Legislative News

This CLIENT UPDATE includes amendments to the legislation of the RK and key appointments in June 2010.

The following 300 regulatory legal acts were adopted in June 2010:

• Laws – 30;

• Decrees of the President of the Republic of Kazakhstan – 25;

• Resolutions of the Government of the Republic of Kazakhstan – 127;

• and other regulatory legal acts.

Most of these regulatory legal acts are concerning public sector, 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:

CODE OF THE REPUBLIC OF KAZAKHSTAN DATED 30 JUNE 2010 № 296-IV «ON CUSTOMS PROCEDURES IN THE REPUBLIC OF KAZAKHSTAN »

Customs Code has been developed to bring national customs legislation in correspondence with legislation of the Customs Union. Customs Code establishes provisions of the customs legislation based on customs legislation of the Customs Union under the conditions of united customs territory.

LAW OF THE REPUBLIC OF KAZAKHSTAN DATED 30 JUNE 2010 № 298-IV «ON BRINGING INTO FORCE CODE OF THE REPUBLIC OF KAZAKHSTAN «ON CUSTOMS PROCEDURES IN THE REPUBLIC OF KAZAKHSTAN ».

Code of the Republic of Kazakhstan was brought into force from 1 July 2010 (New Customs Code). New Customs Code shall be applied to legal relations arisen as of the day of its enactment subject to provisions specified in the present Law. Customs brokers, customs carriers, owners of temporary storages, owners of temporary storing positions, customs warehouses and duty free shops established prior to enactment of the New Customs Code shall have a right to perform activity in the sphere of customs affairs within six months after its enactment. During this period customs brokers shall be recognized as customs representatives. The abovementioned persons shall return original copies of corresponding licenses and permits to the authorized body in the sphere of customs affairs. There are also transitional provisions on duty status and customs procedures.

LAW OF THE REPUBLIC OF KAZAKHSTAN DATED 30 JUNE 2010 № 297-IV «ON AMENDMENTS TO SOME LEGISLATIVE ACTS OF THE REPUBLIC OF KAZAKHSTAN ON ISSUES OF CUSTOMS REGULATION AND TAXATION»

Code of the Republic of Kazakhstan «On Taxes and Other Compulsory Payments to the Budget» (Tax Code) was amended by provisions regulating taxation of operator and subsurface user during performance of activity as a part of partnership (consortium) under production sharing agreement (contract).

You can find more detailed information about these provisions in our web-site WWW.SIGNUMLAW.COM

Tax Code was also amended by new provisions regulating taxation issues within the framework of the Customs Union.

Amendments were introduced to the Code of the Republic of Kazakhstan on Administrative Violations dated 30 January 2001 («CoAV»).

CoAV was amended by the following new provisions on administrative violations:

• Entrepreneurial activity by a person, for whom it is prohibited by the legislation of the Republic of Kazakhstan to carry out such activity деятельности (Article143-1 of the CoAV);

• Violation of procedure of activity conduction in the sphere of customs affairs (Article 400-1 of the CoAV);

• Violation of procedure of activity conduction by customs carrier (Article 400-2 of the CoAV)

LAW OF THE REPUBLIC OF KAZAKHSTAN DATED 24 JUNE 2010 № 291-IV «ON SUBSURFACE AND SUBSURFACE USE»

New Law «On Subsurface and Subsurface Use».

Law of the Republic of Kazakhstan dated 28 June 1995 «On Oil» and Law of the Republic of Kazakhstan dated 27 January 1996 «On Subsurface and Subsurface Use» shall be considered to have lost force.

You can find more detailed information transfer pricing about new Law “On Subsurface and Subsurface Use» in our web-site WWW.SIGNUMLAW.COM

LAW OF THE REPUBLIC OF KAZAKHSTAN DATED 9 JUNE 2010 № 288-IV «ON AMENDMENTS TO SOME LEGISLATIVE ACTS OF THE REPUBLIC OF KAZAKHSTAN ON TRANSFER PRICING AND TAXATION ISSUES »

The Law introduces amendments concerning change of terms of quotation period for long-term transactions, correction of taxation items and (or) items related to taxation as well as amendments of editorial nature.

In addition, Tax Code was amended by provisions specifying terms of property transfer to the secondary leasing.

RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN DATED 4 JUNE 2010 № 513 «ON APPROVAL OF STANDARD OF RANDERING OF STAE SERVICES ON APOSTILIZATION OF OFFICIAL DOCUMENTS PROCEEDED FROM JUDICIAL AUTHORITIES OR BODIES OF ENFORCEMENT PROCEEDINGS»

Standard of rendering of state services on apostilization of official documents proceeded from judicial authorities and bodies of enforcement proceedings (hereinafter – state services) is a procedure of placing special stamp (Apostille) certifying the genuineness of the signature of the person signing the document, confirming authenticity of stamp put to such document.

State services shall be rendered by Committee on Judicial Administration of the Supreme Court of the Republic of Kazakhstan.

State services shall be considered as rendered upon apostilization of the presented document.

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.