--- title: "PIT on Income: Who Pays It and What Determines the Calculation Procedure" country: KZ lang: en author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti) date: 2026-10-19 canonical: https://buhgpt.kz/suraqtar/ipn-s-dohoda-kto-platit-i-ot-chego-zavisit-poryadok-rasch-en source: BuhGPT --- # PIT on Income: Who Pays It and What Determines the Calculation Procedure > **TL;DR:** What PIT on income means PIT on income is personal income tax calculated in relation to an individual's income. It is essential for an accountant to first determine the recipient's status and the type of payment, and then select the applicable accounting and taxation procedure --- What PIT on income means PIT on income is personal income tax calculated in relation to an individual's income. It is essential for an accountant to first determine the recipient's status and the type of payment, and then select the applicable accounting and taxation procedure. The calculation should be performed in accordance with the provisions of the Tax Code that directly relate to the relevant category of income and recipient. The calculation should not be based solely on the payment amount. Before performing it, it is necessary to establish: - who receives the income—an employee, individual entrepreneur, non-resident, or another individual; - which documents formalize the relationship with the recipient; - what type the accrued or paid amount belongs to; - who is responsible for calculating and remitting the tax; - which reductions apply to the relevant income; - what amount is included in taxable income; - in which tax return the transaction is reported. This procedure reduces the risk of conflating different types of income. Payments under employment relationships, business income, and non-resident income must be analyzed separately. The payment description in a bank document does not in itself replace the agreement, certificate of completion, payroll sheet, and other documents that determine the substance of the transaction. The number of an article of the Tax Code should be cited only when its provisions directly regulate the type of income, rate, deduction, or tax agent's obligation under consideration. Article 622 regulates the calculation and payment of fees for land plots in certain cases, Article 628 regulates the rates of fees for the use of water resources and certain sections of fishery water bodies, Article 632 regulates fees for the use of wildlife, and Article 659 regulates the fee rates for digital mining. Therefore, these provisions do not constitute a basis for determining the PIT calculation procedure. PIT taxable income: how to determine the tax base Taxable income for PIT should not automatically be equated with every amount accrued or received. The accountant first determines the economic and documentary basis of the payment, the recipient's status, and the taxation procedure applicable to the transaction. The amount on which the tax is calculated is then established. In the working calculation, it is useful to show separately the initial income amount, the applicable reductions, and the final tax base. This makes it possible to trace the calculation, compare it with the source documents, and explain discrepancies between the accrued amount, the amount payable, and taxable income. The practical procedure is as follows: - Determine the individual's status, including tax residency when it is relevant to the taxation of the transaction. - Document the basis for the payment in the agreement and source documents. - Classify the income according to the substance of the transaction, rather than solely by the payment description or the accounting system's analytics. - Establish who must calculate and remit the tax: the paying party or the income recipient. - Determine taxable income under the rules applicable to the selected type of payment. - Apply only documented reductions provided for the relevant income and recipient. - Verify the calculation for the tax period and report it in the relevant tax return. If the applicable calculation procedure requires indicators to be accounted for over the tax period, an individual accrual must be considered together with amounts previously reported. The accountant should ensure consistent accounting of indicators for the individual, the correct recognition of recalculations, and the consistency of accounting data with the tax return. Particular attention is required when the recipient's details change, previously accrued income is corrected, a payment is returned, or an error in income classification is identified. In such cases, the documentary sequence of the transaction is first restored, taxable income is then recalculated, and only after that are the necessary corrections made to the accounting records and returns. The application of the basic tax deduction must also be presented separately in the calculation. For 2026, its current amount is 30 MCI. With an MCI of 4 325 ₸, this corresponds to 129 750 ₸. The value of the indicator alone does not confirm entitlement to the deduction: the calculation must comply with the conditions for applying it to the specific income and individual. PIT on an IE's income in 2026 For an individual entrepreneur, the applicable tax regime and the nature of the receipt are determined first. Each credit must be classified according to its basis: the purpose of the amount is compared with the agreement, source documents, and accounting data. PIT on an IE's income cannot be correctly calculated solely from a bank statement or the total amount of receipts. The accountant must separately report payments for goods sold, work performed, or services rendered, refunds, loans, personal contributions, and other amounts having a different documentary basis. The final classification must correspond to the actual substance of each transaction. When calculating business income, it is important to follow the proper sequence: determine the reporting period, collect supporting documents, verify that transactions have been reported completely, prepare the indicators for the tax calculation, and only then calculate the tax. A document and amount are allocated to a reporting period according to the rules of the applicable tax regime, rather than solely according to the date of the cash movement. Payments to an individual who is also registered as an IE require separate analysis. To classify the payment, the subject matter of the agreement, the party on whose behalf the recipient acts, the substance of the work performed, services rendered, or supply made, and the execution of settlement documents are reviewed. Registration as an IE alone is insufficient to classify a specific payment. For income from private practice and the activities of a peasant or farm enterprise, the recipient category, nature of the activity, and basis of the income must also be taken into account. A procedure applicable to one category of income or taxpayer cannot be applied to other receipts without first classifying them. In 1C, the type of income should be selected according to the substance of the transaction and the documents. If the software reports a missing rate, income type, or other field, the accountant should check the accrual settings, the recipient's profile, and the tax accounting parameters. Manually changing the rate solely to post the document may result in discrepancies between the calculation, registers, and returns. For accounting in 2026, the current release of the relevant configuration must be used: for “Accounting for Kazakhstan,” the 3.0.74.x branch; for “Payroll and HR Management for Kazakhstan,” the 3.1.37.x branch. After the update, the tax accounting settings and the calculation result should be checked using the organization's data. Non-resident income and reporting When making payments to foreign nationals and stateless persons, the accountant must separately record the recipient's citizenship, tax status, type of income, and the role of the paying party. The conclusion regarding the taxation procedure for a specific payment should be based on the totality of documents relating to the transaction, rather than solely on a passport, IIN, or the place where the bank account was opened. Before accruing the payment, the agreement, identity document, residence details, and documents used to determine the person's tax status should be compared. These data must be entered consistently in the accounting system: differences in the spelling of the name, country code, or identifier make it difficult to reconcile accruals and returns. When completing returns, the non-resident's details are transferred from supporting documents. The surname, first name, and patronymic, if any, should not be replaced with abbreviations or arbitrary transliteration. The amounts of accrued and paid income, as well as the tax calculated and remitted, must be reconciled with the accounting registers for the relevant period. The tax return form and the relevant appendix are selected in accordance with the current rules for their preparation for the specific tax period. The person's tax status, the type of income, and the paying party's obligation to calculate the tax are taken into account when making the selection. The recipient's foreign citizenship alone does not determine the entire procedure for reporting the payment. Before submitting the return, it is advisable to perform a final reconciliation of the individual's profile, identity document, tax status details, agreement, accrual, and actual payment. An error in the recipient's details or income classification may affect the tax calculation and the reporting of the transaction in the return. Frequently asked questions What is PIT taxable income? — It is the amount determined for calculating tax, taking into account the type of income and applicable reductions. In the accounting records, it should be shown separately from the accrued amount, the amount payable, and the amount credited to the bank account. How is PIT on an IE's income calculated? — First, the applicable tax regime, the substance of the receipt, and the reporting period are determined. The source documents are then checked, the business income indicators are prepared, and the calculation is performed under the rules of the established regime. Can PIT be determined solely from the payment amount? — No. The type of income, the recipient's status, the documentary basis for the payment, the applicable reductions, and the person responsible for calculating the tax must be determined for the calculation. Can every payment to a registered IE be treated as business income? — For each payment, the subject matter of the agreement, the transaction documents, and the capacity in which the individual acts in the relevant relationship must be checked. What should be done if 1C reports an error in the rate or income type? — Check the accrual type, the recipient's profile, the supporting documents, and the tax accounting settings. The correction must correspond to the substance of the transaction and ensure consistency between the calculation, registers, and returns. How should non-resident income be handled? — Before the calculation, the recipient's tax status, the type of income, and the paying party's obligations are recorded. The identification details, accrual, payment, calculated tax, and reporting of the transaction in the tax return are then reconciled. Sources - Tax Code of the Republic of Kazakhstan - Electronic Government of the Republic of Kazakhstan: information on the Tax Code --- _BuhGPT — ИИ-помощник для бухгалтеров Казахстана: https://buhgpt.kz_