Tax Law
Zhanat Alimanov, assistant professor
Home assignment (2-3 per day)
Calculate tax burden of the
company on Volodya’s income:
under (1) Labor Law, (2) Civil
Law (not IE), & (3) Civil law (IE):

1.
2.
3.
4.
5.
6.
7.
8.
Salary is KZT 150,000 a month
Salary is KZT 230,000 a month
Salary is KZT 70,000 a month
Salary is KZT 20,000 a month
Salary is KZT 32,000 a month
Salary is KZT 370,000 a month
Salary is KZT 475,000 a month
Salary is KZT 367,000 a month
Example

Calculate tax burden of the company on Volodya’s
income: under (1) Labor Law, (2) Civil Law (not IE),
& (3) Civil law (IE). Salary is KZT 170,000 a month
1.
Labor Law: PIT + Social Tax


Civil Law (not IE): PIT
2.

3.
PIT = Taxable income * 0.1= (Total Revenue –
Deductions&Exemptions – Pension – Minimum
Salary)*0.1= (170,000 - 0 – 17,000 (pension) –
19,966(minimum salary))*0.1 = 13, 303.4
Social Tax = Taxable income*0.11 = (Total revenue –
deductions - Pension)*0.11=(170,000-0-17,000)*0.11=
16,830
PIT = Taxable income * 0.1= (Total Revenue –
Deductions&Exemptions)*0.1= (170,000 - 0)*0.1 =
17,000
Civil Law (IE): no tax on company
Terms
1.
Tax – налог
2.
Revenue (Income) – Доход
3.
Total Personal Revenue – Совокупный личный доход
4.
Net Income – Чистый доход
5.
Personal Income Tax – Индивидуальный подоходный налог
Plan
I.
Legislation
II.
Personal Income Tax
& Social Tax
Who are taxed?
When company has to
pay Personal Income
Tax?
1.
2.


How to calculate PIT &
Social Tax
Differences of taxation
of Civil & Labour
Contracts
I. Legislation
I. Legislation
Constitution &
Constitutional
Statutes
Civil Code
Tax Code
Statutes
Other acts
Administrative
Code
Other Codes
Statutes
II. Personal Income Tax (PIT)
& Social Tax
1.
Who are taxed
(PIT)?
Example
Let’s assume that foreigner can
own real estate in KZ.
Masha rents her apartment to
Petya for USD 300.
Does she need to pay taxes if she is:
(1)
a foreign citizen;
(2)
a KZ citizen;
(3)
person without citizenship?
Example
Let’s assume that foreigner can
own real estate in KZ.
Masha rents her apartment to
Petya for USD 300.
Is she a taxpayer if she is:
(1)
a foreign citizen;
(2)
a KZ citizen;
(3)
person without citizenship?
Art. 153, Tax code.
2.
When
COMPANY
has to pay
Personal
Income Tax?
Step 1: Who pays PIT?
Total Revenue
Taxed at Source
(art. 160)
Not Taxed at Source
(art. 177)
Company would pay PIT for
Physical Person
Company would not pay PIT
for Physical Person, he will
pay PIT himself
Example
Company Arico hired Volodya as
accountant for KZT 300,000 a month.
Who will pay Volodya’s PIT (Company
or Volodya)?
1.
Labor Law Contract?
2.
Civil Law Contract & Volodya is
not IE?
3.
Civil Law Contract & Volodya is
Individual Entrepreneur (IE)?
3.
How to calculate
PIT & Social
Tax?
Step 2: How much is Tax of the
Company?
Taxed at Source
(art. 160 &158)
LABOR Contract
CIVIL Contract
Total Revenue
Total Revenue
(Art. 160)
Art. 158
PIT
PIT
Social Tax
Minus Deductions &
Exemptions (Art. 155 & 156)
Minus Deductions (art. 155)
Minus Pension
& Minimum Salary (art. 166)
Minus Pension (75)
= Taxable Income * 0.1
(Art. 357 (2/6)
(Art. 158)
= Taxable Income * 0.1
= Taxable Income * 0.11
(Art. 158)
(art. 358)
Minus Deductions &
Exemptions (Art. 155 (19-26) & 156)
Example
Company Arico hired Volodya as
accountant for KZT 300,000 a month.
Calculate Volodya’s INCOME
that he will from company?
1.
Labor Law Contract?
2.
Civil Law Contract & Volodya is
not IE?
3.
Civil Law Contract & Volodya is
Individual Entrepreneur (IE)?
Example
Total revenue: KZT 300,000 a month.
LABOR LAW
1. PIT = Taxable Income * 0.1 = (Total
Revenue – (1) Deductions &
Exemptions – (2) Pension & Minimum
Salary) * 0.1 = (300,000 – 30,000 (pension) - 19,966(minimum salary))*0.1 = 25,003.4(PIT)
2. NET INCOME = Total Revenue – Pension – PIT =
= 300,000 – 30,000 (pension) – 25, 003.4 (PIT) =
= 244,996.6 (NET INCOME)
Example
Total revenue: KZT 300,000 a month.
CIVIL LAW (Volodya is NOT IE):
1. PIT = Taxable Income * 0.1 = (Total Revenue –
Deductions & Exemptions)* 0.1 = (300,000 – 0)*0.1 =
= 30,000
2. NET INCOME = Total Revenue – PIT =
= 300,000 – 30,000 (PIT) = 270,000 (NET INCOME)
Example
Total revenue: KZT 300,000 a month.
CIVIL LAW (Volodya is IE):
1. INCOME = Total Revenue = 300,000

Volodya will have to pay taxes himself
Example
Company Arico hired Volodya as
accountant for KZT 300,000 a month.
Calculate Volodya’s NET INCOME
that he will from company?
1.
Labor Law Contract? 244,996.6
2.
Civil Law Contract & Volodya is not
IE? 270,000
3.
Civil Law Contract & Volodya is
Individual Entrepreneur (IE)?
300,000
Example
Company Arico hired Volodya as
accountant for KZT 300,000 a month.
Calculate how much TAX the
Company will have to pay for Volodya?
1.
Labor Law Contract?
2.
Civil Law Contract & Volodya is
not IE?
Civil Law Contract & Volodya is
Individual Entrepreneur (IE)?
3.
Example
Total revenue: KZT 300,000 a month.
LABOR LAW
Social Tax = (Total Revenue – Pension)
*0.11 = (300,000-30,000)*0.11 =
= 29,700 (Social Tax)
1.
2. TOTAL TAX = PIT + Social Tax = 25,003.4 +
+ 29,700 =
= 54,703.4 (total tax to be paid)
Example
Total revenue: KZT 300,000 a month.
CIVIL LAW (Volodya is NOT IE):
1. TOTAL TAX = only PIT =
= 30,000 (total tax)
Example
Total revenue: KZT 300,000 a month.
CIVIL LAW (Volodya is IE):
1. TAXES to be paid for Volodya =
=0
Example
Company Arico hired Volodya as
accountant for KZT 300,000 a month.
Calculate how much TAX the
Company will have to pay for Volodya?
1.
2.
3.
Labor Law Contract? 54,703.4
Civil Law Contract & Volodya is
not IE? 30,000
Civil Law Contract & Volodya is
Individual Entrepreneur (IE)? 0