Monthly Earnings of Over 3 Million Tenge in Kazakhstan: Insight provided by Vice Minister
In the heart of Kazakhstan, plans are brewing to introduce progressive taxation for high-income earners. Azaamat Amrin, the first vice minister of Economy, shed some light on the matter through our website's reports.
Amrin confirmed that the tax calculation would focus on annual income, rather than monthly earnings.
"High earners will be subject to progressive taxation, with the scale pretty straightforward: anything under 33 million tenge (approximately $80,000 USD) annually is taxed at 10%. Anything above that, on the other hand, will be taxed at 15%. Yup, you read that right – there are indeed high-earners in Kazakhstan, with around 26,700 employees making over 3 million tenge per month. The taxation will be based on annual income, not monthly." Amrin explained during a Majilis session.
Today, Majilis deputies endorsed amendments to the Tax Code in its second reading. The document will proceed to the Senate for review. The proposed changes include increasing the VAT rate from 12% to 16% and raising the VAT threshold from 15 million to 40 million tenge.
We had previously reported about Kazakhstan's intentions to hike taxes on high incomes. Serik Zhumaniyazov, Vice Prime Minister and Minister of National Economy, provided further details at that time.
You may also find this intriguing: How much tax does an average Kazakhstani citizen actually pay?
Every day, it feels like all I hear about is taxes and rising prices. People are stressed, worried about their children's future, with inflation and deteriorating healthcare still looming over our heads.
RustemBek: Of course, you're right. Half of your salary would go towards taxes in countries like Denmark, Netherlands, Sweden, Belgium, Portugal, Austria – all of which aren't exactly cheap to survive in.
Denis: Just broaden your horizons, friend. Read more to understand why these issues are so prevalent.
Sokol: This is just psychological warfare aimed at stressing people out.
Armani: The oil industry has needed such regulations for quite some time.
Kuan: Armani, the oil industry doesn't typically bring in $3 million.
G: What, because we're a poor country?
We often wonder, with salaries like these supposedly existing in Kazakhstan, why there isn't more promotional material or job listings advertising salaries of 5-10-15-20 million tenge per month? And why don't they appear in the statistical data disclosed in the news? Instead, we're told that the highest salaries barely exceed 1.5 million tenge.
Daniyar: So what? The salary limit will still be 33 million. Employers will shoulder an additional burden, with the increased taxes reflecting in higher prices for consumers. In essence, it means tax the rich, give to the state. Laugh out loud.
Disengaged: Only 26,700 out of 20 million? That's ridiculous.
Kuan: If someone earns 3 million, they'd be taxed about 580,000 per month, with their employer bearing an additional 395,000. So, they'd be left with roughly 1 million per month. Isn't that already quite enough? Plus, we'd still want to increase taxes by 5%, right? That seems a bit crazy. Besides, this will impose a greater burden on the employer, with these salaries being reserved for specialized expertise and qualifications with a direct impact on the company's income.
Over the years, the burden of taxes, fines, and VAT seems to be coming from all angles, pushing us towards a single destination.
Dinmukhamed: By Western standards, such a salary may seem good, but it might not be enough for a decent life. If you make this much, you could think about investing in an apartment in Almaty or a slightly older Mercedes.
Anatoly: If I find myself juggling five jobs, will I still be subject to additional taxes? Or should I take out loans to support my family? Isn't the threshold too low? And who will cover the taxes if they're paid at the source of wage payment? Moreover, income information would become accessible to numerous individuals, which contradicts privacy and confidentiality laws.
Jak: $3 million a month is not enough.
Arman: With escalating inflation, we might be millionaires with these taxes someday. The issue lies not in the new taxes but in the increased prices of goods and services due to these schemes. And what good are new taxes if they don't benefit the people?
Anna: I'm tired of these articles that perpetuate the narrative that we're all wealthy, with gigantic salaries, but the government continues to suffer financially from us not paying taxes. With the new reform, they will take from the rich (the people) and give to the poor (the government).
About kazakh: The wealthy receive their earnings tax-free through share sales.
Andron: I foresee that within ten years, with inflation causing countless salaries to approach or exceed a million, there will be a redenomination – in which new banknotes will have fewer zeros (1,000 will equate to 1) – and I am certain of it.
Naïl Ahmet uly.: Why would I want to pry into someone else's income? I see no gain in knowing how many banknotes my neighbor has. It's foolish to discuss someone else's earnings.
Zhenis: A dream for 99% of the residents. A salary of 3 million!
088: I'm ready to pay VAT at such a salary.
IYR: They're simply clearing the stage for a big new project, but they didn't take the people's troubles with the tax hikes into account. And for ordinary citizens making a high salary of 26,000, there's the path of appeal to the SES or MFCA – operating under British High Law, as we all know – which prioritizes international norms over domestic legislation, especially when it comes to third, fourth, or "palm" countries...
Sw: Would this be gross income of $3 million a month, or a net earnings figure?
Kush: Why so many divorces?
Simple Aset: Kush, because maintaining such a lifestyle will no longer be sustainable in the future. That's where we're heading. We may be compelled to seek income from external sources. We may become guest workers, probably.
Nur: Why harp on high earners? They earn their money through their labor, so what tax should they pay? The focus should be on budget thieves, corrupt officials, redundant centers, etc. Leave the honest workers alone.
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- "High-income earners in Kazakhstan, based on the annual income, will face progressive taxation with a 10% tax rate for income under 33 million tenge ($80,000 USD) and 15% for anything above that, as Azaamat Amrin, the first vice minister of Economy, suggested."
- "The proposed changes to the Tax Code in Kazakhstan include increasing the VAT rate from 12% to 16% and raising the VAT threshold from 15 million to 40 million tenge, which were endorsed by Majilis deputies in their second reading."
- "The discussions around higher taxes and salaries in Kazakhstan have led some to question the norms in other countries, with some suggesting that the taxes are 'crazy' in nations like Denmark and the Netherlands."
- "With the proposed regulations, the wealthy oil industry professionals, who potentially earn more than 3 million tenge per month, will be subject to a 15% tax rate, resulting in an additional 580,000 tenge being withheld each month from their income."
- "The general news and political landscape have been dominated by the ongoing dialogue regarding taxes, inflation, and the impact on people's livelihoods, causing worry and stress for many."
