Legislative News

This CLIENT UPDATE includes amendments and additions to the legislation of the Republic of Kazakhstan in January 2011.

In January 2011, there were adopted 296 regulatory legal acts, including:

• Laws of the Republic of Kazakhstan – 24;

• Decrees of the President of the Republic of Kazakhstan – 7;

• Resolution of the Government of the Republic of Kazakhstan – 54;

• Other regulatory legal acts.

Most of these regulatory legal acts concern the 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 on the following regulatory legal acts:

Decree of the Management Board of the National Bank of the Republic of Kazakhstan dated 27 December 2010 № 104

From the 1 January 2011, the official refinancing rate of the National bank of the Republic of Kazakhstan is settled to be 7, 0 percent annually.

Law of the Republic of Kazakhstan “On republican budget for 2011-2013 years” dated 29 November 2010 № 357-IV

It is established in Kazakhstan for 2011:

– minimum earnings – 15 999 tenge;

– monthly calculation index – 1 512 tenge.

Law of the Republic of Kazakhstan “On enactment of the amendments and additions to the some regulatory legal acts of the Republic of Kazakhstan on the issues of counteraction to the misappropriation of the business and property (raiding) dated 11 January 2011 № 385-IV

For raiding it is established criminal responsibility from the penalty till the deprivation of liberty until 5 years with confiscation of property. The persons who authorized to execute the government functions and if their activities involve the usage of the official job position then they are punished by deprivation of liberty until ten years with confiscation of property.It is firstly enacted the notion of “raiding”. It is an illegal acquisition of the property rights on share of participation in legal entity, equal property and securities of the legal entity and the establishment of the control over legal entity through executing activities enumerated in item 1 of the article 266-1 of the Criminal Code of the Republic of Kazakhstan.

By the above mentioned law there are enacted the amendments and additions to a number of regulatory legal acts, including the Law of the Republic of Kazakhstan “On partnerships with limited and additional liability”.

Law of the Republic of Kazakhstan “On governmental control and supervision in the Republic of Kazakhstan” dated 6 January 2011 № 377-IV

The Law stipulates the formation of the unified legal basis in order to regulate the questions of execution of control and supervision activity of the government bodies and fixes its main principles. The peculiarities of control and supervision activity execution of the special spheres are regulated in branch regulatory legal acts. Specifically, the effect of the law does not cover spheres connected with supreme supervision, which is executed by the prosecutor, by the control and supervision in pre-trial procedure on criminal case, operational investigative activities, control over conformity of the conditions of the contracts on execution of investments which foresees the investments preferences and etc.

The government bodies relate the supervised subjects to the groups of the high, medium or low risk. And depending on the level of the risk, it is defined the periodicity of planned inspection execution, in purpose of safety maintenance of the produced products for life and health of people, environment, and economical safety of the Republic of Kazakhstan.

Law of the Republic of Kazakhstan dated 15 December 2010 № 361-IV “On ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia about avoidance from double taxation and elimination of such avoidance from taxation in ratio of taxes to income and to property and the protocol attached to it ”

Kazakhstan has ratified the agreement with Armenia, which eliminates the double taxation on income of the residents of the negotiated governments and establishes the possibility to decrease the tax rate on dividend and royalty until 10 %.

Law of the Republic of Kazakhstan dated 14 January 2011 № 386-IV “On ratification of the Convention between the Republic of the Kazakhstan and the Government of the Kingdom of Spain about avoidance from double taxation and elimination of such avoidance from taxation in ratio of taxes to income and to capital and the protocol attached to it.

Resolution of the Government of Kazakhstan dated 30 December 2010 №1445

From the 1 January 2011 in Kazakhstan the rate of the customs tax on exported crude oil is increased from 20 until 40 dollars for 100 kg.

Law of the Republic of Kazakhstan dated 28 December №369-IV “On enactment of amendments and additions to the some regulatory legal acts of the Republic of Kazakhstan on transport questions ”

Reinforced the government regulation in the sphere of transport and transit by the enactment of set of amendments to the legislation about automobile road, railway transport, merchant shipping and licensing.

Kazakhstan has ratified the agreement with Spain, which eliminates the double taxation on income of the residents of the negotiated governments and establishes the possibility to decrease the tax rate on dividend until 5% for investors who possesses more than 10% of capital of the company dividends and until 10% on royalty and interest.

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.