A new law that came into effect on January 1st, 2024, entitled Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan, includes provisions regarding the accrual, payment and use of funds transferred from the National Fund to the children of Kazakhstan. According to this document, all children (up to the age of 18) will receive deductions of fifty percent of the investment income of the National Fund. The project, a first of its kind in Central Asia, is called the “National Fund for Children”.
The National Fund of the Republic of Kazakhstan holds the state’s assets in the form of finances concentrated on the accounts of the Government in the National Bank. It is accumulated via fulfillment of tax obligations on the extraction of mineral resources, rent tax on export of crude oil and gas condensate and royalties, as well as the share of the Republic of Kazakhstan on division of production in kind or money from their realization, with the amount being determined in accordance with the relevant tax legislation.
Lower-end forecasts of savings per child under this new law are calculated to be around US$3,000-4,000. This amount is estimated taking into account the volatility of the capital market and depends on the global economic situation.
Only citizens of Kazakhstan can participate in this program, and any child that changes citizenship loses the right of payment. Furthermore, these funds are exempt from taxation and when a person reaches the age of 18, he or she can decide how to use the sum. It is conceivable that these funds can be used by the new generation to finance their future education, including abroad, or for housing purposes. If the funds are not used within 10 years by the citizen holding the funds, they will be automatically credited to his or her pension account.
