Legislative News

The Resolution of the Government of the Republic of Kazakhstan No. 133 and 134 on 14 February 2013 approved the new procurement rules for subsurface users.

The following regulatory legal acts were adopted in March 2013:

• Laws of the Republic of Kazakhstan – 4;

• Decrees of the President of the – Republic of Kazakhstan – 13;

• Resolutions of the Government of the Republic of Kazakhstan – 81;

• and other regulatory legal acts.

We would like to draw your attention to the following regulatory legal acts:

GOVERNMENT SERVICE

1) The Law of the Republic of Kazakhstan No. 59-V dated 14 December 2012 “On introduction of amendments and additions to some legislative acts of the Republic of Kazakhstan on issues of government service” (is effective in 10 calendar days upon its first official publication).

The Law is elaborated for the purposes of implementation of the Concept of new model of government service of the Republic of Kazakhstan and is directed on improving the professionalization and the efficiency of the state apparatus through establishments of effective and transparent mechanisms of entry into government service, through systems of appraisal and career planning, through establishment of administrative body “A”, and through enhancement of the role of HR services, through improvement the incentives and motivation of civil servants, ethics and anti-corruption measures.

ANTIMONOPOLY LEGISLATION

1) The Law of the Republic of Kazakhstan «On introduction of amendments and additions to some legislative acts of the Republic of Kazakhstan on competition issues”

The purpose of the Law is to harmonize the antimonopoly legislation of the Customs Union within the framework of the formation of the regulatory – legal database of the Common Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the RussianFederation, as well as further improvement of the existing antimonopoly legislation of the RoK, the reduction of administrative barriers for market entities related to the completion of forms, reporting; the exception of legislative acts of the RoK provisions restricting competition.

Moreover, these amendments and additions to the Law of the RoK “On competition” stipulate essential amendments in part of obtainment of economic concentration consent. On this subject we have prepared a special Overview on introduction of amendments on antimonopoly legislation.

TAXES

1) Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated 27 February 2013 года No. 1 “On court practice of application of tax legislation” (is effective upon its first official publication).

On plenary session of the Supreme Court it was resolved that pursuant to the paragraph 1 of the article 2 of the Code of the Republic of Kazakhstan dated 10 December 2008 “On taxes and other obligatory payments to the budget (Tax Code)” (hereinafter – the Tax Code), the tax legislation is based on Constitution of the Republic of Kazakhstan, consists of the Tax Codes and regulatory legal acts, introduction of which are stipulated by this Code. To such regulatory legal acts belongs regulatory resolutions of the Government of the Republic of Kazakhstan, regulatory legal orders of the heads of the authoritative bodies in the system of the tax service bodies, regulatory legal orders of the ministry of foreign affairs of the Republic of Kazakhstan on establishment of fixed amounts of consular fees rates (paragraph 2 of the article 552 of the Tax Code) and regulatory legal decisions of local representative bodies of oblasts, cities of the republican meaning and capitals on establishment of rates of separate taxes and other obligatory payments to the budget.

Pursuant to the article 9 of the Tax code, regulatory legal acts which regulate issues of taxation are subject to obligatory publication in the official periodicals.

Pursuant to the paragraph 1 of the article 38 of the Law of the Republic of Kazakhstan “On regulatory legal acts”, the necessary condition of becoming effective of abovementioned regulatory legal orders of the authoritative body, the ministry of the foreign affairs of the Republic of Kazakhstan and regulatory legal decisions of local representative bodies connected to the rights and responsibilities of the citizens is considered to be its state registration in the Justice department.

Courts upon consideration of tax disputes are not entitled to apply regulatory legal acts which are not complying with these conditions.

2) Decree of the Prime-Minister of the Republic of Kazakhstan dated 27 March 2013 No. 59-р “On measures of implementation of the Law of the Republic of Kazakhstan dated 26 December 2012 “On introduction of amendments and additions to the some legal acts of the Republic of Kazakhstan on the issues of taxation”.

This Decree approves the List of regulatory legal acts of the Republic of Kazakhstan, introduction of which are necessary for the purposes of implementation of the Law of the Republic of Kazakhstan dated 26 December 2012 “On introduction of amendments and additions to the some legal acts of the Republic of Kazakhstan on the issues of taxation”.

Please find out more about this List of regulatory legal acts, introduction of which are necessary for the purposes of implementation of the Law of the Republic of Kazakhstan dated 23 November 2012 “On introduction of amendments and additions to the Budget Code of the Republic of Kazakhstan” by the following link: http://adilet.zan.kz/rus/docs/R1300000059

LABOUR LEGISLATION

1) Resolution of the Government of the Republic of Kazakhstan dated 25 December 2012 No. 1673 “On establishment of quotas for attraction of foreign labour force for implementation of labour activity on the territory of the Republic of Kazakhstan for 2013” (is effective in 10 calendar days upon its first official publication).

Government of the Republic of Kazakhstan resolved to establish quota for attraction of foreign labour force for implementation of labour activity on the Republic of Kazakhstan for 2013 in amount of 1,2 percent to the economically active population of the Republic.

EXTERNAL ECONOMIC ACTIVITY. CUSTOMS

1) Decree of the Prime-Minister of the Republic of Kazakhstan dated 14 March 2013 No.47-р “On approval of Plan of events on improvement of tax and customs administration” (is effective in 10 calendar days upon its first official publication).

This Decree approved the Plan of events on improvement of tax and customs administration related:

• Unification of rates of state fees for goods which have similar characteristics and which belong to the same group of goods;

• Creation of modern infrastructure of customs service;

• Introduction of electronic declaration;

• Regulation of the import of commercial goods by individuals;

• Simplification of the customs administration through maximum reduction of the documents;

• Improvement of the institute of the authorized economic operators;

• Functions transfer of customs payments and taxes administration from the customs authorities to the tax authorities.

Please find out more about this Plan of events on improvement of tax and customs administration by following link: http://adilet.zan.kz/rus/docs/R1300000047

BANKING. LENDING ACTIVITY

1) Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 29 October 2012 No. 317 “On approval of Rules of application of restrictive measures against banks of second tier, organizations which execute separate types of banking operations as well as major participant of the bank, bank holdings, organizations, which are members of the banking conglomerate and enforcement measures to individuals/entities with signs of the major participant or bank holding as well as to the major participants of the bank, bank holding companies or legal entities within a banking conglomerate” (is effective in 10 calendar days upon its first official publication).

The Rules were elaborated pursuant to the laws of the RoK “On national Bank of the Republic of Kazakhstan”, “On banks and banking activity in the Republic of Kazakhstan”, “On mortgage of immovable property”, “On state regulation, control and supervision of financial market and financial organizations”, “On currency regulation and currency control” and establishes the order of application by the National Bank of the RoK in relation to the banks of second tier, organizations which execute separate types of banking operations as well as major participant of the bank, bank holdings, organizations, which are members of the banking conglomerate and enforcement of restriction measures, and the Committee on control and supervision of financial market and financial organizations of the National Bank of the RoK restrictive measures to individuals/entities with signs of the major participant or bank holding as well as to the major participants of the bank, bank holding companies or legal entities within a banking conglomerate.

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.