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Investment preferences

Incentives for participants of Special economic zones (SEZs)

Tax exemptions

For priority investment projects:

 

Corporate income tax – 0% for 10 years;

Land-tax – 0% for 10 years;

Property tax – 0% for 8 years;

 

Conditions for priority investment projects:

·      Newly established company (less than 12 months prior to application for investment preferences)

·      Priority types of activity (currently list focused on manufacturing)

·      Investments not less than approx. USD 20 mln

·      Investment contract

 

Corporate income tax – 0%

Land-tax – 0% for the period specified in the contract of temporary paid land use (rent), but not more than 10 years from the date of granting land plots;

Property tax – 0%;

Exemption from value added tax (VAT) on all implementation activity within the territory of SEZ, on all goods completely consumed in the production process.

There are additional tax benefits for SEZ

"Innovation Technology Park" participants:

·      Exemption from social tax for 5 years, on the condition that labor costs amount to not less than 50% of annual revenue and 90% of labor payments are expended on residents of RK

·      Organization that is registered in Kazakhstan and located out of SEZ "ITP" before 1 January 2015 , shall be considered asa SEZ participant, if it:

·      Has no structural subdivisions;

·      At least 70 percent of total annual income is income receivable (received) from the sale of self produced goods, works and services from the following activities:

·      Design, development , implementation , pilot production and production of software, databases and hardware of information technologies as well as data center services and on-line services;

·      Execution of research and development work on the creation and implementation of projects in the field of information technologies.

Customs privileges

Exemption from customs duties to the legal company implementing investment project due to the investment contract:

·      When transporting manufacturing equipment and components for it the exemption from customs taxation is granted for the term of investment contract but not later than 5 years after the investment contract registration.

 

·      When importing spare parts for the manufacturing equipment, raw stock and (or) materials for term up to 5 years the exemption from customs taxation is granted to the legal companies depending on the volume of investment in the fixed assets.

For  goods IMPORTED into SEZ territory

Exemption from customs duties

For goods EXPORTED from SEZ territory*

·      CU commodities exported from the SEZ to the rest territory of the Customs Union, are not subject to customs duties.

·      CU commodities exported from the SEZ territory to outside the Customs Union, are subject to the payment of export customs duties.

·      Foreign commodities with  no status as CU goods (simple assembly) exported from the SEZ to the rest territory of Customs Union, are subject to the payment of customs duties.

·      In the case of foreign commodities which are not used and not processed within SEZ territory, at export (to the third countries), the commodities are exempted from "re-export" customs duties,.

·      In a case of foreign commodities processed within SEZ territory, at export,, export duties shall be paid according to the regulation #520 of the Government of the Republic of Kazakhstan dated 07.06.2010. 

 

* These benefits are applicable by January 1, 2017 only for participants registered before January 1, 2012

Visas & Work Permits

Simplification of visa regime

·      Visa-free entrance for citizens of "most developed countries" (USA, Great Britain, Germany, France, Italy, Malaysia, Netherlands, UAE, South Korea, Japan) for the period from 15 July 2014 till 15 July 2015 if the stay does not exceed 15 days (general application);

·      Introduction of "investor visas" based on the investment authorities request (single for 90 days and multiple for 3 years).

For priority investment projects:

Simplification of work permits

·      No work permits required for foreign labor for the duration of construction under "investment projects" and one year after commissioning of the investment project.

Conditions  for priority investment projects:

·      Newly established company (less than 12 months prior to application for investment preferences)

·      Priority types of activity (currently list focused on manufacturing)

·      Investments not less than approx. USD 20 mln

·      Investment contract

Simplified procedure for recruiting foreign workers  

Issuance of permits for foreign workers by local executive bodies are executed in accordance with the laws of the Republic of Kazakhstan, but using a simplified manner without opening the positions to  the domestic labor market.

 

 

Investment subsidies

For priority investment projects:

·      Investment subsidies up to 30% for construction and installation works and procurement of equipment after commissioning, excluding value added tax and excise duties on the basis of supporting documents, but not exceeding the cost of inputs provided by the pre-documentation, having the state expertise.

Conditions  for priority investment projects:

·      Newly established company (less than 12 months prior to application for investment preferences)

·      Priority types of activity (currently list focused on manufacturing)

·      Investments not less than approx. USD 20 mln

·      Investment contract

 

 

Other privileges

·      Kind grants of not more than 30% of the total investment in fixed assets (land plots, buildings, machinery and equipment, computer equipment, measuring and control devices and equipment, vehicles, production and farm(agricultural implements).

·      Free land for up to 10 years.

Free land for project implementation is provided for SEZ participants for up to 10 years.

Guarantees to investors

For priority investment projects:

·      Introduction of "single window" principle to serve interests/permits, etc./needs/ questions of foreign investors at the level of the Committee on Investments under the Ministry of Industry and New Technologies.

·      Stability of tax legislation (tax rates except VAT and excise) and foreign workforce attraction rules for the duration of the investment priority contract.

Conditions  for priority investment projects:

·      Newly established company (less than 12 months prior to application for investment preferences)

·      Priority types of activity (currently list focused on manufacturing)

·      Investments not less than approx. USD 20 mln

·      Investment contract

For all projects without limitation:

·      Guaranteed long-term purchase plan for goods/services by national holdings, national companies and state institutions.

·      Long-term predictable tariffs and prices of regulated businesses.

·      Protection of rights by investment ombudsman.