According to Shcheklanov, each type of tax deduction has its own conditions and limits. Thus, social tax deduction cannot exceed 120 thousand rubles (848 thousand tenge) per year. However, the size of social deduction has not been increased over the past 12 years. “Each type of tax deduction has its own terms and limits. The social tax deduction limit has never been reviewed. Experts believe that it can be raised to 1 million rubles, or at least up to 400,000 rubles,” Shcheklanov shared.
According to Shcheklanov, life insurance should be singled out as a separate state social project by providing a separate deduction for it.
Social deduction is a return of part of income tax (PIT) to the taxpayer's account with the help of tax benefit.
It should be noted that, as of January 2021, tax benefits were introduced for customers entering into agreement for a period of 3 years or more under endowment life insurance (ULI) programs in Kazakhstan. Thus, Kazakhstanis can save up to 93 thousand tenge per year on taxes. Tax deduction on PIT should be filed for that. It is calculated from the sum of contributions paid under the endowment agreement in amount of up to 320 MCI (990 thousand tenge).
Photos are from open sources.