Legislative News

This CLIENT UPDATE includes amendments to the legislation of the RK in April 2011.

The following 136 regulatory legal acts were adopted in April 2011:

• Laws – 4;

• Decrees of the President of the Republic of Kazakhstan – 30;

• Resolutions of the Government of the Republic of Kazakhstan – 55;

• and other regulatory legal acts.

Most of these regulatory legal acts concern a public sector, in particular, the changes related to the elections of the President of the Republic of Kazakhstan, but 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:

LAW OF THE REPUBLIC OF KAZAKHSTAN №421-IV DATED 25 MARCH 2011ON CHANGES AND AMENDMENTS TO CERTAIN LEGISLATIVE ACTS ON THE IMPROVEMENT OF CIVIL LEGISLATION (ENTERED INTO LEGAL FORCE ON 16 APRIL 2011)

According to this Law, the charter of a limited liability partnership must now indicate the name of the mass medium in which information about the limited liability partnership’s activities will be published in situations where such information must be made public.

DECREE OF THE PRESIDENT OF THE REPUBLIC OF KAZAKHSTAN №25 DATED 12 APRIL 2011 ON FURTHER IMPROVEMENT OF THE SYSTEM OF STATE REGULATION OF FINANCIAL MARKET OF THE REPUBLIC OF KAZAKHSTAN

Under this Decree, it was decided to abolish the Agency of the Republic of Kazakhstan on regulation of the activity of the regional financial centre of Almaty and Agency of the Republic of Kazakhstan on regulation and control of financial market and financial organizations and to delegate the functions of the latter to the National Bank of the Republic of Kazakhstan.

DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN №99 DATED 25 FEBRUARY 2011 ON CHANGES AND AMENDMENTS TO THE 16 JULY 2010 DECREE №348 ON THE APPROVAL OF RULES FOR THE TAX AUTHORITIES TO CONFIRM A PAYMENT OF VAT ON IMPORTED GOODS OR ISSUE A SUBSTANTIATED REFUSAL TO CONFIRM A VAT PAYMENT (PUBLISHED IN APRIL 2011)

The present Decree introduced the changes to rules for confirming VAT paid on imported goods or for issuing a substantiated refusal to confirm a VAT payment.

In a nutshell, if the tax authorities refuse to stamp a statement on imports of goods and payment of indirect taxes to confirm a payment of VAT, the importer must recall the rejected Statement and file a new Statement with the tax authorities as soon as the importer receives a substantiated refusal to confirm the payment of VAT and rectifies violations specified in the notification. Provided that, the Decree clarifies the events when an importer understates the amount of import, VAT on imported goods as a basis for issuing a substantiated refusal to confirm a VAT payment.

The Decree applies to import operations started after 01 January 2011.

RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN №387 DATED 07 APRIL 2011 ON THE APPROVAL OF THE LIST OF DOCUMENTS WHICH SERVE AS A BASIS FOR GRANTING TAXPAYERS THE RIGHT TO DEFER THE PAYMENT OF CUSTOMS DUTIES OR TO PAY IN INSTALLMENTS (ENTERED INTO LEGAL FORCE ON 23 APRIL 2011)

In accordance with this Resolution, a list of documents which may serve as a basis for granting importers with the right to defer the payment of customs duties or to pay in instalments was introduced. A decision on whether an importer may defer the payment of customs duties or to pay in instalments should be made within ten business days from the date when the importer files an application to do so along with the required documents.

DECREE OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN №104 DATED 25 FEBRUARY 2011 ON CHANGES AND AMENDMENTS TO THE 16 JULY 2010 DECREE №353 OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN ON THE APPROVAL OF RULES FOR SUBMITTING STATEMENTS OF COMMITMENT TO SUBSEQUENTLY EXPORT TEMPORARILY IMPORTED GOODS OR VEHICLES FROM KAZAKHSTAN (ENTERED INTO LEGAL FORCE ON 14 APRIL 2011)

The Decree clarifies which documents an importer must file with the tax authorities together with its Statement of Commitment to confirm an import of goods or vehicles. The importer must submit an opinion from the Kazakh customs authorities on classifying imported goods under the Harmonized Commodity Description and Coding system (TN VED) for the contract.

The Decree applies to import operations started after 01 January 2011.

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.