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New obligations of mobile applications in the Republic of Kazakhstan related to social protection.

On July 1, 2024, the Head of State signed the Law of the Republic of Kazakhstan No. 104-VIII "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Science and Technology Policy, Platform Employment and State Control" (hereinafter – the "Law").

The Law provides for a number of significant amendments and additions, including to the Social Code of the Republic of Kazakhstan (hereinafter referred to as the "Social Code").

The changes under consideration are aimed at protecting the interests of individuals, from the point of view of social security, who earn money by providing services through mobile applications.

Let's note the key changes:

1. Mobile applications become agents (i.e. calculate, withhold and pay) pension contributions, social contributions and personal income tax from the income of sole proprietors who apply a special tax regime using a special mobile application.

2. The percentage of social contributions and pension contributions payable by the Mobile Application is determined by the choice of the contractor himself in the mobile application (i.e. 1% or more).

3. Income threshold: for calculating social contributions, the monthly minimum wage should not exceed 7 times, and for pension contributions 50 minimum wage for the corresponding financial year.

4. The procedure for determining, withholding and transferring social payments, pension contributions and personal income tax by the Operator will be determined by the authorized state body (Ministry of Labor and Social Protection of the Republic of Kazakhstan).

5. Payment deadline: no later than the 25th day of the month following the month of income payment, unless otherwise provided.

Terms of introduction:

The Law shall enter into force sixty calendar days after the date of its first official publication. The date of official publication is July 2, 2024. It is important to note that the obligation to pay mandatory pension contributions will come into force on January 1, 2026.

This review is provided for informational purposes only. Although it offers a general understanding, it is not legal advice.

For detailed assistance tailored to your specific situation, we recommend that you contact SOLIS Law Firm at info@solislaw.kz or by phone +7 702 038 5068 (WhatsApp).

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