Legislative News

This CLIENT UPDATE includes amendments to the legislation of the Republic of Kazakhstan in December 2010.

The following 150 acts were adopted in December 2010:

• Laws of the Republic of Kazakhstan – 17;

• Decrees of the President of the Republic of Kazakhstan – 8;

• Resolutions of the Government of the Republic of Kazakhstan – 125;

• Other regulatory legal acts.

Most of these regulatory legal acts concern the public sector, but among them there are some, which may attract your attention and affect your business in Kazakhstan in a certain way.

Decree of the President of the Republic of Kazakhstan dated 7 December 2010 № 1118 On Confirmation of State Program of Development of Education of the Republic of Kazakhstan for years 2011-2020.

For the purposes of implementation of Decree of the President of the Republic of Kazakhstan dated 1 February 2010 № 922 On Strategic Plan of Development of the Republic of Kazakhstan until year 2020 and for the purposes of increasing competitiveness of education, development of human capital by providing availability to quality education for steady growth of economics, state program of development of education of the Republic of Kazakhstan for years 2011-2020 is confirmed.

Resolution of the Government of the Republic of Kazakhstan dated 30 December 2010 № 1467 On Agenda of Drafting Laws of the Government of the Republic of Kazakhstan for year 2011

Confirmed by the Resolution is the Agenda of Drafting Laws of the Government of the Republic of Kazakhstan for year 2011 establishing terms and projects of making amendments to the legislation of the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 27 December 2010 № 1415 On Increase of Amounts of Pension Payments from the State Center on Pension Payments starting from 1 January 2011.

According to the Resolution, amounts of pension payments from the State Center on Pension Payments fixed before 1 January 2011 are increased to thirty percent from the amount of received pension payments.

Resolution of the Government of the Republic of Kazakhstan dated 23 December 2010 № 1406 On Establishment of a Board on Cooperation with Organization of Economic Cooperation and Development

For the purposes of jointly providing with state authorities effective coordination of programs and initiations of the Organization of Economical Cooperation and Development and the process of entering the above organization by the Republic of Kazakhstan, the Board on Cooperation with Organization of Economic Cooperation and Development is established.

Resolution of the Government of the Republic of Kazakhstan dated 13 December 2010 № 1345 On Formation of Interdepartmental Commission on Preventive Maintenance of Offenses at the Government of the Republic of Kazakhstan

With a view of realization of coordination of activity of subjects of preventive maintenance of offenses and development of corresponding offers on increase of efficiency of preventive work the Interdepartmental commission on preventive maintenance of offenses is created at the Government of the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 8 December 2010 № 1319 On Confirmation of a Methodology of Calculation of Norms and Volumes of Gas Flaring during Oil Operations

Methodology is developed in accordance with p.3 of Art.85 of the Law of the Republic of Kazakhstan dated 24 June 2010 On Subsurface and Subsurface Use and determines methodology of calculation of norms and volumes of gas flaring during oil operations.

INTERNATIONAL LAW

Decision of the Commission of Customs Union dated 8 December 2010 № 501 On Issue of Application of a Zero Tax Rate of VAT at Carrying Out International Transportation in the frame of the Customs Union

Expert Group of the Customs Union shall prepare proposals on regulation of the issue of application of a zero tax rate of VAT at carrying out international transportation in the frame of the Customs Union until 20 January 2011 and report on regular session of the Commission of Customs Union.

Decision of the Commission of the Customs Union dated 8 December 2010 № 488 On Confirmation of Regulation on Procedure of Suspension or Cancellation of the Licenses

In pursuance of p.10 of Art.3 of the Agreement On Licensing Rules in the Sphere of International Trade of Goods dated 9 June 2009 Regulation On Procedure of Suspension or Cancellation of the Licenses is confirmed determining the procedure of suspension or cancellation of licenses.

Law of the Republic of Kazakhstan 15 December 2010 № 361-IV On Ratification of Convention Between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on Avoidance of Double Taxation and Prevention of Tax Evasion With Respect to Income and Property Taxes and Protocols to it

For the purposes of avoidance of double taxation and prevention of tax evasion, Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on Avoidance of Double Taxation and Prevention of Tax Evasion With Respect to Income and Property Taxes and Protocols to it is ratified by the law.

Resolution of the Government of the Republic of Kazakhstan dated 23 December 2010 № 1408 On signing an Agreement Between the Government of the Republic of Kazakhstan and the Government of the Czech Republic On Exemption of Owners of Diplomatic Passports of the Republic of Kazakhstan and Owners of Diplomatic Passports of Czech Republic from Visa Requirements

According to the Agreement, citizens of the Republic of Kazakhstan, owners of diplomatic passports may enter, stay or transit through the territory of the Czech Republic without a visa for a period not exceeding 3 (three) months, in the course of any six months period from the date of first entrance to Schengen Agreement countries. Period of being on the territory of Czech Republic will include the period of location of the citizens of the Republic of Kazakhstan on the territory of other Schengen Agreement countries.

Resolution of the Government of the Republic of Kazakhstan dated 21 December 2010 № 1387 On Confirmation of an Agreement On Cooperation on Organization of Interstate Exchange of Information and Formation of National Data Bases on Copyright and Neighboring Rights

For the purposes of creation of conditions on for interstate exchange of information on objects of copyrights, neighboring rights and right holders, Agreement On Cooperation on Organization of Interstate Exchange of Information and Formation of National Data Bases on Copyright and Neighboring Rights has been confirmed.

Resolution of the Government of the Republic of Kazakhstan dated 13 December 2010 № 1346 On Confirmation of an Agreement Between the Government of the Republic of Kazakhstan and Government of Russian Federation on Joint Activity on Geological Research and Exploration of Trans-boundary Gas Condensate Field Imashevskoe

For the purposes of joint research and exploration of trans-boundary gas condensate field Imashevskoe, Government of the Republic of Kazakhstan has confirmed an Agreement Between the Government of the Republic of Kazakhstan and Government of Russian Federation on Joint Activity on Geological Research and Exploration of Trans-boundary Gas Condensate field Imashevskoe.

DRAFTS OF REGULATORY LEGAL ACTS

Resolution of the Government of the Republic of Kazakhstan dated 22 December 2010 № 1394 On Draft of Law of the Republic of Kazakhstan On Ratification of an Agreement On Preparation of Personnel for Antiterrorist Formations of Member States of Shanghai Cooperation Organization

The draft law On Preparation of Personnel for Antiterrorist Formations of Member States of Shanghai Cooperation Organization was introduced by the Resolution to the Mazhilis of the Parliament of the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 10 December 2010 № 1342 On Draft Law Of the Republic of Kazakhstan On Ratification of an Agreement Between the Government of the Republic of Kazakhstan and the Government of Romania on Encouragement and Mutual Protection of Investments

The draft law On Ratification of an Agreement Between the Government of the Republic of Kazakhstan and the Government of Romania on Encouragement and Mutual Protection of Investments was introduced by the Resolution to the Mazhilis of the Parliament of the Republic of Kazakhstan.

Resolution of the Republic of Kazakhstan dated 10 December 2010 № 1341 On Draft Law Of the Republic of Kazakhstan On Ratification of an Agreement Between the Government of the Republic of Kazakhstan and the Government of Socialist Republic of Vietnam On Encouragement and Mutual Protection of Investments

The draft law On Ratification of an Agreement Between the Government of the Republic of Kazakhstan and the Government of Socialist Republic of Vietnam On Encouragement and Mutual Protection of Investments was introduced by the Resolution to the Mazhilis of the Parliament of the Republic of Kazakhstan.

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.