Amendments to the Taxation of Lump-Sum Pension Payments from the UAPF

Taxation rules for lump-sum pension payments (LPP) in Kazakhstan have been amended.

Term for Applying Standard Tax Deductions

Law No. 208-VIII of the Republic of Kazakhstan, dated 15 July 2025, amended paragraph 3 of Article 48 of the Tax Code. The key change extends the statute of limitations for claiming standard tax deductions on LPP income from three to five years.

If you received LPP between 1 January 2021 and 31 December 2025, and are entitled to standard tax deductions (subparagraphs 2 and 3 of paragraph 1 of Article 346 of the Tax Code of the Republic of Kazakhstan), but did not fully claim them, you may submit an application to the UAPF, along with supporting documents (except those automatically obtained by the UAPF, such as disability information), by the end of 2025.

What Will Change from 1 January 2026

A new Tax Code of the Republic of Kazakhstan will come into force, introducing the following changes:

Full exemption of pension payments from the UAPF from Personal Income Tax (PIT), including lump-sum pension payments (LPP), for resident individuals of the Republic of Kazakhstan.

For non-residents of the Republic of Kazakhstan, PIT withholding will remain in place.

Cancellation of all outstanding deferred PIT liabilities as of 1 January 2026.

How Tax Applies Until 1 January 2026

Before the new Tax Code of the Republic of Kazakhstan comes into force, a 10% Personal Income Tax (PIT) on lump-sum pension payments (LPP) is withheld in accordance with the current rules (the Tax Code effective until 1 January 2026).

Deferred PIT is withheld either in equal monthly installments for up to 16 years (subparagraph 2 of paragraph 2 of Article 353-1), or as a lump sum, if the recipient has a pension annuity agreement with an insurance company (paragraph 6 of Article 353-1); receives length-of-service payments (paragraph 7 of Article 353-1); or has chosen the “lump-sum PIT withholding” option.

Please take these changes into account when making transactions with pension savings.

Find out more about amendments to the taxation of lump-sum pension payments (LPP) at:

 https://www.enpf.kz/ru/