Tax for self-employed: Ministry of Labor told who will pay and how much
In the Address “New Opportunities Under the Fourth Industrial Revolution,” the Head of State noted the importance of ensuring labor market efficiency and creating conditions for the realization of the potential.
“On the instructions of the Head of the State, the Ministry is currently working on a number of tools that will allow to take out of the shadow the people who are employed informally or engaged in some types of entrepreneurial activity, but not formalized. The Government and the ministry are working together to introduce these people into the structure of social security. There are risks that tomorrow people will retire or get sick, or they are women who need a childcare leave: they may find themselves without social benefits,” said Altayev.
In order for all Kazakhstani citizens to receive social benefits and be participants of the Compulsory Social Health Insurance, the Ministry of Labor and Social Protection of the Population proposes to introduce a Single Aggregate Payment for the self-employed. The bill on the formalization of employment, providing for a set of tax, and administrative and legal measures will be made in the Mazhilis in September this year.
According to Altayev, the introduction of the payment will simplify registration and ease the tax burden, grant the right to receive medical services under the CSHI and the assignment of social benefits from the mandatory social insurance system.
It is planned that the size of the SAP for residents of the city will be one MCI, the village 0.5 MCI. Thus, 10% of the received funds will go to individual income tax, 20% to the State Mandatory Social Insurance Fund, 30% to pension payments and 40% to the CSHI.
According to the estimates of the Ministry of Labor and Social Protection of the Population, the introduction of the SAP will make about 500 thousand self-employed people to get out of the shadow.
The Ministry studied the international experience of introducing similar programs. So, for example, in Argentina in 1998-2009, the number of registered small businesses has tripled. In Brazil in 2010-2011, the number of registered entrepreneurs has grown to 1.4 million.
Source: The Prime Minister of Kazakhstan