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Kazakhstan to provide benefits to foreigners for large investments in priority sectors

Business Materials 10 June 2014 16:28 (UTC +04:00)
Benefits will be granted to foreigners investing at least $20 million in new projects in Kazakhstan.

Astana, Kazakhstan, June 10
By Daniyar Mukhtarov - Trend:

Benefits will be granted to foreigners investing at least $20 million in new projects in Kazakhstan.

The Vice Minister of Economy and Budget Planning, Marat Kusainov made the remarks in his speech at the Senate (upper house of parliament) while presenting the draft law on the improvement the investment climate in Kazakhstan.

"The stimulus package will be available for new investment projects worth at least $20 million. These are the projects in the priority sectors of the economy in accordance with the state program of industrial-innovative development," he said.

The Vice Minister noted that the draft law considers review of mechanism and conditions of investment contracts concluded with the investors, the expansion of investment preferences, as well as measures to improve the investment climate.

It was reported earlier that the specified stimulus package include additional measures of government support for investors within the framework of concluded contracts.
They include- the exemption from the payment of corporate income tax for ten years; the exemption from land tax for 10 years; exemption from property tax for eight years; state compensation up to 30 percent of capital expenses of the investor after commissioning of the facility (investment subsidy).

Furthermore, it is under consideration to introduce the "stability" concept of tax rates (excluding VAT and excise duties), environmental fees and charges for a period of 10 years after the conclusion of contracts with investors in Kazakhstan. Within the framework of the concluded contracts investors have the right to employ foreign labor for the duration of the investment project, and for one year - after commissioning (out of quotas and permits).

It is planned that Kazakhstan will contribute to investment by providing a guaranteed order from interested entities (in case of concluding investment contracts with them). The principle of "single window" will be implemented on the base of the Investment Committee of the Ministry of Industry and New Technology in order to minimize the participation of investors who have concluded a contract for the collection and preparation of documents and limit their direct contact with the subjects of public services.

Edited by CN

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