Improved investment climate for priority projects in Kazakhstan
Conditions for investors implementing priority projects in Kazakhstan have been improved as of 16 January 2021[1]. When concluding the investment agreement providing for investments in the amount of at least 7.5 million times the monthly calculation index[2] (approximately 52 million US dollars) in priority projects, determined by the Government of the Republic of Kazakhstan, the investor receives the following preferences:
The investment agreement does not have a standard form and can be concluded in free form;
The provisions of the investment agreement remain in effect for 25 years from the date of its conclusion;
An investor who has entered into an investment agreement is entitled to reimbursement of up to 20% of the construction works cost and to purchase equipment, excluding VAT and excise taxes.
Investors receive the following tax benefits under the investment agreement:
0% corporate income tax;
0% property tax;
0% land tax;
0% VAT, if the project is implemented in the territory of a special economic zone (SEZ).
In our opinion, good news for investors may be the possibility of concluding an investment agreement in free form. This freedom to choose the form of the agreement should make it possible to avoid standard provisions in order to make the investment agreements more flexible, however, the effectiveness of this novelty may be proved only when put into practice.
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.
[1] Law of the Republic of Kazakhstan "On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on the Restoration of Economic Growth" dated January 2, 2021 No. 399-VI
[2] MCI - MCI in 2021 is KZT 2,917
