Starting from Jan. 1 next year, the National Fund will allocate 50% of its annual investment income to special savings accounts for children until they reach the age of 18, according to an announcement made by deputies of the Mazhilis, the lower house of the Kazakh Parliament, at a Sept. 20 plenary meeting. The news was reported by the Mazhilis’ press service.
The National Fund of Kazakhstan, a sovereign wealth fund established by the government in 2000 to manage oil revenue more effectively, will enable children to purchase property or improve housing conditions within Kazakhstan, and get higher education both at domestic and foreign institutions.
Each child’s account will receive an equal contribution for the corresponding year of participation in the program, starting from either their birth or the time they obtain Kazakh citizenship, until the account holder reaches the age of majority.
During this period, the funds will remain in the National Fund and continue to be invested by the National Bank of Kazakhstan in financial instruments.
Children will lose their entitlement to these funds if they either change or lose their Kazakh citizenship.
The funds paid to children after the age of 18 will not be subject to taxation.
In addition to this initiative, the Mazhilis adopted amendments to safeguard the funds from suspension, arrest, and confiscation, specifying the rights of heirs in the event of the recipient’s death and defining the responsibilities of government agencies involved.
The legislative document has been forwarded to the Senate, the upper house of the Parliament, for further approval.
Source : ASTANATIMES