Legislative News

This Client Update includes amendments to the legislation of the Republic of Kazakhstan in September 2012

The legal acts introduced in September 2012, concern both public and private interests. Among them there are some which may attract your attention and affect your business in Kazakhstan in a certain way.

We would like to draw your attention to the following regulatory legal acts:

BANKING

Resolution of the Board of the National Bank of Kazakhstan No.194 dated May 25, 2012 approved the “Rules of disclosure of information by the legal entity for the purpose of obtaining a bank loan, and (or) bank guarantee.” Rules define the order of disclosure of information by the legal entity for the purpose of obtaining a bank loan, and (or) bank guarantee. The rules are effective from 9 September 2012.

MONITORING

According to the Law of Kazakhstan “On amendments and additions to some legislative acts of the Republic of Kazakhstan concerning counteraction to legalization (laundering) of proceeds from crime and financing of terrorism, and cash out” has been amended in paragraph 4.1 of Article 21 of the Law “On payments and transfers of money».

Under the Law payments between entities of the transaction, the amount of which exceeds 1000 times the size of MCI established by law on the national budget, and at the date of payment shall be made ?only by bank transfer. Earlier this limit stipulated limit was 4000 MCI. Law entered into force on 24 September 2012.

SUBSURFACE USE

Government Resolution dated 31 August 2012, the changes and additions to the Government Resolution dated 30 December 2010, “On approval of rules on granting subsurface use rights”.

Rules granting subsurface use rights were supplemented by provision on the procedure of granting rights to common natural resources used in the construction (reconstruction) and repair of roads, railways and hydro for individuals and businesses. The regulations are effective from 17 September 2012.

TAX LEGISLATION

Government of the Republic of Kazakhstan by its Resolution dated September 14, 2012 No.1197 approved a list of goods subject to VAT at the zero rate sold on the territory of the special economic zone, completely consumed in the implementation of activities that meet the objectives of the creation of special economic zones.

LABOUR ISSUES

Resolution of the Government of RK “On approval of standards of public services provided by the Ministry of Labor and Social Protection of the Republic of Kazakhstan” was amended in accordance with the Resolution the Government of the RK dated 17 August 2012, No.1059 (entered into force within ten calendar days upon the first official publication).

In particular, the resolution enhanced with new standards of public services:

Provision of information on the flow of pension accruals pension fund;

• Establishing a disability and / or the degree of disability and the definition of the necessary social protection measures;

• Assigning (Duplicate) a social individual code;

• Appointment the benefits to the mother or father, adoptive parent, guardian (trustee) raising a disabled child;

• Appointment of a lump sum for the burial.

  1. Resolution of the Government of Kazakhstan dated 19 September 2012 No.1220 “On Amending Resolution of the Government of the Republic of Kazakhstan dated 9 June 2008 No.548” On approval of the raising industry coefficients “.

Under the changes identified increasing branch coefficients for calculating the minimum standard wage workers employed in heavy work or work under harmful (particularly harmful) or hazardous conditions:

1) In the mining sector – 1, 8;

2) In the field of electricity – 2, 0.

The changes are effective from 2 October 2012.

COURT PRACTICE

Normative Resolution of the Supreme Court of Kazakhstan dated 23 August 2012 No.4 “On the practice of courts of law governing proceedings in criminal cases with participation of jurymen” Is effective from 8 September 2012.

According to the Normative Resolution, criminal cases related to the most serious crimes, in the case of a request from the accused on trial by jury considered by jury specialized interdistrict courts in criminal cases, by the specialized inter-district military court in criminal cases.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.