Updates in payroll calculation since 2025

Dear Colleagues,

We would like to draw your attention to the following changes in legislation regarding the application of tax deductions related to payroll calculation:

Changes in the application of deduction:

The maximum amount of the total tax deduction for large families, tax deduction for voluntary pension contributions, tax deduction for education, tax deduction for medicine and tax deduction for remuneration, applied in a calendar year by both the tax agent and an individual independently, should not exceed 564 times monthly calculation index (MCI)

Tax deduction for individual income tax for large families:

The tax deduction is applicable if an individual has four or more minor children as of January 1 of the calendar year in which the deduction is applied. This fact must be confirmed by copies of children’s birth certificates.

The tax deduction for a large families applied jointly to both parents, in the amount of no more than 282 times MCI in one of the following orders:

• For one of the parents of the large family in the amount of23 times MCI for each month;
• For each parent of the large family in the amount of 12 times the MCI for each month

Tax deduction for individual income tax on education:

Tax deduction for individual income tax on education applies to expenses for education in the following organizations:

• Pre-school education and training carried out in pre-school educational institutions in the Republic of Kazakhstan;
• Technical and professional education carried out in the Republic of Kazakhstan under the relevant licenses for the right to conduct such types of activities in educational organizations;
• Post-secondary and higher education carried out in the Republic of Kazakhstan under the relevant licenses for the right to conduct such types of activities in educational organizations;
• Pre-school education and training, post-secondary, and higher education, carried out in autonomous educational organizations.

The tax deduction for education is applied by:

• an individual who is a resident of the Republic of Kazakhstan for expenses on education incurred in his/her favor;
• one of the legal representatives for expenses incurred on education in favor of an individual who is a resident of the Republic of Kazakhstan and has not reached the age of twenty-one and is dependent. If a person who has not reached the age of twenty-one applies the tax deduction for education independently, the said tax deduction is not applied by the legal representative.

The amount of the applied deduction is no more than 118 MCI in a calendar year.

Tax deductions for training expenses are applied in the tax period that includes the latest of the following dates:

• Date of receipt of training services;
• Date of payment for training services.

Tax deduction for individual income tax on medicine:

The amount of tax deduction for medicine was increased to 118 MCI.

Additionally, the tax deduction can be applied not only by an individual, but also by one of the legal representatives for expenses incurred on medicine in favor of the represented individual-resident of the Republic of Kazakhstan, who has not reached the age of eighteen, who is dependent. In the case of application of the tax deduction for medicine by a person who has not reached the age of eighteen (adulthood) independently, the said tax deduction is not applied by the legal representative

Tax deduction for individual income tax on remuneration:

The limit of 118 MCI was set for the application of the deduction on remuneration.

It will be possible to apply the tax deduction on remuneration for mortgage housing loans from all banks and organizations that carry out certain types of banking operations based on a license from the authorized state body for regulation, control and supervision of the financial market and financial organizations (not only OtbasyBank JSC).

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