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

Article 349. Tax deductionfor remuneration

1. A resident individual of the Republic of Kazakhstan applies a tax deduction for remuneration to the expenses forremuneration on mortgage housing loans received from housing construction savings banks to improve housing conditions in the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan on housing construction savings, incurred for his/her own benefit.

2. Supporting documents for the application of the tax deduction for remuneration are:

1) a mortgage housing loan agreement with a housing construction savings bank to improve housing conditions in the territory of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan on housing construction savings;

2) the schedule for the mortgage housing loan repayment specifying the amount of remuneration;

3) a document confirming the repayment of remuneration on such a loan.

3. Tax deductions are applied in the taxable period in which the latest of the following dates occurs:

the date of repayment of remuneration according to the schedule of mortgage housing loan repayment;

the date of payment of remuneration.
Chapter 38. THE ORDER FORTHE CALCULATION, PAYMENT AND FILING OF TAX RETURNS ON INDIVIDUAL INCOME TAX WITHHELDAT THE SOURCE OF PAYMENT

To Article 350 is provided for amendments by the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI (shall be enforced from 01.01.2020); dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021); dated 24.06. 2021 No. 53-VII (shall be enforced from 01.01.2025).
Article 350. General provisions on individual income tax withheld at the source of payment

1. The calculation, withholding and payment of individual income tax to the budget shall be made at the source of payment by a tax agent for the income specified in subparagraphs 1) - 12) and 17) of Article 321 of this Code if such income is (to be) paid by the said tax agent.

2. Unless otherwise established by paragraph 3 of this article, the following persons, who pay income to a resident individual, are deemed tax agents:

1) an individual entrepreneur;

2) a private practice owner;

3) a legal entity, including a non-resident, operating in the Republic of Kazakhstan through a permanent establishment.

In this case, a non-resident legal entity is recognized as a tax agent from the date of registration of its branch, representative office or permanent establishment without setting up a branch or representative office with tax authorities of the Republic of Kazakhstan;

4) a non-resident legal entity operating in the Republic of Kazakhstan through a branch or representative office if a branch or representative office does not set up a permanent establishment in accordance with an international treaty regulating the avoidance of double taxation and the prevention of tax evasion, or Article 220 of this Code.

3. The persons below are not deemed to be tax agents:

1) diplomatic and equivalent representations of a foreign state, consular offices of a foreign state accredited in the Republic of Kazakhstan;

2) international and state organizations, foreign and Kazakh non-governmental public organizations and funds, exempt from the obligation to calculate, withhold and transfer individual income tax at the source of payment in accordance with international treaties ratified by the Republic of Kazakhstan.

4. A resident legal entity may, by its decision, simultaneously assign to its structural unit responsibilities for:

the calculation, withholding and transfer of individual income tax on income subject to taxation at the source of payment, which is calculated, paid by such a structural unit;

the calculation and payment of social tax on taxable items, which are expenses of such a structural unit.

The adoption of such a decision by a resident legal entity is put into effect:

in respect of the newly established structural unit - from the day of establishment of this structural unit or from the start of a quarter following the quarter in which this structural unit was set up;

in other cases - from the start of a quarter following the quarter in which such a decision was made.

The cancellation of such a decision of a resident legal entity takes effect from the start of a quarter following the quarter in which such a decision was canceled.

5. The calculation and withholding of individual income tax on income from depositary receipts is made by the issuer of an underlying asset of such depositary receipts.

The procedure for the fulfillment of a tax obligation by a tax agent for income paid to a resident in the form of dividends on shares that are the underlying asset of depositary receipts, as well as the refund of income tax withheld at the source of payment, is determined in accordance with Article 310 of this Code.

To Article 351 is provided for amendments by the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI (shall be enforced from 01.01.2020).