What the List of Self-Employed Persons Means
In Kazakhstan, the query “list of self-employed persons” should primarily be understood as the list of activities permitted under the special tax regime for the self-employed, rather than a list of individuals with their surnames and Individual Identification Numbers (IINs). According to Article 718 of the Tax Code, this list is approved by the Government of the Republic of Kazakhstan. Therefore, it is not enough for an accountant to establish that a person works independently: their actual activity must be compared with the permitted activities.
The provided regulatory data do not contain the government-approved list itself, so specific professions or services cannot be listed without checking the applicable act. Before formalizing relations with a self-employed person, the current version of the list approved by the Government should be found and the wording of the relevant activity checked. Relying solely on the commonly used name of a profession is risky: the service actually provided and the wording in the regulatory list may differ.
It is also important not to confuse the concepts. In everyday speech, any person who earns income independently is sometimes referred to as self-employed. For the purposes of the special tax regime, the definition set out in Article 718 of the Tax Code and simultaneous compliance with the conditions established by that article are what matter.
Who Is Recognized as Self-Employed Under Article 718
Article 718 classifies individuals who are not individual entrepreneurs as self-employed. These may be citizens of the Republic of Kazakhstan and qandas, provided that they meet all the stipulated conditions.
To apply the special tax regime, all of the following requirements must be met simultaneously:
- carry out one or more activities for which this regime is permitted;
- not use hired labor;
- comply with the established income limit for a calendar month.
The income of a self-employed person for a calendar month must not exceed 300 times the monthly calculation index effective as of January 1 of the relevant financial year. For a practical check, the accountant must use the MCI for the relevant year and must not substitute the index from another period.
If at least one of the conditions is not met, the mere inclusion of the activity in the permitted list is insufficient. For example, a relevant type of service does not in itself confer the right to apply the regime if the individual is registered as an individual entrepreneur, hires employees, or exceeds the established monthly income limit.
Thus, the expression “self-employed list” covers only one element of the verification. Correct classification is based on a combination of criteria, rather than on the name of the profession or the service provider’s own declaration.
How an Accountant Should Verify Status and Type of Activity
Before entering into an agreement, it is useful to obtain from the individual a description of the work or services actually performed. It should be specific: not merely “consulting” or “assistance,” but a clear description of the transaction. This description should then be compared with the current wording of the permitted activity.
The practical verification procedure may be as follows:
- Determine whether the service provider is a citizen of the Republic of Kazakhstan or a qandas.
- Verify that the service provider is not registered as an individual entrepreneur.
- Record the specific type of services provided or work performed.
- Find this activity in the current list approved by the Government.
- Make sure that the service provider does not use hired labor.
- Obtain confirmation of compliance with the monthly income limit.
- Retain the documents and correspondence on the basis of which the organization determined the service provider’s status.
Special attention is required if a person conducts several types of activity. Article 718 permits one or more activities, but each of them must be permitted. The existence of one qualifying activity does not automatically make the remaining activities permissible.
It is also important for the accountant to assess the actual relationship between the parties. The title of an agreement does not in itself confirm compliance with the conditions of the special regime. The documents must reflect the actual service, its result, and the service provider’s status at the time of the transaction. If the information is contradictory, it is safer to request clarification before making payments and determining the applicable tax treatment.
What to Consider During Desk Audits
Under Article 137 of the Tax Code, desk audits are conducted by comparing information available to the tax authorities, data from other authorized state bodies, and information about the taxpayer’s activities obtained from various sources. Consequently, the status of a self-employed person and the transactions reported by them may be assessed not in isolation, but in connection with other available information.
If the tax authority identifies discrepancies, a notification may be sent to the taxpayer. Where a self-employed person applying the special tax regime agrees with the discrepancies, reflecting the data in the special mobile application and/or paying tax and social payments may be recognized as compliance with the notification.
In the event of disagreement, Article 137 provides for the submission of an explanation of the reasons for discrepancies that do not constitute violations of tax legislation. Therefore, it is preferable to collect documents at the time the transactions are carried out rather than reconstruct them later. It is useful to retain agreements, acceptance certificates or other evidence of the result, payment documents, a description of the activity, and confirmations used when verifying entitlement to the special regime.
If the activity cannot be unambiguously matched with the government-approved list or the service provider’s circumstances have changed, the accountant should reassess whether the regime remains applicable. This is particularly important for long-term agreements: the initial verification does not replace an assessment of the actual conditions in subsequent periods.
Frequently Asked Questions
Is there a single list of self-employed persons by name? — The cited provisions concern not a public list of individuals, but a list of permitted activities. The status of a particular person is determined under the conditions of Article 718.
Is it enough to find the profession in the list? — No. The individual must also not be an individual entrepreneur, must not use hired labor, and must comply with the monthly income limit.
May a self-employed person engage in several activities? — Yes, Article 718 permits one or more activities, but each of them must be included in the permitted list.
What income limit applies to a self-employed person? — Income for a calendar month must not exceed 300 times the MCI effective as of January 1 of the relevant financial year.
What should be done upon receipt of a notification of discrepancies? — If the taxpayer agrees, the discrepancies must be resolved in the manner prescribed by law. In the event of disagreement, an explanation may be submitted to the tax authority in accordance with Article 137.