investor´s guide 2007...general information 2007 investor, s guide 5 administrative and territorial...
TRANSCRIPT
General Information
Kazakhstan’s Economy
State Support for Investment
Where to invest
Doing Business
Appendix
Investor,s GuideRepublic of Kazakhstan
Today, when we have already laid down a solid foun-
dation for our economy and sovereignty we are confi-
dently entering a fundamentally new stage.
Now, we have the strength to turn Kazakhstan into a
“regional locomotive” of economic development and
make it a successful player in the world economy.
We should pass from “accumulating growth” to “growth
management” which signifies, first of all, that we carry
out investment policy aimed at infrastructure devel-
opment and further industrialization of Kazakhstan’s
economy responding to modern international market
requirements.
From Kazakh President Nursultan Nazarbayev’s
state-of-the-nation-address entitled
“New Kazakhstan in the New World”.
Astana, 28 February 2007
CONTENTS
Chapter I. General Information...............................................................................................................................................................4Geography...............................................................................................................................................................................................................................4
Climate.......................................................................................................................................................................................................................................4
Administrative and Territorial Structure...................................................................................................................................................................5
History of Kazakhstan........................................................................................................................................................................................................6
Natural resources.................................................................................................................................................................................................................6
Chapter II. Kazakhstan’s Economy in Brief...................................................................................................................................8Foreign Investment inKazakhstan.............................................................................................................................................................................12
Credit Ratings of Kazakhstan......................................................................................................................................................................................13
Chapter III. State Support for Investment ...................................................................................................................................15
Legal Regulation of Investment Activity in Kazakhstan.................................................................................................................................15
Investment Incentives in Kazakhstan.....................................................................................................................................................................17
Priority Types of Activity................................................................................................................................................................................................20
Institutional and Financial Support for Investment..........................................................................................................................................23
Chapter IV. Where to invest?......................................................................................................................................................................25
Chapter V. Doing Business.........................................................................................................................................................................31
Chapter VI. Appendix ........................................................................................................................................................................................38
Why KAzAKhSTAN?
Investment favorable environment
• Political&socialstability
• Qualified&fastlearninglaborforce
• Statesupportofinvestments
Natural resources
• Largemineral&renewablereserves
Markets
• HubbetweenEuropeandAsia
• Large&fastgrowingneighbormarkets
Anaccesstotheregionalmarket,whichincludesCentralAsiaandCaucasusstates,SouthRussiaandWesternChina.
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GENERAL INFORMATION
GeographyKazakhstan is located in Central Asia, surrounded by the Ural and lower reaches of the Volga rivers in the west, the Alatau Mountains in the east, the West Siberian Pla-teau in the north and the Tien Shan mountain range in the south. From west to east it covers over 2,800 km, and from south to north 1,600 km. With an area of 2,724,900 sq km, Kazakhstan is the ninth largest country in the world. Its territory can be compared in size with the whole of Western Europe.
Kazakhstan is divided into two regions: a northern one which is an extension of the Russian steppes, and a southern one comprising steppes and oases typical of nearby Central Asian lands.
Kazakhstan’s territory consists largely of plains and low-lands. In Central Kazakhstan, vast plains blend into the isolated, low-mountain system of Sary-Arka, whilst in the south and southeast lie the Altai, Sauyr-Tarbagatai, Dzhungar Alatau and Tien Shan mountain systems. The highest peak is Khan Tengri (6,995 m).
Almost all of Kazakhstan’s rivers flow into the Caspian and Aral seas, except for the Irtysh, Ishim and Tobol
rivers, which flow into the Kara Sea. There are many
lakes within the country: Balkhash, Alakol and Tengiz are
among the largest. The Irtysh is the state’s largest river
with a length of 1,700 km.
Almaty – the country’s largest metropolis – was the capi-
tal of Kazakhstan until 1997, when the capital was moved
1,000 km north towards the centre of the country to the
city of Astana, previously known as Akmola. However,
Almaty remains the business and financial centre of Ka-
zakhstan.
ClimateLocated in the heart of Eurasia, Kazakhstan has a dry con-
tinental climate. The average precipitation on the plains is
irregular and comes to approximately 250 mm per year.
In many desert regions in the south and near the Caspian
Sea the climate is even drier. Winters are usually snowy.
In the central area frequent, strong blizzards can erode
the fertile layer of soil, covering it with a crust of snow.
Summer is quite hot in Kazakhstan: in some parts of
the country the temperature rises to over 35°C. Win-
ters are cold, with the temperature falling below -5°C
in the southern parts and below -20°C in the northern
regions.
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Administrative and Territorial Structure
Areathousandsq km
Populationthousand persons
Populationdensityper sq km
Cities Ruralareas
totalunits
villagesunits
Kazakhstan 2,724.9 15,397 5.6 86 7344
Akmola 146.0 748.5 5.1 10 677
Aktobe 300.6 695.4 2.3 8 426
Almatinskay 224.0 1,620.6 7.1 10 774
Atyrau 118.6 480.6 3.9 2 192
East Kazakhstan 283.2 1,424.5 5.1 10 850
Zhambyl 144.3 1,009.2 6.9 4 379
West Kazakhstan 151.3 612.4 4.0 2 478
Karaganda 428.0 1,339.3 3.1 11 537
Kyzylorda 226.0 625.0 2.7 3 277
Kostanai 196.0 900.3 4.6 5 689
Mangistau 165.6 390.5 2.2 3 55
Pavlodar 124.8 744.8 6.0 3 406
North Kazakhstan 98.0 660.9 6.8 5 727
South Kazakhstan 117.3 2,282.4 19.0 8 877
City of Astana 0.7 5574.4 786.3 1 -
City of Almaty 0.3 1,287.2 4,159.6 1 -
* 1 January 2007 Source: Statistics Agency of the Republic of Kazakhstan
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History of KazakhstanKazakhstan is a land of historic civilisations, and out-standing antique and medieval artifacts give testimony to this. Among them are various historic facilities such as burial mounds, dwelling sites and defensive fortifi-cations; mausoleums and entire cities; decorated arti-facts, jewelry and other archaeological findings.
In the 8th-4th centuries BC, much of Central Asia – in-cluding Kazakhstan – was populated by tribes known as the Sakas, originally from Persia. These tribes lived at the same time as the Scythians who inhabited the Northern Black Sea and Dnieper Regions, the Persians of Cyrus and Darius I, and the Greeks of the Alexander the Great’s era. Ancient authors called the Sakas the Asian Scythians, distinguishing them from the European Scythians.
Ancient Greek, Persian and Chinese written sources mention the existence of Saka states, which emerged in the territory of Kazakhstan during the first millen-nium BC.
Striking archaeological discoveries - the Tegisken and Uygarak mausoleums and the Saka cities of Chirik-Ra-bat and Balandy - have helped local scholars to learn about many facets of the economic life, social organi-sation, military skills, and ethnic history of the Saka tribes. There is some evidence that the Kazakh Sakas
mastered the art of writing as early as the 6th-5th cen-turies BC.
Dated to the end of the 4th-3rd centuries BC by archae-ologists, the marvelous findings from the Issyk burial mound stand out from the historical artifacts of the Saka era (the 8th-3rd centuries BC). This intact burial of a Saka warrior from a royal dynasty comprised more than 3,000 items such as pottery and wooden ware, bronze and silver bowls, weapons, footwear, clothing and headwear, jewelry, etc. Experts have recreated the Saka warrior’s garment based on their findings. It is now known worldwide as the Golden Man from the Issyk burial mound.
Today various attributes of the Golden Man’s outfit (in particular, ornaments from his kallah, or headwear) are portrayed on the state emblem of Kazakhstan and in the logo of the National Bank.
Natural resourcesKazakhstan has one of the world’s largest deposits of oil and gas, and there is potential for finding additional deposits. Kazakhstan’s territory contains four different geological basins. To date these basins remain largely unexplored even though current exploration activity is high. Almost three quarters of all Kazakh reserves are in two giant fields - the Tengiz (oil) and Karachaganak
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(gas). Most of the fields in the northern part of the basin,
such as Karachaganak, contain mostly gas with a small
amount of oil. Many substantial oil and gas deposits have
only recently been located (Kashagan) and the Kazakh
government has signed joint production deals with US,
European and Asian consortia.
Oil output is increasing rapidly thanks to heavy invest-
ment. In 2000, 35,256 thousand tons of oil were pro-
duced; by 2006 the output increased to 64,864 thousand
tons (an 84% increase in six years).
New pipeline projects agreed with the Russian Federa-
tion and China will offer further outlets for Kazakh oil and
boost national revenues.
In addition to oil and gas wealth, Kazakhstan is also rich
in mineral resources and precious metals.
Kazakhstan boasts:
• Theworld’ssecondlargestreservesofuranium,
chromeandphosphorousore
• Thefourthlargestreservesof leadandmolyb-
denum
• Theeighthlargestreservesofironore
Other important natural resources include copper in the central areas and in the Aktyubinsk oblast; lead, zinc, and silver in the Rudnyy Altai area and the Dzun-garian Alatau and Karatau spurs; tungsten and tin in the Kolbin Ridge and southern Altai; chrome ore, nick-el, and cobalt in the Mugozhar Hills; titanium, manga-nese, and antimony in the central regions; vanadium in the south; and gold in the north and east. Processing facilities at Aktau produce large quantities of uranium mined in the Mangghyshlak area. Great quantities of iron ore come from the Karaghandy and Kostanay ar-eas, and coal from the Karaghandy, Torghay, Ekibastuz, and Maykuben basins. The country has 10 coal fields of bituminous and brown coal, 155 deposits in all. Mo-lybdenum, tungsten, phosphorus, copper, potassium, cadmium, and bauxites add to the list of Kazakhstan’s mineral resources.
Kazakhstan has sizeable quantities of other natural de-posits: iron, nickel, zinc, manganese, coal, chromium, copper, lead, gold and silver are presently being mined. The coalfields of Karaganda are some of the largest in Asia.
Other than oil, gas, minerals, and metals, stone such as marble and granite is produced in large quantities. The country’s industries are predominantly concerned with processing these raw materials. Domestic production also fulfils Kazakhstan’s own energy needs.
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KAzAKhSTAN’S ECONOMy IN BRIEF
Indicator 2005report
2006report
2007Estimate
Forecast
2008 2009 2010
Gross domestic product, bln. USD 56,1 81,0 103,8 125,5 149,3 175,7
as % of previous year 109,5 110,7 109,9 109,6 109,2 108,6
GDP per capita, USD 3703 5291,6 6705,0 7994,0 9393,0 10914,0
Structure of GDP, % 100,0 100,0 100,0 100,0 100,0 100,0
Production of goods 44,1 44,8 43,9 43,7 43,7 44,1
including:
industry 30,2 29,5 28,4 27,4 26,7 26,1
agriculture 6,5 5,5 4,6 4,2 3,8 3,5
construction 7,4 9,8 10,9 12,1 13,2 14,6
Production of services 52,2 51,7 53,7 54,9 55,9 56,4
Net taxes 5,9 6,5 6,9 7,0 7,3 7,6
Financial intermediation services -2,2 -3,0 -4,5 -5,6 -6,9 -8,2
CPI, % 7,6 8,6 5,0-7,0 6,0-8,0 6,0-8,0 6,0-8,0
State budget deficit, as % of GDP 0,6 0,8 -2,1 -1,3 -1,0 -0,8
Fixed capital investments, as % to previous year 122,2 110,6 112,0 111,5 111,0 110,0
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Export of goods (FOB), bln USD 28,2 38,6 44,7 50,2 57,2 62,1
as % of previous year 137,5 137,1 115,6 112,4 114,0 108,5
Import of goods (FOB), bln USD 17,9 24,2 33,2 43,5 51,6 59,8
as % of previous year 129,9 134,9 137,1 131,2 118,5 115,9
Trade balance, bln. USD 10,3 14,4 11,5 6,7 5,7 2,3
Volume of industrial output, bln. USD 38,6 51,6 63,1 73,6 85,3 98,0
as % of previous year 104,6 107,3 106,8 107,6 109,1 107,5
Gross agriculture production, bln. USD 5,7 6,8 7,6 8,2 8,7 9,4
as % of previous year 107,3 107,0 103,5 103,0 103,0 103,0
Construction, bln. USD 5,6 9,8 14,1 19,0 24,7 32,1
as % of previous year 134,1 135,6 129,5 122,0 118,0 118,0
Transport service, bln. USD 10,4 14,2 16,5 18,8 21,4 24,4
as % of previous year 107,0 107,0 105,8 106,5 106,5 107,0
Communication, bln. USD 1,6 2,2 3,0 4,0 5,2 6,6
as % of previous year 127,7 120,4 127,5 124,0 122,0 120,0
Trade, bln. USD 12,6 16,3 21,3 25,4 30,3 35,7
as % of previous year 109,3 109,8 109,4 109,3 109,3 109,0
Labour productivity, as % of previos year 9,0 9,0 9,7 9,3 9,3 8,7
* Source: Statistics Agency of the Republic of Kazakhstan
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Kazakhstan GDP, bln. USD
Structure of GDP 2006, %
21,0 18,330,8
57,1
81,0
103,8
125,5
149,3
175,7
0
20
40
60
80
100
120
140
160
180
1996 2000 2003 2005 2006 2007(est)
2008(forecast)
2009(forecast)
2010(forecast)
Source: Statistics Agency of the Republic of Kazakhstan
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Chemicals2567
Mineral products
3375
Foodstuffs1662
Metals and metal products
3150
Others2215
Machinery and equipment
10708
Others2989
Mineral products
27511
Chemicals1591
Metals and metal products
6159
The Structure of Kazakhstan’s export in 2006, mln. USD
The Structure of Kazakhstan’s import in 2006, mln. USD
Source: Statistics Agency of the Republic of Kazakhstan
Source: Statistics Agency of the Republic of Kazakhstan
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Foreign Investment in Kazakhstan Since independence in 1991, Kazakhstan has achieved considerable success in attracting foreign investment. In fact Kazakhstan’s economy received more than 81% of all foreign direct investment (FDI) in Central Asia .
From 1993 to 2006, the growth of FDI into Kazakhstan totaled USD51.2 billion. Furthermore, FDI inflow into Kazakhstan in 2006 totaled USD10.4 billion, a 57.7% increase over 2005.
Main investors of the Republic of Kazakhstan (by gross inflow of FDI in 1993-2006)mln. USD
Structure of gross inflow of FDI mln. US dollars (1993-2006)Gross inflow of FDI to the Republic of Kazakhstan,
mln. USD
Education, health and social services
394,71% Construction
844,32%
Transport and communication
9942%
Trade, repair of motor vehicles and
personal and household goods
1883,54%
Financial intermediaton
864,82%
Production and distribution of electricity, gas, steam and hot
water725,6
1%
Manufacturing5541,511%
Real estate, renting and business
activities1483129%
Other360,81%
Mining24604,1
47%
1271
660 984
16742107
12331852
2781
45574106
4625
8317
6619
10437
0
2000
4000
6000
8000
10000
12000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Statistics Agency of the Republic of Kazakhstan
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Credit Ratings of KazakhstanIn March 2002, the US Department of Commerce an-nounced that Kazakhstan was a market-based economy, the first country in the CIS to attain this coveted sta-tus. The Commerce Department considered six criteria in determining the market- or non-market status of the Kazakh economy. Those criteria included the extent of currency convertibility, free bargaining for wage rates, foreign investment, government ownership or control of production, government control over the allocation of re-sources, and other appropriate factors. The Commerce Department will now use the standard market economy methodology in antidumping cases. This decision affects all current and future administrative procedures.
In 2002, international rating agency Moody’s awarded the rating of “investment class” to Kazakhstan, the first country among the CIS to receive this rating; Standard & Poor’s (S&P) and Fitch Rating, Ltd. followed in 2004.
In November – 2006, Standard & Poor’s raised the in-vestment credit rating of Kazakhstan on obligations in foreign currency from “BBB-” to “BBB” and long term sovereign rating on obligations in national currency from “BBB” to “BBB+”. S&P also raised the short-term sovereign rating on obligations in national currency from “A-3” to “A-2”. Short-term sovereign credit rating on obligations in foreign currency “A-3” and sovereign
rating “kzAAA” in national currency were confirmed. The forecast of all ratings is currently listed as “sta-ble”. Evaluation of transaction and currency conversion for non-sovereign maturities of Kazakhstan was raised from “BBB” to “BBB+”.
In June 2006 Moody’s Investor Service raised the invest-ment credit rating of the country on long-term state ob-ligations in foreign currency from “Baa3” level to “Baa2”, and long-term obligations and notes in foreign currency from “Baa1” level to “A2”.
The rating agency Moody’s confirmed rating “Baa1” on long-term state obligations in national currency and rat-ing “Ba1/NP” on long- and short-term bank deposits in foreign currency. The forecast for all ratings is “stable”.
In December 2006, Fitch Rating, Ltd., an international credit rating agency, reclassified the Kazakh currency (the Tenge) from “stable” to “positive”. It upgraded the investment credit rating of the country to “BBB” for long-term stock in foreign currency, “BBB+” for long-term stock in the national currency, and “F3” for the short-term stock in foreign currency.
In April 2007, Standard & Poor’s confirmed the long-term sovereign rating of Kazakhstan by the liability in foreign currency “BBB” and the long-term sovereign rating by the liability in the national currency “BBB+”. At the same time the short-term sovereign credit rating of the Repub-
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lic of Kazakhstan by the liability in the foreign currency “A-3” and the short-term sovereign rating by the liability in the national currency “A-2” were confirmed.
Kazakhstan is now included on the list of the 25 most at-tractive countries for investment opportunities, accord-ing to AT Kearney.
Doing Business (data of the World Bank) 2006 rank amond 175 countries
Country/Economy EaseofDoingBusinessRank
Singapore 1
New Zealand 2
United States 3
United Kingdom 6
Germany 21
Bulgaria 54
Kazakhstan 63
United Arab Emirates 77
Russia 96
Ukraine 128
Uzbekistan 147
In 2006 Kazakhstan was ranked 56th (compared to 61st in 2005) among 125 countries on the index of global competitiveness.
According to a report from the World Bank entitled “Do-ing Business 2007: How to reform,” Kazakhstan was ranked 63rd, up from 82nd a year before.
WEF Global Competitiveness Index 2006
Country/Economy Rank
Switzerland 1
Finland 2
Sweden 3
United States 6
Japan 7
China 54
Kazakhstan 56
Russian Federation 62
Bulgaria 72
Ukraine 78
Tajikistan 96
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STATE SuppORT FOR INVESTMENT
Legal Regulation of Investment Ac-tivity in KazakhstanThe legal framework protecting investors’ interests is fundamental to a favourable investment climate in Ka-zakhstan. The provisions of the Constitution of the Re-public of Kazakhstan recognise and protect private prop-erty and freedom of entrepreneurship.
Investors’ rights and interests are fully and uncondition-ally protected under the international treaties ratified by Kazakhstan. International treaties ratified by Kazakhstan have priority over national laws, and are applied directly, except in cases when an international law requires acts to be passed to implement the provisions.
Kazakhstan signed 40 treaties and ratified 36 agree-ments on mutual protection and encouragement of in-vestment (see Appendix 2).
The provisions of these agreements are of great impor-tance in regulating foreign investment relations. All the agreements include three main conditions to be accepted and applied by signatory states, in which the contracting parties undertake to:
- Create favourable conditions for investment and relat-
ed activities
- Provide suitable protection for foreign property
- Allow foreign investors to transfer their profit freely
In addition, the Law On Investment (see Appendix 1) ap-
plies to investment relations in Kazakhstan and outlines
the legal and economic basis of investment promotion,
guarantees protection of investor rights in Kazakhstan,
and designates measures of state support of investment
and dispute settlement between investors.
It also provides the definition of investment, which in-
cludes all types of property (except consumer goods),
subjects of capital lease upon signature of lease agree-
ments, and rights allocated by investors in the autho-
rised capital of a legal entity or in the accumulation of
fixed assets used for operations.
Legally, there is no difference between the concept of
foreign and domestic investors in Kazakhstan. All do-
mestic and foreign individuals and legal entities investing
in the country are considered to be investors with equal
rights and freedoms.
However, investment in some types of activities and/or
territories can be limited or restricted to ensure national
security under the Law on Investment.
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The Law on Investments in Kazakhstan
Guarantees the legal protection of investor activity on the territory of KazakhstanGuarantees the use and free movement of incomeGuarantees on government bodies’ controls to the investors activityAssures transparency of the government’s activitiesGuarantees against the possibility of nationalization and/or forced requisitionContracts stability guaranteesProvides for disputes settlement arbitrationEnsures measures of government support for investments
Guarantee of Legal Protection
Investors have the right to use their profits at their own
discretion, after paying all taxes and compulsory pay-
ments in accordance with legislation, and also to open
accounts in national and foreign currency at Kazakh
banks.
The confiscation of an investor’s property for state
needs is only allowed in exceptional cases, provided for
in Kazakh legislation. In the event of nationalisation,
any losses borne by investors will be compensated in
full.
The market value of any property requisitioned is paid to the investor. The assessment of the market value of requisitioned property may be appealed in court.
Under civil legislation, an investor has the right to re-dress for damages caused by acts passed by state au-thorities, which do not comply with the legislative acts of Kazakhstan, or as the result of any illegal activities (negligence) on the part of public officers.
Settlement of Disputes
Investment disputes can be solved through negotiations, with possible participation by experts.
If an investment dispute cannot be resolved by nego-tiation, it should be settled in accordance with inter-national treaties and legislative acts of Kazakhstan in Kazakh courts, or at international arbitration courts, as defined by an agreement between the parties. On 4 Oc-tober 1995, Kazakhstan ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 10 June 1958.
Currently, Kazakhstan is a party to the Washington Convention on the Settlement of Investment Disputes between States and Nationals of other States dated 18 March 1965 (ICSID Convention). The provisions of this convention came into effect on 21 October 2000.
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Non-investment disputes should be resolved in accor-dance with the legislation of Kazakhstan.
The Stability of Agreement Terms
The stability of agreement terms is guaranteed, except in cases where the changes are made by the agreement of parties, and except for legal acts:
- Regulating the procedure and conditions of import, production, and sale of excisable goods
- With amendments created with the objective of ensur-ing national and environmental security, public health, and morality
Assignment
If a foreign state or authorised agency makes payments in favour of an investor under a guarantee or insurance agreement that applies to investment made in Kazakh-stan, the transfer of investor’s rights to another person (assignment) is lawful only if such person fulfils certain obligations under agreements.
Investment Incentives in KazakhstanThe goals of state support for investment are to create a favourable investment climate for economic develop-
ment, foster investment in new and existing production
facilities using modern technology, improve Kazakhstan’s
workforce skills, and protect the environment. State
support for investment implies granting investment in-
centives such as:
- Investment tax incentives
- Customs duty exemptions
- In kind state sponsored grants.
The government of Kazakhstan approved the list of eco-
nomic activities (“the List”) that are priorities for Ka-
zakhstan’s development. In addition, it defines the con-
ditions for conducting state investment support actions.
In particular, it sets the terms of the Incentives, which
depend on the investment amounts and types of eco-
nomic activities.
In the event the established maximum amount of invest-
ment is exceeded, the terms of the Incentives may be
changed by a relevant government decree.
Government support measures are taken by signing a con-
tract between the authorised body (the Committee for In-
vestment under the Ministry of Industry and Trade) and a
Kazakh legal entity implementing an investment project
in the sectors indicated in the List.
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Types of investment incentives
Investmenttaxincentives
Corporate income tax up to 10 years*
Property tax up to 5 years
Land tax up to 5 years
Customdutyexemption
For imported equipment and associated fittings used for the implementation of an investment project
Stategrants
Granting without compensation of land, buildings, instillations, vehicles, and equipment and other assets which are in State or municipal property
*on corporate income tax (CIT):
• Newenterprises(registeredintheyearofanofficialcon-
tract) are exempt from income generated from investment activity,
for a period up to 10 years.
• Acting enterprises may qualify for the right to write-off
thecostofpurchasedfixedassetsfromtotalannualincome,fora
period up to 10 years.
Conditions of Incentives
Only those implementing projects pertaining to the eco-
nomic spheres indicated on the List and those which
invest in the fixed assets of a Kazakh legal entity are
entitled to the aforementioned investment incentives;
incentives are awarded only if an entity submitting an
investment project application presents relevant docu-
mentation confirming corresponding financial, technical,
and organisational capabilities.
Legal entities entitled to a special tax regime, mining
contracts, and fixed assets provided to a Kazakh legal
entity as a state grant in kind have no tax incentives.
In Kind State Grants
Investors may receive state grants in kind (“Grants”):
land plots, buildings, structures, machinery and equip-
ment, computers, measuring and control devices, vehi-
cles, production, and economic inventory.
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Grants are rendered into a temporary, gratis use or on
the basis of temporary, gratis land use with subsequent
transfer into ownership or land use should investment
obligations be fulfilled as specified under contracts.
The Grant should be no more than 30% of the invest-
ment in the fixed assets of a Kazakh legal entity. If the
assessed value of a requested state grant in kind sur-
passes the maximum value, a Kazakh legal entity may
receive this property, paying for the difference between
its assessment value and the maximum amount of the
state grant in kind.
Customs Duty Exemption
Entities may be exempted from customs duties during
the import of equipment and spare parts that are essen-
tial for an investment project.
Entities are exempted from customs duties for the term
of a contract, but no more than five years from the con-
tract registration date.
Time constraints of granting tax incentives depend
on volume of investments into fixed assets
Volumeofinvestments(mln,USD)
Validityoftimeconstraints,years
CorporateIncomeTax(CIT)
Propertytax,landtax
chargeoff
release
Up to 11,3 (including) 1-5 3 3
From 11,3 to 22,6 (including)
1-5 4 4
From 22,6 to 112,7 (including)
1-5 5 5
From 112,7 to 125,7 (including)
1- 6 6 5
From 125,7 to 138,7 (including)
1-7 7 5
From 138,7 to 151,7 (including)
1-8 8 5
From 151,7 to 164,7 (including)
1-9 9 5
More than 164,7 1-10 10 5
1 USD = 126 KZT (as of September 2007)
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Requirements to Apply for Investment Incentives
The authorised body receives and registers an applica-tion if the following conditions are met:
- a notarised copy of the legal entity’s certificate of in-corporation
- a notarised copy of the legal entity’s statistical card
- a notarised copy of the legal entity’s articles of asso-ciation
- a business plan for an investment project meeting re-quirements set by the authorised body
- notarised copies of feasibility studies for the construc-tion, assembly and purchase of fixed assets used when implementing an investment project
- notarised documents indicating the sources of, and guarantees for project financing (if a project is funded from equity capital, a written confirmation of capital availability is submitted)
- documents confirming the amount (cost) of the state grant in kind requested by the Kazakh legal entity and a preliminary approval of the grant
- a balance sheet as of the start date of the quarter of the year in which the application was filed
- a document by the tax authority in the location where
the entity was registered, certifying absence of taxes payable, pension taxes payable, and outstanding social deductions payable.
Priority Types of ActivityThe list of priority activities on which investment incen-tives are given, ratified by the resolution of the Govern-ment of Kazakhstan # 436 (dated 8 May 2003). The list consists of 36 sectors, including 245 types of activity according to General classifier of types of economic ac-tivity, including:
Code Categories and sub-categories of activities
01.1 Crop production
01.2 Cattle breeding
01.4 Provision of services relating to crop productionand cattle breeding, excluding veterinary;landscaping
02.0 Forest growing and harvesting
05.0 Fishery, fish breeding and provision of related services
15.1 Meat and meat foods production
15.2 Fish and fishery products processing and canning
15.3 Fruit and vegetables processing and canning
15.4 Production of vegetable and animal oils and fats
15.6 Production of flour, cereals, starch and starch products
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15.7 Production of ready-to-use animal feedstuff
15.8 Production of other food products
15.9 Production of beverages
17.1 Textile fibre spinning
17.2 Weaving industry
17.3 Finishing of fabrics and textile products
17.4 Manufacture of finished textiles, excluding garments
17.5 Manufacture of other textile products
17.6 Manufacture of knitwear
17.7 Manufacture of knitted fabrics
18.1 Manufacture of leather clothes
18.2 Manufacture of textile clothes
18.3 Finishing and dyeing of fur; manufacture of furs
19.1 Skin curing and leather finishing
19.2 Manufacture of suitcases, bags and otherleather goods
19.3 Shoe making
20.1 Bucking and reducing of timber; wood impregnation
20.2 Manufacture of veneer, plywood, fiberboardsand wainscots
20.3 Manufacture of wooden building productsand millwork
21.1 Production of paper pulp, paper and cardboard
21.2 Manufacture of paper and cardboard goods
22.1 Publishing activities
22.2 Printing activities and provision of services inthis sphere
23.1 Production of coke
23.2 Production of petroleum products
24.1 Production of common chemicals
24.2 Production of agrochemicals
24.3 Production of paints and varnishes
24.4 Production of pharmaceuticals
24.5 Manufacture of soap and other householddetergents (cleansers, polishes, etc.), perfumesand cosmetics
24.6 Manufacture of other chemicals
24.7 Manufacture of artificial and synthetic fibres
25.1 Manufacture of rubbers
25.2 Manufacture of plastics articles
26.1 Production of glass and glass articles
26.2 Manufacture of ceramics (not to be used inconstruction)
26.3 Manufacture of ceramic tiles and boards
26.4 Manufacture of bricks, roof tiles and otherterra cotta construction materials
26.5 Production of cement, lime carbonate andplaster
26.6 Manufacture of concrete, plaster and cementproducts
26.7 Cutting, processing and finishing of decorativeand building stone
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26.8 Manufacture of other non-metallic mineralproducts
27.1 Production of cast-iron, steel and ferroalloys
27.2 Tube making
27.3 Other types of cast-iron and steel primaryprocessing
27.4 Non-ferrous metals production
27.5 Metal casting
28.1 Fabrication of construction metal structures
28.2 Manufacture of metal tanks, radiators andcentral heating boilers
28.3 Manufacture of steam boilers, excluding centralheating boilers
28.5 Metal working and coating; machine buildingprincipal processes
28.7 Fabrication of other ready-to-use metal products
29.1 Manufacture of machinery
29.2 Manufacture of other general-purpose equipment
29.3 Manufacture of farm and forestry machineryand equipment
29.4 Manufacture of machine tools
29.5 Manufacture of other special-purpose machineryand equipment
29.6 Manufacture of arms and ammunition
29.7 Manufacture of household appliances
30.0 Manufacture of office equipment and computers
31.1 Manufacture of electric motors, generatorsand transformers
31.2 Manufacture of power distribution and controlequipment
31.3 Manufacture of insulated wires and cables
31.4 Manufacture of electric cells (accumulatorsand primary cells)
31.5 Manufacture of electric bulbs and lightingequipment
31.6 Manufacture of another electric equipment
32.1 Manufacture of electric and radio parts
32.2 Manufacture of transmitting equipment
32.3 Manufacture of audio and video receiving,recording and displaying equipment
33.1 Manufacture of medical equipment, includingsurgical equipment and orthopedic devices
33.2 Manufacture of instrumentation, excludingflow processes monitoring and control equipment
34.1 Manufacture of automobiles
34.2 Manufacture of automotive bodies, full- andsemitrailers
34.3 Manufacture of spare parts and accessoriesfor vehicles and engines
35.1 Building and repairing of vessels
35.2 Manufacture of railway locomotives and cars
35.3 Aircraft and spacecraft building
35.4 Manufacture of bicycles and motorcycles
36.1 Manufacture of furniture
36.3 Manufacture of musical instruments
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36.6 Manufacture of goods not included in othercategories
37.2 Non-metallic trash and scrap recycling
40.1 Production and distribution of electric power
40.2 Production and distribution of gas fuel
40.3 Hot water and steam supply
41.0 Intake, purification and distribution of water
45.2 Construction of buildings and structures
55.1 Hotel services
55.2 Short-term accommodation provided by establishments other than hotels
60.1 Railway transportation services
60.2 Transportation by other surface transport
60.3 Transportation by pipelines
61.1 Marine transportation
61.2 River transportation
62.1 Scheduled air transportation
62.2 Unscheduled air transportation
62.3 Space transportation
63.1 Cargo handling and storage
63.2 Other support services related to transportatio
64.2 Telecommunications
92.1 Activities connected with cinematography orvideos
92.6 Sports activities
92.7 Recreation and entertainment services
Institutional and Financial Support for InvestmentThe Kazakh government took important steps in early 2006 to further improve the country’s competitiveness and the role it plays in the region through adopting the principles of efficient corporate governance and management, greater transparency and accountabil-ity, and boosting its financial markets. One of these steps was to set up the Kazyna Sustainable Develop-ment Fund.
The Joint-Stock Company Sustainable Development Fund “Kazyna” was established on the basis of a Government regulation on 15 April 2006, itself a realization of a Presi-dential Decree: “About the measures for further promo-tion of national competitiveness within the bounds of in-dustrial innovation policy of the Republic of Kazakhstan”, dated 16 March 2006.
MISSION
To effectively manage the state’s investments and to di-versify and increase the competitiveness of the economy of Kazakhstan.
ROLES
• Active shareholder
• Coordinator of development institution’s activities
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• Implementation of break-through projects
• Partner for big investors
• Coordinator of promoting Kazakhstani businesses into external markets;
PRINCIPLES
• Strategic management of the Development Institu-tions
• Operational independence of the Development Insti-tutions
• Avoidance duplication of Development Institution ac-tivities
• Use of the Board of Directors as a mechanism to man-age the Development Institutions
• Power to assign, discharge, and define remuneration system for the top management of the Development In-stitutions
In an effort to develop the export-oriented non-raw goods and services sectors, the Government formed the national institutions of development, which have to di-vide the risk between the investors in the realization of projects that allow modifying at the long-term outlook and then to reduce the structure of raw directivity of the economy of Kazakhstan.
TASKS PERFoRMED By DEvELoPMENT INSTITUTES WITHIN THE FUND STRUCTURE
Development Bank
Long term debt, export opera-tion,financialleasingandproj-ectfinancing
Investment Fund Share holding in and direct financingofprivatesectorinitia-tives
SME Support Fund
Financing of microcredit or-ganizations, guaranteeing the obligations of entrepreneurship tosecond-tierbanks,financialleasing
State Insurance Corporation
Insuring Kazakh non-raw mate-rial export and investments
Investment Promotion Agency “Kazinvest”
Attracting foreign investments and promoting Kazakh capital abroad
Center for Marketing and Analytical Research
Analysis of markets and economic policy, Export devel-opment and promotion, Struc-turingofinvestmentprojectsand attracting investments
National Innovation Fund
Participation in venture fund, building innovative infrastruc-turecomponents,financinginnovativeprojects
Kazyna Capital Management
Providing investment to Kazakh-stan and international funds of direct investment (infrastructure funds, venture funds)
Social Innovation Technology
Public-Private Partnership in social sectors
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WhERE TO INVEST?
The development of Kazakhstan through the non-oil sector is the route to securing the long-term economic success of the country. The President of Kazakhstan, Nursultan Nazarbayev, has emphasized the necessity of developing domestic export-oriented production and building a knowledge based economy that is notoverly depended on natural resources.
To support this aim, the Strategy for Industrial and In-novation Development for 2003-2015 was adopted.
Having adopted this strategy, Kazakhstan has commit-ted to pursuing models of sustainable economic develop-ment. Its implementation should result in a competitive country widely integrated into the global economy, sup-plying 70% of manufactured goods and services to the foreign market. The main factor of economic develop-ment is the creation of equally competitive conditions for domestic companies.
The Government of Kazakhstan, in partnership with J.E. Austin Associates, Inc. and a team led by Harvard Uni-versity Professor M. Porter, carried out the study “As-sessment of marketability of acting and potentially ad-vanced sectors of Kazakhstan economy and formulating recommendations on their development” designed to identify economic sectors with the greatest potential for
sustainable economic achievement. The study analyzed all industries and sectors of the Kazakh economy (about 150 in total) and prioritized 23 with the highest growth potential, including:
• Construction
• Commercial banking services
• IT
• Supporting industries for oil and gas sector
• Industry machinery – instruments
• Chemical industry
• Leather industry
• Cargo transportation
• Food processing industry
• Animal breeding
• Biotechnologies
• Supporting industries for mining industry
• Metallurgy
• Petrochemical industry
• Textile industry
• Passenger transportation
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• Technologies – nuclear materials
• Plant growing
• Education
• Industry machinery building - transport
• Construction materials
• Wood processing – Furniture
• Investment banking services/ assets management
And7perspectivebrancheshavebeen identified
aspilot“clusters”:
• Foodproduction
• Productionofoil-gasmachinery;
• Textileproduction;
• Tourism;
• Metallurgicproductionproducing;
• Transportandlogisticalservices;
• Productionofconstructionmaterials.
Metallurgic Processing Cluster
• Vast resources of ferrous and non-ferrous metals.
• Qualified labor force and solid base of specialists in research and development.
• Growing domestic and foreign markets for value add-ed metal products.
• Industrial zone “Metallurgy and Metall-Processing” in Temirtau city has been created (area 9,2 mln. sq. m).
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Oil and Gas Machinery Cluster
• Large demand on high-tech equipment and products for the oil and gas industry due to increase of produc-tion.
• High-level of production, labor, scientific base, and transport infrastructure.
Construction Materials Cluster
• Increasing demand for construction materials (imple-mentation of the State Program of the House-Building Development for 2008-2010 years).
• Large market and high demand for construction mate-rials.
• Growing rates of growth of import of construction ma-terials.
• Significant stocks of raw material for manufacture of building materials.
• Industrial zone “Construction Materials” in Astana city has been created (area 6 mln. sq. m).
• Collaboration with large foreign companies in produc-tion of construction materials:
- “Steinert Glass”
- “Heidelberg Cement”
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Textile Cluster
• Free economic zone “Ontustik” in South Kazakhstan region with almost no taxes (area 2 mln. sq. m).
• Large raw material resources (South Kazakhstan, Uz-bekistan, Turkmenistan, Tajikistan).
• Neighborhood of potential markets (Central Asian and CIS countries, Russia, Middle East and China).
• Low production costs. Apart from low cost of cotton fiber, Kazakhstan has very low tariffs for electric power and natural gas. Average monthly salary in Kazakhstan is approximately 300 US dollars.
• Availability of raw materials. In 2004 the total cot-ton-wool harvest was 402 thousand tons, which was pro-duced to 138.9 thousand tons of cotton fiber.
• Access to infrastructure. Kazakhstan has a ramified net work of automobile and railway roads connecting Ka-zakhstan with Russia, China, Uzbekistan and other coun-tries.
Food Processing Cluster
• More than 10% of the labor force is employed in the food industry (more than 5000 companies)
• Regional clusters: grain processing in north region, fruit and vegetable in south region, dairy production in Kostanai and Almaty regions has been created
• Opportunities and prospects for development of flour-and-cereals industry, milk and meat industries, produc-tion of soft drinks, vegetable oil, processing of fruits and vegetables etc.
• Positive tendency to growth in the domestic market and closeness of large markets in the neighboring coun-tries
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Transport Logistics Cluster
• Hub Europe - Asia
• Free Economic Zone «Port Aktau»
• Transport-logistics centers:
- Almaty
- Eastern Gates (in the border with China)
- Western Gates (in the border with Russia)
• New Eurasian Logistics and Transport Initiative (NELTI) – transport road «Beijing – Bakhty – Berlin»
Tourism cluster
• Historical places (e.g. Turkestan, Otyrar, Taraz etc.)
• Legacy of nomadic culture
• Pristine landscapes (mountains, forests, lakes & des-erts)
• Outdoor activities such as: alpine skiing, hiking & camping
• Visitors come to Kazakhstan for a wide variety of rea-sons: Cultural, Ethnic, Hunting, Health-care & Sports
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Free Economic Zones (FEZ)
As of September 2007, there are 4 free economic zones in Kazakhstan:
• Astana - Specializing in industry, construction and construction materials (www.sezastana.kz)
• Alatau - Specializing in the IT sector (www.aitc.kz)
• Ontustuk - Specializing in the textile industry (www.textilezone.kz).
• Aktau Seaport - Specializing in transport and logistics (www.mangystau.kz);
Why FEZ? (Free Economic Zone)
The Free Economic Zones (FEZ) offer a number of tax incentives
• Companies are exempt from paying corporate tax, land tax and property tax
• A zero rate will be applied to the facilities located in-side FEZ when computing land tax
• A zero rate will be applied to the average annual value of facilities when computing property tax
• Value added tax (VAT) will not be applied to any pro-ceeds and/or services earned within the Free Economic Zones
Astana – New City
Marine port AqtauIT-Park
Ontustyk
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DOING BuSINESS
Choosing a Legal StructureThere are a several ways to legally form an organization
and/or company in Kazakhstan. These include:
1. Limited Liability Partnership (LLP), also referred to as
“TOO” in Russian
2. Joint-Stock Company (JSC), also referred to as “AO”
in Russian
3. Full Partnership
4. Additional Liability Partnership
5. Production Co-Operative
6. State Enterprise
Foreign entities planning to establish a presence in Ka-
zakhstan may also do so in the form of a local branch or
representative office. All local branches and representa-
tive offices still need to be registered with the Ministry
of Justice.
Limited liability partnerships and joint-stock companies
are the most common type of commercial organizations.
Limited Liability Partnership
A limited liability partnership (LLP) is a separate entity
established by one or more individuals and/or entities
(often referred to as participants), and is a legal entity
distinct from its founding partners. The participants of a
LLP are not liable for the obligations of the LLP and risk
only the loss of their contributions into the LLP.
The minimum charter capital required for the formation
of a LLP is approximately USD800. At least a quarter of
the stated charter capital has to be paid prior to regis-
tering with the state and the balance must be paid in
full within a year of registering the LLP with the state.
If an LLP decides to pay the minimum amount for the
charter capital, it is necessary to pay the amount in full
when registering the company with the state. Should the
charter capital exceed USD 154, 000, the sum must be
confirmed by an independent valuation.
The advantages of a LLP are: (I) a less complicated cor-
porate structure; (II) a low capital requirement; (III) par-
ticipatory interests are not deemed to be securities under
law that would otherwise require issuance, registration,
distribution and paying of shares; (IV) more flexibility in
decision making. In addition, a LLP may keep dividends on
its books until the dividends have been paid.
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The main disadvantage of a LLP is that the equity inter-
est of its capital cannot be readily pledged or assigned
as collateral for a borrower’s obligations under a loan
agreement (as is the case with joint-stock companies).
Similar to the shareholders of a joint-stock company
(JSC), the participants of a LLP have pre-emptive pur-
chase rights.
Joint-Stock Company
A joint-stock company (JSC) is a legal entity that issues
shares/securities in order to raise capital to fund future
business operations. A JSC is liable for its obligations
to the extent of the value of its property. A commer-
cial joint-stock company may also issue bonds and other
types of securities.
The charter capital of a JSC is comprised of payments
from its founders for shares of the company at its par
value and payments from investors for shares of the
company in the securities market. The minimum char-
ter capital necessary to form a JSC (which is paid by its
founders) is approximately USD 384, 400 and is to be
paid within 30 days of registering the JSC with the state.
Within a month of registering the JSC with the Ministry of
Justice, the JSC must submit the documents for the state
registration of an issue of authorized securities.
The main advantages of a JSC are (I) public trading of shares; (II) number of shares in the JSC’s capital corre-sponds to the voting power of the shareholders; (III) ad-ditional shares may be issued to raise funds for the JSC.
The disadvantages of a JSC are (I) more complex cor-porate structure; (II) higher capital requirement; (III) burdensome process for registering the share issuance; (IV) excessive internal requirements to enter into major transactions.
Registration Requirements
The procedures for registering a Kazakh company (or re-gional office/branch) are quite similar and are carried out by the Ministry of Justice within 10 to 15 working days. The standard registration fee is approximately USD55.
Along with a standard application letter, the documents necessary for registering a legal entity include, but are not limited to, the following:
• Charter and Foundation Agreement (if the entity is founded by two or more individuals)
• Documentation stating that a decision has been made to establish a company
• Extract from the trade registrar or any other docu-ment confirming the legal status of a foreign founder, such as a certificate of incorporation. If the founder is a
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foreign citizen, a photocopy of his/her passport is neces-sary
• Memorandum and articles of incorporation from the foreign founder
• Certificate from the Kazakhstan tax authorities con-firming that the founders do not have any outstanding tax payments
• Confirmation of the address of the entity in the form of a lease agreement or a document confirming that the entity has secured an office
• Proof of payment of the state registration fee
Documents from the foreign founder must be certified by a notary in the country of incorporation.
The time required to register a business is approximately 10 business days. Once the entity has been granted ap-proval and registered by the state, it will receive a certif-icate of state registration, a statistical card and a certifi-cate of tax registration. Thereafter the newly registered company may procure a seal and open bank accounts.
Below are pertinent legislative acts regulating the es-tablishment, registration, status, management structure and liquidation of a Kazakh company and/or subdivision of a company in Kazakhstan:
• Civil Code (General Part) – 27 December, 1994
• State Registration of Legal Entities and Record (№2198) – 17 April, 1995
• Registration of Branches and Representative Offices
• Business Partnerships (№2255) – 2 May, 1995
• Limited and Additional Liability Partnerships (№220-I) – 22 April, 1998
• Joint Stock Companies (№415-II) – 13 May, 2003
• Bankruptcy (№67-I) – 21 January, 1997
Tax Information
Overview
Kazakh and foreign entities, representative offices and branches must register with the Kazakhstan tax authori-ties. Tax registration is carried out automatically after the entity has filed registration documents with the Min-istry of Justice.
The national taxes applicable to an investor’s business include:
• Corporate income tax
• Tax withheld at the source of payment from the in-come of non-Kazakh residents
• Individual income tax
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• Social tax
• Value added tax
• Customs duties and levies
In addition, there are a number of other taxes such as land, property, and transport tax and compulsory pay-ments such as business registration and license fees for the right to carry out certain businesses, and an environ-mental pollution fee.
Employers and employees are required to make manda-tory contributions equally of 10% of their monthly wage to a pension fund.
Taxation of Business Operations
The corporate income tax is 30%. Dividends are taxed at 15% and may be reduced under an applicable double tax treaty.
A branch or regional office is taxed at 15% and may be reduced by up to 5% under an applicable double taxation treaty.
Non-Kazakhstan residents, who did not establish perma-nent residency, are taxed at the following rates:
• Dividends and interest - 15%
• Insurance premiums payable under insurance con-tracts - 10%
• Insurance premiums payable under re-insurance con-tracts - 5%
• Income generated by international transportation ser-vices - 5%
• Royalties, property lease income, income from sales of goods and services - 20%
Withholding taxes may be reduced under the terms of a relevant double tax treaty.
Legal entities that are subject to corporate income tax must pay the tax prior to the 20th day of each month. The amount of monthly taxes is based on a company’s estimated annual income.
A corporation’s annual tax return must be submitted pri-or to March 31st (of the following reporting year).
Personal Taxation
Beginning 1 January, 2007 person income tax (for both Kazakh nationals and foreign workers) is 10%.
Any income from dividends orinterest (except for interest from cumulative insurance contracts) is taxable at 15%. In-come from attorneys and private notaries is taxed at 10%.
Individuals must pay personal income tax prior to the 20th day of each month, and an annual tax return must be filed prior to 31 March.
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Social tax is calculated on a regressive scale from 20%
to 7% for Kazakhstan nationals and from 11% to 5% for
foreign workers. Foreign workers are defined as foreign
citizens working in Kazakhstan with a visitors work per-
mit. Employers are also required to pay the mandatory
social insurance contribution of 2% of gross salary of
employees to the State Social Insurance Fund.
Foreign employees do not qualify for the Kazakhstan
pension fund.
Other Taxes
Value Added Tax
Most goods and services either sold or imported into Ka-
zakhstan are subject to value added tax (VAT) of 14%. A
vendor must register within 15 days after the end of the
sales period in question to obtain a VAT account if sales
exceeded 15,000 monthly calculation indices (approxi-
mately USD132,000). The company/merchant can claim
a credit to recover the VAT that is paid on purchases
used in commercial (taxable) activities.
Certain transactions such as: exported goods, interna-
tional transportation services and the sale of selected
goods in special economic zones are exempt from VAT.
Customs Duties
Customs duties are paid on most goods imported into Kazakhstan. Customs duties vary and are determined by customs value of the goods. There are some cases where import duties are exempt, such as in the case of imports made by mineral developers (known as subsoil users) as long as the exemption is stipulated in the im-port contract.
Foreign individuals in KazakhstanForeign individuals are required to have valid passports and visas to enter Kazakhstan, with the exception of citizens from certain CIS countries. These individuals are required to have a valid passport and fill out an entry application.
There are several different visas for entry into Kazakh-stan, and include the following:
• Investor visa:
An investor visa is issued to general managers of for-eign companies participating in investment projects in Kazakhstan. An investor visa can be issued for up to 2 years. A single-entry investor visa is issued upon appli-cation of a foreign company, an Investment Committee from the Ministry of Industry and Trade or by the Ministry of Foreign Affairs. Multiple-entry investor visa is issued in coordination with the Ministry of Foreign Affairs.
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• Business visa:
A business visa is issued to individuals traveling to Ka-
zakhstan for business purposes, and includes the follow-
ing: business trips, business negotiations, consultation
and auditing services, tenders, conferences, exhibitions,
establishing joint ventures, concluding contracts, market
research, trade and international transportation. A busi-
ness visa may be issued for up to one year and is renew-
able thereafter.
A business visa is generally issued upon an invitation for
a company and is granted by the internal affairs authori-
ties.
Business visas may also be issued solely upon an invi-
tation of a company registered in Kazakhstan and ex-
tended to citizens from the following countries: Andorra,
Argentina, Australia, Austria, Belgium, Brazil, Bulgaria,
Canada, Chili, Costa Rica, Cuba, Cyprus, Czech Republic,
Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Iceland, Ireland, Israel, Italy, Jamaica, Japan,
Korea, Latvia, Liechtenstein, Lithuania, Luxembourg,
Malta, Nauru, the Netherlands, New Zealand, Norway,
Poland, Portugal, Romania, San Marino, Singapore, Slo-
vakia, Slovenia, South African Republic, Spain, Sweden,
Switzerland, Turkey, United Kingdom, Uruguay, USA and
the Vatican.
Single-entry business visas may be issued by filling out
an application and submitting it to a Kazakhstan con-
sulate in the following countries: Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany,
Greece, Iceland, Ireland, Italy, Japan, Korea, Liechten-
stein, Luxembourg, Malaysia, Monaco, the Netherlands,
New Zealand, Norway, Portugal, Singapore, Spain, Swe-
den, Switzerland, United Kingdom and USA.
• Work visa:
A working visa is issued based on a work permit and an
invitation from the employing company. It may also be
issued to foreigners who intend to work in Kazakhstan,
but do not require a work permit. Working visas are also
issued to the family members of foreign individuals who
have already obtained a work visa.
Issuance of a visa to a foreign individual may be refused
in the case of:
• Failure to file all of the necessary documents for the
visa
• Providing false information when obtaining a visa
• Prior expulsion from Kazakhstan
• Violating Kazakhstan laws during a prior stay in Ka-
zakhstan
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Registration of Foreign Individuals in KazakhstanForeign individuals are required to register with the in-ternal affairs authorities within 5 calendar days following their arrival to Kazakhstan. Passports are then registered for the requested period (this may not exceed the validity period of the visa). Foreign individuals entering Kazakh-stan pursuant to a work visa are registered for period ending with the expiration of the work permit. Visas that are extended need to have their registration extended as well. Duration of Stay for Foreigners in Kazakhstan
A foreigner may have his/her stay in Kazakhstan reduced by the internal affairs authorities, in the event that he/she violated Kazakh law or in the absence of grounds for further stay in Kazakhstan. The period of stay of a for-eign individual in Kazakhstan is reduced by way of annul-ment of his/her visa and granting of new exit visa stating the last date of exit from Kazakhstan. Should a foreigner fail to leave Kazakhstan within the stated grace period, that individual will be subject to administrative liability and face expulsion from Kazakhstan.
Expulsion of Foreign Individuals from KazakhstanResolution to expel a foreign individual is made by the court, with the rare exception when an individual com-
mits an action against national security or public order.
The failure of a foreigner to comply with expulsion can
lead to punishment ranging from a fine up to 1 year in
jail. The entry, stay, and exit of foreigners is governed by
the following acts of legislation:
• Migration of Population (№204-I) – 13 December, 1997
• Citizenship of the Republic of Kazakhstan (№1017) – 20
December, 1991
• Legal Status of Foreign Individuals in the Republic of
Kazakhstan (№2337) – 19 June, 1995
• Rules of Verification of Solvency During Stay in Ka-
zakhstan of Foreign Individuals and Stateless Persons
Intending to Obtain Permission for Permanent Residence
in Kazakhstan (№1185) – November 26th, 2003
• Certain Issues of Legal Regulation of Stay of Foreign
Individuals in the Republic of Kazakhstan (№136) – 20
January, 2000
Laws covering the entry and stay of foreigners in Ka-
zakhstan and illegal immigration are provided in the fol-
lowing pieces of legislation: Joint Order of the Minister
of Internal Affairs dated 9 April, 2004 (№215); Minister
of Foreign Affairs dated 14 April, 2004 (№08-1/93) and
the Chairman of the Migration and Demography Agency
dated 14 April, 2004 (№35-n).
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AppENDIx
Appendix1
Law 373-11 of the Republic of Kazakhstan on Investments
8 JANUARY 2003 (AS AMENDED BY LAW 48-111 OF THE REPUBLIC
OF KAZAKHSTAN ON 04.05.05)
This Law shall govern the relations associated with in-
vestments in Kazakhstan, define the legal and economic
framework for encouraging investments, guarantee the
protection of the rights of investors making investments
in Kazakhstan, and establish measures for state support
for investments and procedures for settling disputes that
involve investors.
CHAPTER 1. GENERAL PROVISIONS
Article1.DefinitionsofMainTermsasUsedinthisLaw
As used in this law the term:
1) “Investments’’ means all types of assets, other than
private consumption goods, which are invested by an
investor in the authorized capital of a legal entity or in
increasing the fixed assets used in business activities,
including assets under capital lease from the date of
the lease agreement as well as the rights thereto;
2) “Investment Activity” means an activity of an indi-
vidual or a legal entity related to participating in the
authorized capital of business organizations, or creat-
ing or increasing fixed assets used in operations;
3) “Investment Preferences” means advantages of a tar-
geted nature, which are granted in accordance with
the laws of the Republic of Kazakhstan to Legal Enti-
ties of the Republic of Kazakhstan which implement
Investment Projects;
4) “Investment Project” means a set of measures, which
envisage Investments in establishing new or expand-
ing and renovating existing production operations;
5) “Investment Dispute” means a dispute arising from
contractual obligations between investors and state
authorities in connection with the Investment Activi-
ties of the investor;
6) “Investor” means individuals and legal entities which
make Investments in the Republic of Kazakhstan;
7) “State Grants in Kind” means assets owned by the
Republic of Kazakhstan, which are transferred free of
charge into temporary use or tenure of a legal entity
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of the Republic of Kazakhstan for implementing an
Investment Project and subsequently conveyed free
of charge into ownership or land tenure;
8) “Contract” means an investment agreement stipulat-
ing Investment Preferences;
8-1) “Minority investor” is an investor who realizes the
investment at the rate less 10% of the voting stock
(less 10% of the voices from the total voices of partici-
pants);
9) “Model Contract” means a standard contract ap-
proved by the Government of the Republic of Kazakh-
stan which is used when making Contracts;
10) “Authorised Body” means the central executive body
which is directly authorised to make Contracts and
monitor Contract performance;
11) “Legal Entity of the Republic of Kazakhstan” means a
legal entity, including a legal entity with foreign par-
ticipation, which is incorporated in accordance with
the procedure established by the laws of the Republic
of Kazakhstan.
Article2.LegislationonInvestmentinKazakhstan
1. The legislation of Kazakhstan on Investments shall be
based on the Constitution of the Republic of Kazakhstan
and consist of this Law and other regulations of the Re-
public of Kazakhstan.
2. This Law shall not regulate the relations associated with:
Investments from the state budget funds;
Investments in non-profit organizations, including for
educational, charitable, scientific or religious purposes;
3. Regulations of this rule are used in the part, which
doesn’t contrary to such rules of the Republic of Kazakh-
stan, relations occurred by the realization of the invest-
ments and relative to the incidence of the other rules of
the Republic of Kazakhstan.
4. If an international treaty that has been ratified by the
Republic of Kazakhstan sets forth the provisions other
than those which are contained in this Law, then the pro-
visions of such international treaty shall apply.
Article3.TypesofInvestments
1. Investors shall have the right to invest in any property
and types of business activity other that those specified
in legislative acts of the Republic of Kazakhstan.
“The rights and obligations of the investors in respect of
objects and types of the entrepreneurial activity in which
are realized the investments are determined by this rule,
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the others legislations of the Republic of Kazakhstan and
by the applicable agreements”.
2. The legislative acts of the Republic of Kazakhstan may
define the types of activities and (or) territories in respect
of which Investments shall be either limited or prohibited
as necessary for protecting the national security.
CHAPTER 2. THE LEGAL REGIME OF INVESTMENTS
Article4.TheGuaranteeofLegalProtectionofInvestor’sActivitiesintheTerritoryoftheRepublicofKazakhstan
1. Investors shall be granted full and unconditional pro-
tection of rights and interests, which is ensured by the
Constitution of the Republic of Kazakhstan, this Law and
other regulations of the Republic of Kazakhstan, as well
as international treaties ratified by the Republic of Ka-
zakhstan.
2. Investors shall be entitled to compensation of damage
caused by adoption by state authorities of acts which
do not comply with the legislative acts of the Republic
of Kazakhstan, as well as damage resulting from illegal
actions (failure to act) of officials of such authorities in
accordance with the civil legislation of the Republic of
Kazakhstan.
3. The Republic of Kazakhstan shall guarantee stability of
terms and conditions of Contracts made between Inves-
tors and state authorities of the Republic of Kazakhstan,
except where the Contracts are amended upon agree-
ment of the parties.
These guarantees shall not apply to:
1) changes in the legislation of the Republic of Kazakh-
stan and (or) entry into force and (or) amendments to
the international treaties of the Republic of Kazakh-
stan which modify the procedures and terms and
conditions of import, production and sale of excisable
goods;
2) amendments which are made to legislative acts of the
Republic of Kazakhstan with an aim of ensuring nation-
al security, ecological safety, public health and ethics.
Article5.TheGuaranteesforUsingIncome
Investors shall have the right:
1) to use at their own discretion the income from their
activities after the payment of taxes and other com-
pulsory payments in accordance with the laws of the
Republic of Kazakhstan;
2) to open bank accounts with banks within the Republic
of Kazakhstan in the national and (or) foreign cur-
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rency in accordance with the banking and currency
laws of the Republic of Kazakhstan.
Article6.Thepublicityofactivityofthestateauthoritiesinrespectofinvestorsandtheprovidingaccessoftheinvestorstotheinformationpresentedtherealizationoftheinvestmentactivity.
1. The official messages of the state authorities of the
Republic of Kazakhstan and statutory legal acts infring-
ing on investor’s interests are published by way of deter-
mined legislation of the Republic of Kazakhstan.
2. Easy access to the information about the registration
of the legal entities, about their charters, about the reg-
istration of the real estates business, licenses issued, and
also to the other information, which is anticipated by the
legislation of the Republic of Kazakhstan are provided to
the investors, including minority investors the informa-
tion is presented the realization of the investment activ-
ity and doesn’t contain the trade or preserved secrets by
the rule.
Article7.SupervisionandMonitoringofInvestorsActivitiesbytheStateAuthorities
1. Investors activities shall be supervised and monitored
by state bodies, which have been duly authorised in ac-
cordance with the legislative acts of the Republic of Ka-
zakhstan.
2. The laws of the Republic of Kazakhstan shall establish
the terms and procedures of the supervision and moni-
toring of Investors activities.
Article8.TheGuaranteesofInvestorsRightsintheEventofNationalisationandRequisition
1. Forced seizure of Investors’ assets (nationalisation,
requisition) for state needs shall be allowed in excep-
tional cases as specified in legislative acts of the Republic
of Kazakhstan.
2. In the event of nationalisation, the Investor shall be
compensated by the Republic of Kazakhstan in full volume
for any losses resulting from the adoption of legislative
acts of the Republic of Kazakhstan on nationalisation.
3. Requisition of Investors’ assets shall be carried out
upon payment of the market value of the assets to the
Investor.
The market value of the assets shall be determined in
accordance with the procedure established by the laws
of the Republic of Kazakhstan.
4. The Investor may challenge the amount of compensa-
tion for requisitioned assets in court.
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5. Upon expiry of the causes of requisition, the Investor
shall have the right to demand the return of the remain-
ing assets, in which case the Investor shall be obliged
to return the received compensation less losses due to
depreciation.
Article9.SettlementofDisputes
1. Investment Disputes may be settled through negotia-
tions, including those with engagement of experts, or in
accordance with a dispute settlement procedure which
has been previously agreed upon by the parties.
2. Where an Investment Dispute can not be resolved in
accordance with the provisions of paragraph 1 hereof,
such disputes shall be settled in accordance with the in-
ternational treaties and laws of the Republic of Kazakh-
stan in the courts of the Republic of Kazakhstan, as well
as in international arbitration tribunals as may be agreed
by the parties.
3. Disputes other than Investment Disputes shall be set-
tled in accordance with the laws of the Republic of Ka-
zakhstan.
Article10.TheTransferofInvestor’sRightstoanotherEntity
If a foreign state, or a state body authorised by such
state, makes payments to an Investor under a guarantee
(insurance agreement) granted in regard to Investments
in the Republic of Kazakhstan and the rights of the In-
vestor with regard to said Investments are transferred
(assigned) to such foreign state or the authorised state
body, such transfer (assignment) of rights shall only be
deemed legal in the Republic of Kazakhstan if the In-
vestor makes Investments in the Republic of Kazakhstan
and (or) performs certain contractual obligations.
CHAPTER 3. STATE INCENTIVES TO INVESTMENTS
Article11.TheAimofStateIncentivesto
Investments
1. The aim of State incentives to Investments is forma-
tion of favourable investment climate for the growth of
the economy and encouragement of Investments in es-
tablishing new or expanding or renovating existing pro-
duction operations using advanced technologies, profes-
sional development of the local human resources and
protection of the environment.
2. State incentives for Investments shall be available in
the form of Investment Preferences.
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Article12.AuthorisedBody
1. The state incentives to Investments shall be awarded
by the Authorised Body, which is appointed by the Gov-
ernment of the Republic of Kazakhstan.
2. Within its authority and in performance of its mission,
the Authorised Body shall have the right to engage spe-
cialists from relevant state bodies and consultants and
experts among individuals and legal entities of the Re-
public of Kazakhstan in accordance with the procedure
established by the Government of the Republic of Ka-
zakhstan.
3. The activities of the Authorised Body shall be governed
by a Regulation, which is adopted by the Government of
the Republic of Kazakhstan.
Article13.TypesofInvestmentPreferences
Subject to this Law, the following preferences may be award-
ed in the form of a Contract with the Authorised Body:
1) Investment-related tax preferences;
2) Exemption from customs duties;
3) State Grants In Kind.
Article14.TheProcedureforAwardingInvestmentPreferences
1. Investment Preferences shall be awarded to the prior-ity types of business, the list of which is approved by the Government of the Republic of Kazakhstan at the level of the National Classifier of Types of Business Activities.
2. For each priority type of activities, the Government of the Republic of Kazakhstan shall establish the maximum volumes of Investments and the term of investment-re-lated tax preferences whereby the Investment Prefer-ences are awarded by the Authorised Body.
3. In the event of exceeding the established maximum amount of Investments, the period of validity of the ap-plicable investment-related tax preferences shall be es-tablished by an appropriate decision of the Government of the Republic of Kazakhstan.
4. Investment Preferences shall be awarded by in the form of a Contract with a Legal Entity of the Republic of Kazakhstan, which implements an Investment Project.
Article15.TheConditionsforGrantingInvestmentPreferences
Investment Preferences shall be awarded subject to:
1) Compliance of the intended Investment Activity with the list of priority types of activities;
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2) Performance of Investments into fixed assets of a Le-
gal Entity of the Republic of Kazakhstan with an aim of
establishing new or expanding and renovating existing
production operations using advanced technology;
3) Submission of the required documents as set forth in
Article 19 of this Law, which confirm the financial, tech-
nical and organisational capability of the Investor ap-
plying for implementation of an Investment Project.
Article16.Investment-RelatedTaxPreferences
1. Investment-related tax preferences shall be granted
for a period which is determined on case-by-case basis
depending on the type of activity and the amount of In-
vestments into fixed assets.
2. The commencement date of investment-related tax
preferences shall be set forth in the Contract in accor-
dance with the Tax Code of the Republic of Kazakhstan.
3. The investment-related tax preferences shall not ap-
ply to the activities of legal entities which are subject to
a special tax regime, as well as activities under subsoil
use contracts.
4. Investment-related tax preferences shall not apply to
the fixed assets which are granted to a Legal Entity of
the Republic of Kazakhstan as a State Grant in Kind.
Article17.ExemptionfromCustomsDuties
1. Exemption from customs duties may apply where equipment and components thereof are imported for implementing an Investment Project.
2. Exemption from customs duties shall be granted for the duration of the Contract, but not longer than five years from the date of the Contract registration.
3. The notice of the decision adopted in accordance with paragraph 2 hereof shall be sent by the Authorised Body to the authorised customs body within five business days.
Article18.StateGrantsinKind
1. In accordance with the procedure set forth in this Law the State Grants in Kind shall be awarded by the Autho-rised Body, with the consent of the relevant body with the authority for managing the state property and land resources, for temporary and payment-free use or as a temporary and payment-free land tenure, and may be subsequently conveyed free of charge into ownership or land tenure in the event of the fulfilment of investment obligations under the Contract.
The State Grant in Kind shall be conveyed free of charge into ownership or land tenure by a decision of the Autho-rised Body. The Authorised Body shall adopt the decision based on the results of the inspection carried out in ac-cordance with Article 21-1.2.3 of this Law.
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2. The following assets may be granted as State Grants
in Kind:
land plots, buildings, constructions, machinery and
equipment, computers, measurement and control instru-
ments and devices, transport vehicles (other than pas-
senger cars) and manufacturing equipment and tools.
3. The State Grants in Kind shall be appraised on the ba-
sis of the market value in accordance with the procedure
established by the laws of the Republic of Kazakhstan.
4. The maximum value of the State Grant in Kind shall
not exceed thirty per cent of the amount of Investments
in fixed assets of a Legal Entity of the Republic of Ka-
zakhstan.
If the appraised value of the requested State Grant in
Kind exceeds the said maximum value, the Legal Enti-
ty of the Republic of Kazakhstan shall have the right to
receive the requested assets upon payment of the dif-
ference between the appraised value and the maximum
value of the State Grant in Kind.
Article19.RequirementstoApplicationsforInvestmentPreferences
An application for Investment Preferences shall be ac-
cepted and registered by the Authorised Body upon sub-
mission of:
1) a notarised copy of the Certificate of State Registra-
tion of the legal entity;
2) a notarised copy of a statistical card of the legal entity;
3) a notarised copy of the articles of association of the
legal entity;
4) a business plan for the Investment Project, which has
been drawn up in accordance with the requirements
of the Authorised Body;
5) notarised copies of documents justifying the estimat-
ed cost of construction and costs associated with the
purchase of fixed assets to be used for implementing
the Investment Project;
6) notarised copies of documents which establish sourc-
es and guarantees for financing the project. If the In-
vestment Project is financed with the applicant’s own
resources, the written prove of the availability of such
resources shall be enclosed;
7) documents which confirm the amount (cost) of the
State Grant in Kind requested by the applying Legal
Entity of the Republic of Kazakhstan and the prelimi-
nary approval of the grant;
8) a balance sheet as of the first day of the quarter in
which the application is made;
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9) the statement of the tax authorities proving that the
applicant has no tax arrears and outstanding liabili-
ties on social and pension payments.
Article20.TheTermsforConsiderationof
ApplicationsforInvestmentPreferences
1. An application for Investment Preferences shall be
submitted for consideration of the Authorised Body,
which shall take a decision on awarding Investment Pref-
erences in accordance with the requirements set forth in
Article 15 hereof and send a written reply to the appli-
cant within thirty business days of the registration of the
application.
2. The Authorised Body shall establish the terms for ad-
mitting, registering and considering applications for In-
vestment Preferences.
Article21.ContractAward
1. Within ten business days of adopting the decision to
award Investment Preferences, the Authorised Body shall
prepare the Contract for signing, taking into account the
provisions of the Model Contract.
2. The Contract shall be registered by the Authorised
Body within five business days of its signing and shall
become effective upon its registration.
3. Currency of contract identifies by currency of invest-
ment preference. Date of working time on executable
code ends not later than three months until date of con-
tract time ends.
Article21-1.MonitoringtheContractPerformance
1. Contract terms maintenance control accomplishes by
authorized body in following forms:
1) controlling through cameras – control accomplish-
ing by authorized body on the bases of research and
analyses of reports, presented in accordance with
item 2 of this article;
2) with visiting areas of investment activity including
considering documents on implementation of execut-
able codes and terms of contract.
2. After contract conclusion, legal entity of the Republic
of Kazakhstan who concluded a contract presents to an
authorized body followings:
1) over implementation of executable codes by form of
authorized body fixed on statistics:
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an interim statement on executable code implemen-tation not later than twenty fifth of June;
an annual report on executable code implementation not later than twenty fifth of January interpreting by recorded assets purchased in accordance with exe-cutable code;
2) during a month after putting into operation documents on recorded assets confirming put into operation of recorded assets;
3) during a month after work termination by executive code confirmed by auditors’ report:
a report on executive code implementation;
a revenue and expenses statement by results of in-vestment activity;
an interpretation of recorded assets purchased in ac-cordance with executive code.
Auditors’ report should contain analyses of financial and economical activities results for all period of executive codes’ validity.
3. Alterations to an executive code can make by sides agreement once a year.
4. Verification with visiting investment activity area real-izes on the bases of decision made by authorized body
during three months after termination of work finish on
executive code.
Exceptional verification with visiting investment activity
area realizes by authorized body decision:
1) in case of detection after camera control results on
breach of terms of contract;
2) by addresses of law machinery.
5. By results of verification a representative of autho-
rized body and a manager of a legal entity concluded
a contract signs statement of current state of contract
executive code implementation.
6. In case of nonfulfillment or improper implementation
of contract executive code authorized body detaches a
written notice to a legal entity of the Republic of Ka-
zakhstan who concluded a contract naming breaches and
identifies date not more than three months in order to
eliminate breaches.
7. Contract cancellation information in an effort to proof
economic interests of the state detaches following:
1) to an authorized state body controlling taxes on dis-
charging of tax obligations before state and in neces-
sity to other state bodies in order to take appropriate
measures;
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2) by contracts in accordance of that presented state natural grant to an authorized state body controlling taxes on discharging o tax obligations before state, state bodies managing state property and/ or land resources and local executive board.
8. Legal entity of the Republic of Kazakhstan concluded a contract during contract validity has no right:
1) to change end use of presented state natural grant and property purchased in accordance with executive code;
2) to alienate presented state natural grant and property purchased in accordance with executive code.
Article22.ContractTermination
1. Investment Preferences shall be terminated upon expiry of the term of the Contract or may be terminat-ed prior to the expiration thereof in accordance with the procedure set forth herein.
2. The Contract may be terminated prematurely:
1) by agreement of the parties, or
2) unilaterally.
3. The Authorised Body may terminate a Contract uni-laterally upon expiry of three months from the date of a written notice to the Legal Entity of the Republic of Kazakhstan, which is a party thereto, if:
1) misrepresentation or concealment of the informa-
tion, which has been presented by the applicant and
affected the decision on awarding the Investment
Preferences, has been revealed;
2) the Legal Entity of the Republic of Kazakhstan,
which is a party to the Contract, fails to perform its
obligations thereunder; or
3) misrepresentation or concealment of the informa-
tion in the reports submitted by the Legal Entity of
the Republic of Kazakhstan which is a party to the
Contract in accordance with Article 21-1.1 hereof
have been revealed.
In such events the said legal entity shall pay taxes and
customs duties, which have not been paid due to the
Investment Preferences awarded under the Contract,
subject to fines and penalties as set forth by the laws
of the Republic of Kazakhstan.
4. In the event of premature and unilateral termination
of the Contract by the Legal Entity of the Republic of
Kazakhstan, the said legal entity shall pay taxes and
customs duties, which have been not paid due to the
Investment Preferences awarded under the Contract,
subject to fines and penalties as set forth by the laws
of the Republic of Kazakhstan.
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5. In the event of premature termination of a Contract
by an agreement of the parties, the Legal Entity of the
Republic of Kazakhstan, which is a party thereto, shall
pay taxes and customs duties, which have not been
paid due to the Investment Preferences awarded under
the Contract.
6. In the event of premature termination of a Contract,
the Legal Entity of the Republic of Kazakhstan, which
is a party thereto, shall return the assets in kind which
have been granted to the legal entity as the State
Grant in Kind, or its initial value as of the date of the
transfer in accordance with the Contract.
7. The Legal Entity of the Republic of Kazakhstan shall
return the State Grant in Kind within thirty calendar
days after the Authorised Body has made a decision to
prematurely terminate the Contract.
CHAPTER 4. FINAL PROVISIONS
Article23.StabilityofContracts
The exemptions granted on the basis of Contracts with
the authorised investment body prior to the entry into
force of this Law shall remain valid until the expiry of the
period set forth in such Contracts.
Article24.OnRepealofCertainLegislativeActsoftheRepublicofKazakhstan
The following legislative acts of the Republic of Kazakh-
stan shall be deemed invalid:
1) The Law of the Republic of Kazakhstan On Foreign In-
vestments of 27 December 1994 (The Bulletin of the Su-
preme Council of the Republic of Kazakhstan, 1994, No.23-
24, Article 280; and 1995, No.20, Article 120; The Bulletin
of the Parliament of the Republic of Kazakhstan, 1996,
No.14, Article 274; 1997, No.ll, Article 143; No.13-14, Article
205; No.17-18, Article 218; 1998, No.5-6, Article 50; 1999,
No.21, Article 786; and 2000, No.10, Article 244);
2) The Decree of the Supreme Council of the Republic
of Kazakhstan On the Procedure for the Implementa-
tion of the Law of the Republic of Kazakhstan on Foreign
Investments of 27 December 1994 (The Bulletin of the
Supreme Council of the Republic of Kazakhstan, 1994,
No.23-24, Article 281 and 1995, No.1-2, Article 15);
3) The Law of the Republic of Kazakhstan On State Sup-
port to Direct Investments of 28 February 1997 (The
Bulletin of the Parliament of the Republic of Kazakhstan,
1997, No.4, Article 50; and 1999, No.21, Article 786).
Nursultan Nazarbaev
President of the Republic of Kazakhstan
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Appendix2
List of Agreements on Mutual Protection and
Encouragement of Investments, made by Republic of Kazakhstan.
№ Thecountry Dateofsigning DateofratificationbyKazakhstan Effectivedate
AMERICA
1 USA 19.05.92 18.12.92 12.01.94
EUROPE
2 The Belgian - Luxembourg union 16.04.98 30.12.99 16.04.98
3 Bulgaria 15.09.99 15.05.01 20.08.01Bulgaria (the report on modification in the Agreement) 24.07.06 08.05.07 –
4 Great Britain and Northern Ireland 23.11.95 22.11.96 09.01.97
5 Hungary 07.12.94 12.05.95 03.03.96
6 Germany 22.09.92 29.01.93 10.05.95
7 Spain 23.03.94 26.04.95 22.06.95
8 Italy 22.09.94 22.05.95 18.06.96
9 Latvia 08.10.04 17.03.06 21.04.06
10 Lithuania 15.09.94 20.02.95 25.05.95
11 Netherlands 27.10.02 08.05.07 01.08.07
12 Poland 21.09.94 12.05.95 25.05.95
13 Romania 25.04.96 22.11.96 05.04.97
14 Finland 29.09.92 30.10.97 15.02.98
15 Finland (new) 09.01.07 – –
16 France 03.02.98 05.07.00 21.08.00
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17 Czech Republic 08.10.96 11.06.97 02.04.98
18 Sweden 25.10.04 17.03.06 01.08.06
19 Switzerland 12.05.94 08.05.98 13.05.98
20 Armenia 06.11.06 – –
21 Greece 26.06.02 – –
COMMONWEALTHoftheINDEPENDENTSTATES
22 Azerbaijan 16.09.96 05.12.97 30.04.98
23 Georgia 17.09.96 05.12.97 24.04.98
24 Kyrgyzstan 08.04.97 28.10.97 01.06.05
25 Russia 06.07.98 11.12.98 11.02.00
26 Tajikistan 17.12.99 07.10.01 16.12.99
27 Uzbekistan 02.02.97 29.08.97 08.09.97
28 Ukraine 17.09.94 20.04.95 04.08.95
theCOUNTRIESofASIA,AFRICAAndtheNEAREAST
29 Egypt 14.02.93 15.09.95 28.03.97
30 Israel 27.12.95 12.07.96 19.02.97
31 India 09.12.96 08.05.98 26.07.01
32 Iran 16.01.96 02.07.96 03.04.99
33 China 10.08.92 08.06.94 18.08.94
34 Republic of Korea 20.03.96 22.11.96 26.12.96
35 Kuwait 31.08.97 22.02.00 01.05.00
36 Malaysia 27.05.96 11.06.97 03.08.97
37 Mongolia 02.12.94 29.04.95 13.05.95
38 Pakistan 08.12.03 17.03.06 –
39 Turkey 01.05.92 29.01.93 10.08.95
40 Jordan 29.11.06 – –
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Appendix 3
Contact info of Government of the Re-
public of Kazakhstan
Ministries Contactdetails Web-site
MinistryofForeignAffairs 35Ave.,1LeftBankArea,Astana,Kazakhstan,010000tel.:(7172)72-05-18,fax:(7172)72-05-16 www.mfa.kz
MinistryofDefence 2SpecialEconomicZone,Astana,Kazakhstan,010000tel.:(7172)72-15-21,fax.:(7172)24-15-95 www.mod.kz
MinistryofInternalAffairs 4ManasSt.,Astana,Kazakhstan,010000tel.:(7172)71-40-10,fax:(7172)37-17-38 www.mvd.kz
Committee for Drug Abuse and Drug Business Control
4 Manas St., Astana, Kazakhstan, 010000 tel.: (7172) 71-40-47
Internal Troops Committee 63b Pobeda St., Astana, Kazakhstan, 010000 tel.: (7172) 23-81-83
MinistryofHealthLeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel.:(7172)74-28-19
www.mz.gov.kz
Committee for Sanitary and Epidemiological Supervision
66 Moskovskaya St., Astana, Kazakhstan, 010000 tel.: (7172) 31-74-58, 31-17-57
Committee for Control of Quality of Medical Services
66 Moskovskaya St., Astana, Kazakhstan, 010000 tel.: (7172) 31-79-74
Committee for Pharmacy, Pharmaceutical and Medical Industry
66 Moskovskaya St., Astana, Kazakhstan, 010000 tel.: (7172) 31-79-76, 31-71-24
MinistryofIndustryandTrade 47KabanbaiBatyrSt.,Astana,Kazakhstan,010000tel.:(7172)29-90-00,fax:(7172)24-12-13 www.mit.kz
CommitteeforIndustrial,ScientificandTechnological Development
47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 29-90-19
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Committee for Investment 47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 24-21-24
Committee for Commercial Regulation
47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 29-90-63
Committee for Technical Regulation and Metrology
47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 79-33-01
Committee for Construction and Housing Utilities
15/1 Raionnyi St., Astana, Kazakhstan, 010000 tel.: (7172) 34-62-84, fax: (7172) 34-64-18
Committee for Protection of Competition
47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 29-08-60
MinistryofTourismandSport 33aAbaiAve.,Astana,Kazakhstan,010000tel.:(7172)75-30-10,fax:(7172)75-34-30 www.mts.gov.kz
Tourism Industry Committee 33a Abai Ave., Astana, Kazakhstan, 010000 tel.: (7172) 75-31-35
Sport Committee 33a Abai Ave., Astana, Kazakhstan, 010000 tel.: (7172) 75-35-47
MinistryofFinance 33PobedaSt.,Astana,Kazakhstan,010000tel.:(7172)71-77-64,fax:(7172)71-77-85 www.minfin.kz
State Property and Privatisation Committee
33 Pobeda St., Astana, Kazakhstan, 010000 tel.: (7172) 71-77-08
Treasury Committee 33 Pobeda St., Astana, Kazakhstan, 010000 tel.: (7172) 71-77-06
Tax Committee 33 Pobeda St., Astana, Kazakhstan, 010000 tel.: (7172) 71-71-08 www.nalog.kz
Customs Control Committee 10 Beibitshilik St., Astana, Kazakhstan, 010000 tel.: (7172) 22-73-03 www.customs.kz
Committee for Work with Insolvent Debtors
166/1 Pushkin St., Astana, Kazakhstan, 010000 tel.: (7172) 71-85-35
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Financial Control and State Procurement Committee
33 Pobeda St., Astana, Kazakhstan, 010000 tel.: (7172) 71-71-16 www.goszakup.kz
MinistryofEconomyandBudgetPlanning
LeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel:(7172)74-28-09
www.minplan.kz
MinistryofCultureandInformation
LeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel:(7172)74-01-07
www.sana.gov.kz
Information and Archives Committee Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel./fax: (7172) 74-04-21
Language Committee Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel./fax: (7172) 74-05-06
MinistryofEducationandScience
LeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel.:(7172)74-15-93
www.edu.gov.kz
Committee for Supervision and AccreditationinEducationalandScientificSpheres
11 Beibitshilik St., Astana, Kazakhstan, 010000 tel.: (7172) 75-22-34
Aerospace Committee 11 Beibitshilik St., Astana, Kazakhstan, 010000 tel.: (7172) 75-28-61
MinistryofEnvironmentalProtection
LeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel:(7172)74-00-75,fax:(7172)74-08-02
www.nature.kz
Committee for Environmental Control Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel.: (7172) 74-00-94
MinistryofAgriculture 25AbaiSt.,Astana,Kazakhstan,010000tel.:(7172)32-37-63,fax:(7172)32-45-41 www.minagri.kz
Committee for Forestry and Game Husbandry
25 Abai St., Astana, Kazakhstan, 010000 tel.: (7172) 32-82-40
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Fishery Committee 25 Abai St., Astana, Kazakhstan, 010000 tel.: (7172) 32-74-78
Committee for Water Resources 31 Pobeda Ave., Astana, Kazakhstan, 010000 tel.: (7172) 59-19-21, fax: (7172) 59-19-22
Committee for Business of Rural Territories
25 Abai St., Astana, Kazakhstan, 010000 tel.: (7172) 32- 37-88
MinistryofTransportandCommunications
47KabanbaiBatyrSt.,Astana,Kazakhstan,010000tel.:(7172)24-00-77,fax:(7172)24-14-19 www.mtk.gov.kz
Committee for Railways 47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 24-10-79
Transport Control Committee 47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 24-27-08
Civil Aviation Committee 47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 24-27-02
Committee for Transport Infrastructure Development
47 Kabanbai Batyr St., Astana, Kazakhstan, 010000 tel.: (7172) 24-33-83
MinistryofLaborandSocialProtection
2ManasSt.,Astana,Kazakhstan,010000tel.:(7172)75-36-02,fax:(7172)75-36-54 www.enbek.kz
Migration Committee 103a Auezov St., Astana, Kazakhstan, 010000 tel.: (7172) 31-79-25
MinistryofJusticeLeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel.:(7172)74-02-01,fax:(7172)74-09-54
www.minjuSt.kz.
Registration Service Committee Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel.: (7172) 74-07-71
Committee for Intellectual Property Rights
Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel.: (7172) 74-07-50
Committee for Criminal-Executive System Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel.: (7172) 72-30-01
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Committee for Organisation of Legal Assistance and Providing Consulting Services for Population
Left Bank Area, Building of Ministries, Astana, Kazakhstan, 010000 tel.: (7172) 74-06-77
MinistryofEnergyandMineralResources
22KabanbaiBatyrSt.,Astana,Kazakhstan,010000tel.:(7172)97-68-05,fax:(7172)97-69-43 www.memr.gov.kz
Committee for Geology and Subsoil 1 Satpaev St., Kokshetau, Kazakhstan, 020000 tel.: (31622) 5-42-64
Committee for State Energy Supervision
22 Kabanbai Batyr St., Astana, Kazakhstan tel.: (7172) 97-69-19
Nuclear Power Committee 4 Chaikina St., Almaty, Kazakhstan 050050 tel.: (327) 22607220
MinistryofEmergencyManagement
22BeibitshlikSt.,Astana,Kazakhstantel.:(7172)93-81-81,fax:(7172)93-48-32 www.emer.kz
AgenciesAgencyforRegulationofNaturalMonopolies
14BokeihanSt.,Astana,Kazakhstan,010000tel.:(7172)591677,fax:(7172)591636 www.regulator.kz
AgencyfortheCommunicationNetworks
LeftBankArea,BuildingofMinistries,Astana,Kazakhstan,010000tel.:(7172)74-01-32,fax:(7172)50-28-88
www.aic.gov.kz
AgencyforControlandSupervisionofFinancialMarketandInstitutions
67AitekeBi,Almaty,Kazakhstan,050000tel.:(727)2788024,fax:(727)2725297 www.afn.kz
AgencyofStatistics 125AbaiSt.,Almaty,Kazakhstantel.:(727)277-52-29,fax:(727)242-43-38 www.stat.kz
LandManagementAgency 41ZheltoksanSt.,Astana,Kazakhstan,010000tel.:(7172)32-02-11,fax:(7172)32-70-82 www.auzr.kz
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Other State Bodies
NationalBankofKazakhstan 21Koktem-3,Almaty,Kazakhstan,050040tel.:(727)270-45-05,fax:(727)261-73-52 www.nationalbank.kz
NationalSecurityCommittee 97KenesarySt.,Astana,Kazakhstan,010000tel.:(7172)76-56-38,fax:(7172)32-80-50 www.knb.kz
SupremeCourt 391stSt.,LeftBankArea,Astana,Kazakhstan,010000tel.:(7172)74-75-91,fax:(7172)24-28-22 www.supcourt.kz
CommitteeforAdjudicative Administration
Building of the Supreme Court, 3 sector Left Bank Area, Astana, Kazakhstan, 010000 tel.: (7172) 74-76-00, tel.: (7172) 74-79-16
GeneralProsecutor’sOffice 73SeifullinSt.,Astana,Kazakstan,010000tel.:(7172)71-28-68 www.procuror.kz
Committee for Legal Statistics and Special Accountancy of General Prosecutor’sOffice
73a, Seifullin St., Astana, Kazakstan, 010000 tel.: (7172) 21-77-83
Appraisal Committee for Control Over Implementation of the Republican Budget
2 Beibitshilik St., Astana, Kazakhstan, 010000 tel.: (7172) 75-21-47, fax: (7172) 32-38-93 www.esep.kz
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List of Akimats of Kazakhstan
Nameofregion Address Tel/fax e-mail,Web-site
Almaty 38 Tauelsyzdyk St., Taldykorgan, 480080 (7282) 271747 / 270702 www.almaty-reg.kz
[email protected], [email protected]
Akmola 83 Abai St., Kokshetau, 020000 (7162) 257922/ 255511 www.akmo.kz
[email protected], [email protected]
Aktobe 40 Abylkhair Khan St., Aktobe, 030010 (7132) 543630/ 564758 www.akimat.info
[email protected], [email protected]
Atyrau 77 Aiteke Bi St., Atyrau, 060010 (7122) 354501/ 353524 www.atyrauobl.kz
East Kazakhstan 40 Gorky St., Ust-Kamenogorsk, 070019 (7232) 263310/ 261363 www.akimvko.gov.kz
[email protected], [email protected]
Karaganda 39 Mir Ave., Karaganda, 100012 (7212) 421045/ 421067 www.karaganda-region.kz
Pavlodar 49 Satbaev St., Pavlodar, 140009 (7182) 323422/ 323206 www.pavlodar.kz
[email protected], [email protected]
West Kazakhstan 179 Dostyk Ave., Uralsk, 090006 (7112) 510882/ 510626 www.western.kz
[email protected], [email protected]
Kyzylorda 76 Zhahayev St., Kyzylorda, 120003 (7242) 262144/ 261046 www.kyzylorda.kz
Kostanai 66 Al-Farabi St., Kostanai, 110000 (7142) 533136/ 575085 www.kostanai.kz
Mangystau 1 District-14, Aktau, 130000 (7292) 334215/ 434552 www.mangystay.kz [email protected]
South Kazakhstan 6 Tauke-Khan St., Shymkent, 160007 (7252) 537443/ 530527 www.uko.kz
[email protected], [email protected]
Zhambyl 125 Abai St., Taraz, 080008 (7262) 431822/ 431635 www.zhambyl.kz [email protected]
North Kazakhstan 58 Konstitutsii St., Petropavlovsk, 150011 (7152) 464125/ 463635 www.akimat-sko.kz
Astana city 60 Omarov St., Astana, 010000 (7172) 323012/ 321223 www.capital.kz
Almaty city 4 Republic Square, Almaty, 050001 (727) 2716688/ 2644110 www.almaty.kz
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Appendix4
CONTACTS
Kazakhstan development institutions
“Kazyna” Sustainable Development Fund
35 Ave., Astana, 010000, Kazakhstan Tel.: +7 (7172) 97 94 42Fax: +7 (7172) 97 94 45E-mail: [email protected]
Development Bank
32 Republic Ave., Astana, 010000, Kazakhstan Tel.: +7 (7172) 58 02 60Fax: +7 (7172) 58 02 69e-mail: [email protected]. kdb.kz
Investment Fund
80 Zenkov St., Almaty, 050000, KazakhstanTel.: +7 (727) 258 83 33e-mail: [email protected]
SME Support Fund
111 Gogol St., Almaty, 050000, KazakhstanTel.: +7 (727) 244 55 66Fax: +7 (727) 244 83 41e-mail: [email protected]
State Insurance Corporation
100В Furmanov St., 4-th floor, Almaty, 050000, KazakhstanTel/fax: +7 (727) 2952 167, 2725 456e-mail: [email protected]
Investment Promotion Agency “Kazinvest”
21 Koktem-3, Almaty, 050000, KazakhstanTel.: +7 (727) 261 09 20Fax: +7 (7272) 250 12 77e-mail: [email protected]
CMAR
62 Sharipov St., Almaty, 050000, KazakhstanTel.: +7 (727) 2590 690Fax: +7 (727) 2582 151e-mail: [email protected]
National Innovation Fund
26A Abai Ave., Almaty, 050000, Kazakhstan Almaty: + 7 (727) 2599 816, 2599 817Astana: + 7 (7172) 33 43 56, 21 54 85E-mail: [email protected] www.nif.kz
Kazyna Capital Management
23 Kyzzhibek st., Almaty, 050000, KazakhstanTel.: +7 (727) 258 44 10Fax: +7 (727) 250 37 03
Social Innovation Technology
35 Ave., Astana, 010000, Kazakhstan Tel.: +7 (7172) 97 94 42Fax: +7 (7172) 97 94 45
FoR MoRE INFoRMATIoN:
СOMMITTEE FOR INVESTMENTS
Ministry of Industry and Trade
of the Republic of Kazakhstan
Tel.: +7-7172-241540
Fax: +7-7172-242124
e-mail: [email protected]