TOPICAL ISSUES OF INDIVIDUAL INCOME TAXATION IN THE REPUBLIC OF KAZAKHSTAN

Abstract

Taxes are legally established payments that business entities and the population are obliged to pay in accordance with the established rules for filling the state treasury. Nowadays, taxes are used by the state to redistribute national income and serve as the main source of state revenue necessary for the implementation of its main functions: the maintenance of the administrative apparatus, law enforcement and social services, financing of the social security system. Also, with the help of taxes, the state can level income inequality among different groups of the population in order to increase their well-being as a whole. Individuals in Kazakhstan are required to pay personal income tax, transport tax, land tax, property tax of individuals. Pensions, sick leave payments and social benefits are formed from these contributions. In addition, individuals bear the burden of paying indirect taxes value added tax and excise taxes on alcohol, tobacco and petroleum products. According to some estimates, individuals actually pay more than 50% of the amounts of indirect taxes received by the budget of the Republic.