On taxes and other obligatory payments to the budget (Tax Code)

Article 322. Income of an employee

1. Income of an employee subject to taxation is income assessed by an employer who is a tax agent and recognized, also in the employer’s accounting records, as expenses (costs) in accordance with the legislation of the Republic of Kazakhstan on accounting and financial reporting and is:

1) money to be transferred by the employer to the employee in cash and (or) non-cash forms in connection with labor relations;

2) income in kind of the employee in accordance with Article 323 of this Code;

3) income of the employee in the form of material benefit in accordance with Article 324 of this Code.

The income of the employee subject to taxation is also recognized as the income received (to be received) by a member of the board of directors or other management body of the taxpayer who is not the highest governing body.

2. Income of an employee subject to taxation (to be) received from persons who are not tax agents is income (to be) received under an employment agreement (contract) concluded in accordance with the legislation of the Republic of Kazakhstan or of a foreign state.

3. Income of an employee subject to taxation does not include:

1) income of an individual from a tax agent;

2) income in the form of pension payments;

3) income in the form of dividends, remuneration, winnings;

4) scholarships;

5) income under accumulative insurance contracts;

6) income subject to self-assessment by an individual;

7) income of a labor immigrant-resident;

8) income of a person engaged in private practice;

9) income of an individual entrepreneur.

An amenmend is provided in Article 323 by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).