SIGNUM regularly provides Legislative/Regulatory Alerts to keep Clients informed about important laws and regulatory changes in the Republic of Kazakhstan (“RK”). This Alert includes recent developments introduced in January-February 2019 related to:
The following changes were introduced to the legislation of the Republic of Kazakhstan with respect to protection of proprietary rights, arbitration , judicial burden optimization and further humanization of criminal law1:
A debtor has the right to place indebted money in a deposit in the name of a notary if parties provide for such clause in notarized agreement between a debtor and a creditor. Such novelty allows the debtor an alternative option for debt settlement before the creditor – though the public notary and, among others, relieve oneself from indebtedness before the missing creditor.
Sanctioning a seizure of money
As from 24 April 2019, sanctioning a seizure of money of individuals and legal entities held in bank accounts will be granted by the prosecutor instead of courts in cases as provided under criminal procedure and civil procedure laws.
The list of claims brought under court order procedure was expanded. Such claims include collecting customs, tax and other payments from individuals, mandatory pension contributions, performance of dispute settlement by way of mediation under agreements related to commercial, investment activities, protection of intellectual property rights as part of pre-trial settlement.
The judge returns a claim if a claimant in addition to pre-trial settlement did not follow an out-of-court settlement procedure provided for by an agreement between parties and such procedure is still available.
Regulation of arbitration in terms of applicable law, possibility of commencing a trial before determining jurisdiction, as well as changing and supplementing claims or objections have significantly improved. These changes can significantly affect the motivation of parties to include arbitration clause in their agreements.
It was clarified that a compulsory alienation of land for state needs may be in respect of land plots that are in private ownership or were granted for use by the state.
Criminal liability for employees of companies was reduced if damage is voluntary recovered. Such changes could create favorable conditions for attracting qualified workers to managerial positions.
Administrative fine for issuing a fictitious invoice has increased. Previously the fine was up to 200% of the VAT amount, and now is up to 300% of VAT amount.
There is no need now to obtain a license for property valuation and a license for intellectual property assets valuation value of intangible assets.
Drafting legal acts
Drafting legal acts in the field of business requires the participation of representatives of the National Chamber of Entrepreneurs of the Republic of Kazakhstan (“NCE RK”) and accredited associations of private entrepreneurship entities.
Participation of the NCE RK in drafting regulatory legal acts in the field of business will have a positive effect on entrepreneurship in the Republic of Kazakhstan due to constant contact of the chamber with the business community of Kazakhstan.
Currently there is no requirement to certify an audit report with signature, personal stamp of an auditor and a stamp of an audit organization.
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.