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Kazakhstan amends legislation to improve business environment, boost investment incentives

Business Materials 4 February 2021 16:21
Kazakhstan amends legislation to improve business environment, boost investment incentives

BAKU, Azerbaijan, Feb. 4

By Nargiz Sadikhova - Trend:

A number of amendments have been made to the Entrepreneurial and Tax Codes of aimed at improving the business environment and expanding investment incentives, Trend reports citing Kazakhstan’s KAZAKH INVEST National Company.

The company said that as part of the execution of the order of Kazakhstan’s president on further support of investors and the introduction of a strategic investment agreement, investors have been able to directly conclude an investment agreement with the Government in Parliament since the beginning of 2021.

The Government has also identified priority activities for investment agreements, as well as established norms that allow investors and the Government to come to a general agreement on the procedure for providing and a package of preferences in a targeted manner for each project.

Such an agreement provides for the stability of legislation for a period of 25 years, with a particular focus on tax and labor legislation. The investment agreement opens up an opportunity for the effective implementation of large projects involving investments of at least 7.5 million-оf monthly calculation index ($51 million) in strategically important industries such as pharmaceuticals, agriculture, food production, medical devices, etc. Unlike the existing investment contract, large investors will be able to enter into agreements with the Government without using the typical or standard form.

The procedure for providing and support tools will also be set individually in the agreement. Under the investment agreement, strategic investors will be able to receive tax holidays in respect of corporate income tax, property tax, land tax, and value added tax if the project is implemented in the SEZ. In addition, investors can reduce their tax liabilities by up to 20 percent.

In addition to tax holidays, the state will reimburse up to 20 percent of the cost of construction and installation work and the purchase of equipment to the investors. The ban on obtaining tax preferences under the investment agreement is provided for subsoil users and manufacturers of excisable goods.

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