Because freelancers are not our employees and we don't pay taxes on payouts, they must declare any income received via Solar Staff by themselves (as per Articles 321 and 338 of the Tax Code of the Republic of Kazakhstan).
To carry on tax accounting in the Republic of Kazakhstan for your Solar Staff income, you need to:
Be a tax resident
Have a tax ID number
Select your tax status
Tax residence in Kazakhstan
Kazakh residents are taxed on their worldwide income, while non-residents are taxed only on their Kazakh-sourced income.
An individual shall qualify as a tax resident of Kazakhstan (Article 189 of the Tax Code of the Republic of Kazakhstan) if they:
Have spent 183 or more days in Kazakhstan within any 12-month rolling period ending during this tax year.
Have their center of vital interests located in Kazakhstan – for example, they have:
Citizenship / residence permit.
Family or close relatives living in Kazakhstan.
Real estate owned or held on other grounds.
Kazakhstan has double tax treaties with a number of countries (full list). The provisions of such treaties may override the tax residence rules and other provisions of national legislation.
Tax ID number
To pay tax in Kazakhstan on income received via Solar Staff, freelancers must obtain a 12-digit individual identification number (IIN). It takes one business day for an individual to obtain an IIN. To do that, you need to contact the Government for Citizens state corporation via one of its public service centers or file an application online, which, however, will require a digital signature.
To obtain an IIN, you will need the following documents and information:
Application (filled in directly at the public service center or online)
Identity card
Mobile phone number in Kazakhstan
Address you are staying at (no documentary evidence needed)
Taxes and contributions
Tax liabilities depend on the chosen tax status and/or eligibility for certain criteria. Kazakhstan has two tax status options for Solar Staff users to choose from:
IMPORTANT! You can use Solar Staff as a Kazakhstan-based IE or as an individual, but there is no option to choose a tax status in the service. That being said, you can still fill in your tax ID in your account.
You can register as an IE using one of the following methods (under Law of the Republic of Kazakhstan No. 141-VII, only online registration is possible):
Registering as an IE takes one business day. Learn more about the registration process here.
IMPORTANT! Freelancer should register as an IE, if he will have employees or the amount of an annual income exceeds 12 times the minimum wage (in 2023: 70 000 * 12 = 840 000). For more information, see Article 35 of the Entrepreneurial Code of the Republic of Kazakhstan.
Individual
Personal income is subject to personal income tax (PIT) at a rate of 10%. However, certain types of expenses are deductible for PIT purposes as listed in Article 341 of the Tax Code of the Republic of Kazakhstan.
Reporting and payment. The tax period for calculating PIT is a calendar year. Freelancers must file their tax returns (Form 240 in Russian or Kazakh) no later than March 31 of the year following the reporting tax period. This can be done either online (using the SONO software or the taxpayer account) or in person / by mail sent to the tax authority. Information on income received via Solar Staff must be shown in Form 240.02 based on each work completion certificate (showing income based on invoices is also possible).
Detailed instructions for the forms are available here. Taxes are paid before April 10 of the year following the reporting one, or no later than ten calendar days after filing a PIT return.
Useful links: PIT calculator; penalty calculator.
Individual entrepreneur
Kazakhstan has the following tax regimes for individual entrepreneurs:
The above options vary in terms of the tax rate and how the income tax must be paid. Irrespective of their tax regime, all individual entrepreneurs can also be VAT payers.
Read on for more details.
General tax regime
Income tax. Individual entrepreneurs that have opted for the general tax regime pay their income tax just as individuals do, the only difference being the tax return, which individual entrepreneurs use Form 220.00 to file. For more information on filling out a return, see here.
Social tax. It is obtained by multiplying the Monthly Calculation Index (MCI) by 2.
Reporting and payment. The reporting period is a calendar month. A tax return is filed and tax paid monthly before the 25th day following the end of the reporting month (for example, filing and payment for June are due before July 25). Returns are filed under Form 200.00. For more information on filling out a return, see here.
VAT. In Kazakhstan, VAT registration can be either mandatory or voluntary. Individual entrepreneurs must register for VAT if their annual turnover exceeds 20,000 MCI per year. If the threshold value is reached in the current month, individual entrepreneurs must apply for VAT registration within ten days of the next month.
Reporting and payment. Form 300.00 VAT returns need to be submitted quarterly before the 15th day of the month following the reporting one (Articles 423 and 424 of the Tax Code of the Republic of Kazakhstan), with the tax paid before the 25th day of the same month. For more information on filling out a return, see here.
IMPORTANT! For the purposes of VAT registration, turnover calculations include only transactions that are subject to VAT (Clause 1 of Article 369 of the Tax Code of the Republic of Kazakhstan).
Mandatory social security contributions. Individual entrepreneurs make obligatory pension contributions (OPC) of 10% of their reported income (but not more than 50 minimum wages), social insurance contributions of 3.5% of their income (at least 3.5% of the minimum wage and not more than 3.5% of 7 minimum wages), and obligatory medical insurance contributions (OMIC) of 5% of the minimum wage.
OPC is paid to the Unified Accumulative Pension Fund and social insurance contributions, to the State Social Insurance Fund every month before the 25th day of the month following the reporting one (for example, June contributions are due before July 25). To learn more about types and amounts of insurance contributions, see here.
Special tax regimes
Individual entrepreneurs in Kazakhstan can choose one of the special tax regimes and notify the tax authorities one month in advance. Failing such notice, the general tax regime will apply.
Patent regime
The patent cost includes the personal income tax and the obligatory social contributions. It is important to remember that individual entrepreneurs must have their patent paid before starting their business activity. To switch to this tax regime, you must submit Form 911.00 to the tax office at your place of registration. A patent can be issued for a month, quarter, six months, or twelve months. To calculate the patent amount, you need to project your total income for the patent period and pay 1% of that amount (which will be your personal income tax), along with the OPC and OMIC amounts equivalent to those payable under the general tax regime. You can also use a calculator for your patent amount. Individual entrepreneurs under the patent regime are not required to provide tax returns or keep accounting records.
IMPORTANT! If you fail to submit a tax application or next patent calculation within 60 calendar days before your patent expires, the tax authorities will de-register you as an individual entrepreneur.
Limitations and conditions. To remain eligible for the patent regime, individual entrepreneurs must have an annual income of below 3,528 MCI and engage in an activity other than listed in Subclause 3 of Clause 2 of Article 683 of the Tax Code of the Republic of Kazakhstan. As one example, you are not eligible for the patent regime if you provide services under an agency agreement. For more information on limitations and conditions, see Article 685 of the Tax Code of the Republic of Kazakhstan.
Simplified regime
Under the simplified tax regime, individual entrepreneurs pay PIT, social tax, obligatory social contributions, and possibly VAT (depending on the turnover).
Limitations and conditions. To qualify for this tax regime, individual entrepreneurs must have no more than 30 employees and an annual turnover of below 24,038 MCI, and engage in an activity not listed in Subclause 3 of Clause 2 of Article 683 of the Tax Code of the Republic of Kazakhstan.
PIT and social tax. The tax rate is 3% (personal income tax of 1.5% + social tax of 1.5%). Tax returns (Form 910.00 in Russian or Kazakh) must be submitted every six months: before February 15 and between July 1 and August 15. After filing your return, you need to pay the taxes by February 25 and August 25 respectively.
VAT and obligatory social security contributions are the same as under the general tax regime.
Fixed deduction regime
In terms of the types and amounts of taxes and social contributions, the fixed deduction regime is the same as the general tax regime. The only difference is that for PIT purposes, expenses are deductible with no documentary evidence needed (up to 30% of income).
Limitations and conditions. To qualify for this tax regime, individual entrepreneurs must have no more than 50 employees and an annual turnover of below 144,184 MCI, and engage in an activity not listed in Subclause 3 of Clause 2 of Article 683 of the Tax Code of the Republic of Kazakhstan. This tax regime is also available for individual entrepreneurs operating under agency agreements.
Reporting and payment. Due dates for tax returns and payments are the same as under the general regime; that said, all tax returns under the fixed deduction regime must be filed using Form 912.00.
Regime available for users of a dedicated app
Under this regime, individual entrepreneurs can remain in contact with tax authorities using a special app. Naturally, no accounting or filing of any additional returns is required. You can start using this regime from the date you choose in your app.
Limitations and conditions. For this special regime, individual entrepreneurs must have no employees, provide services all by themselves, and have an annual income of below 3,528 MCI (Subclause 2 of Clause 2 of Article 683 of the Tax Code of the Republic of Kazakhstan). Also, you may not be registered as a VAT payer and engage in any activity listed in Subclause 3 of Clause 1 of Article 686-2.
The PIT rate is 1%. There are also obligatory social security payments to be made the same way as under the general tax regime.
Tax reporting and payment. The app you will need for this tax regime is e-Salyq Business. You can log in using your IIN/password or digital signature. Your PIT and social contributions must be calculated monthly, no later than the 15th day of the month following the reporting one, directly in the app. Those payments are due by the 25th day of the month following the reporting one (Clauses 3 and 4 of Article 686-3 of the Tax Code of the Republic of Kazakhstan).
Additional info
Service for checking tax arrears.
Income received through Solar Staff is declared based on the Offer Agreement using data from certificates and invoices.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected]