Legislative News

This Client Update includes amendments to the legislation of the Republic of Kazakhstan in November 2012.

The following regulatory legal acts were accepted in November 2012, including:

• International agreements – 1;

• Laws of the Republic of Kazakhstan – 46;

• Decrees of the President of the Republic of Kazakhstan – 5;

• Resolutions of the Government of the Republic of Kazakhstan – 47;

• and other regulatory legal acts.

Most of these regulatory legal acts concern a public sector, connected with ratification of international agreements and introduction of amendments to the republican budget, 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 to the following regulatory legal acts:

BUDGET

1)LAW OF ROK No.54-V DATED 23 NOVEMBER 2012 «ON THE REPUBLICAN BUDGET FOR 2013-2015»

In accordance with this law from 1 January 2013 will be effective the following rates:

• Minimum salary – 18 660 tenge;

• Amount of state standard pension payment – 9 330 tenge;

• Minimum pension – 19 066 tenge;

• Monthly calculation index – 1 731 tenge;

• Minimum subsistence level for calculation of amounts of standard social benefits – 18 660 tenge.

SUBSURFACE USE

1) RULES OF REALIZATION OF THE STATE’S PRIORITY RIGHT ON ACQUISITION OF FINE GOLD FOR SUPPLEMENT of ASSETS IN PRECIOUS METALS (CAME INTO EFFECT FROM 25 NOVEMBER 2012.)

Government of RoK approved the Rules of realization of the state’s priority right on acquisition of fine gold for supplement of assets in precious metals.

In accordance with these rules producers submit the schedules of production forecast and sale of fine gold as of the first half of the next year and the second half of the current year to the National Bank.

On the basis of the record of production forecast and sale of fine gold, and as well as taking into account the condition of money market, monetary policy measure and conditions of international financial markets, the chairman of National Bank approves acquisition limit within realization of state’s priority right as of upcoming half year and/or makes decision if priority rights shall not be exercised..

2) RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN No.1272 DATED 8 OCTOBER 2012 ON APPROVAL OF LIMIT PRICE OF WHOLESALE TRADE OF LIQUEFIED PETROLEUM GAS IN THE LOCAL MARKET (CAME INTO FORCE FROM 19 NOVEMBER 2012)

In accordance with this resolution the limit price of wholesale trade of liquefied petroleum gas in the local market of the Republic of Kazakhstan for the period of 31 December 2012 is established in the amount of 35805 tenge per ton excluding value-added tax.

STATE PROCUREMENT

1) RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN No.1450 DATED 15 NOVEMBER 2012 ON INTRODUCTION OF AMENDMENTS TO THE RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN No.1301 DATED 27 DECEMBER 2007 “ON APPROVAL OF REALIZATION OF STATE PROCUREMENT RULES” AND No.623 DATED 15 MAY 2012 “ON APPROVAL OF RULES FOR CONDUCTING OF ELECTRONIC STATE PROCUREMENT”

In accordance with introduced amendments, the customer has a right to withhold security payment under the agreement, if state procurement agreement is terminated due to nonfulfillment of contractual obligations by the contractor.

Moreover, in the case of improper fulfillment of accepted obligations by the contractor under the state procurement agreement, the customer returns security amount within five working days upon the date of penalty payment except cases of force majeure.

Also, for violation of agreement terms the customer may terminate the agreement, having sent a written notification on non-fulfillment of obligations to the contractor.

CUSTOMS

1)LAW OF THE REPUBLIC OF KAZAKHSTAN ON RATIFICATION OF THE AGREEMENT ON UNITED CUSTOMS COLLEGIATE ORGAN OF MEMBER STATES OF CUSTOMS UNION No.49-V ЗРК DATED 15 NOVEMBER 2012

In accordance with this law the Republic of Kazakhstan ratified the Agreement on United customs collegiate organ of member states of Customs union.

TAX

1)LETTER OF TAX COMMITTEE OF MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN No.НК-24/10026-И DATED 1 NOVEMBER 2012

In order to provide transparency of budgeting, maintenance of qualitative control of conditions fulfillment of contracts by subsurface users in a part of deductions on development of social sphere of regions, as well as exclusion of any facts of corrupt practices on the part of local executive bodies, payments deduction on development of social sphere are to be effected only on budgetary classification code (BCC) 206109 “Other non-tax receipts in the local budget”.

INDUSTRY

1) RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN No.1397 DATED 3 NOVEMBER 2012 ON DECREE DRAFT OF THE PRESIDENT OF THE REPUBLIC OF KAZAKHSTAN “ON ESTABLISHMENT OF SPECIAL ECONOMIC ZONE “TARAZ CHEMICAL PARK”

In accordance with resolution of the Government of RoK special economic zone “Taraz Chemical Park”, located on the territory of Shuskyi region of Zhambyl oblast is established for the period until 1 January 2037.

EMPLOYMENT

1)LAW OF THE REPUBLIC OF KAZAKHSTAN No.43-V DATED 19 OCTOBER 2012 «ON INTRODUCTION OF AMENDMENTS TO THE LAW OF THE REPUBLIC OF KAZAKHSTAN “ON HOLIDAYS IN THE REPUBLIC OF KAZAKHSTAN” (CAME INTO FORCE FROM 10 NOVEMBER 2012).

In accordance with this law the list of National holidays is amended by the Day of Defender of the Fatherland to be celebrated on 7 May.

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.