Guide to Global Payroll Management Residence rules Individuals present in the country for more than 183 days in any consecutive 12-month period are considered residents. Taxable employment income Taxable employment income generally includes all cash or noncash compensation and the value of gifts and bonuses. Taxable fringe benefits in a typical expatriate compensation package include: * school tuition reimbursements; * housing allowances and the value of employer-provided housing; * company cars; * employer-provided domestic workers; * cost-of-living allowances; * expatriate premiums; * reimbursement of home leave costs; and * reimbursement of foreign and/or home country taxes. Tax rates Income taxes. Most individuals are taxed at a single flat rate of 10% (20% may apply under certain circumstances). Taxes are withheld from employees' wages, even if paid in a foreign currency. Social security taxes. Employers pay a social tax at a flat rate of 9.5% of the gross compensation of all employees (including expatriates). Monthly payments are also made by employers to a state social insurance fund at the rate of 3.5% of the employer's total payroll (capped at 3% of ten times the monthly minimum wage). Employers also withhold pension contributions at the rate of 10% of employees' gross pay, up to 75 times the monthly minimum wage. The employer pays additional professional pension fund contributions equal to 5% of employee's wages for employees (Kazakh citizens and residence permit holders) involved in hazardous/harmful activities. Employers also make medical insurance contributions at the rate of 2% of wages (up to ten times monthly minimum wage) for all employees, including citizens, foreigners with residence permits, and citizens of the Eurasian Economic Union. Relief from double taxes Kazakhstan has an income tax treaty with the U.S. (see Appendix A, page A-43). C-34