Government Support of Investments in Kazakhstan

The government support of investments aims at making a favourable investment climate and attracting investments for setting up new entities, developing and upgrading existing companies by using state of the art and new technologies, arranging advanced trainings for Kazakhstan personnel, as well as protecting environment, by way of granting investment preferences.

Investment Project

Investment projects can be of three types:

1) Investment project

2) Priority Investment project

3) Strategic Investment project

An investment project is a set of measures providing for investments for launching new enterprises and expanding and upgrading existing ones, including those that have been implemented as part of the public-private partnership projects, e.g. concessions.

A priority investment project means an investment project that is implemented by a newly established legal entity in certain priority areas with the investment value of not less than 2 million MCI (4.242 billion Tenge).

A strategic investment project is an investment project which is included in the list determined by the Government of Kazakhstan and which may have a strategic impact on economic development of Kazakhstan.

Investment Preferences

Investment preferences are available to investors as part of implementation of investment projects.

Investment preferences are targeting benefits granted in accordance with the laws of the Republic of Kazakhstan to legal entities of the Republic of Kazakhstan[1]implementing investment projects.

Investment preferences are granted pursuant to the investment contract between the investments authorized body and a legal entity of the Republic of Kazakhstan implementing an investment project.

Also, priority investment projects and strategic investment projects enjoy tax stability and stability of legislation on employment of foreign nationals.

How to obtain investment preferences

1) A legal entity of the Republic of Kazakhstan files the following documents with the investments authorised body:

•\tAn application for investment preferences

•\tDocuments confirming the applicant’s compliance with the statutory requirements.

2) Investment preferences are granted on the basis of the investment contract between the authorised body for investments and a legal entity of the Republic of Kazakhstan implementing investment projects.

3) Preferences are granted based on the one-stop-shopping principle.

[1] Legal entity of the Republic of Kazakhstan means a legal entity (including that with foreign participation), established in accordance with the laws of Kazakhstan.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please note that Kazakhstan is an emerging economy, and its legislation and legal system are in constant development. Should you have any questions or want to discuss matters addressed in this Client Update, please contact us.