This Client Update covers amendments to the laws of the Republic of Kazakhstan (“RK”) introduced in April 2015 and various legal developments.
Novelties in Legislation
The laws covered by the present Client Update relate to both public and private sectors. Some of them may be of interest to you as they may affect your business activity in Kazakhstan.
We would like to draw your attention to the following legal acts:
On 23 April 2015, the President of the RK signed the Law on Ratification of the Agreement between the Government of the RK and the Government of the Socialist Republic of Vietnam on Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Income Taxes.
The Law came into force on 4 May 2015.
ISLAMIC FINANCING AND INSURANCE
On 27 April 2015, the President of the RK signed the Law “On Changes and Amendments into Certain Legal Acts of the Republic of Kazakhstan on Insurance and Islamic Financing”. The Law aims at further developing and expanding Islamic financing in Kazakhstan. The Law broadens and regulates the Islamic financing instruments recognizing them as bank operations by Islamic banks.
In addition, the Law allows for the Islamic banks to establish non-commercial organizations in the form of a joint stock company to guarantee recovery of deposits attracted by Islamic banks. In other words, Islamic banks can set up insurance/re-insurance companies.
The Law came into force on 7 May 2015.
On 7 April 2015, the President of the RK signed the Law “On changes and Amendments into Certain Legal Acts of the Republic of Kazakhstan on Regulation of Intellectual Property.”
This Law excludes “innovation patent” from the patent system of the RK in compliance with the international practice of inventions patenting and the experience of ОECD countries.
Also the Law provides the possibility of extension for 5 years of the exclusive right and the patent for inventions related to medical products, pesticides and agrichemicals.
Pursuant to the Law a franchise contract related to the registered industrial property and to the means of individualization is subject to statutory state registration.
The Law came into force on 20 April 2015.
THE DRAFT LAW
THE LAW ON PROTECTIVE, ANTI-DUMPING MEASURES AGAINST THIRD COUNTRIES
On 8 April 2015, The Mazhilis of Parliament of the RK adopted in the second reading the Draft Law “On Protective, Anti-Dumping and Compensation Measures, as against Third Countries”.
The Draft Law brings domestic law in accordance with the Eurasian Economic Union Treaty and World Trade Organization agreements.
The Draft Law sets out general principles for application of special protective, anti-dumping and compensation measures.
Pursuant to the Draft Law, the Eurasian Economic Commission (“EEC”) would be responsible among others, for investigation through its bodies, hence EEC would make decisions on application of special protective, anti-dumping and compensation measures.
Article 31 of the Draft Law outlines the procedure for calculation, payment, recovery, enrolment, distribution, repayment and offset of anti-dumping and compensation customs. At the same time, the Article provides that these procedures would be undertaken pursuant to the Code of the RK “On Customs in the Republic of Kazakhstan” with respect to import customs duties.
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek a lawyer for a specific advice. Please note that Kazakhstan is an emerging economy and its legislation and legal system are in constant development. Should you have any questions or would like to discuss matters addressed in this Client Update, please contact us.