러시아ㆍ유라시아

This Selected Issues paper conducts a review of taxes on labor in Kazakhstan, which, despite the current relatively low level of collections, have the potential to become an important source of non-oil fiscal revenue. This paper focuses on one group of non-oil taxes and reviews their effective burden, progressivity, and efficiency. Kazakhstan has successfully leveraged third-party information for reporting and withholding by employers to collect taxes and contributions from employees. The authorities also have access to other information sources that could be used to address evasion. The government will gradually implement a universal income and property declaration. The existing labor tax system is characterized by a low, flat headline rate, limited progressivity except at the lower end of household income distribution due to deduction of the minimum wage, and a relatively high tax burden mainly born by the formal sector.