Procedure of calculation and the transfer of social assessments
MAKING AND CALCULATION PROCEDURE OF SOCIAL ASSIGNMENTS
The procedure and terms of calculating social assignments are determined in accordance with the Regulations on calculation of social assignments which are approved by the Resolution of the Government of the Republic of Kazakhstan dated June 21, 2004 No. 683.
The calculation of social assignments, which are paid out in respect of participants of the obligatory social insurance system, shall be made every month. At that, monthly income shall be taken for the purpose of calculating social assignments in the amount not exceeding tenfold size of the minimum wages as stipulated by the law about the republican budget for the respective year.
For an employer, the object of calculation of social assignments is the charges of such employer which are paid out to an employee in the form of gains for performed works, rendered services. For self-employed persons, the object of calculation of social assignments is the gains received by such person. The calculation of expenses of an employer, which are paid out to an employee in the form of earnings, shall be made in accordance with the procedure stipulated by the Tax code of the Republic of Kazakhstan (further the Tax code), with inclusion in the expenses of an employer, which are paid out in the form of earnings to employees, of cash allowance of military servants, officers of internal affairs services, Committee of criminal-executive system of the Ministry of Justice of the Republic of Kazakhstan, financial policy agencies and public fire-prevention services.
The charges of legal entities, as well as of individual entrepreneurs, private notaries and attorneys who use the services of wage earners shall include the earnings paid out to an employee in cash or in kind, including the income received in the form of material, social benefits or other material profit, as well as the income from onetime payments (in part of remuneration of labor).
The social assignments which are subject to payment to the Fund in respect of participants of the obligatory social insurance system shall be established in the amounts as follows:
from January 1, 2005: 1.5 percent from the object of calculation of social assignments;
from January 1, 2006: 2 percent from the object of calculation of social assignments;
from January 1, 2007: 3 percent from the object of calculation of social assignments;
For self-employed persons who fall under the special tax treatment in accordance with the tax legislation of the Republic of Kazakhstan, the amount of social assignments to be paid by such persons in their favor shall make up:
from January 1, 2005: 1.5 percent from the minimum wages established by the law about the republican budget for the respective year;
from January 1, 2006: 2 percent from the minimum wages established by the law about the republican budget for the respective year;
from January 1, 2007: 3 percent from the minimum wages established by the law about the republican budget for the respective year;
For individual entrepreneurs, except for those who use special tax treatment in accordance with the tax legislation of the Republic of Kazakhstan, as well as for private notaries and attorneys the object of calculating social assignments is the income received by them. At that, monthly income shall be taken for the purpose of calculating social assignments in the amount not exceeding tenfold size of the minimum wages.
For individual entrepreneurs, who use special tax treatment, the size of the income which is taken for the purpose of calculating social assignments, shall be equated with the size of the minimum wages established by the law about the republican budget for the respective year.
The social assignments to the Fund shall not be paid from earnings stipulated by sub-paragraphs 1), 3), 10), 11), 15-17), 23), 25), 26), 27), 29), 31-1), 34) of Article 144 and sub-paragraphs 4-6) of paragraph 1 of Article 316 of the Tax code. Thus, social assignments shall not be paid from the following kinds of earnings of natural persons:
· address public assistance, allowances and compensations which are paid out from the funds of the state budget;
· recovery of damage caused to life and health of a natural person;
· payments in cases when permanent work proceeds en route or has travelling nature, or in connection with official trips within the limits of segments in service;
· payments related to social protection of people who suffered from ecological disaster or nuclear tests in testing area;
· payments for refund of medical services, at birth of a child, for burial;
· compensations in case of official business trips;
· compensations of charges related to trip, transportation of property, rent of lodgement in case of transfer or removing of an employee to another region together with the organization;
· field allowances of employees performing geological survey, topography-geodesic and exploration works in field environment;
· charges of an employee directed at training and professional development of employees by the specialties related to their production activities;
· charges of an employee related to rent of lodgement and board for the purpose of supporting vital functions of persons who work in shift teams during the periods of their staying within the production facility with provision of conditions for execution of works and inter-shift rest; charges related to transportation of employees to the place of work and back;
· pregnancy and child-birth social allowances as well as social allowances for women (men) who adopted children;
· cost of given out working clothes, special footwear, other means of individual protection and first aid, soap, disinfectants, milk and other equivalent food products for treatment-preventive nutrition according to norms;
· cost of places in children camps for children aged below sixteen years;
· amounts of insurance premiums which are paid out by an employer under contracts of obligatory and (or) accumulating insurance of his employees;
· compensations which are paid out in case of termination of an individual labor contract in the events of liquidation or termination of activities of an employer, reduction of the staff or in the event of conscription of an employee;
· compensations which are paid out by an employer to employees for unused leave;
· obligatory pension contributions of employees which are made to the accumulating pension funds;
It is necessary to draw attention to the fact that there are differences in the object of calculation of social tax and the object of social assignments in part of exclusion from the taxable income base of certain kinds of payments.
Table 9
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Object of taxation with social tax less earnings established by paragraphs of the Tax code
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Object of calculation of social assignments less earnings established by paragraphs of the Tax code |
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Subparagraphs of Article 144: |
Subparagraphs of Article 144: |
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1) |
1) |
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3) |
3) |
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6) |
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8) |
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10) |
10) |
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11) |
11) |
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14) |
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15) |
15) |
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16) |
16) |
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17) |
17) |
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23) |
23) |
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25) |
25) |
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26) |
26) |
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27) |
27) |
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28) |
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29) |
29) |
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31) |
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31-1) |
31-1) |
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32) |
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33) |
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34) |
34) |
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Subparagraphs of paragraph 1 of Article 316: |
Subparagraphs of paragraph 1 of Article 316: |
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1) |
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2) |
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3) |
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4) |
4) |
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5) |
5) |
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6) |
6) |
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7) |
7) |
Thus, as against the social tax social assignments are deducted from the following kinds of earnings:
· all kinds of payments to military servants when performing the duties of military service, officers of internal affairs services, financial policy, agencies and institutions of the criminal-executive system and public fire-prevention services who are awarded special rank;
· payments related to execution of public works and vocational training that are made out from the funds of the state budget and grants;
· onetime payments which are paid out from the funds of the state budget;
· scholarships;
· cost of property which was received in the form of humanitarian aid, charity and sponsor’s aid;
· amounts of insurance payments;
· payments made out from the funds of grants provided by the states, governments and international organizations;
· state premiums, scholarships established by the President of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan;
· money awards conferred for prize winning at sports competitions, parades, contests.
Social assignments to the Fund shall be paid by payers through the State Center for Pension Payments (further the Center) before the 15th day of a month following the reporting month by means of cashless settlements from their bank accounts with enclosing of lists of participants of the obligatory social insurance system in respect of which assignments are made.
As the day of payment of social assignments which is made in cashless form shall be considered the day of obtaining payment order acceptance for the amount of social assignments from the bank or organization performing certain kinds of banking operations; and in cash form – from the time of making payment of social assignments by a payer to the bank.
Payments of social assignments by payers to the bank in cash form shall be made in accordance with the procedure established by the legislation of the Republic of Kazakhstan. The transfer of social assignments shall be made by payers for each month separately.
The list of participants of the social insurance system, in respect of which social assignments are made in relation to each natural person, shall include: social individual code (further SIC); surname, first name, patronymic name; date of birth, amount of social assignment; year and month for which social assignments are paid.
School No. 5
List for transfer of obligatory social assignments
To payment order No. 1 dated 28.07.2005
No. |
SIC |
Name |
Date of birth |
Amount |
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1 |
FE6RGKNJ8DMSXOOM |
Ivanov A.V. |
15.12.1980 |
138 |
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2 |
N758Y843EM8H7OO3 |
Ospanov N.I. |
20.08.1978 |
700 |
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3 |
38NCFC4GSAJU8ROO4 |
Sidorov Ж.А. |
21.01.1953 |
900 |
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Total: |
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1738 |
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Total amount:
Tenge one thousand seven hundred thirty-eight 00 Tiyn
Director
Chief Accountant
In case of change of surname, first name, patronymic name, the previous surname, first name, patronymic name shall be indicated too as filled in by a natural person in the registration card for issuance of a SIC.
The Center carries out the records of social assignments on the basis of SIC of participants of the obligatory social insurance system in respect of which social assignments are made. The transfer of money by banks to the Center is carried out by means of electronic payment orders of MT-102 format with enclosure of a list of participants of the obligatory social insurance system, in respect of which social assignments were made. In case of transfer of social payments by a payer bank through the branches of the National Bank of the Republic of Kazakhstan the payer shall additionally produce to the bank the fourth copy of the payment order on paper carrier, which shall be conveyed by the payer bank to the regional (territorial) branches of the National Bank of the Republic of Kazakhstan.
The transfer of indebtedness by the payers shall be effected for each month separately by means of electronic payment orders of MT-102 format with enclosure of a list of participants of the obligatory social insurance system, in respect of which social assignments are made.
The banks and organizations performing certain kinds of banking operations shall transfer the amounts of social assignments to the account of the Center on the day of charging-off those amounts from the bank account of a payer.
In case of formation of an indebtedness in respect of social assignments the tax authorities shall send to a payer a notification about submission to the tax agency of the lists of participants of the obligatory social insurance system within five business days from the date of receipt of the notification.
The form of the notification shall be established by the authorized body, which provides for the tax control of the fulfillment of tax obligations to the state. The form of notification about submission to the tax agency of the lists of participants of the obligatory social insurance system was approved by the Order of the Chairman of the Tax Committee dated June 29, 2005 No. 289.
NOTIFICATION
about submission to the tax agency of the lists of participants
of the obligatory social insurance system
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_____________ 20__. |
No. _______________ |
In accordance with Article 17 of the Law of the Republic of Kazakhstan “About Obligatory Social Insurance” and the Regulations on calculation of social assignments approved by the Resolution of the Government of the Republic of Kazakhstan dated June 21, 2004 No. 683, the Tax Committee for _________________________________________ (oblast, city, district) herewith notifies you ________________________________________________________________________(full description or surname, first name and patronymic name of payer, Tax-payer Registration Number, address) about the existence of indebtedness in respect of social assignments to the State Social Insurance Fund in the amount of _________________________________________________________________________
_________________________________________________________________________ _________________________________________________________________________
(in figures and words) as per 200__. In connection with above, within five business days after the receipt of this Notification you are required to submit to the Tax Committee for _________________________________________ (oblast, city, district) the list of participants of the obligatory social insurance system in respect of which social assignments are made. In case of absence of bank accounts the Tax Committee _________________________________________ (oblast, city, district) will turn a penalty to money in cash of the payer. At that, you will be charged with a fine in accordance with the procedure and on terms established by Article 17 of the Law of the Republic of Kazakhstan “About Obligatory Social Insurance”. In case of non-fulfillment of the lawful requirements of the tax agencies and their officials the issue of bringing you to administrative responsibility will be examined in accordance with the Code of the Republic of Kazakhstan about administrative infringements. In accordance with the legislation of the Republic of Kazakhstan you have the right to appeal against the actions (inactions) of the officials of the tax agencies to the higher tax authority or to the court. Chairman of the Tax Committee _______________________________________________________________ (surname, first name, patronymic name, signature, seal) Notification received by ____________________________________________ (surname, first name, patronymic name of payer, signature, seal, date) Notification was handed over to payer by ___________________________________________________ (surname, first name, patronymic name of the official of the tax agency, signature (seal), date) Notification was sent to payer _________________________________________________________ (document evidencing the fact of sending and receiving)
At receipt from the payers of the lists of participants of the obligatory social insurance system the tax agency shall issue orders of collection to the bank accounts of payers with enclosure of the said lists for further transfer of the formed indebtedness in respect of social assignments to the Fund. In case of absence of money on the bank account in Tenge of a payer the recovery of indebtedness in respect of social assignments shall be made from bank accounts in foreign currency of such payer on the basis of orders of collection, which are issued by the tax agencies in Tenge. In case of absence of a bank account of a payer the tax agency shall turn a penalty to money in cash. The withdrawal by the tax agency of money in cash reflected in accounting (cash) documents (including in foreign currency) from a payer shall be considered to be the recovery of the amount of indebtedness in respect of social assignments at the expense of money in cash. The withdrawal of money in cash shall be officially registered with a withdrawal report according to the form approved by the authorized body performing the tax control of the fulfillment of tax obligations to the state. The form of Report on withdrawal of money in cash towards offset of indebtedness in respect of social assignments was approved by the Order of the Chairman of the Tax Committee dated June 29, 2005 No. 289.
Report
on withdrawal of money in cash towards offset of indebtedness in respect of social assignments
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_____________ 20__. |
No. _______________ |
In accordance with Article 17 of the Law of the Republic of Kazakhstan “About Obligatory Social Insurance” and the Regulations on calculation of social assignments approved by the Resolution of the Government of the Republic of Kazakhstan dated June 21, 2004 No. 683, in view of absence of a bank account of the payer the Tax Committee for ________________________________________________________________ ________________________________________________________________ (oblast, city, district) ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (surnames, first names, patronymic names of officials of the tax agency, registration number of service certificate) on the basis of notification about submission to the tax agency of the lists of participants of the obligatory social insurance system dated ______________ 200__ No. ___, in the presence of the payer _____________ ________________________________________________________________ ________________________________________________________________ (surname, first name, patronymic name or full description of payer, Tax-Payer Registration Number) which has the indebtedness in respect of social assignments in the amount of ________________________________________________________________ (indicate in figures and words) performed the withdrawal of money in cash in the amount of:___________________________ ________________________________________________________________ (indicate in figures and words) towards offset of indebtedness in respect of social assignments including:
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Total indebtedness in respect of social assignments |
Amount of indebtedness in respect of social assignments |
Amount of fine |
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This Report of withdrawal is enclosed with the list of the participants of the obligatory social insurance system in favor of which the indebtedness in respect of social assignments is recovered within the limits of money in cash withdrawn by the tax agency. In accordance with the legislation of the Republic of Kazakhstan you have the right to appeal against the actions (inactions) of the officials of the tax agencies to the higher tax authority or to the court.
Officials of the tax agency ___________________________ __________________________ (position) (surname, first name, patronymic name, signature, date) __________________________ __________________________ (position) (surname, first name, patronymic name, signature, date) Payer ___________________________ ___________________________ (position) (surname, first name, patronymic name, signature, date) ___________________________ ___________________________ (position) (surname, first name, patronymic name, signature, date)
At that, at the same time the payer shall submit to the tax agency the lists of participants of the obligatory social insurance system within the limits of the amount of money in cash withdrawn by the tax agency.
The money in cash withdrawn from a payer shall be delivered to a bank or an organization performing certain kinds of banking operations within one business day from the date of the withdrawal thereof for the subsequent transfer to the Fund.
For payment of the amount of fine for inopportune payment of social assignments to the Fund the payer shall submit to the bank a payment order stating in the field “purpose of payment” the words “fine for inopportune payment of social assignments for month, year”. A fine paid by the payers out of time shall be paid for each month separately by electronic payment orders of MT-102 format.
Within three bank days from the receipt of the amounts of a fine the Center shall transfer the money to the account of the Fund by electronic payment order of MT-100 format.
The repayment of amounts of social assignments which were paid by payers in excess shall be effected by the Fund on the basis of an application of a payer. In the event when the amounts were paid in excess through payer’ fault (withdrawn from account twice and several times) the repayment shall be effected on the basis of an application of a payer bank. Subject to repayment shall be the following social assignments, which were transferred in excess to the account of the Fund:
by a payer or a payer bank twice and several times on the basis of one or several payment orders;
in the format of MT-102 payment order in the part of list of which errors in the amounts of participants were made;
charged in excess on earnings received by dismissed employees in advance, which are subject to return by recipients;
calculation and machine errors in the list of participants of the obligatory social insurance system;
social assignments paid in excess in respect of employed pensioners.
The amounts of social assignments paid in excess related to the inclusion to the earnings of a participant of certain kinds of payments which are not subject to taxation shall be independently corrected by a payer by means of adjustment of subsequent payments.
The amounts of social assignments paid in excess shall be not subject to repayment when such social assignments were calculated for the period, which was included to the standing of participation at assignment of social payments.
The repayment of mistaken payments transferred to the Fund shall be effected in accordance with the following procedure:
1) application for repayment of social assignments which were paid in excess shall be submitted by a payer (payer bank) to an organization department of the Center (district/city);
To: Head of “State Social Insurance Fund”
Joint-stock company
______________________________________________
Application
From _________________________________________________________________ (name of payer of social assignments of payer bank) I herewith request to make the repayment of the amount of social assignments which were paid by mistake (in excess) in respect of __________________________________________________________________________ (indicate surname, first name, patronymic name, SIC of participants of the obligatory social insurance system) transferred with payment order No. ____ dated _________, reference, total amount ________________, amount of repayment ___________________________ The correction by subsequent payments is impossible in view of the fact that ________________________________________________________________________ (indicate the reason due to which repayment is required, e.g. employee was dismissed, machine error, bank’s error etc). Please make the repayment to the following address_________________ _________________________________________________________________________ (indicate full details of enterprise, all bank details).
Enclosures: copy of payment order, copy of the list of participants of the obligatory social insurance system, in the amount and details of which mistakes were made, copy of order of dismissal.
Signatures:
Chief Accountant
Seal
Note: application shall be filled in on the form and certified with the seal.
2) in case of making mistakes in the lists of participants of the obligatory social insurance system in respect of which social assignments were made, the application shall be enclosed with a certificate of confirmation
Certificate of confirmation
______________________________________________________ (name of payer of social assignments) herewith confirms that when making payment of social assignments to the State Social Insurance Fund mistakes in the details of participants of the obligatory social insurance system (recipients) were made in the following payment orders:
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Number of payment order |
Date of payment order |
Total amount of payment order |
Reference Individual amount of recipient |
Surname, first name, patronymic name and date of birth (wrong details of recipient)
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To consider valid
SIC ______________________________________________
Surname, first name, patronymic name ___________________________________________
Date of birth ____________________________________
First executive ______________________________ (surname, first name, patronymic name) (signature)
Chief accountant _____________________________ (surname, first name, patronymic name) (signature)
Seal
3) payers making payment of obligatory social assignments in money in cash shall enclose to the certificate of confirmation a copy of payment document evidencing the payment of social assignments;
4) within three bank days the Center shall verify the fact of entering of social assignments, the application shall be sent to the Fund with enclosure of all details in respect of that payment;
5) after processing of applications the Fund shall make up payment order of MT-100 format and effect transfer of money within three bank days to the account of the Center for their subsequent transfer to a payer. On the same day the Fund shall deliver to the Center the register of payers indicating bank details of payers, surnames, first names, patronymic names of participants and amounts of repayment in respect of such participants. In respect of amounts which are not subject to repayment the Fund shall deliver to the Center the decision of denial stating the reason;
6) on the basis of the register of the Fund the Center within three bank days shall make up payment order of MT-102 format and transfer to a payer the amount of social assignments which were entered in excess;
7) a payer receives the information about the reason of denial of repayment of social assignments amounts through the departments of the Center;
8) the Center shall charge off the repaid amounts from individual accounts of participants;
9) after return of the amounts which were entered in excess the Center shall notify the Fund about fulfillment of the decision;
10) each month the Center and the Fund shall carry out verification of transfer of social assignments and fine as well as of repayments from the Fund;
11) each day the Center shall submit to the Ministry of Finance of the Republic of Kazakhstan yesterday’s registers of entered and registers of repaid social assignments which were transferred by mistake, at that such registers shall be made up from the point of view of registration numbers of tax-payers, along with electronic confirmation.
In case of mistakes made by the bank which services were used by a payer when making up electronic payment orders such bank shall take measures to correct the mistakes made in accordance with the Law of the Republic of Kazakhstan “About payments and transfer of money”. The Fund shall take record of entered and repaid social assignments which were transferred in excess.
A payer shall quarterly, before the 15th day of the month following the reporting quarter, submit to the tax agency considering the registration by place of location (residence) calculation of charged and transferred social assignments in respect of participants of the obligatory social insurance system, unless otherwise provided by the legislation of the Republic of Kazakhstan.
Each day the Center shall submit to the Ministry of Finance of the Republic of Kazakhstan yesterday’s registers of entered and repaid social assignments in respect of payers registered in accordance with the procedure established by the Tax code. The payers of social assignments in accordance with the procedure established by the legislation shall provide for the safety of information about calculated and paid social assignments including information about return of payments, which were made by mistake, on electronic or paper carriers. In accordance with the List of model documents, which are formed in the activities of the governmental organizations with indication of storage periods approved by the Order of the Minister of Culture, Information and Sport dated July 18, 2005 No. 205, the storage period of primary documents related to social assignments is established for 75 years. In case of termination of the activities of a payer the documents about calculation and payment of social assignments to the Fund shall be conveyed to the State Archives.
In accordance with Article 13 of the Law, a payer is entitled to request and to receive free of charge necessary information about transferred amounts of social assignments.
In this connection, the rules of requesting and receiving information about transferred amounts of social assignments by a payer of social assignments from the State Center for Pension Payments were approved by the Order of the Minister of Labor and Social Protection of the People of the Republic of Kazakhstan dated July 30, 2004 No. 169-п.
A payer of social assignments (further the payer) performing calculation and payment of social assignments to the State Social Insurance Fund is entitled to request and to receive free of charge necessary information from the State Center for Pension Payments about transferred amounts of social assignments.
In order to receive information about the transferred amounts of social assignments the payer shall fill in an application for receiving information about the transferred amounts of social assignments and submit it to the Center via its organization departments.
Application for receiving information about the transferred amounts of social assignments to the State Social Insurance Fund
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Number of payment order |
Date of payment order |
Amount of payment order |
Reference of banking transaction </TD. |
Tax-Payer Registration Number of enterprise |
Description of enterprise |
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1 |
2 |
3 |
4 |
5 |
6 |
Signatures:
Head _____________________________ surname, first name, patronymic name
Chief Accountant ________________________ surname, first name, patronymic name
Seal
Within 10 days after the payer’s application the Center shall prepare the information about the transferred amounts of social assignments and convey it to the payer via the organization departments of the Center in accordance with the approved form.
Information about amounts of social assignments transferred by the payer
to the State Social Insurance Fund
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Number of payment order |
Date of payment order |
Amount of payment order |
Reference of banking transaction </TD. |
Tax-Payer Registration Number of enterprise |
Description of enterprise |
Dbf. file |
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6 |
7 |
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