Kazakhstan Government provides investment preferences to:
a) Kazakh legal entities implementing investment and investment priority projects (collectively - “investment projects”);
b) leasing companies importing technological equipment on the basis of a financial leasing agreement for Kazakh legal entities implementing investment projects.
There are 2 types of investment preferences in Kazakhstan:
Provided as part of an investment project
Provided as part of an investment priority project
Starting from 14 June 2020, you can apply for investment preferences in Kazakhstan via the State Corporation (TSON), as well as online2. The procedure for obtaining investment preferences and signing an investment contract following these changes:
1. Application for investment preferences
An application form together with supporting documents must be submitted via the State Corporation (TSON) or via the online portal
2. Obtaining investment preferences
The service provider verifies the completeness of the submitted documents within 5 business days following the application date. Following such verification, the decision to grant the investment preferences is issued within 22 business days
3. Signing of investment contract
Further to a positive decision to grant investment preferences, the authorized investment body prepares an investment contract3 for signing within 10 business days. The investment contract is registered by the authorized investment body within 5 business days from the signing date and comes into force from its registration date.
List of documents and information required:
When applying via the State Corporation (TSON), the following list of documents must be presented:
a) The information on the size of the requested in-kind grant must be also submitted;
b) Preliminary approval of the provision of the state in-kind grant by the local executive authority (i.e. akimat) (an original shall be appended for verification purposes);
When applying via online portal, the following documents must be submitted:
a) An electronic copy of the documents confirming the size of the state in-kind grant;
b) An electronic copy of the preliminary approval of the provision of the state in-kind grant by the local executive authority (i.e. akimat);
1 Shall not be provided for investment priority projects as part of expanding and/or upgrading existing facilities.
2 The Decree of the Minister of Foreign Affairs No. 11-1-4/179 dated 1 June 2020 “On Amendments to the Decree of the Acting Minister for Investment and Development of the Republic of Kazakhstan No. 1281 dated 30 December 2015 «On Approval of the Rules for the Reception, Registration and Consideration of Applications for the Provision of Investment Preferences».
3 An investment contract is an agreement on the investment project implementation, which provides for the investments implementation and the investment preferences provision.
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.