Legislative News

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

The following 132 regulatory legal acts were adopted in May 2012:

• Decrees of the President of the Republic of Kazakhstan – 8;

• Resolutions of the Government of the Republic of Kazakhstan – 49;

• and other regulatory legal acts.

Most of these regulatory legal acts concern a 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:

OIL AND GAS

1) DECREE OF THE PRESIDENT OF THE REPUBLIC OF KAZAKHSTAN NO.321 DATED 07 MAY 2012 “ON AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON ATOMIC ENERGY” (ENTERED INTO LEGAL FORCE ON 07 MAY2012)

According to this Law, the Ministry of Industry and New technologies was reorganized by way of separation of the Agency on atomic energy. This Agency will be functioning in the sphere of usage of atomic energy, ensuring the nuclear and radiation safety and others.

TAXES

1) RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN NO.572 DATED 04 MAY 2012 “ON INSERTION OF AMENDMENTS INTO THE RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN NO. 269 DATED 19 MARCH 2003 “ON APPROVAL OF THE LIST OF IMPORTED GOODS PAYMENT OF VAT ON WHICH IS MADE BY OFFSET PAYMENT AS PROVIDED UNDER THE CODE OF THE REPUBLIC OF KAZAKHSTAN DATED 12 JUNE 2001 “ON TAXES AND OTHER MANDATORY PAYMENTS TO THE BUDGET” AND REGULATIONS ON ITS FORMATION”

Under this Resolution, the changes have been inserted into the list of imported goods payment of vat on which is made by offset payment as provided under the Code of the Republic of Kazakhstan dated 12 June 2001 “On taxes and other mandatory payments to the budget” – in part of actualization of the codes on names as per trade classification of external economic activity of Customs Union.

The present Resolution comes into legal force from 23 may 2012 and applies to the relations starting from 01 January 2012 except some provisions coming into force from 01 July 2012.

GENERAL

1) LAW OF THE REPUBLIC OF KAZAKHSTAN NO. 15-V DATED 27 APRIL 2012 “ON INSERTION OF AMENDMENTS TO REGULATORY ACTS OF THE REPUBLIC OF KAZAKHSTAN ON THE MATTERS OF EXCLUDING THE DISCREPANCIES, GAPS, COLLISIONS BETWEEN THE PROVISIONS OF VARIOUS REGULATORYACTS PROMOTING CORRUPTION”

This Law provides for a wide scope of changes into 57 regulatory acts.

The Law “On registration of pledge of movable property” now provides for possibility to register a movable property by non-resident legal entity which is not subject to state registration at the place of registration as tax payer.

The Law has also regulated the order and terms of electronic registration of the rights for immovable property.

The changes made also concern the tax field: various amendments have been inserted into Articles 244-1 and 540, under which the criteria for application of zero rate of VAT in part of turnover on realization of combustibles & lubricants by airports has been specified.

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.