code of the Republic of Kazakhstan, signify significant changes in the tax code of Kazakhstan. The location of the signing of the documents by President Tokayev is not specified in the provided paragraph.
The deferral of IPT is applicable only to citizens of Kazakhstan. The documents signed by President Tokayev are laws of the Republic of Kazakhstan and are related to amendments of the tax code of RK. The signing of the documents by President Tokayev is significant as it pertains to changes in the tax code of Kazakhstan.
The 16-year deferral for Individual Pension Tax (IPT) is a provision in the amended tax code of Kazakhstan, which was approved by the Parliament on November 24, 2020, and signed into law by President Kassym-Jomart Tokayev. This deferral primarily applies to the withdrawal of pension savings by Kazakhstan citizens.
The amendments to the tax code of Kazakhstan also include other key reforms such as differentiated tax rates for various sectors, simplification of tax administration, changes in VAT thresholds and rates, personal income tax adjustments, reductions in special tax regimes, modernization of tax filing obligations, and expansion of universal tax filing.
