Doing business in Kazakhstan - An introductory guide to tax and legal issues - EY
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Doing business in Kazakhstan An introductory guide to tax and legal issues
2 Doing business in Kazakhstan
Preface
This publication is intended to provide a useful practical summary
of some of the legal and tax issues that investors may face when
starting and building a business in Kazakhstan. We hope that it will
help investors to avoid common pitfalls and highlight areas where
some forethought and planning can prevent problems from arising.
Kazakhstan offers many opportunities and is strongly committed to
encouraging foreign investment in key sectors of the economy.
This guide is split into five sections:
1. Welcome to Kazakhstan
2. Our top 10 tax and legal tips for prospering in Kazakhstan
3. Getting started
4. An overview of tax rules in Kazakhstan
5. An overview of other laws affecting business administration.
This guide is a high-level summary of the rules in force as of
1 January 2021. It is not a substitute for comprehensive
professional advice, which should be sought before engaging in
any significant transaction. It should also be noted that this guide
does not cover all taxes in Kazakhstan (of which there are more
than 30). Here, we cover only the most important taxes, so advice
should be sought as to the actual taxes applicable to any particular
business.
We wish you every success in this exciting and dynamic
environment.
Doing business in Kazakhstan 1
Contents 2 Doing business in Kazakhstan
Welcome to Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . 4 Overview of other laws that affect
Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 business administration . . . . . . . . . . . . . . . . . . . . . . . . 50
System of government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Transfer pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Employment regulations . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Business hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Import and export formalities and customs duties. . . . . . 53
Kazakhstan fact sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Our top 10 tax and legal tips. . . . . . . . . . . . . . . . . . . . 10 Banking regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Currency regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Tax tips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Currency regimes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Legal tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
EY in Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Getting started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
About EY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Arriving in Kazakhstan. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Encouraging investment. . . . . . . . . . . . . . . . . . . . . . . . . . 65
Post-arrival procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Supporting our clients in the dynamic landscape. . . . . . . 65
Types of legal entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Office locations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Establishing a legal presence. . . . . . . . . . . . . . . . . . . . . . . 20
EY Kazakhstan at social media . . . . . . . . . . . . . . . . . . . . . 66
Incentives for investors . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Overview of tax rules in Kazakhstan. . . . . . . . . . . . . . . 30
Double tax treaties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Personal income tax (“PIT”) . . . . . . . . . . . . . . . . . . . . . . . 31
List of countries with preferential tax regimes . . . . . . . . . 70
Social tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Key macroeconomic indicators of Kazakhstan . . . . . . . . . 71
Corporate income tax (CIT). . . . . . . . . . . . . . . . . . . . . . . . 38
Withholding tax (WHT) (other than PIT). . . . . . . . . . . . . . 40
Value added tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Subsurface use taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Tax administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Doing business in Kazakhstan 3
1 Welcome to
Kazakhstan
4 Doing business in Kazakhstan
Highlights
US$24,263
• On 1 January 2015, the Treaty
on the Eurasian Economic Union
• Kazakhstan posted an annual average (EAEU) entered into force. The union
GDP growth rate of 5.2% from 2005
to 2019, with GDP in 2019 reaching
of Armenia, Belarus, Kazakhstan,
Kyrgyzstan and Russia comprises a
million
US$180.2 billion (US$9,731.2 per market of 184 million consumers. gross FDI inflows recorded
capita). In the first 9 months of 2019
• In December 2012, the former by Kazakhstan in 2018
the growth rate accelerated to 4.5%
from 4.1% in 2019.1 The country’s President of Kazakhstan, Nursultan
GDP shrank by 2.6% in 2020 as it Nazarbayev, in his annual address to
took a heavy hit from the coronavirus the nation, unveiled the Kazakhstan
pandemic. In October 2020, the 2050 Strategy, which aims to make
184
Ministry of National Economy of Kazakhstan one of the world’s 30
Kazakhstan announced an updated most developed countries. The strate-
GDP forecast for 2021, predicting a gy is to be realized through a number
real GDP growth rate of 2.8% in 2021.2 of key initiatives: a comprehensive
million consumers
and pragmatic economic policy (infra-
• Foreign direct investment (FDI) inflows structure development, modernized make up the EAEU market
into Kazakhstan have been strong in systems for managing state assets
recent decades. Kazakhstan’s success and natural resources, accelerated
in attracting FDI may be attributed industrialization, modernization of
to its vast natural resources and the agriculture and new policies on water
commitment of the country’s leader- resources), the development of a
ship to welcoming FDI and promoting
the country’s stable economic growth,
culture of entrepreneurship, new
social policies, targeted development
November 2014
as well as to developing non-extractive of knowledge and professional skills, Infrastructure development
sectors such as agriculture, renewable further strengthening of state gover-
energy, infrastructure, logistics and nance and democracy, consistent and
program launched in Kazakhstan
transport. In 2019, Kazakhstan posted predictable foreign policy, and a new
gross FDI inflow of US$24.1 billion national patriotism.
compared to US$24.3 billion in 2018.
• The Nurly Zhol (Shining Path)
• Kazakhstan is ranked 25th for Ease infrastructure development program
of Doing Business in the World Bank’s was launched in November 2014
Doing Business 2020 report. The with the aim of creating an efficient
country has moved up three positions transport and logistics infrastructure
compared with the previous year.3 in Kazakhstan.4,5
1 World Bank Data.
2 The Ministry of the National Economy of Kazakhstan.
3 Doing Business 2020, the World Bank, October 2019.
4 Official Information Source of the Prime Minister of the Republic of Kazakhstan, 22.10.2019,
https://www.government.kz/en/news/realizaciya-novoy-gosprogrammy-nu-rly-zhol-na-2020-2025-gody-pozvolit-sozdat-bolee-550-tys-rabochih-mest
5 Astana Times, 24.10.2019, https://astanatimes.com/2019/10/kazakh-government-estimates-nurly-zhol-programme-will-cost-16-91-billion-over-next-five-years/
Doing business in Kazakhstan 5
KZT 5.8 trillion
• KZT 5.8 trillion was invested in civil service, rule of law, industrializa-
Kazakhstan’s transport industry tion and economic growth, a unified
under the Nurly Zhol program nation, and the transparency and
was invested in Kazakhstan’s in 2015–2019. Of this, 56% was accountability of the state. The new
funded with the involvement of the President of Kazakhstan, Kassym-
transport industry
private sector, the rest by the state Jomart Tokayev, has continued the
course and confirmed institutional
• 3,000 km of republican roads
reforms as a key priority in ac-
were built or rebuilt, including
celerating Kazakhstan’s economic
completion of the Western
development.6
3,000 km
Europe — Western China
international transport corridor • The ‘Digital Kazakhstan’ state
program was launched in 2017.
• 1,400 km of new railways were
It aims to accelerate economic
of republican roads commissioned: Zhezkazgan–Beineu
development and improve the quality
were built or rebuilt (1,040 km), Arkalyk–Shubarkol
of life of the people of Kazakhstan
(214 km), Borzhakty–Yersai
with the aid of digital technologies.
(14 km) and the second track of
the Almaty–Shu section (111 km) • The first wave of privatization in
Kazakhstan laid the foundations of
• 6 runways were upgraded at the
the market economy in the 1990s.
1,400 km
airports of Uralsk, Petropavlovsk,
At the end of 2015, Kazakhstan
Almaty, Semey, Kostanay and
announced a new privatization plan
Balkhash.
that seeks to shrink state ownership
of new railways were The program will include the follow- of the national economy from more
commissioned ing projects: completion of 3,800 km than 40% to around 15%. However,
of roads; rebuilding of the runways real progress has been slow.
at Kostanay and Balkhash airports;
• On 30 November 2015, the World
modernization of the Dostyk–Moyynty
Trade Organization (WTO) welcomed
railway line and electrification of the
Kazakhstan as its 162nd member.
Moyynty–Aktogay railway line; develop-
6 runways
Kazakhstan has successfully
ment of water transport through the
negotiated arrangements on sensitive
purchase of 48 ships, including six mer-
economic issues, including support
chant fleets, and major repairs to locks.
were upgraded for agriculture, financial services
• In June 2015, in line with the and telecommunications, and has
at the airports Kazakhstan 2050 Strategy, former coordinated its WTO and EAEU
President Nursultan Nazarbayev set commitments in line with national
out 100 steps for the implementation interests. Kazakhstan became an
of five institutional reforms aimed at associate member of the OECD
promoting a modern and professional Investment Committee in 2017
6 Official website of the President of the Republic of Kazakhstan,
https://www.akorda.kz/ru/official_documents/strategies_and_programs
6 Doing business in Kazakhstan
and a participant in the Public • The annual PowerExpo Almaty providing certain financial services
Governance and Environmental Policy international exhibition presents the on the territory of AIFC, and personal
Committees in 2019. The country latest equipment, technologies and income tax on income of foreign
has also joined the OECD’s Base services for the energy industry. employees. As of 2021, more than
Erosion and Profit-Shifting (BEPS) It has become an established 700 companies from 42 countries
Project, an initiative involving over platform for business meetings, have been registered in the AIFC.
100 countries in an effort to tackle exchange of experience and They represent the United Kingdom,
tax avoidance strategies that exploit negotiations. 118 enterprises from the USA, China, Russia, Estonia,
gaps and mismatches in tax rules to 13 countries, including Austria, Latvia, Italy, Finland, South Korea,
artificially shift profits to low- or no- Azerbaijan, Belarus, Germany, Italy, Singapore, Malaysia, India, the United
tax locations7. Kazakhstan, China, Poland, South Arab Emirates, Turkey and other
Korea, Russia, Singapore, Ukraine leading economies.
• The New Silk Road is an ambitious
and the Czech Republic, took part in
transport infrastructure project that • The Khorgos-Eastern Gate special
the exhibition in 2019, with national
will enable goods to be delivered economic zone (SEZ) comprises a
stands presented by companies from
from the Pacific coast to Europe. dry port, a logistics and industrial
China, Russia and Poland9.
Redirecting cargo traffic to the zone, a railway station and the
mainland is no easy task, as the • In July 2018 Kazakhstan officially Altynkol Kazakh-Chinese Khorgos
current sea route is significantly launched the Astana International International Centre of Boundary
cheaper. However, the new overland Financial Centre (AIFC) on the site of Cooperation. In July 2015, the
route through Kazakhstan allows the EXPO-2017 exhibition. It is set to country’s first dry port, with an
delivery times to be reduced from serve as a financial hub for Central area of 149 hectares and planned
40–60 days to 13–14 days. A railway Asia, the Caucasus, the Eurasian capacity of 500,000 twenty-foot
corridor connecting the Pacific coast Economic Union and Mongolia. The equivalent units (TEU), was launched
of China to the Caspian Sea is already centre has a special legal regime in the SEZ. Thanks to the dry port,
in operation. It will provide access to which differs from the legislation shipments that used to take up to 40
many major markets when integrated of Kazakhstan and is based on the days by sea from Asia to Europe can
with the Kazakhstan — Turkmenistan — principles of English law and best now be transported in just 10 days.
Iran and Azerbaijan — Georgia — Turkey practices of world-leading financial In 2018, Khorgos processed 311
railway systems. A joint industry and centres. Participants enjoy special tax, container trains along the China-
investment cooperation program is currency and visa regimes, as well as Europe transport route and more
underway between Kazakhstan and a favourable framework for attracting than 1.2 million people visited the
China. It comprises 51 projects worth foreign labour. Tax incentives include duty-free trade zone. So far, over
more than US$27b and infrastructure a nearly 50-year exemption from US$1.4 billion has been invested in
forms an important part of it.8 corporate income tax and VAT for the project10.
7 OECD, https://www.oecd.org/eurasia/countries/kazakhstan/
8 Belt and Road News, 09.06.2019, https://www.beltandroad.news/2019/06/09/kazakh-chinese-one-belt-one-road-cooperation-discussed-in-astana/
9 Official website of PowerExpo Almaty, https://www.powerexpo.kz/en/exhibition/about-the-exhibition
10 Forbes, 14.03.2019, https://www.forbes.ru/biznes/373183-baraholka-s-oborotom-eu18-mlrd-novaya-mekka-chelnokov
Doing business in Kazakhstan 7
System of government Time Public holidays
The Republic of Kazakhstan gained Kazakhstan’s time zones range from five and days off
independence on 16 December 1991. hours ahead of Greenwich Mean Time The following table presents
Under the constitution adopted on (GMT) in the western part of the country Kazakhstan’s official public holidays
30 August 1995, Kazakhstan is a to six hours ahead of GMT in the other and days off.
democratic, secular, legal and social regions. Nur-Sultan and Almaty are six
state. State power is divided into hours ahead of GMT. Holiday Date
legislative, executive and judicial New Year holidays 1–2 January
branches. Kazakhstan is a unitary
state with presidential rule. Legislative Business hours Orthodox Christmas 7 January
functions are performed by the International 8 March
Kazakh offices are generally open from
Women’s Day
Parliament of Kazakhstan, which is 9:00 am to 6:00 pm Monday to Friday,
the supreme representative body and Nauryz Meyrami 21–23 March
and closed Saturdays and Sundays.
consists of two chambers, the Senate Kazakhstan People’s 1 May
and the Majilis. The Government Unity Day
of Kazakhstan acts as the supreme Defender of the 7 May
executive body, headed by the Prime Fatherland Day
Minister. Judicial authority is vested in Victory Day 9 May
the Supreme Court.
Capital Day 6 July
The first day of 20 July in 2021
Kurban Ait (observed in
accordance with the
Islamic Calendar)
Constitution Day 30 August
The First President of 1 December
Kazakhstan Day
Independence Day 16–17 December
8 Doing business in KazakhstanKazakhstan fact sheet
Capital Nur-Sultan
Administration Kazakhstan is divided into 14 provinces and 3 cities of national significance: Nur-Sultan,
Almaty and Shymkent
Bordering countries Russia, China, Uzbekistan, Kyrgyzstan and Turkmenistan
Land area 2,724,900 km2
Population (November 2020) 18.8 million
Urban population, % (November 2020) 59% of the total population
Age structure (2020) 0-15 years (29.9%); 16-62 years (59.1%); 63 and above (11.0%)
Languages Kazakh (official language), Russian (interethnic communication)
President Kassym-Jomart Tokayev (since 20 March 2019)
Prime Minister Askar Mamin (since 25 February 2019)
Nominal GDP (2019) US$181.666 billion
GDP growth (2019) 4.5%
GDP per capita (2019) 9,731.2
GDP composition by sector (2019) Agriculture (55.5 %); industry (33 %); services 4 %)
External debt as a percentage of GDP (Q2 2020) 89.6%
Labour force (2020) 9.06 million
Unemployment rate (December 2020) 4.55%
CPI inflation (November 2020) 7.5%
Stock exchange Kazakhstan Stock Exchange (KASE)
Central Bank National Bank of Kazakhstan
Corporate income tax rate 20%
Individual income tax rate 10%
State value added tax 12%
Major cities Nur-Sultan, Almaty, Shymkent, Karaganda, Atyrau, Aktau
Currency unit Kazakhstan tenge (KZT)
Annual average exchange rate (2020) US$1=KZT 416.7; EUR1=KZT 477.98; RUR1=KZT 5.69; CNY1=KZT 60.8
Exchange rate as of 1 December 2020 11
US$1=KZT 425.05; EUR1=KZT 509.29; RUR1=KZT 5.58; CNY1=KZT 64.66
Sources: Official website of the President of the Republic of Kazakhstan; the National Bank of Kazakhstan; the Statistics Agency of Kazakhstan.
11 Hereafter in this guide, all calculations in US$ are made based on the exchange rate as of 1 December 2020
Doing business in Kazakhstan 92 Our top 10 tax and legal tips 10 Doing business in Kazakhstan
In this section we set out our top
tax and legal tips for prospective
investors.
Tax tips
1 3
Should you need more
information on any of these
issues, EY is happy to assist you
in the following areas:
• Tax planning and compliance, Recent years have shown that Kazakh The scope of withholding taxes (WHTs)
both in Kazakhstan and law is subject to frequent changes. on cross-border payments is wide, and
internationally This makes it important to have robust rates are high (sometimes even when
tax planning to enable businesses the recipient has never entered Kazakh-
• Business accounting and to cope with changes in the law and stan). However, Kazakhstan has tax
payroll implement structural changes as treaties with many countries which allow
• A full range of legal consulting required without significant tax costs. for withholding taxes to be reduced or
services in Kazakhstan, as well avoided if all the necessary documenta-
tion is in place place (though, the MLI
2
as tax litigation services
provisions, which entered into force in
• Transaction advisory services Kazakhstan from 1 October 2020, should
and legal and tax due diligence be considered and properly supported).
Otherwise, tax will be withheld, and
• Immigration support and obtaining a refund may be a complex and
performance and reward Corporate and personal income tax rates
time-consuming process with an uncer-
planning in Kazakhstan are low by international
tain outcome. Moreover, Kazakhstan
standards, but penalties for non-
• Assurance services has a unique position on transfer pricing
payment and non-reporting, whether
whereby all cross-border transactions
intentional or not, are high. The first
may potentially be inspected for transfer
focus of tax planning in Kazakhstan
pricing compliance, regardless of wheth-
should be to confirm that all tax that
er the parties are in any way related.
ought to be paid in Kazakhstan is paid
and reported. In addition, Kazakhstan
4
is a documentation-driven country,
and keeping documentation in order
(including supporting documentation)
is of paramount importance
There are many downsides to dealing
with tax havens when structuring cross-
border investments or transactions in
Kazakhstan. Thus, tax havens should
not usually form part of tax planning
in Kazakhstan.
Doing business in Kazakhstan 115 7 9
The rules for determining whether There is a safe harbour allowing an In many cases, exemption from capital
a business dealing with Kazakhstan has entity that seconds staff to Kazakhstan gains tax may be obtained upon with-
a taxable presence for corporate income to avoid a taxable presence. Provided drawal from an investment in Kazakhstan
tax (CIT) purposes in Kazakhstan the arrangements are properly provided that the correct structuring
(a permanent establishment) are very structured, this is likely to be more tax- was used when the investment was first
broad and can apply collectively to efficient than using the same staff to made. The complexity of the structuring
whole groups of companies if they have provide consulting or other services. depends on the nature of the asset.
been in the country for over six months.
Some, but not all, of Kazakhstan’s tax
8 10
treaties (with MLI limitations) protect
against this. Therefore, if more than one
group entity is used to do business in
Kazakhstan, the position of all entities
involved should be reviewed collectively.
Branch profit tax applies to all According to currently enacted tax law,
permanent establishments of foreign income received by foreign individuals
6
legal entities at a standard rate of 15%. (cash and in-kind) for work performed
It is usually reduced by tax treaties. in Kazakhstan (regardless of where the
There is an equivalent tax on dividends income is paid) is treated as Kazakh-
at the same standard rate, which may source income and is subject to Kazakh
also be reduced by treaties (with MLI personal income tax (PIT). Generally,
limitations). In the case of dividends, Kazakh-source income is reported and
Deductibility of interest on investor
the rate is zero after an investment has taxed in Kazakhstan using one of the
loans is subject to a debt-to-equity ratio
been held for three years (except for following methods: (i) self-assessment
of 4:1 (7:1 for financial organizations).
investments in oil and gas or mining via an annual PIT return or (ii) at source
At best, an investor will pay 10%
operations (unless a certain portion via a local company acting as a so-called
WHT on cross-border interest (under
of minerals is refined), dividends paid “tax agent”. In most cases, the law
a double tax treaty) and be able to
to entities registered in tax havens places tax and reporting obligations
claim a CIT deduction of 20%, while for
and investments in certain CIT-exempt for Kazakh-source income of foreign
certain borrowings accrued interest
entities). individuals on the local tax agent (e. g.,
expense may be deducted only when
a foreign legal entity with a registered
paid. Furthermore, exchange gains and
presence in Kazakhstan (a branch or rep-
losses on loans are recognised for tax
resentative office) or a local entity that
purposes.
uses services of a non-resident employer
delivered through foreign employees).
12 Doing business in KazakhstanLegal tips
1 3 6
Most investors use a Kazakh limited There is an extensive range of business The process of hiring foreign employees
liability partnership (LLP) as their and professional activities that are is complex and strictly regulated in
investment vehicle. subject to licensing requirements, and Kazakhstan. Immigration and labour
it is important for investors to determine law has undergone numerous changes
in advance whether they need a licence. resulting in frequent inspections of
2
The penalties for failure to obtain a companies that employ foreign workers
licence can be significant, including and increased penalties for violations
potential criminal liability. of labour and migration rules (including
discriminatory remuneration terms and
payment of salaries in foreign currency).
4
Settlements between residents of
Kazakhstan (Kazakh legal entities,
7
branches/representative offices of
foreign non-financial entities, and
Kazakh citizens) must be made in KZT
(with a few exceptions — e. g., branches Kazakhstan often takes a formalistic
of non-financial entities may transact approach to procedural matters. In most
with each other in foreign currency). cases, a company’s representatives must Kazakhstan generally permits foreign
Settlements between non-residents have a detailed power of attorney and law to be the governing law for
(foreign legal entities and citizens) and will regularly be required to refer to it — commercial contracts, except for
Kazakh residents may generally be for example, when signing contracts. subsurface use contracts with the
made in any currency but may have to state, foundation agreements of a
be reported to the National Bank if they Kazakh legal entity, agreements on the
5
hit certain thresholds. transfer of participating interests in a
legal entity and transactions involving
immovable property. Regulatory acts of
the AIFC governing relations between
AIFC participants may be based on the
Compliance with local content
“principles, norms and cases” of the law
requirements is very important for
of England and Wales and standards of
mining and oil and gas companies and
international financial centres.
their subcontractors and is constantly
monitored by government authorities.
Doing business in Kazakhstan 138 10
In certain cases, Kazakh law requires At the same time, Kazakh legal entities
approval to be sought from government have access to the AIFC’s court and
authorities for the acquisition of international arbitration centre, whose
shares/participating interests in legal decisions are recognised and enforced in
entities operating in fields covered by Kazakhstan in a similar way to decisions
competition and natural monopoly of arbitration and international courts.
regulations and by legislation relating to
subsurface use. It is therefore important
to analyse the requirements of Kazakh
laws on a case-by-case basis before
entering into such transactions.
9
Disputes between Kazakh legal entities
are resolved either through amicable
procedures (mediation, amicable
settlement and participatory procedure)
or by courts and local arbitration, as well
as by international courts if a provision
allowing such dispute resolution is
contained in the relevant agreement
between the parties. Public disputes
with Kazakh government authorities can
be resolved either in court or through a
pre-litigation procedure.
14 Doing business in KazakhstanDoing business in Kazakhstan 15
3 Getting started 16 Doing business in Kazakhstan
Arriving in Kazakhstan Business visas (Category B) are An individual may obtain certain
issued to foreign individuals arriving types of official business and private
The Kazakh authorities issue the in Kazakhstan for business purposes visas without a letter of invitation by
following categories of visa: (e. g., negotiations, conclusion of submitting a written application to
• Category A: diplomatic, official and contracts, provision of consulting or the Kazakh consular establishment in
investor audit services, provision of installation, the respective country if he or she is a
repair or maintenance services and citizen of one of the following countries:
• Category B (short-term stay): attendance of conferences, symposiums,
business visa, visa for international forums, exhibitions and concerts). • Australia • Lithuania
road haulage, visa for crew members
of aircraft, marine and river vessels Work visas (Category C) are issued to • Austria • Luxembourg
and trains, visa for religious foreign individuals entering or staying • Belgium • Malaysia
events, visa for practical training in Kazakhstan for employment and • Brazil • Malta
or internships, visa for permanent members of their families. In general,
• Bulgaria • Monaco
residence in Kazakhstan, private visa, a work visa is issued based on a work
• Canada • Netherlands
visa for adoption of Kazakh citizens, permit. See the “Work permits” section
for details. • Croatia • New Zealand
tourist visa, transit visa and exit visa
to leave Kazakhstan • Cyprus • Norway
In Kazakhstan, visas are issued by the
• Czech Republic • Oman
• Category C (long-term stay): visa for Ministry of Internal Affairs (MIA) of
Kazakhstan. Elsewhere, they are issued • Denmark • Poland
permanent residence in Kazakhstan
by Kazakh consulates (for example, the • Estonia • Portugal
(for ethnic Kazakhs), family reunion
visa, work visa, visa for missionary Consular Department of the Embassy of • Finland • Qatar
activities, humanitarian visa, Kazakhstan). Business and work visas • France • Romania
study visa, private visa (for ethnic are issued based on a letter of invitation • Germany • Saudi Arabia
Kazakhs), visa for minors and medical issued by a local Kazakh company or
• Greece • Singapore
treatment visa. a branch or representative office of a
• Hungary • Slovak Republic
foreign company. The state duty for the
Visas of the above categories may execution of invitations is 0.5 times the • Iceland • Slovenia
be issued for single or multiple entry monthly calculation index (MCI).12 The • Ireland • Spain
depending on the category and type fee for issuing a visa ranges from US$20 • Israel • Sweden
of visa. Exit visas are issued only for to US$1,000 depending on the country • Italy • Switzerland
single use. of residence of the invited party and the • Japan • United Arab
type of visa requested. A visa should be Emirates
• Jordan
issued within five business days.
• Korea (South) • United Kingdom
• Latvia • United States
• Liechtenstein
12 The MCI was established by the Law of the Republic of Kazakhstan «On the Budget of the Republic for 2021–2023» Effective on 1 January 2021, 1 MCI = KZT 2,917
(approximately US$7)
Doing business in Kazakhstan 17Kazakhstan has a visa-free regime with Under this visa-free regime, citizens The letter will then be forwarded to the
certain countries based on international of the above countries may enter IC for further consideration. The IC will
agreements (for example, Belarus and Kazakhstan without a visa for a period consider requests on a case-by-case
the Russian Federation). not exceeding 30 calendar days from basis within 5 working days (although it
the date of crossing the border and not may take longer in practice). In the event
Kazakh migration law allows citizens of
more than 90 calendar days in total in of a favourable decision, the IC will issue
the following countries to enter and exit
any 180-calendar day period. If a foreign a protocol containing the name of the
Kazakhstan without visas:
individual wishes to stay in Kazakhstan company and the foreign individual and
for a longer period, he or she may apply he/she will be able to enter Kazakhstan
• Australia • Luxembourg for a single-entry business or investor based on that protocol provided that
• Austria • Malaysia visa while in Kazakhstan. Investor all other visas and work permits are in
• Bahrein • Malta visas are issued to certain categories place.
• Belgium • Mexico of business immigration applicants
• Bulgaria • Monaco (managers of companies that carry out
investment activities in Kazakhstan and Post-arrival procedures
• Canada • Netherlands
members of their families) and provide Until 10 January 2020, foreign
• Chile • New Zealand certain privileges. individuals arriving in Kazakhstan for
• Columbia • Norway
It should be noted that, due to the more than five calendar days were
• Croatia • Oman normally required to register with
coronavirus pandemic, the visa-free
• Cyprus • Philippines regime with the above-listed 57 the Ministry of Internal Affairs (MIA).
• Czech Republic • Poland countries has been suspended until However, this has been replaced by an
• Denmark • Portugal 1 May 2021. obligation on the part of the inviting
• Estonia • Qatar party to obtain a temporary stay permit
In view of the pandemic and related for the foreign citizen.
• Finland • Romania quarantine measures, obtaining entry
• France • Saudi Arabia to Kazakhstan is currently a more In addition, the inviting party must
• Germany • Singapore challenging and complex process notify the MIA within three working days
for foreigners. A separate written of the arrival of the foreign individual in
• Greece • Slovak Republic
approval from the Interdepartmental Kazakhstan.
• Hungary • Slovenia
Commission (“IC”) chaired by the Immigration records are kept by the
• Iceland • Spain
Deputy Prime Minister of the Republic MIA based on information from inviting
• Indonesia • Sweden of Kazakhstan is required for foreign parties and by the National Security
• Ireland • Switzerland individuals to enter the country. This Committee of Kazakhstan based on
• Israel • Thailand means that, when a foreign individual information from Kazakh border control
• Italy • Turkey seeks entry to Kazakhstan for work, authorities.
• Japan • United Arab business or other purposes, the inviting
company must first prepare an official A temporary stay permit allows a foreign
• Korea (South) Emirates
request addressed to the head of the individual to stay for a definite period
• Kuwait • United Kingdom
administration of the respective city (e. g., the length of an employment
• Latvia • United States agreement) and must be obtained by the
(the city governor). That request must
• Liechtenstein • Vatican set out the reasons why the company inviting party. A temporary stay permit is
• Lithuania • Vietnam needs the foreign employee in question. issued based on applications from:
18 Doing business in Kazakhstan1. Individuals inviting foreign Various sanctions are prescribed for Limited liability partnerships (LLPs)
individuals for family reunion non-compliance with immigration The main difference between a JSC
requirements. Please refer to the and an LLP is that an LLP does not
2. Individuals or legal entities that
relevant section for details. issue shares; instead, participants hold
have concluded an employment
agreement with a foreign individual interests in the partnership. An LLP may
Should you require assistance in be formed by one or more participants.
3. Educational organizations planning and managing your human Generally, the participants in an LLP are
capital needs, EY can assist with not liable for the LLP’s debts beyond the
4. Medical organizations
business and work visas, work permit value of their contributions. There are a
5. Religious organizations applications for foreign employees, number of exceptions to this rule under
Kazakh law.
6. Local authorities inviting individuals tax registration, tax and legal compli-
to engage in entrepreneurial ance for expatriate individuals and the The minimum capital requirement for
activities (business immigrants). drafting of secondment agreements. an LLP is 100 MCI (approximately
US$694), with the exception of small
However, foreign individuals in posses- businesses, for which the minimum is
sion of a visa issued after 1 July 2018 set at zero. Participants’ interests are
do not need to obtain a temporary stay Types of legal entities proportional to their contributions to the
permit. Relevant data will be automati- Under the Civil Code, foreign and charter capital, unless the foundation
cally recorded in the Berkut electronic local investors may use a number documents provide otherwise.
database based on information provided of organizational forms to do Participants have pre-emptive rights to
in the letter of invitation. For foreigners business in Kazakhstan, including each other’s interests.
entering Kazakhstan under a visa-free simple partnerships, limited liability
regime, the new rule described above Importantly, LLPs in Kazakhstan are
partnerships, additional liability limited
will apply. The period of stay in Kazakh- separate legal entities that are distinct
partnerships, production cooperatives
stan ends upon the expiry of the visa or, from their participants. As a legal entity,
and joint stock companies.
for visa-free visitors, after 30 calendar an LLP is subject to state registration
days or the period indicated in the tem- In this section we give details of those and taxation in its own right, i. e., it is
types of business vehicles that are most not tax-transparent.
porary stay permit.
widely used in practice.
In addition, Kazakh law allows a foreign
Starting from 2020, the temporary stay
Joint stock companies (JSCs) company to establish branches and
of foreign individuals arriving in Kazakh-
representative offices. Under the Civil
stan under a visa-free regime (including A JSC is a legal entity that issues shares
Code, branches and representative
the 57 countries listed above) must not in order to attract investments to
offices are not considered separate legal
exceed 30 calendar days from the day finance its activities. A JSC is separate
entities.
of crossing the Kazakh border and must and distinct from its shareholders,
not exceed 90 calendar days in any i. e., shareholders are not liable for Representative office
180-calendar day period unless other- the JSC’s liabilities. It may have one
A representative office is established
wise provided in an agreement between or more shareholders. The minimum
to represent a foreign entity’s interests
Kazakhstan and the foreign country con- capital required for a JSC is 50,000 MCI
in Kazakhstan. A representative office
cerned or decided by the Government of (approximately US$350,000).
protects and represents the interests
Kazakhstan. This rule does not apply to of the foreign legal entity and carries
individuals who have a temporary stay out preparatory and auxiliary activities,
permit as described above.
Doing business in Kazakhstan 19such as marketing and advertising.
Generally, a representative office may
not engage in commercial activities.
Branch
A branch is a subdivision of a foreign
legal entity that performs all or part
of the foreign entity’s functions. In
particular, it may engage in commercial
activities.
Should you require more information
on the nature and uses of the various
types of business entities in Kazakhstan,
EY offers tax and legal advice on how
to structure a business, as well as a
full range of company formation and
registration services.
Establishing a legal
presence
As a rule, all legal entities, branches and
representative offices in Kazakhstan
must be registered with the state. It is
important to determine whether any
specific approvals and/or consents
must be obtained from government
authorities before proceeding with state
registration.
State registration
State registration in Kazakhstan
follows a “one-stop shop” principle:
all registration documents must be
submitted to a single government
authority, the Government for Citizens.
Under the law on state registration,
the procedure should take from 1 to
5 business days. In practice, general
registration can take up to one month.
20 Doing business in KazakhstanThe law prescribes a standard set of If entities are not actually present National Bank of Kazakhstan of the
documents that must be submitted for at their legal address, i.e., the state opening of a bank account abroad by
the state registration of a company. revenue authorities cannot find anyone applying for a registration number to
Having all the right documents is key to representing an entity at the time of be assigned to the bank account by
a successful registration process. It is observation, they may be penalized. the National Bank of Kazakhstan
essential to ensure that the documents Specifically, they may be deregistered
• Kazakh legal entities, branches and
have been duly signed, sealed, notarized for VAT purposes or their bank accounts
representative offices of Kazakh legal
and legalized, or apostilled if they may be frozen. It is therefore important
entities are required to provide the
were executed abroad; otherwise, for entities to be actually present at the
National Bank of Kazakhstan with
the registration process may be legal address stated in their foundation
information on any transactions
considerably delayed. documents and registration records, or
on bank accounts held with foreign
at least to ensure that, if the authorities
The state registration fee is currently banks
visit (or if they send correspondence
6.5 MCI (approximately US$43).
or call the contact telephone number), • Kazakh legal entities, branches and
Location (legal address) there is someone who can confirm the representative offices of Kazakh legal
validity of the legal address. entities are required to notify the
A legal entity’s location is the address
National Bank of Kazakhstan of the
indicated in its foundation documents Kazakh law stipulates that entities
closure of or changes in details of
(e.g., its charter). Under Kazakh law, that are not present at their registered
bank accounts held abroad.
a legal entity is located in the same address for one year or more may be
place as its permanently operating liquidated/deregistered based on a court See the “Banking regulations” and
governing body (i. e., its director or decision. “Currency regulations” sections for
board of directors). Location plays more details.
an important part in a legal entity’s Opening a bank account
registration and other legal events, such (legal entities and individuals) Categories of work immigrants,
as the determination of the court with Bank accounts may be opened with a work permits and secondment
which an appeal against such entity local bank in Kazakhstan in the national
should be filed (usually a court in the The Law of the Republic of Kazakhstan
currency and/or in a foreign currency. on Population Migration, adopted on
defendant’s location) and the state Branches and representative offices
revenue authority to which tax and 22 July 2011, establishes the following
of foreign legal entities may opt to use categories of immigrants entering the
other payments must be made. offshore (foreign) bank accounts. country for employment purposes:
Under Kazakh law, government Kazakh legal entities are permitted to
authorities, including state revenue • Foreign immigrant workers, i. e.,
hold bank accounts outside Kazakhstan persons who come to Kazakhstan to
authorities, require legal entities, without restrictions.
branches and representative offices engage in independently arranged em-
(“entities”) to be present at the legal Under currency law, the rules for ployment in high demand occupations
addresses indicated in their foundation notifying the National Bank of in priority economic sectors (business
documents and registration records. The Kazakhstan of the opening of a bank areas), and persons who are engaged
state revenue authorities may visit them account with foreign banks are as follows: by employers to work in Kazakhstan,
at their legal address under the so-called including by intra-corporate transfer
• Kazakh legal entities, branches and
“observation procedure”. representative offices of Kazakh legal • Business immigrants, i. e.,
entities are required to notify the persons who come to engage
Doing business in Kazakhstan 21in entrepreneurial activities in agreements, which are commonly used There is, however, a restriction on the
accordance with Kazakh law around the world) and (iii) transfer number of foreign employees that
• Seasonal foreign workers, i. e., of a foreigner to a local branch/ may be hired by a Kazakh employer/
immigrants hired to perform representative office/subsidiary from local host entity — the so-called “ratio
seasonal work during specific periods a parent company based in a WTO requirement”. Currently, the total
(seasons) determined by climatic or country (intra-corporate transfer). number of foreign employees of a
other natural conditions, but not for A work permit is obtained by submitting Kazakh employer/local host entity must
more than one year documents to the local authorities under not exceed:
one of two procedures: the standard
• Labour immigrants who come to • 30% of the total number of Category
procedure or intra-corporate transfer.
Kazakhstan as domestic workers 1 and 2 employees
The latter option is available as a result
to perform household-based work
of Kazakhstan joining the World Trade • 10% of the total number of Category
(services) for individuals (employers)
Organization (WTO). 3 and 4 employees
under a labour immigrant permit.
Work permits Standard procedure An exemption from the ratio requirement
Work permits are issued by local applies for small businesses, state
There are two types of permits
authorities within the quota allocated enterprises and agencies, self-employed
allowing foreign individuals to work in
by the Ministry of Labour and Social foreign individuals, permits issued within
Kazakhstan:
Protection on an annual basis. The quota the quotas for particular countries of
• A permit to engage foreign labour is the maximum number of foreign origin and branches and representative
individuals who can be hired to work in offices of foreign legal entities with no
• A permit issued to a foreign
Kazakhstan in particular regions. Quotas more than 30 employees.
individual who independently came
to Kazakhstan to work in a particular are determined mainly on the basis of To obtain a work permit, each foreign
occupation. The Kazakh government annual applications from employers, individual must meet the set qualification
approves the list of such occupations. which must be submitted by 1 October. requirements.
As in many other countries, employers The government may decide to reduce A work permit under the standard
in Kazakhstan must obtain a permit to the overall quota for a particular year procedure is issued for the following
employ foreign citizens. (for instance, the quota for 2020 was durations:
reduced by 40% compared with 2019).
There is a reasonable amount of • Category 1 — 1, 2 and 3 years with
flexibility in the process of hiring For the purposes of work permits issued annual extension by 1, 2, or 3 years
foreigners in Kazakhstan. Unlike under the standard procedure, foreign
individuals are divided into the following • Category 2 — 12 months with annual
many countries where employers
categories: extension by 12 months, but no more
are required to sign employment
than 3 times
contracts with foreign nationals to hire • Category 1 — CEOs and deputy CEOs
them as local employees, Kazakhstan of companies • Category 3 — 12 months with annual
offers different options, including (i) extension by 12 months, but no more
employing a foreigner directly as a • Category 2 — Leaders of business than 3 times
local employee, (ii) engaging foreign divisions/department
• Category 4 — 12 months with no
specialists through a service contract • Category 3 — Professionals option to extend
with a foreign contractor not present
in Kazakhstan (including secondment • Category 4 — Skilled workers
22 Doing business in KazakhstanAn employer is charged a state duty the transfer period, but not more than new jobs for Kazakh citizens, retraining
for the issuance or extension of a work 3 years (36 months) with the option to of Kazakh citizens, etc.). No special
permit. The amount of the duty is extend it once by 1 year (12 months). conditions are imposed on the host
established by the Kazakh government company when hiring executives.
ICT-based work permits are issued free
and depends on the type of business
of state duties and are not subject to the Work permit exemptions
of the employer and the category of
foreign labour quota. To encourage foreign investment,
the foreign employee. The amount of
state duty ranges from approximately However, before hiring a foreign Kazakhstan offers various exemptions
US$950 to US$3500 depending on specialist to work in Kazakhstan under from the requirement to obtain work
the sector and the category of the ICT, the local host entity must carry out permits for foreign workers. Exemptions
employee. a search for suitable candidates on the apply, for instance, to
Kazakh labour market and obtain a work • Business immigrants who come
Intra-corporate transfer permit only if no suitable candidates are to Kazakhstan to engage in
An intra-corporate transfer (ICT) is found. For each manager or specialist entrepreneurial activities
a temporary transfer of a foreign work permit received under ICT, the
individual from a legal entity established employer must fulfil one of a number
in the territory of a WTO state other of special conditions (e. g., creation of
than Kazakhstan to a branch, subsidiary
or representative office in Kazakhstan.
For the purpose of obtaining a work
permit under ICT, foreign individuals are
classified into:
• Specialists
• Managers
• Executives
Under the ratio requirement for ICT, the
number of foreign employees must not
exceed 50% of the total number of
managers and specialists. No ratio
requirement applies in relation to ex-
ecutives. A foreign individual engaged
under ICT remains employed by the
home company but must comply with
the requirements of the host employer
in terms of work schedule and health
and safety requirements. The foreign in-
dividual must meet relevant qualification
requirements and have at least one year
of work experience with the entity based
in a WTO member state. Local authori-
ties issue a work permit under ICT for
Doing business in Kazakhstan 23• CEOs of local branches or • Employees of companies registered in Sanctions for non-compliance
representative offices of foreign one of Kazakhstan’s 10 free economic with immigration legislation
companies and CEOs and deputy zones (FEZs) to implement projects Kazakh law imposes severe sanctions
CEOs of local wholly foreign-owned worth more than KZT 2.917 million on inviting parties and foreign citizens
companies (in 2021) or companies contracted for non-compliance with immigration
by an FEZ resident, for the period of legislation. Administrative sanctions
• CEOs of companies that have
construction and installation work imposed on a company may be as high
entered into agreements with the
in the FEZ and during the first year as US$6,900 (per foreign individual per
Government of Kazakhstan to invest
after the commissioning date of violation). In the worst-case scenario,
more than US$50 million in the
the project facility, in accordance the individual may be subjected to
country, and CEOs of local companies
with the list of employee categories administrative detention for up to 15
running investment projects in key
and numbers adopted by a special days or administrative deportation from
industries under agreements with
committee of competent authorities the country and the company may be
local competent authorities
• Individuals working in a national man- banned from hiring foreigners for up to
• Nationals of member countries of the 1 year, i.e., no work permit will be issued
aging holding company in positions
Eurasian Economic Union regardless and invitations from the company will
not lower than heads of departments,
of their position or the duration of not be accepted for visa applications.
holding a higher education and
their employment in Kazakhstan
possessing the required supporting In addition, a foreign individual must
• Foreign nationals engaged by documents, and individuals hired by a personally attend the administrative
participants or bodies of the Astana national managing holding company court in connection with an immigration
International Finance Centre (AIFC) as members of the board of directors offence. Such foreign individuals are not
• Individuals working in the Astana • Employees sent on business trips for allowed to enter Kazakhstan for 5 years
Hub international technology park a period or periods totalling no more after administrative deportation from
or hired by park participants in the than 120 calendar days in the course Kazakhstan.
positions of managers and specialists of a calendar year. Residence permits
with a higher education
Kazakhstan issues residence permits.
• Managers and professionals with a There is no quota system for immigration
higher education working either with into Kazakhstan under residence permits.
local companies that have entered into
contracts to implement investment
projects in priority areas or with
companies in the architectural, town-
planning and construction industries
contracted by such an investor, for
the period until the end of the first
year after the commissioning date
of the project facility, or as skilled
workers in accordance with the list of
occupations and employee numbers
approved as part of investment
contracts
24 Doing business in KazakhstanFamily members Incentives for investors 2.
Priority investment projects
The spouse of a holder of a Kazakh work involving the creation of new
With the aim of creating a favourable production facilities with investments
permit does not automatically receive
investment climate, Kazakhstan provides of no less than US$13,858,177
the same type of work permit. If he or
various benefits for investors depending or the expansion and upgrading
she wishes to take up employment, a
on their area of activity. of existing production facilities
work permit application must be filed
independently. with investments of no less than
Investment contract
US$34,645,443
Secondment In order to enjoy certain investment
incentives, the investor must enter 3.
Special investment projects
The secondment of foreign personnel is implemented by legal entities
into an investment contract with the
currently a major issue on the Kazakh registered as participants of special
Investment Committee of the Ministry
job market. economic zones, or by owners of a
of Foreign Affairs of the Republic of
The Tax Code provides a safe harbour Kazakhstan (the “Committee”). The free warehouse, or by legal entities
whereby a foreign entity providing form of investment contract is approved that have entered into an agreement
secondees from outside Kazakhstan may by a Government Resolution. on the industrial assembly of motor
avoid being taxed in Kazakhstan. Certain vehicles.
It is important to note that the
conditions must be met for this to apply. All such investment projects must fall
investment contract must be concluded
Under secondment, the local host with a Kazakh legal entity, which may within the list of priority areas of activity
company acts as a tax agent in relation be a subsidiary of a foreign company. approved by the Kazakh government.
to the income of the seconded personnel The term of the investment contract Below we outline types of incentives
and is responsible for shadow payroll is determined by the effective period provided to investors depending on the
tax calculation and reporting, including of the investment incentives to be type of investment project:
personal income tax and social tax provided. 1. Regular investment projects
liabilities. However, it is important The Entrepreneurial Code of Kazakhstan • exemption from customs duties
to note that, besides tax legislation, specifies three types of projects that
the secondment must also comply may be implemented under investment • exemption from import VAT
with relevant Kazakhstan labour law contracts: • in-kind grants (free land lease,
requirements.
1.
Regular investment projects title to land plots and equipment)
involving the creation of new or up to a value not exceeding 30%
EEY can assist with of total investment
expansion and upgrading of existing
(i) the structuring of a secondment
production facilities, including 2. Priority investment projects
arrangement that meets the applicable
facilities created, expanded and/
legislative requirements; • exemption from customs duties
or upgraded through public-private
(ii) drafting secondment agreements
partnerships, including concession • in-kind grants (free land lease,
and other mandatory documents;
projects. title to land plots and equipment)
(iii) application for required permits,
registration, etc. in Kazakhstan up to a value not exceeding 30%
of total investment
Doing business in Kazakhstan 25• tax incentives, and specifically: concluded for one and the same mineral Special economic zones
processing project or production facility. Special economic zones (SEZ) are
• 100% CIT relief for up to 10
years for new production Furthermore, the state grants specialized territories of Kazakhstan
facilities and 3 years for the investment incentives based on with defined boundaries and a special
upgrading of existing production the principle of reciprocity, i.e., the regulatory regime designed to support
facilities subsurface user may be required to certain priority activities. The list of
fulfil a number of social and investment priority activities is set by an Order
• zero rate land tax for up to of the Minister for Investment and
obligations, such as:
10 years Development. The Order specifies
• the creation and preservation of priority activities for 13 (thirteen)
• zero rate property tax for up to
jobs for citizens of the Republic of different SEZs in Kazakhstan:
8 years
Kazakhstan in the extractive and/or
• investment subsidies if the processing industries 1. stana, New City (Nur-Sultan) —
A
investments are no less than construction of industrial facilities
• the creation, expansion and/or and infrastructure
US$34,645,442 (compensation
upgrading of processing facilities
of up to 30% of expenditure 2.
National Industrial Petrochemical
on construction works and • obligations relating to the volume and Technopark (Atyrau region) —
procurement of equipment during level of processing of solid minerals manufacture of petrochemical
the implementation stage). products and construction of
• obligations relating to the volume
of products sold as raw materials to industrial facilities
3. Special investment projects
entities operating on the domestic 3.
Morport Aktau (Mangystau
• exemption from customs duties market region) — metallurgy, construction
• exemption from import VAT • the financing of programs of Kazakh of industrial facilities
educational institutions for the train- 4. Innovative Technologies Park
Agreement on the processing of solid
ing of specialists in environmental (Almaty) — IT services
minerals
protection and applied sciences
The Subsurface Use Code currently 5. ntustik (South Kazakhstan
O
provides investment incentives for • the financing of the construction and/ region) — production of textile and
subsurface users that implement a or reconstruction of social and/or other materials
priority investment project involving cultural facilities
the processing of solid minerals in 6.
Saryarka (Karaganda region) —
The termination of an agreement on the
Kazakhstan and have concluded relevant metallurgy, construction of
processing of solid minerals also entails
agreements with the Committee. industrial facilities
the termination of investment incentives
To enjoy investment incentives, granted. 7.
Khorgos Eastern Gates
subsurface users must invest no less (Almaty region) — production of
than US$48,503,620 and apply to the food, textiles, non-metallic minerals
Committee to conclude an agreement and other materials
on the processing of solid minerals 8.
Pavlodar (Pavlodar) — manufacture
through a negotiation and appraisal of chemical and petrochemical
process. It should be noted that only materials and construction of
one processing agreement may be industrial facilities
26 Doing business in KazakhstanYou can also read
