1. At whose expense are social contributions (SC) paid under civil contracts - at the expense of the customer /tax agent or at the expense of the contractor/ individual.
Answer:
A payer of social contributions (hereinafter referred to as SC) for individuals who receive income under civil law contracts , the subject of which is the performance of works (provision of services), are tax agents defined by the tax legislation of the Republic of Kazakhstan who pay social contributions to the State Social Insurance Fund (hereinafter referred to as the Fund).
Thus, tax agents/customers deduct the calculated amount of social contributions from the income of the contractor/individual under the civil contracts.
2. Whether the payer has the right to fulfill the obligation under SC under civil contracts at his own expense, without deducting CSC from the income of an individual.
Answer:
In accordance with subparagraph 53) of paragraph 1 of Article 1 of the Tax Code of the Republic of Kazakhstan, the calculation, withholding and transfer of taxes withheld at the source of payment is the responsibility of the tax agent (SC payer).
Thus, the payer cannot fulfill the obligation under SC under civil contracts at his own expense.
3. Under which civil contracts and in what amount (example-1 calculation, minimum and maximum limit, examples-2 calculations with the application of restrictions on the lower and upper limit).
Answer:
Example 1:
The income received under the civil agreement is 85,000 tenge;
The SC rate starting from 01.01.2025 is 5%; the MPC rate is 10%;
Amount SC= (Income - MPC)* SC rate
The minimum income from which SC is paid is 85,000 tenge;
SC payable in the amount of 4,250 tenge (85,000 tenge * 5%).
The income received under the civil contract is 595,000 tenge;
The SC rate starting from 01.01.2025 is 5%; the MPC rate is 10%;
Amount SC= (Income - MPC)* SC rate
SC payable = (595,000 tenge – 59,500 tenge) * 5% = 26,775 tenge.
Example 2
The income received under the civil contract is 70,000 tenge;
The SC rate starting from 01.01.2025 is 5%; the MPC rate is 10%;
Amount SC= (Income - MPC)* SC rate
The minimum income from which SC is paid is 85,000 tenge;
SC payable in the amount of 4,250 tenge (85,000 tenge * 5%).
The income received under the civil contract is 1 000 000 tenge;
The SC rate starting from 01.01.2025 is 5%; the MPC rate is 10%;
Amount SC= (Income - MPC)* SC rate
The maximum income from which SC is paid is 595,000 tenge (7 * 85,000 tenge);
SC payable in the amount of 29,750 tenge (595,000 tenge * 5%).
4. Terms of payment, details for the transfer, specifics on refunds of overpaid amounts of SC according to civil contracts.
Answer:
According to paragraph 16-1 Rules for calculating and Paying social contributions to the State Social Insurance Fund and penalties for them, approved by Order No. 229 of the Deputy Prime Minister-Minister of Labor and Social Protection of the Population of the Republic of Kazakhstan dated June 21, 2023 (hereinafter referred to as the Rules), payers calculate (withhold) and transfer SC for individuals who receive income under civil contracts concluded with tax agents no later than the 25th day of the month following the month of income.
Banking details for the transfer of social contributions:
Beneficiary: NJSC " State Corporation Government for Citizens"
Beneficiary's Bank: NJSC " State Corporation Government for Citizens"
BIN: 160440007161
BIC of the beneficiary's bank: GCVPKZ2A
Beneficiary's IIC: KZ67009SS00368609110
KBe – 11 (Beneficiary's two-character code: 1-sign of residency 1-economic sector (government agencies)
KNP 012 – social contributions
KNP 017 – penalty for late transfer of social contributions
Purpose of payment: social contributions to JSC "State Social Insurance Fund" for ____ (indicating the month for which social contributions are paid).
Starting from September 1, 2025, if the payer returns excessively (erroneously) paid SC and (or) penalties for an individual receiving income under a civil contract, the notarized consent of such individual must be attached to the application.
On the e-government portal, the payer attaches the consent obtained by sending a request to the personal account of an individual who receives income under a civil contract.
If an individual receiving income under a civil contract has not given his consent within three working days from the date of entry into his personal account on the portal, the portal completes the state refund service.
5. If an individual receives both income from a civil contract and other income from a tax agent (for example, he is an employee and additionally receives income from a civil contract), how to apply restrictions on the size of the taxable object: to the sum of all income of an individual from a tax agent (employee's income + income from a civil contract) or separately to the amount of all income of a certain type (apply separate marginal restrictions on employee income, and separately on income from civil contract).
Answer:
The distinguishing features of an employment contract with an employee from other types of contracts are the presence of one of the following conditions in it:
1) performance by an employee of a job (labor function) according to a certain qualification, specialty, profession or position;
2) fulfillment of obligations personally with subordination to the work schedule;
3) the employee receives wages for his work.
Accordingly, a civil contract for the performance of work or the provision of services cannot be concluded between an employer and an employee.
6. In what time frame is it necessary to pay SC according to civil contract, including if the services under the contract were provided in one period (an Act of completed work was signed, income was accrued), and the actual transfer of funds was completed in another period (payment of income).
Answer:
The final payment under civil contracts for the work performed or services rendered is made after the delivery of the result of the work or the provision of the service.
The confirmation of the acceptance of the result of the work is the Act the work performed or the provision of services.
Thus, the period of income generation is the month corresponding to the date of signing the Act of completed work or services.
Tax agents calculate (withhold) and transfer taxes for individuals who receive income from civil contracts concluded with them no later than the 25th day of the month following the month of income receipt, i.e. completion of work on the Act of completed work or provision of services.
7. Which individuals do not need to pay SC for civil contracts (who is exempt? do I need to pay for foreigners?, for example, who provide services remotely).
Answer:
According to article 243 of the Social Code of the Republic of Kazakhstan, social insurance applies to candace, as well as foreigners and stateless persons permanently residing in the territory of the Republic of Kazakhstan, who carry out income-generating activities in the territory of the Republic of Kazakhstan, on an equal basis with citizens of the Republic of Kazakhstan.
Persons who have reached the retirement age provided for in paragraph 1 of article 207 are not subject to compulsory social insurance Social Code of the Republic of Kazakhstan (men – 63 years old, women – 61 years old).
Source: online resource MLSPP: https://www.gov.kz/memleket/entities/enbek/documents/details/788839?lang=ru
