What is Unified Cumulative Payment?

Since 2019, Kazakhstan introduced the Unified Cumulative Payment (UCP), which provides for a simplified procedure for registering informally employed tax authorities.

It combines the four required types of payment:

• Individual Income Tax (IIT);
• social contributions to the state social insurance fund;
• pension payments to the UAPF;
• contributions to the Fund of compulsory social health insurance.

UCP size

The monthly size of the Unified Cumulative Payment in 2019 is:

• 1 MCI - for individuals living in cities of republican significance, the capital and regional significance;
• 0.5 MCI - for individuals residing in other localities.

Who pays the UCP

According to Article 774 of Section 24 of the Tax Code of the Republic of Kazakhstan, individuals who are engaged in entrepreneurial activities without being registered as an individual entrepreneur, who simultaneously meet the following conditions, are recognized as UCP payers:

1. paid the Unified Cumulative Payment;
2. do not use the labor of employees;
3. provide services exclusively to individuals who are not tax agents, and (or) sell exclusively to individuals who are not tax agents, agricultural products of their own private household, except for excisable goods.

At the same time, the amount of income of UCP payers should not exceed 1,175 MCI per year.

How and when to pay the UCP

The UCP must be paid separately for each month in which income was received. It also provides for the possibility of paying in advance for the following months.

The UCP can be paid at the cash desk of any bank in Kazakhstan, as well as at Kazpost offices. To do this, you need to present your ID and make a payment on KNP 183 to the bank account of the NJSC State Corporation "Government for Citizens".

The National Bank of the Republic of Kazakhstan has allocated payment purpose codes for UCP – KNP 183 when paying a Unified Cumulative Payment and KNP 184 when paying erroneously transferred/credited amounts of a Unified Cumulative Payment. In payment messages of the MT 102 format, in the “OPV” field (payment details field 70) there will be a letter “G”.

How is the UCP amount distributed by taxes?

The amount of the Unified Cumulative Payment is distributed by NJSC State Corporation "Government for Citizens" in the following proportion

• 10% - Individual Income Tax (IIT);
• 20% - Social Contributions (SC);
• 30% - Compulsory Pension Contributions (CPC);
• 40% - Deductions For Compulsory Medical Insurance (CSHI).

What rights and guarantees do the UCP payers have?

Payment of the Unified Cumulative Payment to self-employed individuals allows to:

• be a member of the compulsory social health insurance system;
• make pension savings and, depending on the length of time they participate in the pension system, entitles you to receive a basic pension payment;
• in cases of disability, loss of work, loss of the breadwinner, pregnancy and childbirth, adoption of a child, care for a child under 1, receive social benefits.