Delays in pension savings repayment by Kazakhstan residents will be annulled, effectively wiping out their debt obligations
In a significant move, the Employee Pension Fund (EPF) of Kazakhstan has announced the cancellation of tax liabilities on pension payments for residents of the Republic of Kazakhstan. This decision, made in response to an investor's appeal, is a part of the new Tax Code that came into force from July 18, 2025.
The cancellation of tax liabilities applies specifically to income in the form of lump-sum pension payments. This exemption also applies to regular pension payments, making it a comprehensive relief for pensioners. The tax liabilities on deferred Insurance Premium Tax (IPT) with lump-sum pension payments, as of January 1, 2026, will be canceled based on paragraph 1 of Article 828 of the Tax Code.
The question raised in the appeal was about deferred IPT when withdrawing pension contributions exceeding the threshold. The appeal also asked if the amounts of IPT debt would be canceled if OVP (Overall Vehicle Procurement) were deducted before 2026 and declarations on deferred IPT were made before retirement. The EPF has clarified that no additional declaration is required to cancel the tax liabilities on deferred IPT.
It is important to note that the cancellation of tax liabilities does not affect the distribution of pension fund income to Kazakhstanis' accounts, as stated in a separate news article. The new Tax Code, effective from July 18, 2025, provides for the exemption from withholding individual income tax on income in the form of pension payments from EPF.
However, the specific person or institution responsible for writing off all existing tax debts of Kazakhstanis related to delayed IPT in connection with pension benefits from EPF starting in 2026 is not identified in the available search results.
The head of EPF, Zhanaт Kurmanov, made the announcement, confirming that the tax liabilities of Kazakhstanis regarding deferred IPT with pension payments from EPF will be canceled from 2026. The cancellation of tax liabilities applies only to residents of the Republic of Kazakhstan.
This decision by the EPF is a welcome relief for many pensioners in Kazakhstan, providing them with a more secure financial future. The cancellation of tax liabilities is for all existing tax liabilities on deferred IPT, not just those formed after a certain date. This means that many pensioners will see a significant reduction in their tax burden, potentially increasing their disposable income.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
