At the plenary session, the Mazhilis Parliament of the Republic of Kazakhstan approved in the first reading the draft law “On introducing amendments and addenda to some legislative acts of the Republic of Kazakhstan on the formalization of employment of the population”.
The draft law was developed by the Ministry of Labor and Social Protection of the Population in accordance with the instructions of the Head of State. Its main goal was to involve self-employed people in social security systems.
The main novelty of the bill is the introduction from January 1, 2019, of a new legal regime - the CAP.
In the economy of Kazakhstan, 1.3 million people are informally employed. Informal employment is due to the complex procedure of registration and deregistration in tax authorities, the presence of numerous payment systems and the complexity of determining the tax regime.
To simplify the registration of activities of informally employed, the introduction of a single cumulative payment is proposed.
"Payment of the CAP will allow not only to register the activity but also to participate in the system of compulsory medical and social insurance, pension provision. The CAP will replace 4 mandatory payments in a single payment. For payers of the CAP, minimum rates for income tax and social payments were established in the amount of 1 MCI (2,525 tenges in 2019) for cities of republican significance, the capital and regional significance, and two times lower at half the MCI (1,263 Tenge) - for residents of other localities, ”said Madina Abylkasymova, Minister of Labor and Social Protection of the Population.
Shares of the Unified Cumulative Payment will be 10% - on individual income tax, 20% - social contributions to the State Social Insurance Fund, 30% - pension payments to the Unified accumulative pension fund, 40% - contributions to the Fund for Mandatory Social and Medical Insurance.
The payment will be extended to individuals who do not use the labor of employees, perform jobs, services for individuals or sell agricultural products for consumption.
At the same time, the marginal income for a calendar year should not exceed 100 minimum wages (2,969.8 thousand tenges per year, 247.4 thousand tenges per month in 2019).
Individuals who provide services on the territory of the commercial real estate, rent out property, engage in private practice, foreigners and stateless persons (with the exception of oralmans) or registered as individual entrepreneurs do not fall under the category of CAP payers.
For other categories of citizens, the current procedure for paying taxes and social payments is maintained.
Citizens who pay the CAP will be able to use unlimited in amount and type of medical services. In this case, the right to choose a medical institution remains with them. Also, the payment will allow you to participate in the funded pension system and receive a basic pension depending on the length of participation in the system. In addition, in cases of disability, loss of the breadwinner, pregnancy, and childbirth, adoption or adoption of a child, care for a child under 1 year, CAP payers will receive social benefits.
During the consideration of the draft law in the Majilis, deputies initiated a number of amendments aimed at the effective implementation of the law.