COVID -19 AND ITS IMPACT ON

BUSINESS IN KAZAKHSTAN

BACKGROUND FACTS

MARCH 15,2020

Decree of the President of the Republic of Kazakhstan dated March 15, 2020 introduced a state of emergency due to the spread of COVID-19

FROM MARCH 16, 2020 TILLMAY 1, 2020

State of emergency in the Republic of Kazakhstan

THE DURATION OF THE STATE OF EMERGENCYAccording to the legislation of Kazakhstan, the state of emergency may last up to 30 days, in some regions up to 60 days. The President is entitled to prolong it.

LABOUR ISSUES

Remote work/ Part-time work

The annual paid leave

The downtime mode

THE IMPACT OF THE CHANGE OF WORK CONDITIONS ON EMPLOYEES

The salary amount may bedecreased by the agreement ofthe parties.

REMOTE WORK

Reduction the number of workinghours per day or working days perweek and consequent decreaseof the salary amount.

PART - TIME WORK

Payment of 42 500 KZT

(approx. 100 US dollars), unless

otherwise provided by the

employment/collective

agreement.

DOWNTIME MODE

Annual paid or unpaid leave isprovided on the employee’s part .

ANNUAL PAID LEAVE

• Exemption from payment of property tax, tax on agricultural land, tax for the producers of agricultural products; IIT of individual entrepreneurs working in the generally established taxation procedure till December 31, 2020;

• Suspension of interest accrual on outstanding tax liabilities until August 15, 2020;;

• Deferment of payment due date for mandatory payments and taxes until June 1, 2020 (micro, small and medium-sized enterprises);

• Large-sized enterprises are entitled to request a deferment of tax payments, referring to the occurrence of force majeure circumstances that caused damage to the taxpayer (emergency situations of a social, natural, industrial, environmental nature, military operations and other force majeure circumstances) (Subclause 1 Clause 2 Article 51 of the Tax Code);

• Suspend the duration of inspections carried out by state revenue authorities for a period of emergency, however the suspension period is not included in the inspection period.

THE STATE MEASURES ON ECONOMY STABILIZATION

CORPORATE PROCEDURES OF THE LLP

The general meeting of the LLP’s participants

It takes place via videocommunication

Zoom, Skype for Business

Signing with help of Electronic Digital Signature (E-keys)

www.ezsinger.kz

THE IMPACT OF STATE OF EMERGENCY ON CONTRACTUAL OBLIGATIONS

The Parties may rely on force-majeure events, in case there is evidence that

these circumstances affect the performance of obligations under the

contract (clause 2 Article 359 of the Civil Code )

In case a party to the contract refers to force majeure, it should receive a certificate

issued by the National Chamber of Entrepreneurs of the Republic of Kazakhstan

“Atameken”

“FORCE-MAJEURE” TERM

The following factors are used to determine the force majeure circumstances:

The presence of a violation of the obligation at the time of the appeal for a certificate , i.e. violation must take place as a fact;

The presence of a direct causal relationship between a person’s non-fulfillment (violation) of an obligation and the circumstances to which it refers.

OUR TEAM

@UNICASELAWFIRM

@UNICASELAW

Al-Farabi Ave. 19

NurlyTau BC

Block 1B, Office 204

Kazakhstan 050059

29/1 Kunayeva str.

Diplomat BC

13th floor, Office 5

Kazakhstan 010000

18 Said Barak Str.

Uzbekistan 100060