Invest in Kazakhstan. Investors guide

INVESTOR
,
S
GUIDE
invest.gov.kz

2 / INVESTOR’S GUIDE
TABLE OF CONTENTS
1. Kazakhstan in brief .........................................................................................6
2. Reasons to invest in Kazakhstan ................................................................10
3. Investment climate of Kazakhstan .............................................................16
3.1. Investment incentives .................................................................................................18
3.2. Special Economic Zones ............................................................................................20
3.3. Industrial zones ...........................................................................................................22
3.4. Dialog platforms ........................................................................................................23
3.5. Investor protection .......................................................................................................24
3.6. Agreements on the promotion and mutual protection of investments
entered into by Kazakhstan ...............................................................................................25
4. Doing business in Kazakhstan .....................................................................28
4.1. Arrival in Kazakhstan ...................................................................................................28
4.2. Employment of foreign nationals in Kazakhstan ..............................................33
4.3. Starting a business ........................................................................................................36
4.4. Obtaining licenses and permits .............................................................................38
4.5. Acquisitionofaplotofland...........................................................................................40
4.6. Protection of intellectual property ........................................................................43
4.7. Taxation ...........................................................................................................................45
4.8. Customs legislation ......................................................................................................50
4.9. Banking system .............................................................................................................52
4.10. Electronic services for business ..........................................................................55
5. Measures of state support for business .....................................................58
5.1. "Business Road Map 2020" Program ................................................................58
5.2. "Agribusiness – 2020" Program for development of agro-industrial
complex in the Republic of Kazakhstan for 2013–2020 ...........................................58
5.3."Exporter 2020" Program for development and advancement of export .....58
5.4."Productivity2020"Program.......................................................................................59
5.5. State support of industrial-innovative activities ............................................59
6. Regions of Kazakhstan ................................................................................62
6.1. Akmola region ..............................................................................................................62
6.2. Aktobe region .................................................................................................................62
6.3. Almaty region ................................................................................................................63
6.4. Atyrau region ...............................................................................................................63
6.5. East Kazakhstan region ............................................................................................63
6.6. Karaganda region .........................................................................................................64
6.7. Kostanai region ..............................................................................................................64
6.8. Kyzylorda region ..........................................................................................................65
6.9. Mangystau region ...........................................................................................................65
6.10. North Kazakhstan region ..........................................................................................65
6.11. Pavlodar region ............................................................................................................66
6.12. South Kazakhstan region ...........................................................................................66
6.13. West Kazakhstan region ............................................................................................67
6.14. Zhambyl region ........................................................................................................67
6.15. Astana city .....................................................................................................................68
6.16. Almaty city ....................................................................................................................68
7. Information support of investors ................................................................70
8. Successful projects .........................................................................................72
Contact information of public bodies and organizations ...........................74

Ladies and Gentlemen!
It is my pleasure to welcome you on the pages of the "Investor’s Guide"
edition. Here you can find all the necessary information on opportunities for
investors in Kazakhstan, on favorable and stable business environment.
Kazakhstan is located in the heart of the Eurasian continent, and is a bridge
between Europe and Asia, in the vicinity of rapidly growing markets of China,
Russia and India. The favorable geographical position, macroeconomic, social
and political stability have established in Kazakhstan one of the most attractive
investment climates in the region.
If we review the dynamics over the past 10 years, the bulk of foreign
direct investments has been attracted during the implementation of the State
Program of the Industrial and Innovative Development for 2010-2014. One of
the significant program outcomes is that today every third industrial sector has
production with participation of foreign investors. This was made possible owing
to a significant improvement of the investment climate in the country.
Thanks to the investment policy pursued, our country has improved its
position in the international rankings. For example, in 2014 Kazakhstan was
ranked 28th
in the world by the net inflow of foreign direct investment. At the
same time, Kazakhstan was ranked 16th
among the developing countries.
Further improvement of the investment climate in the country has become
one of the priority tasks of the second five-year plan of the innovative
industrialization, too.
Today Kazakhstan is on the verge of new, large-scale endeavors, and we invite
you to take an active participation in this process. I would like to wish you success
in the implementation of ideas and opportunities that you may encounter in this
guide.
For my part, I can assure you that in Kazakhstan you will be provided with the
necessary support in all of your business initiatives.
Yours faithfully,
Minister for Investment and Development
Asset Issekeshev

GLOSSARY
AIC – agro-industrial complex
CICMA – Conference on Interaction and Confidence Building Measures in Asia
CIIC– Council on Improvement of Investment Climate
CIT – corporate income tax
CIS – Commonwealth of Independent States
CU – Customs Union
EAEU – Eurasian Economic Union
FDI – foreign direct investment
FIC – Foreign Investors Council
GDP – Gross Domestic Product
GNS – Gross National Savings
IZ – industrial zone
JSC – Joint-Stock Company
LLP – Limited Liability Partnership
MA of the Republic of Kazakhstan– the Ministry of Agriculture of the Republic
of Kazakhstan
MCI1
– monthly calculation index
MF of the Republic of Kazakhstan– the Ministry of Finance of the Republic of
Kazakhstan
MFA of the Republic of Kazakhstan – the Ministry of Foreign Affairs of the
Republic of Kazakhstan
MHSD of the Republic of Kazakhstan – the Ministry of Healthcare and Social
Development of the Republic of Kazakhstan
MIA of the Republic of Kazakhstan – the Ministry of Internal Affairs of the
Republic of Kazakhstan
MID of the Republic of Kazakhstan – the Ministry for Investments and
Development of the Republic of Kazakhstan
MJ of the Republic of Kazakhstan – the Ministry of Justice of the Republic of
Kazakhstan
NMH – National Management Holding
OSCE – Organization for Security and Cooperation in Europe
PIT – personal income tax
PPP – purchasing power parity
RLA – regulatory legal act
R&D – research and development activities
SEC – Social-Entrepreneurial Corporation
SEZ – Special Economic Zone
SPIID – State Program of Industrial-Innovative Development
STB – second-tier banks
TC– Tax Code
VAT – value added tax
WEF – World Economic Forum
1
1 MCI = 2,121 KZT, Law of the Republic of Kazakhstan "On the Republican Budget for 2016-
2018" № 426-V dated November 30, 2015

KAZAKHSTAN
IN BRIEF
invest.gov.kz

1. KAZAKHSTAN IN BRIEF
Geography:2
Location: Central Asia
Territory:
2 724 900 sq.km (1 052 085 sq. miles)
9th
largest country in the world
Capital city: Astana
National currency: Tenge2
(KZT)
Language:
Kazakh – the state language,
Russian – used on a par with the Kazakh language
Time:
GMT+6 (Astana, Almaty). Kazakhstan is divided into two time
zones: the eastern zone (basic) and the western zone
Population:
17.6 mln people3
.
Of them:
– Urban population – 10.0 mln people (57%)
– Rural population – 7.6 mln people (43%).)
The administrative and territorial structure of the country comprises 14
regions and 2 cities of republican significance. .3
2
According to the rate of the National Bank of the Republic of Kazakhstan as of Q3 2015, 1 USD
= 216.2 KZT, Euro 1 = 240. KZT
3
According to the Committee on Statistics of the MNE of the Republic of Kazakhstan as of
October 1, 2015.
Russia
China
Аstana

Macroeconomic indicators
Indicator
Unit
2010 2011 2012 2013 2014
2015 2016
Current
forecast
GDP
constant
prices, %
7.3 7.5 5.0 6.0 4.3 1.5 2.4
GNS % GDP 26.3 27.9 25.3 24.3 26.6 27.8 25.2
Current
account balance
% GDP 0.9 5.4 0.5 0.4 2.1 -3.0 -4.1
Investments % GDP 25.4 22.5 24.8 23.9 24.4 30.8 29.3
Average
inflation rate
% 7.1 8.3 5.1 5.8 6.7 6.3 8.6
Unemployment
rate
% of total labour
force
5.8 5.4 5.3 5.2 5.0 5.0 5.0
GDP per capita
current prices
in USD
9,009 11,278 12,034 13,509 12,400 11,028 9,650
GDP per capita
based on PPP
current
international
USD
19,074 20,626 21,746 23,081 24,108 24,346 24,843
Source: International Monetary Fund, as of October 15, 2015
Kazakhstan and the world community
As a leader in Central Asia, the country is making a significant contribution to
stability in the region. Kazakhstan has made great strides in the world arena. This is
evidenced by the chairmanship of Kazakhstan in the OSCE and the Summit held in
Astana by this organization in December 2010. The country’s significant initiative
was the launch and the development of the CICMA project, the Asian counterpart of
the OSCE. Kazakhstan’s workmanship as the chairman of the leading Organization
of Islamic Cooperation – the OIC– receives positive feedback. The country is also a
recognized leader in the global anti-nuclear movement.
Kazakhstan is a member of the Eurasian Economic Union (hereinafter –
the EAEU) – an international association of economic integration, along with
Armenia, Belarus, Kyrgyzstan and Russia. Within the EAEU, the countries secure
the free movement of goods, services, capital and labor force, and pursue a
coordinated, coherent and unified policy in the sectors of the economy.
In 2015, Kazakhstan joined the World Trade Organization as the 162nd
member.

The research on DNA of different varieties of apples conducted
by British scientists from Oxford revealed that Kazakhstan is the
motherland of apples in the world
Source: The Telegraph
http://www.telegraph.co.uk/news/worldnews/asia/kazakhstan/7978486/Kazakhstan-the-home-of-
the-apple.html

REASONS TO INVEST IN
KAZAKHSTAN
invest.gov.kz

2. REASONS TO INVEST IN KAZAKHSTAN
1. Stable economic and political climate in the region
Among 140 countries in the world, by the macroeconomic environment
Kazakhstan is ranked 25th
and 30th
in the transparency of government
policymaking (WEF "The Global Competitiveness Report 2015-2016").
Kazakhstan’s inflation rate remains stable (IMF: 2012 – 5.1%; 2013 – 5.8%;
2014 – 6.7%), while the unemployment rate decreases annually (IMF: 2010 –
5.8%; 2013 – 5.2%; 2014 – 5.0%).
2. Competitive geographic location and transit potential
Kazakhstan is located in the heart of Eurasia, between Europe and China.
The country has developed a number of major infrastructure projects, such as:
Khorgos dry port on the Chinese border; the port of Aktau on the Caspian Sea;
"Western Europe – Western China" international transit corridor, passing through
Kazakhstan and making it possible to reduce cargo transportation time from
Lianyungang in China to St. Petersburg in Russia to 10 days.
Over the past five years, new railways with a total length of 1,791km have been
constructed.
The country develops port infrastructure through the ports of other countries:
the seaport of Batumi in Georgia, providing access to the Black Sea; Kazakh-
Chinese logistics terminal in the Pacific port of Lianyungang.
.
3. Rich natural resources
Kazakhstan in the world ranking for reserves
Kazakhstan in the world ranking for mining

4. Access to the market of 500 million consumers
Kazakhstan’s membership in the EAEU provides investors with access to the
Russian market with more than 140 million people and a common market of the
Union with more than 180 million consumers.
Kazakhstan also opens up access to the Central Asian markets of 49 million
people, as well as markets of the countries bordering the Caspian Sea with 235
million consumers and the market of Western China with 21 million people.
5. Competitive labor market
Kazakhstan is the only country in the region to have a high efficiency of the labor
market, while ranking number 18 among 140 countries of the world (WEF "The Global
Competitiveness Report 2015-2016"). The country is ranked 22nd
in labor efficiency and
remuneration.
Potential investors allocate pay level in Kazakhstan as one of the most attractive
factors (EY’s attractiveness survey, Kazakhstan 2014 "The brand paves the way").
Investors, who have entered into investment contracts for the implementation of
priority investment projects, have the right to engage foreign specialists without quotas
and permits.
6. Investor protection
The country holds one of the top positions in the world for the protection
of investors. Kazakhstan is ranked 25th
in the protection of minority investors
among 189 countries of the World Bank
,
s Doing Business 2016 rating and 25th
for the protection of investors among 140 countries, according to the WEF "The
Global competitiveness report 2015-2016".
7. State support
In Kazakhstan investors are granted a package of investment incentives for
the implementation of priority projects in the priority sectors of the economy.
This package is unique in the region.

KAZAKHSTAN’S POSITIONS IN INTERNATIONAL RANKINGS
Kazakhstan pays special attention to the creation of a favorable business
climate for investors and improvement of business environment.
Ease of Doing Business rating
Source: World Bank, Doing Business 2016
Doing Business categories: country-by-country comparison
Category
Armenia
KAZAKHSTAN
Belarus
Russia
Turkey
Azerbaijan
China
Ease of Doing Business 35 41 44 51 55 63 84
Starting a Business 5 21 12 41 94 7 136
Registering Property 14 19 7 8 52 22 43
Protecting Minority Investors 49 25 57 66 20 36 134
Paying Taxes 41 18 63 47 61 34 132
Enforcing Contracts 28 9 29 5 36 40 7
Source: World Bank, Doing Business 2016

Global Competitiveness Index 2015-2016
Position
(among 140 countries)
Country Score
1 Switzerland 5.76
2 Singapore 5.68
3 USA 5.61
4 Germany 5.53
… … …
42 KAZAKHSTAN 4.49
45 Russia 4.44
51 Turkey 4.37
80 Tajikistan 4.03
102 Kyrgyzstan 3.83
Source: World Economic Forum, The Global Competitiveness Report 2015-2016
Competitive advantage Position Competitive advantage Position
Mobile telephone
subscription/100 pop.
(7)
Effect of taxation on incentives
to invest
(28)
Government budget balance,
% GDP
(10) Public trust in politicians (29)
General government debt,
% GDP
(12)
Effect of taxation on incentives
to work
(29)
Redundancy costs (20) Hiring and firing practice (29)
Pay and productivity (22)
Transparency of government
policymaking
(30)
Flexibility of wage
determination
(22) Total tax rate,% of profits (31)
Strength of investor protection (25) Gross national savings,% GDP (31)
Women in labor force,
ratio to men
(26) Buyer sophistication (31)
Source: World Economic Forum, The Global Competitiveness Report 2015-2016

Astana has gained its status as the main city of the country on
December 10, 1997.
It is a large political, administrative, business and cultural centre with
population of over 800 thousand people.
In July, 1999 Astana was declared a "World City" by UNESCO.

invest.gov.kz
INVESTMENT CLIMATE
OF KAZAKHSTAN

3. INVESTMENT CLIMATE OF KAZAKHSTAN
Kazakhstan has one of the most favorable investment climates in the region.
Currently Kazakhstan is one of the leaders in the region in terms of foreign
investments. According to UNCTAD in 2014 Kazakhstan was ranked 28th
in the
world by net FDI inflows. (Following the results of 2013 Kazakhstan was ranked
31st
). In addition, Kazakhstan is ranked 16th
among the developing countries.
In order to ensure a direct dialogue of the state with investors, the Foreign
Investors Council (hereinafter – the FIC) under the President of the Republic
of Kazakhstan, the Council on Improvement of Investment Climate (hereinafter
– the CIIC) under the Prime Minister of the Republic of Kazakhstan and the
Investment Ombudsman operate in Kazakhstan.
Under instructions of the President of the Republic of Kazakhstan, activities
are pursued to further improve the investment climate in accordance with
12 recommendations of the Organization for Economic Cooperation and
Development (OECD). They are reforms in the field of intellectual property,
corporate governance, attraction of foreign labor, and visa procedures, and
others.
Anotherimportantstepinsupportofinvestorswastheintroductionofaspecial
regime on the “green corridor” principle as part of the joint work to improve the
investment climate in the country between the State Revenue Committee of the
MF of the Republic of Kazakhstan and the Investment Committee of the MID of
the Republic of Kazakhstan.
For investors who implement investment projects under investment contracts
concluded with the Investment Committee of the MID of the Republic of
Kazakhstan, tax administration will be effected directly at the central level – at
the State Revenue Committee of the MF of the Republic of Kazakhstan. This
will significantly reduce examination and registration period, and minimize the
number of inspections and other risks related to the interpretation and regulatory
enforcement.
Entrepreneurial Code of the Republic of Kazakhstan № 375-V dated October
29, 2015 provides the following guarantees of investor rights: a guarantee of
legal protection of investors, a guarantee of income use, guarantees of investor
rights in case of nationalization and requisition.
In the economic field Kazakhstan is implementing a number of the strategic
policy documents:
– The "Nurly Zhol" State Program of Infrastructure Development for 2015-
2019. The key objective is to connect Kazakhstan regions by main tracks and
modernize the logistical, social and industrial infrastructure.
– The State Program of Industrial-Innovative Development for 2015-2019.
The key objective is to stimulate the diversification and competitiveness of the
manufacturing industry.
– The concept of transition to the “green economy”. It is expected that by
2050 up to 50% of electricity will be generated by alternative and renewable
energy sources; additional GDP growth will be 3% minimum.
– “The Plan of the Nation – 100 specific steps”, providing for far-reaching
changes in order to implement the five institutional reforms: formation of
a professional state apparatus, enforcement of the rule of law, industrial
development and economic growth, identity and unity, and formation of the
accountable state.
In addition, the International Financial Center (IFC) will be opened in 2017
in Astana, which will include a new court for financial and investment disputes,
applying the English law and using the English language in the proceedings with
the participation of foreign arbitrators.

As of today, global technology leaders and transnational corporations included
in the Forbes Global-2000 list, already operate in Kazakhstan. They are: General
Electric, Toyota Motor, Chevron, Total, Airbus Group, BASF, Hyundai Motor,
Sanofi, Rio Tinto, Posco, Danone, KIA Motors, Linde, HeidelbergCement, Alstom,
Thales, Keppel Corp, Metro Group, Solvay, Peugeot, AES, Areva, Sumitomo Metal
Mining, and others.

3.1. INVESTMENT INCENTIVES
PREFERENCES UNDER INVESTMENT PRIORITY PROJECTS
Tax preferences
Investment subsidy
Reimbursement of up to
of actual costs of construction and installation works and purchase of
equipment
Criteria
– provided to a newly established legal entity (the state registration of such legal entity
has been completed not earlier than 24 months before filing an application for the investment
preferences), implementing a project matching the List of Priority Activities (approved by the
Government);
– investments not less than two-million-fold rate of MCI.
PREFERENCES UNDER INVESTMENT PROJECTS
(including investment priority projects)
Exemption from customs duties
Customs duties 0% up to 5 years on imported:
The state grants in kind
Criteria
– provided to a legal entity of Kazakhstan, implementing a project matching the List of Priority
Activities (approved by the Government).
Corporate Income Tax (10 years)
Land Tax (10 years)
Property Tax (8 years)
0%
30%
– major equipment and spare parts to it;
– accessories, raw materials and (or) materials.
Free land, buildings, structures, machinery
and equipment, etc.

OTHER INCENTIVES
Stable legislation
Investors Service Centre
Foreign labor
Visa-free entrance
Investment Ombudsman
On any questions relating to the provision of the investment preferences, please
contacttheInvestmentCommitteeoftheMIDof the Republic of Kazakhstan (http://
invest.mid.gov.kz/).
Stability of tax legislation for all taxes except VAT
and excise (subject to investment contract)
Provides 363 public services for investors in one
office on the basis of the Investment Committee of
the MID of the Republic of Kazakhstan
Without permit for the duration of construction + 1
year after commissioning of the investment project
Visa-free entrance for citizens of 19 countries (see
Section "Arrival in Kazakhstan")
To protect the rights and legitimate
interests of investors

3.2. SPECIAL ECONOMIC ZONES
A Special Economic Zone (SEZ) is a part of the territory of Kazakhstan with
precisely defined borders, where the SEZ special legal regime operates for
priority activities4
.
Kazakhstan has established 10 Special Economic Zones:
SEZ PREFERENCES
Tax preferences*
Exemption from customs duties
4
The Republic of Kazakhstan Law "On special economic zones in the Republic of Kazakhstan" №
469-IV dated July 21, 2011.
Land Tax
Corporate Income Tax
Property Tax
Value Added Tax (VAT) (for
products consumed in SEZ)
Social Tax (for 5 years)
0%
Exemption from customs duties for goods imported into
the SEZ territory and exported** from the SEZ territory to
the rest of the customs territory of the Customs Union (CU).

OTHER INCENTIVES
*Conditions for tax incentives:
– registration as a SEZ member and as a taxpayer in the SEZ;
– absence of structural subdivisions outside the SEZ;
– income from the sale of own-produced goods under the SEZ priority activities will be at
least 90% of the total annual income (for the "Part of Innovative Technologies" SEZ – 70%).
– for Social tax, payroll expenses will be at least 50% of annual revenue and 90% of
payroll expenses will be expended on Kazakhstan residents – participants of the "Park of
Innovative Technologies" SEZ;
** CU commodities produced (processed) by SEZ residents registered before January 1,
2012 with the use of imported components, but recognized as EAEU products, are not subject
to customs duties until January 1, 2017.
SEZ MEMBERS
Who can be a member of the SEZ:
– A legal entity (including foreign one) that plans to implement projects under
priority activities in the SEZ.
Who cannot be a member of the SEZ:
1) subsoil users;
2) organizations producing excisable goods, except for organizations engaged
in the production and assembly of excise goods under sub-paragraph 6) of Article
279 of the Code of the Republic of Kazakhstan "On taxes and other obligatory
payments to the budget".
3) organizations applying special tax regimes;
4) organizations that apply (have applied) investment tax preferences
provided for before the enactment of the Tax Code of December 10, 2008;
5) organizations that implement (have implemented) investment priority
projects and investment strategic projects under the laws of the Republic of
Kazakhstan in the field of investments;
6) organizers of gambling activities.
Free plot of land for the entire period of existence of a SEZ
Simplified procedure for employment of foreign labor

3.3. INDUSTRIAL ZONES
9 industrial zones, including 1 private:
Today 9 industrial zones (hereinafter – IZ), including 1 private one, operate
in Kazakhstan:
– In Almaty region: the "Taldykorgan" IZ, the "Boraldai" IZ, the "Arna" IZ and
the "DAMU" private IZ;
– In East Kazakhstan region: the "Ondiris" IZ and the IZ at Mashinostroiteli
street;
– In South-Kazakhstan region: the "Ontustik" IZ, the "Kentau" IZ and the
"Turkistan" IZ.
IZ are established as:
1) plots of land with infrastructure for the construction of buildings and
facilities for production;
2) ready production facilities for lease or sale to an entrepreneur, including
those with the industrial infrastructure of idle, suspended or off-duty production;
3) complex IZs, that have both land plots for construction and production
facilities.
Building up the infrastructure to the IZ border and within the IZ territory is
performed at the expense of the national budget with co-financing from the local
budget according to the budget legislation.
Building up any missing infrastructure is performed for projects for the
creation or development of IZ that meet the following criteria:
1) the amount of investment in the project is not less than 46 million USD5
;
2) the cost of infrastructure construction (reconstruction) is not less than 9
million USD.
5
According to the National Bank of the Republic of Kazakhstan rate of exchange as of Q3 2015,
1 USD = 216.2 KZT

3.4. DIALOG PLATFORMS
1. The Foreign Investors Council under the President of the Republic of
Kazakhstan (FIC).
The FIC is an advisory body which is chaired by the President of the Republic
of Kazakhstan. The FIC activities are supported by the Administration of the
President of Kazakhstan and the FIC working body – the Investment Committee
of the MID of the Republic of Kazakhstan.
FIC members
The permanent members of Kazakhstan part are: the Prime Minister of the
Republic of Kazakhstan, the Chairman of the National Bank of the Republic of
Kazakhstan, Deputy Prime Ministers of the Republic of Kazakhstan, Deputy Head of
the Presidential Administration or the Assistant to the President of the Republic of
Kazakhstan in charge of social and economic issues, the Minister of Foreign Affairs
of the Republic of Kazakhstan, the Minister for Investment and Development of the
Republic of Kazakhstan, the Minister of Finance of the Republic of Kazakhstan, the
Minister of National Economy of the Republic of Kazakhstan, the Chairman of the
Board of “Baiterek NMH”, JSC, the Investment Committee of the MID of the Republic
of Kazakhstan.
The FIC members from the foreign part include CEOs or their deputies of
international financial organizations and foreign companies. Currently, the FIC
includes 30 companies: The European Bank for Reconstruction and Development
(EU); Asian Development Bank; Arcelor Mittal (with headquarters in the
Netherlands); Bank JP Morgan Chase (USA); Baker&McKenzie (USA); BG Group (UK);
Deloitte Touche Tohmatsu (USA); General Electric (USA); Deutsche Bank (Germany);
Eurasian Natural Resources Corporation (ERG); Eurasian Development Bank;
Cameco (Canada); Lukoil (Russia); Metro Cash & Carry (Netherlands); Mitsubishi
(Japan); Royal Dutch Shell (United Kingdom); Russian Aluminum (Russia);
TeliaSonera (Sweden); Total (France); Philip Morris (Netherlands); Chevron (US);
Exxon Mobil (US); ENI (Italy); Ernst&Young (USA); Sberbank of Russia; Anadolu
Group (Turkey); Sembol Construction Company (Turkey); Polfarma (Poland);
Citigroup (United States); CNPC (China).
The main criterion for admission to the FIC is to make direct investments in
Kazakhstan economy in the amount of not less than 500 million USD for investors
operating in the field of subsoil use, and not less than 125 million USD for investors
operating in other economic sectors.
The FIC working groups
In order to fulfill tasks set to the FIC, three joint working groups have been
established, dealing with:
1) foreign investors’ operations issues;
2) investment policy implementation issues;
3) issues on foreign investors’ support of innovative and technological development
and diversification of the economy of Kazakhstan.
2. The Council on Improvement of Investment Climate (CIIC)
The CIIC operates from March 1, 2012 chaired by the Prime Minister of the
Republic of Kazakhstan, to solve systemic problems related to the improvement
of the investment climate.
The main objectives of the CIIC activities are to implement the unified
investment policy of Kazakhstan that meets the priorities of economic
development, to assist in attracting and efficient use of domestic and foreign
investments.

The CIIC meetings are held as and when necessary, but at least twice per year
within the period determined by the CIIC Chairman. The CIIC meetings may be
attended by representatives of concerned state authorities of Kazakhstan, and
representatives of domestic and foreign companies which are not members of
the CIIC.
The CIIC members from the Kazakhstan part include a number of mangers,
their deputies or executive secretaries of the ministries of finance, national
economy, justice, investment and development, foreign affairs, the General
Prosecutor›s Office and other organizations. As well, the CIIC members may
include other officials of the Republic of Kazakhstan as determined by the CIIC
Chairman.
The CIIC members from the foreign part include representatives of
international economic and financial organizations, CEOs of foreign companies.
The CIIC’s working body is the MID of the Republic of Kazakhstan, which
provides organizational and technical support of the CIIC operations, including
preparation of proposals for the agenda of the CIIC meetings, necessary
documents and materials.
3.5. INVESTOR PROTECTION
The Entrepreneurial Code of the Republic of Kazakhstan provides various
guarantees that minimize risks an investor may incur in carrying out investment
activities in Kazakhstan:
A guarantee of legal protection of investors in Kazakhstan
An investor is provided with full and unconditional protection of rights and
interests.
A guarantee of income use
Investors shall have the discretion to use income generated from their operations,
aftertaxesandotherobligatorypaymentstothebudget,andtoopenbankaccountsin
the national currency and (or) foreign currency in banks in Kazakhstan, in accordance
with banking and currency laws of the Republic of Kazakhstan.
Publicity of state authorities’ activities in relation to investors
Official reports of the Republic of Kazakhstan state authorities and RLA,
affecting investors’ interests are published in the manner prescribed by the
laws of the Republic of Kazakhstan. Investors are provided with free access to
information on the registration of legal entities, their charters, registration of real
estate transactions, and licenses issued, except for any information containing
commercial and other secret protected by law.
A guarantee of investor rights in case of nationalization and requisition
Forcible seizure of investor’s property (nationalization, requisition) for
government needs is permitted in exceptional cases stipulated by the legislation
of the Republic of Kazakhstan. In case of nationalization, losses incurred by an
investor as a result of issue of the Republic of Kazakhstan legislative acts on the
nationalization, shall be compensated in full. Requisition of investor property
shall be made with payment of the market value of property.

3.6. AGREEMENTS ON THE PROMOTION AND MUTUAL PROTECTION
OF INVESTMENTS ENTERED INTO BY KAZAKHSTAN
Today Kazakhstan signed 48 bilateral and 1 multilateral 1 (EurAsEC)
intergovernmental Agreements on the promotion and mutual protection of
investments.
These Agreements are aimed at creating a favorable legal environment for the
promotion and protection of Kazakh investments abroad and foreign investments
in Kazakhstan. They also contribute to the improvement of the investment
climate and further development of mutually beneficial trade and economic
cooperation between the countries.
List of countries which entered into Agreements on the promotion
and mutual protection of investments with the Republic of Kazakhstan
AMERICA
1 USA
EUROPE
2 Austria 10 Great Britain 18 Poland
3 Belgium-Luxembourg Union 11 Greece 19 Romania
4 Bulgaria 12 Hungary 20 Serbia
5 Czech Republic 13 Italy 21 Slovakia
6 Estonia 14 Latvia 22 Spain
7 Finland 15 Lithuania 23 Sweden
8 France 16 Macedonia 24 Switzerland
9 Germany 17 Netherlands
COMMONWEALTH OF INDEPENDENT STATES (CIS) AND THE FORMER USSR STATES
25 Azerbaijan 28 Kyrgyzstan 31 Uzbekistan
26 Armenia 29 Russia 32 Ukraine
27 Georgia 30 Tajikistan
ASIA, AFRICA AND MIDDLE EAST COUNTRIES
33 Afghanistan 39 Japan 45 Pakistan
34 China 40 Jordan 46 Qatar
35 Egypt 41 Korea 47 Turkey
36 India 42 Kuwait 48 Vietnam
37 Iran 43 Malaysia
38 Israel 44 Mongolia
INTERNATIONAL ORGANIZATIONS
49 Member states of the Eurasian Economic Community (EurAsEC)

The Kazakhstan banknote with the nominal value of five thousand
tenge was recognized as "The best banknote of 2012" according to
the International Bank Note Society (IBNS).
The Kazakhstan banknote with the nominal value of one thousand
tenge was recognized as "The best banknote of 2013"

invest.gov.kz
DOING BUSINESS
IN KAZAKHSTAN

4. DOING BUSINESS IN KAZAKHSTAN
4.1. ARRIVAL IN KAZAKHSTAN
Visa is required for foreign nationals and stateless persons to enter the
territory of Kazakhstan, unless otherwise has been stipulated by international
treaties of the Republic of Kazakhstan.
Kazakhstan visa is glued in the passport or other valid identity document
which is acknowledged in Kazakhstan and gives the right to enter and stay in
Kazakhstan, and leave it or cross the territory of Kazakhstan in transit.
1. Visa types and categories6
: (http://www.mfa.gov.kz/index.php/en/consular-
issues12/rules-visa-support)
1) Investor – С1 and С2;
2) Business – D1, D2, D3, D4, D5, D6, D7 and D8;
3) Tourism – F1;
4) Employment/work– M1, M2, M3, M4 and M5;
5) others.
List of countries which have entered into agreements with the
Republic of Kazakhstan on visa-free regime by passport types
№ Country
Diplomaticpassport
Servicepassport
Nationalpassport
Visa-freestayperiod
1. Russian Federation visa-free visa-free visa-free up to 90 days
2. Republic of Belarus visa-free visa-free visa-free up to 90 days
3. Kyrgyz Republic visa-free visa-free visa-free up to 90 days
4. Republic of Tajikistan * visa-free visa-free visa-free
up to 90 days
* for Tajikistan
nationals up to
30 days
5. Republic of Armenia visa-free visa-free visa-free up to 90 days
6. Republic of Georgia visa-free visa-free visa-free up to 90 days
7. Republic of Moldova visa-free visa-free visa-free up to 90 days
8. Republic of Uzbekistan visa-free visa-free visa-free
up to 30 days
*for Uzbekistan
nationals up to
30 days
9. Republic of Azerbaijan* visa-free visa-free visa-free
up to 90 days
*for Azerbaijan
nationals up to
30 days
10. Ukraine visa-free visa-free visa-free up to 90 days
11 Turkmenistan visa-free visa-free
visa up to 30 days
visa-free up to 5 days
12. Republic of Hungary visa-free visa-free visa up to 30 days
6
For detailed information, please visit the official Internet site of the MFA of the Republic of
Kazakhstan: www.mfa.gov.kz

№ Country
Diplomaticpassport
Servicepassport
Nationalpassport
Visa-freestayperiod
13. Slovak Republic visa-free visa-free visa up to 90 days
14. Romania visa-free visa-free visa up to 90 days
15. Republic of Poland visa-free visa visa up to 30 days
16. Republic of Croatia visa-free visa-free visa up to 90 days
17. Republic of Estonia visa-free visa visa up to 90 days
18. French Republic visa-free visa visa up to 90 days
19. Kingdom of Spain visa-free visa visa up to 90 days
20. Republic of Serbia visa-free visa-free visa-free up to 30 days
21. Italian Republic visa-free visa visa up to 90 days
22. Republic of Slovenia visa-free visa visa up to 90 days
23. Republic of Bulgaria visa-free visa-free visa up to 90 days
24.
Federal Republic of
Germany
visa-free visa visa up to 90 days
25. Kingdom of Denmark visa-free visa visa up to 90 days
26. Republic of Portugal visa-free visa visa up to 90 days
27. Republic of Cyprus visa-free visa-free visa up to 90 days
28. Republic of Macedonia visa-free visa-free visa up to 90 days
29.
Bosnia and
Herzegovina
visa-free visa-free visa up to 30 days
30. Greece visa-free visa visa up to 90 days
31. Republic of Finland visa-free visa visa up to 90 days
32.
Holy See (Vatican City
State)
visa-free visa visa up to 90 days
33. Mongolia visa-free visa-free visa-free up to 90 days
34. Republic of Turkey visa-free visa-free visa-free up to 30 days
35. Argentine Republic visa-free visa-free visa-free up to 30 days
36. Republic of India visa-free visa-free visa up to 30 days
37. Islamic Republic of Iran visa-free visa-free visa up to 30 days
38.
People's Republic of
China
39.
Islamic Republic of
Pakistan
40.
Republic of the
Philippines
visa-free visa-free visa-free up to 30 days
41. Arab Republic of Egypt visa-free visa visa up to 30 days
42. Republic of Korea visa-free visa-free *visa-free
up to 90 days
*up to 30 days
(national passport)
43. State of Israel visa-free visa-free visa up to 90 days

№ Country
Diplomaticpassport
Servicepassport
Nationalpassport
Visa-freestayperiod
44.
Socialist Republic of
Vietnam
45. United Arab Emirates visa-free visa visa up to 90 days
46.
Hashemite Kingdom
of Jordan
47. Republic of Indonesia visa-free visa-free visa up to 30 days
48. Republic of Cuba visa-free visa-free visa up to 30 days
49.
Federative Republic
of Brazil
50. Republic of Lithuania visa-free visa visa
up to 90 days
within 6 months
51.
Hong Kong Special
Administrative Region,
PRC
visa-free visa-free visa-free up to 14 days
52.
United Nations
Organization
- - -
up to 30 days
within 180 days
2. Visa-free regime for foreign nationals of investor countries7
For nationals of 19 countries visa-free regime has been established for up to
15 calendar days from the date of crossing the state border for the period from
July 16, 2015 till December 31, 2017
– Commonwealth of Australia – United Arab Emirates
– Hungary – Singapore
– Italian Republic
– United Kingdom of Great Britain and
Northern Ireland
– Principality of Monaco – United States of America
– Kingdom of Belgium – Federal Republic of Germany
– Kingdom of Spain – Republic of Finland
– Kingdom of the Netherlands – French Republic
– Kingdom of Norway – Swiss Confederation
– Kingdom of Sweden – Japan
– Malaysia
7
"Rules for Immigrants entry and stay in the Republic of Kazakhstan, and their departure from
the Republic of Kazakhstan" Government Resolution № 148 dated January 12, 2012.

In case a foreign national from the above list of countries has to stay in
Kazakhstan longer than 15 days, he/she in the procedure prescribed by law shall
obtain:
– Single entry "business" visa in the Republic of Kazakhstan bodies of internal
affairs for up to 30 calendar days;
– Single entry "investor" visa for up to 90 calendar days and multiple-entry visa
for up to 3 years in the MFA of the Republic of Kazakhstan upon availability of a
request of an authorized investments agency, confirming the investor status.
3. Visa processing8
Kazakhstan visas are issued based on visa support letters, officially processed
in the MFA of the Republic of Kazakhstan .
List of documents required for the Kazakhstan visa
1) Visa support /petition /permit of internal affairs’ bodies for foreign nationals entering
Kazakhstan on private matters and for permanent residence, and for foreign nationals and
stateless persons permanently residing in Kazakhstan.
2) A travel document granting the right to cross the Republic of Kazakhstan state border.
3) Visa application form (1 copy.).
4) One black-and-white or color photo, size 3.5x4.5cm.
5) Consular fee payment receipt.
6) For D1, D2 and D3 visa categories, a petition for a visa from a sending organization shall
be submitted in addition.
Obtaining С1 and С2 Investor visa
Visa is issued to CEOs and senior executives of foreign legal entities involved in
investing into Kazakhstan economy, participants of the Almaty Regional Financial
Center, and their spouses and minor children.
C1 multiple visa for a period of up to 3 years is issued based on visa support and
a request of the Republic of Kazakhstan authorized investments agency.
C2 short-term visa is issued without an invitation within 3 working days by
order of the MFA of the Republic of Kazakhstan or on the basis of requests of heads
of Kazakhstan diplomatic missions, upon availability of petitions of foreign legal
entities or an authorized investments agency of the Republic of Kazakhstan.
Investor visa validity period:
Single up to 90 days with the right to stay in Kazakhstan up to 30 days
Multiple
up to 3 years with the right to stay in Kazakhstan
for the entire period of the visa
Obtaining Business visa
Business visas D1, D2, D3, D4, D5, D6, D7, D8 are issued to foreign nationals,
travelling to and staying in Kazakhstan for business purposes.
8
"On approval of the Rules for issuance, extension and reduction in validity of visas of the
Republic of Kazakhstan" by Joint Order № 08-1-1-1/71 of Acting MFA of the Republic of Kazakhstan
dated March 5, 2013 and of the MIA of the Republic of Kazakhstan №175 dated March 7, 2013.
Entered in Registry № 8407 in the MJ of the Republic of Kazakhstan dated April 10, 2013.

D1 visa is issued on the basis of visa support, the MFA of the Republic of
Kazakhstan instruction or petitions of nationals of the states mentioned in the
List of States.
D2 visa is issued on the basis of visa support or the MFA of the Republic
of Kazakhstan instruction against documents confirming the need for continued
stay of a foreign national in Kazakhstan for more than 30 days during a year
(notarized copies of contracts or agreements in Kazakh or Russian languages).
D3 visa is issued on the basis of visa support or the MFA of the Republic
of Kazakhstan instruction against documents confirming the need for multiple
entries into Kazakhstan (notarized copies of contracts or agreements in Kazakh
or Russian languages).
Business visas are issued for single, double, triple or multiple entry and exit.
Business visa validity period:
Single, double, triple visas up to 90 days
Single visa without invitation * up to 30 days
Multiple
up to 3 years (based on the international principle
of reciprocity may be issued for longer periods)
*List of countries whose nationals are exempt from a liability to produce a visa
support or invitation when applying for a single visa of categories A1, A2, B1, B2, D1
and G1, and single and double visas of category F1: Australia, the Republic of Austria,
the United States of America, the Kingdom of Belgium, the United Arab Emirates, the
Republic of Bulgaria, the Federal Republic of Brazil, the Federal Republic of Germany,
the Hellenic Republic, the Kingdom of Denmark, New Zealand, Japan, the State of Israel,
the Hashemite Kingdom of Jordan, Irish Republic, the Republic of Iceland, the Kingdom
of Spain, the Italian Republic, Canada, the State of Qatar, the Republic of Cyprus, the
Republic of Korea, the Republic of Latvia, the Republic of Lithuania, the Principality
of Liechtenstein, the Grand Duchy of Luxembourg, the Republic of Hungary, the
Federation of Malaysia, the Republic of Malta, Monaco, The Netherlands, Kingdom of
Norway, Sultanate of Oman, the Republic of Poland, the Republic of Portugal, Romania,
the Kingdom of Saudi Arabia, Republic of Singapore, the Slovak Republic, the Republic
of Slovenia, the United Kingdom of Great Britain and Northern Ireland, the Republic
of Finland, the French Republic, the Republic of Croatia, the Czech Republic, the Swiss
Confederation, the Kingdom of Sweden, the Republic of Estonia.
Visa extension
The MFA of the Republic of Kazakhstan shall extend the following visa
categories:
Investor C1 and C2 visas – based on a letter of the Republic of Kazakhstan
authorized investments agency. Visa shall be extended for up to 1 year;
Business D1, D2, D3 visas – to persons, who have travelled to Kazakhstan
at the invitation of the Republic of Kazakhstan governmental bodies, diplomatic
missions and consular offices of foreign states, international organizations and
their missions accredited in Kazakhstan, based on written applications of these
organizations. Visa shall be extended for up to 180 days.
Only inviting party, which has previously processed an invitation for a primary
visa, may apply for visa extension.

4.2. EMPLOYMENT OF FOREIGN NATIONALS IN KAZAKHSTAN9
Employers in order to engage foreign labor and foreign workers in order to
get employment shall obtain permits within the established quota10
* distributed
among Kazakhstan regions, Astana and Almaty cities.
*A quota is a maximum permissible number of foreign labor force allowed for
an employer to engage to carry out labor activities in the territory of Kazakhstan.
The following categories of foreign nationals and workers shall be
exempted from permits:
1) non-immigrants in accordance with the Republic of Kazakhstan Law "On
migration" dated July 22, 2011, except for those persons staying in the territory
of Kazakhstan no more than 90 calendar days for the purposes not stipulated
by this Law;
2) permanently residing in Kazakhstan;
3) business immigrants;
4) those on business trips, for business purposes, period of which does not
exceed a total of 120 days per 1 year;
5) nationals of the States – Parties to the Eurasian Economic Union Treaty
dated May 29, 2014;
6) employed as chief executive officers of branches and representative offices
of foreign legal entities;
7) employed as chief executive officers of organizations who have entered
into contracts with the Republic of Kazakhstan Government for the amount of
investments over 50 million USD, and chief executive officers of Kazakhstan
legal entities which are engaged in priority investment activities and have signed
contracts with authorized investments agencies;
8) crew members of sea and river vessels, air, rail and road transport;
9) employed as managers and specialists in the Almaty Regional Financial
Center with post-secondary and higher education with a documented evidence;
10) specialists in the field of creation of space rocket complex and operation
of ground space infrastructure facilities, employed under the Republic of
Kazakhstan international agreements on cooperation in the field of aerospace
activities;
10-1) employed in the "Park of Innovative Technologies" SEZ autonomous
cluster fund on executive positions and as specialists with higher education;
11) seconded to the autonomous educational organization under agreements
on the implementation and realization of educational programs and (or)
education services;
12) employed by Kazakhstan legal entities which have signed investment
contracts for the implementation of an investment priority project for the
period of one year after commissioning, as managers and specialists with
higher education, and skilled employees according to the list of professions and
headcount defined in investment contracts for the implementation of priority
investment projects;
13) others.
Categories of employees, for which the permits’ issuance and renewal
conditions and procedure are defined:
1) Category I – chief executive officers and their deputies;
2) Category II – heads of departments who meet the qualifications established
in the managers, specialists and workforce qualification reference book; and
managers, specialists and workforce standard qualification profiles;
9
Labor Code of the Republic of Kazakhstan dated May 15, 2007, № 251; Employment Law of the
Republic of Kazakhstan № 149 dated January 23, 2001.
10
The quota is established by the Republic of Kazakhstan Government, which in 2015 makes up
0.7% of Kazakhstan economically active population (63 thousand units).

3) Category III – specialists who meet the qualifications established in the
managers, specialists and workforce qualification reference book, and managers,
specialists and workforce standard qualification profiles;
4) Category IV – skilled workers who meet the qualification requirements set by
the Uniform Wage-Rates and Skills Handbook for jobs and occupations of manual
workers, rating and skills profiles for jobs and occupations of manual workers.
Permit obtaining procedure11
:
An authorized body accepts an application from an employer for a permit to
employ foreign labor force, not earlier than 15 days from the date of submission of
information on the availability of job vacancies.
The effect of this paragraph shall not apply to employers engaging foreign labor
in the territory of a SEZ, and from among ethnic Kazakhs and former compatriots.
1. When issuing or renewing permits for foreign labor, the following
requirements shall be covered*:
1) occupational training of Kazakhstan nationals in the field of technical and
professional education in demand in the regional labor market, according to the list
approved by the authorized agency;
2) re-training of Kazakhstan nationals in the field of technical and professional
education in demand in the regional labor market, according to the list approved
by the authorized agency;
3) professional development of Kazakhstan nationals;
4) creation of additional jobs for Kazakhstan nationals.
*When employing a foreign employee:
– under Category I – an employer selects one or more conditions provided for
in paragraphs 3), 4) of the above requirements;
– under Category II or III – an employer selects one or more conditions
provided for in paragraphs 2), 3), 4) of the above requirements;
– under Category IV – an employer selects one or more conditions provided
for in paragraphs 1), 4) of the above requirements.
2. Through the "E-Licensing" National Database information system12
(http://
elicense.kz/LicensingContent/ServicesList?pcode=%D0%A0%D0%9468&scode=%D
0%A0%D0%9468&lang=en) or in paper form an employer or an authorized person
shall submit to the competent authority at the place of employment of foreign labor an
application enclosed by all required documents.
3. An employer, after receiving a notice of issuance of a permit for
employment of foreign labor shall provide the competent authority within 20
working days with the documents guaranteeing a departure of foreign labor from
Kazakhstan upon termination of such permit.
4. The competent body through the "E-Licensing" National Database
information system or in paper form shall issue permits to an employer within 3
working days after receipt of copies of documents.
11
"Quota establishing regulation for foreign labor force in Kazakhstan, Terms and conditions for issuing
permitstoforeignworkersforemploymentandtoemployersforengagingforeignlaborforce,"theRepublic
of Kazakhstan Government Resolution №45 dated January 13, 2012.
12
www.elicense.kz

Validity of permits:
1)Up to 3 years – for Category I, with the option to renew for 12 months annually.
Note: For small business entities, permits under Category I shall be issued for 12
months, and can be renewed 2 times maximum.
2) Up to 12 months – for Category II and III, can be renewed to 12 months,
not more than 2 times;
3) Up to 12 months – for Category IV and seasonal foreign workers, non-
renewable;
4) For the duration of a project – under the quota for priority projects.

4.3. STARTING A BUSINESS
As per the Republic of Kazakhstan legislation, business in Kazakhstan is
conducted through legal entities of various forms of incorporation.
Legal entity forms for foreign businesses
Limited Liability Partnership (LLP)13
LLP is a partnership established by one or more persons/entities, the charter
capital of which is divided into shares determined by constituent documents. LLP
participants are not liable for its obligations and bear the risk of losses associated
with the activities of the partnership to the extent of their contributions, except
for the cases stipulated by the Republic of Kazakhstan legislative acts.
Joint Stock Company (JSC)14
JSC is a legal entity that issues shares to raise funds for its activities. JSC has
property separate from the property of its shareholders, and is not liable for their
obligations. JSC is liable for its own obligations to the extent of its property.
JSC shareholders are not liable for JSC’s obligations and bear the risk of losses
associated with its activities, to the extent of shares owned by them, except for
the cases stipulated by the Republic of Kazakhstan legislative acts.
Branches and representative offices15
Abranchisaseparatesubdivisionofalegalentitylocatedoutsideofthelegalentity’s
location and performing all or part of the legal entity’s functions, including the function
of representation.
A representative office is a separate subdivision of a legal entity located outside of
the legal entity’s location, which represents and protects interests of the legal entity,
enters on behalf of the legal entity into transaction and performs other legal actions,
except for the cases stipulated by the Republic of Kazakhstan legislative acts.
Branches and representative offices are not legal entities. They are endowed with
property of the legal entity and act on the basis of approved by laws.
Registration of legal entities16
(http://egov.kz/wps/portal/Content?contentPath=/egovcontent/bissness/bus_
business/for_businessmen/passport/pass042_mu&lang=en)
1. Required documents for registration:
– an application in the prescribed form, signed by the founder or an
authorized person;
– a list of constituent and other documents in the Kazakh and Russian
languages in triplicate.
13
The Republic of Kazakhstan Law "On Limited and Additional Liability Partnerships" №220 dated April
22, 1998.
14
The Republic of Kazakhstan Law "On Joint Stock Companies" № 415 dated May 13, 2003.
15
The Civil Code of the Republic of Kazakhstan dated December 27, 1994.
16
The Republic of Kazakhstan Law "On state registration of legal entities and accounting
registration of branches and representative offices" №2198 dated April 17, 1995.

1.1. The document confirming the state registration of a legal entity, branch
(representative office):
– certificate of state registration of a legal entity, issued by the registering
authority.
1.2. Registration of legal entities with foreign participation is performed in
the procedure prescribed for the registration of Kazakhstan legal entities. The
following documents shall be submitted in addition:
– a legalized extract from the trade register or other legalized document
certifying that the founder – a foreign legal entity – is a legal entity under the
laws of a foreign country, with a notarized translation into Kazakh and Russian
languages;
– a copy of the passport or other identity document of the founder – foreigner,
with a notarized translation into Kazakh and Russian languages;
– a receipt or a document confirming the payment of the state registration
fee to the budget.
1.3. To open a branch or a representative office of a foreign legal entity, the
following documents shall be submitted:
– a statement of the accounting registration signed by a person authorized by
the legal entity, setting up a branch (representative office);
– provision of branch (representative office), approved by the legal entity, in
triplicate in the Kazakh and Russian languages;
– power of attorney (except for public and religious associations), issued to
the head of branch (representative office);
– resolution of the legal entity on establishing a branch (representative office)
with a notarized translation into the state and Russian languages;
– a legalized extract from the trade register, constituent documents or
other legalized document of a foreign legal entity, confirming that this entity
opening a branch (representative office) in the Republic of Kazakhstan, is a legal
entity under the laws of its country with a notarized translation into Kazakh and
Russian languages;
– a legalized document confirming the tax registration in the country of
incorporation of a foreign legal entity, with the tax registration number (or
equivalent) with a notarized translation into Kazakh and Russian languages;
– a receipt or other document confirming the payment of the branch
(representative office) accounting registration fee to the budget.
2. Opening a bank account:
A company which has obtained the state registration has the right to open a bank
account.
Investors have the right to open bank accounts in the banks in the territory of
Kazakhstan in national and (or) foreign currency in accordance with banking and
currencylawsoftheRepublicofKazakhstan.Branchesandrepresentativeofficeshave
the right to work through foreign accounts.

4.4. OBTAINING LICENSES AND PERMITS17
(http://egov.kz/wps/portal/Content?contentPath=/egovcontent/bus_lic_akk&lang=en)
Category I permits – licenses, which are introduced for types (subtypes) of
activities or actions (operations) with a high level of danger *;
Category II permits – all permits, other than licenses, that are introduced for
types(subtypes)ofactivitiesoractions(operations)withanaveragelevelofdanger;
Notifications18
are introduced in relation to activities or actions with low risk
of danger, which require providing governmental authorities with information on
commencement or termination of such activities or actions.
* Activities or actions (operations) levels of danger are set on the basis of the
regulatory impact analysis19
.
1. Licensing
Areas of licensing
Licensing is required for certain types of activities and actions (operations) in the
followingareas:1)broadcasting;2)culture;3)education;4)architecture,urbanplanning
and construction; 5) oil and gas; 6) industry; 7) information and communication; 8)
distributionofnarcoticdrugs,psychotropicsubstancesandprecursors;9)healthcare;10)
use of nuclear energy; 11) information security; 12) special technical facilities intended
for special investigation activities; 13) trafficking in weapons, military equipment and
certain types of weapons, explosives and articles with their application; 14) distribution
of toxic substances; 15) manufacture of the Republic of Kazakhstan state symbols;
16) production and distribution of ethyl alcohol and alcoholic beverages and tobacco
products; 17) commodity exchanges; 18) exports and imports; 19) financial sphere and
activities related to concentration of financial resources; 20) use of cosmic space; 21)
gambling; 22) veterinary medicine; 23) agriculture; 24) transport; 25) forensic activities;
26) services to legal entities and individuals.
Issuance of licenses
Licenses are issued at the location of a licensor, which is a local executive
body or a territorial authority of the central government body
Required documents** for obtaining a license
1) an application;
2) for legal entities operating in the financial sphere and performing activities related
to concentration of financial resources, as well as activities related to trafficking in civilian
and service weapons and ammunition, activities related to trafficking in narcotic drugs,
psychotropic substances, precursors, security activities, – a copy of the Charter (notarized
copy, in case of absence of the original document for verification);
3) a certificate of the legal entity state registration (re-registration) of an applicant – for
legal entities;
4) a copy of an identity document – for individuals;
5) a copy of a document confirming the payment of the license fee for the right to
engage in certain activities, except in the case of payment via the payment gateway of the
"Electronic Government20
(www.egov.kz)" (see Section "Electronic services for business");
17
The Republic of Kazakhstan Law "On permits and notifications" № 202-V dated May 16, 2014.
18
Order of the Republic of Kazakhstan Minister of the National Economy № 4 dated January
6, 2015.
19
The Republic of Kazakhstan Law "On private entrepreneurship" № 124, Article 5, dated
January 31, 2006
20
www.egov.kz

6) documents confirming compliance of the applicant with the qualification requirements
in cases and in the order established by the Republic of Kazakhstan legislation.
**If the applicant is a foreign legal entity, foreign national or a stateless person,
in the absence of the documents referred to in subparagraphs 2), 3), 4) and 5), other
documentscontaining similar information about the applicant shall be submitted.
To obtain a supplement to a valid license under the activity or action (operation) for
which a license has been issued, the following documents shall be required:
1) an application;
2) documents confirming the applicant›s compliance with the qualification requirements;
3) other documents to be submitted under the Republic of Kazakhstan laws.
2. Licensing procedures
Licensing requirements and a list of documents required for the issuance of Category II
permits are determined by the RLA.
This list shall not contain documents, information of which can be derived from
government information systems, and (or) from the form of information provided by the
applicant in the cases provided for by the Republic of Kazakhstan legislation.
Category II permit shall be terminated in the cases and in the manner determined by
the RLA.

4.5. ACQUISITION OF A PLOT OF LAND21
(http://egov.kz/wps/portal/Content?contentPath=/egovcontent/bus_real_estate&lang=en)
General concepts
Land in Kazakhstan can be in public and private ownership.
Land use rights can be perpetual or temporary, alienable or inalienable, acquired
for consideration or free.
Property right holders:
1) state property owner – the Republic of Kazakhstan;
2) private property owner – individuals and non-state legal entities (individuals
shall be understood to mean nationals of Kazakhstan, foreigners and stateless
persons, unless otherwise has been provided in the Land Code of the Republic
of Kazakhstan).
Ownership of land occurs by:
1) granting the ownership;
2) transfer of ownership;
3) transfer of ownership through universal legal succession (inheritance,
reorganization of a legal entity).
Land use right holders:
1) public and private;
2) national and foreign;
3) individuals and legal entities;
4) permanent and temporary;
5) primary and secondary
Land use right occurs by:
1) granting land use rights;
2) transfer of land use rights;
3) transfer of land through universal legal succession (inheritance,
reorganization of a legal entity).
Responsible government agencies in charge of regulation and functions in the
field of land relations
Thecentralcompetentauthorityfor land management is the MNE of the Republic
of Kazakhstan.
Non-state legal entities of Kazakhstan may privately own plots of land
allocated for commercial agricultural production, forest planting, construction
or built-up with production and non-production, including residential buildings
(structures, facilities) and complexes, including lands designated for maintenance
of buildings (structures, facilities) in accordance with their purpose.
Agricultural land, owned by the state, may be provided to individuals and
legal entities on land use rights and (or) on the right of private property.
Landshallbemadeavailableontherightofpermanentlanduse*tostatelandusersasfollows:
1) legal entities which own buildings (structures, facilities), premises in condominiums on the
right of economic management or operational management;
2)legalentitiesengagedinagriculturalandforestryproduction,aswellasforscientificresearch,
experimental and educational purposes;
21
The Republic of Kazakhstan Land Code № 442 dated June 20, 2003

3) legal entities engaged in land use in specially protected natural areas;
4) in other cases stipulated by the Republic of Kazakhstan legislative acts.
*The right of permanent land use cannot belong to foreign land users.
The right of temporary paid (short term and long term) land use (lease) for plot of land can be
granted to individuals, non-state legal entities, and international organizations.
Kazakhstan non-state legal entities may be granted the leasehold for commercial agricultural
production for up to 49 years.
1. Provision of land to foreign nationals
Foreign nationals, stateless persons and foreign legal persons shall enjoy the
rights and bear obligations in land relations on an equal basis with nationals and
legal entities of Kazakhstan.
Plots of land provided to foreign nationals22
As private property
Temporary land use (lease)
for up to 25 years
As state grants in kind22
Foreign nationals, stateless
persons and foreign legal
entities (non-state):
– for construction;
– built-up with production
and non-production, including
residential buildings and
complexes, including lands
designated for maintenance
of buildings according to their
purpose .
Foreign nationals, stateless
persons, foreign legal entities,
as well as legal entities
charter capitals of which
comprise over 50% share of
foreigners:
– agricultural land
(plots of land for commercial
agricultural production, forest
planting, subsidiary farming
sector).
Kazakhstan legal
entities:
– plots of land, provided
on the right of temporary
gratuitous land use for
investment projects, with
subsequent gratuitous
transfer of ownership or
land use.
2. Provision of state-owned land ownership or land use
Authorities in charge of providing plots of land:
– Local executive bodies of regions, cities of republican significance, the
capital city, districts, cities of regional significance, akims of cities of regional
significance, settlements, villages, rural districts (hereinafter – the local
executive bodies).
Land provision procedure**:
**With the exception of land offered for auction (tender) and the following cases:
provision of plots of land for construction of facilities and construction of a facility within the
boundaries of an inhabited locality, as well as areas not related to construction.
1) acceptance of an application for granting of the relevant right to a plot of land;
2) determination of a possibility to use the plot of land requested for the declared
purpose in accordance with the territorial zoning;
3) preliminary selection of a plot of land (in case of requesting a plot of land for
construction of facilities, except for construction of facilities within the boundaries of an
inhabited location);
4) preparation of the conclusion by the Committee to be established by appropriate local
executive bodies on provision of land;
5) development and approval of the land use project;
6) decision-making by a local executive body of a region, city of republican significance,
the capital city, district, city of regional significance, Mayor of a town of the district
significance, settlement, village, rural district, on provision of a land right;
22
The Republic of Kazakhstan Enterprenual Code №375-V dated October 29, 2015.

7) conclusion of a sales or temporary (short-term, long-term) paid (free) land use contract;
8) establishment of land boundaries in-situ;
9) preparation and issuance of identification documents for a plot of land, with
the exception of land intended for construction of facilities within the boundaries of an
inhabited location.
Identification documents for the plot of land, issued by republican state enterprises that
maintain the state land cadastre:
– for private ownership of the land – the Deed of the land private ownership;
– for permanent land use – the Deed of the permanent land use;
– for temporary paid land use (lease) – the Deed of the temporary paid (long-term,
short-term) land use (lease);
– for temporary free use – the Deed of the temporary gratuitous land use.
3. Acquisition of rights to land owned by the state, during tenders (auctions)
3.1 Provision of land or the right to lease land owned by the state and not allocated for
land use, shall be carried out during tenders (auctions), except in cases where the land or the
right to lease land is granted:
1) for implementation of investment projects;
2) to foreign states and international organizations in accordance with international
treaties;
3) to the Republic of Kazakhstan state land users;
4) to persons who have won tenders (lots) for the construction of facilities, conducted
by state authorities, and when such construction requires the provision of land directly to
such persons;
5) to individuals and legal entities for the operation and maintenance of buildings
owned by them and (or) belonging to them under other property rights, including for the
expansion and renovation of buildings in the adjacent areas in accordance with the approved
architectural and urban planning and (or) construction documentation;
6) for the subsoil use purposes on the basis of a contract concluded in accordance with
the Republic of Kazakhstan legislation on subsoil and subsoil use;
7) as state grants in kind on the basis of a contract concluded in accordance with the
Republic of Kazakhstan investment laws;
8) to SEZ members, the autonomous cluster fund and management company in
accordance with the Republic of Kazakhstan laws on SEZ;
8-1) from the water fund lands occupied by territorial waters, for the construction of
man-made structures;
9) for the needs of rail, road, sea and inland waterway, air and pipeline transport, for the
needs of communications and energy, and for the construction of other facilities of state
significance;
10) for the construction of facilities mentioned in the Republic of Kazakhstan State
Planning System documents, investment projects that safeguard the public interests and
ensure achievement of socially important objectives;
11) to research centers with international participation and to domestic enterprises;
12) to concessionaires for implementation of concession projects;
13) to entities of industrial and innovative activities for the implementation of industrial
and innovative projects.
Agricultural land for which the term of temporary land use expires, shall be offered for
tender (auctions) only in case of a rejection of a temporary land user to conclude a contract
on temporary land use for a new term.

3.2 To foreign nationals and stateless persons – winners of tenders (auctions), plots of
land for commercial agricultural production, forest planting or subsidiary farming shall be
made available for temporary land use under lease for a period of 25 years.
4.6. PROTECTION OF INTELLECTUAL PROPERTY
Intellectual property
1) Results of intellectual creative activity:
– works of science, literature and art;
– performances, staging, phonograms and programs of on-air and cable
broadcasting companies;
– inventions, utility models, industrial designs;
– selection achievements;
– integrated circuit topographies;
– undisclosed information, including trade secrets (know-how);
– other results of intellectual creative activity in the cases stipulated by the
Civil Code or other RLA.
2) Means of identification of participants of civil circulation, goods, works and
services:
– brand names;
– trademarks (service marks);
– appellations of origin (indication of origin) of goods;
– other means of identification of participants of civil circulation, goods,
works and services in the cases provided by the Code and legislative acts (logo,
slogan).
1. Copyright23
Is applied to published and unpublished works that exist in any objective
form:
1) written (manuscript, typewritten text, musical score, etc.);
2) oral (public recitation, public performance, etc);
3) audio or video records (mechanical, digital, magnetic, optical, etc.);
4) images (picture, sketch, painting, plan, drawing, film-, television-, video or
photo frame, etc.);
5) three-dimensional (sculpture, model, mock-up, structure, etc.);
6) other forms.
Duration of copyright is throughout the author›s life and 70 years after his/
her death.
The state registration of rights to works protected by copyright
1. Registering authority – the Department of Intellectual Property Rights of
the MJ of the Republic of Kazakhstan.
2. Basis for the registration and certification – author (s)’ or any right holder’s
statement of the approved application form.
23
The Republic of Kazakhstan Law "On copyright and related rights" № 6 dated June 10, 1996

2. Obtaining a patent for the protection of industrial property24
(http://egov.
kz/wps/portal/Content?contentPath=/egovcontent/bus_um_pri&lang=en)
2.1 Inventions:
– Technical solutions in any field related to the product (device, substance,
microorganism strain, plants or animals cell culture), method (process of affecting
a material object using material resources), as well as the use of a well-known
product or method for a new purpose, or a new product for a certain purpose.
Patent validity period from the date of application is 20 years (with the
possibility to extend for up to 5 years).
2.2 Industrial designs:
–Artanddesignsolutionofanarticleofindustrialorartisanproduction,determining
the appearance of an article.
Patent validity period from the date of application is 15 years (with the possibility
toextendforupto5years).
2.3 Selection achievements25
– A new plant variety, a new breed of animal.
Patent validity period from the date of application is 25 years (with the
possibility to extend for up to 10 years).
3. Trademarks, Service marks and Appellations of origin26
(http://egov.kz/
wps/portal/Content?contentPath=/egovcontent/bus_um_pri&lang=en)
3.1 Visual, verbal, letter, digital, three-dimensional and other designations or
combinations thereof to distinguish goods and services of one person from the
goods or services of other persons can be registered as trademarks.
3.2 Contemporary or historical, formal or informal, full or abbreviated name of
a country, region, settlement, locality or other geographical object, as well as a
designation derived from such names, and their combination with specific name
of goods can be registered as an appellation of origin.
Registration period of validity:
1) A trademark registration shall be valid for 10 years from the application
date and shall be renewable each time for 10 years at the owner’s request.
2) Registration of an appellation of origin shall be valid perpetually, subject
to maintaining special properties of a product produced in the territory of the
geographical area specified.
The right to use an appellation of origin shall be valid for 10 years from the
date of application to the expert organization, and shall be extended each time
for 10 years at the owner’s request.
Obtaining a patent, certificate of registration
1) The organization in charge of issuing patents, certificates of registration,
receiving and examining applications is the National Institute of Intellectual
Property of the MJ of the Republic of Kazakhstan27
(the NIIP).
24
The Republic of Kazakhstan Patent Law № 427 dated July 16, 1999.
The law regulates property and related personal non-property relations arising in connection
with the creation, legal protection and use of inventions, utility models and industrial designs.
25
The Republic of Kazakhstan Law "On protection of selection achievements" № 422-I dated
July 13, 1999.
26
The Republic of Kazakhstan Law "On Trademarks, Service Marks and Appellations of Origin" №
456 dated July 26, 1999.
27
The National Institute of intellectual property of the MJ of the Republic of Kazakhstan
receives and examines patent applications for industrial property objects, including trademarks,
selection achievements, appellations of origin, and maintains public registers and official publishes
information on security documents issued by the Republic of Kazakhstan. www.kazpatent.kz

2) Basis for issuance of a patent, certificate of registration – application for a
patent, registration in the prescribed form with attachments (documents).
4.7. TAXATION28
(http://www.kgd.gov.kz/en)
1. Corporate Income Tax (CIT)
1.1 Payers
CIT payers are legal entities – Kazakhstan residents, except for government
agencies, and non-resident legal entities operating in Kazakhstan through a
permanent establishment (hereinafter – non-resident legal entities), or receiving
income from resources in Kazakhstan.
CIT taxable items:
1) taxable income;
2) income taxed at source of payment;
3) net income of a non-resident legal entity doing business in Kazakhstan
through a permanent establishment.
1.2 Taxable income
Taxable income is determined as a difference between the gross annual
income subject to adjustments and deductions provided by the Tax Code
(hereinafter – the TC).
1.3 Income taxed at source of payment
Income taxed at source of payment include:
1) gains and remuneration paid by a Kazakhstan resident legal entity, a non-
resident legal entity to a Kazakhstan resident legal entity, to a non-resident legal
entity;
2) income of non-residents from sources in Kazakhstan, determined in
accordancewithArticle192oftheTC,thatnotrelatedtoapermanentestablishment
of such non-residents, with the exception of income referred to in subparagraph 9)
of paragraph 1 of Article 192 of the TC paid to a branch, representative office or a
permanent establishment of a non-resident;
3) dividends specified in the TC.
2. Personal Income Tax (PIT)
2.1 Payers
PIT payers are individuals with the following items of taxation:
1) income taxed at source of payment:
– employee income;
– income of an individual from a tax agent;
– pension payments from a unified accumulative pension fund and voluntary
pension savings funds;
– income in the form of dividends, interest, winnings;
– scholarships;
– income from accumulative insurance agreements.
2) income not taxed at source of payment:
28
The Republic of Kazakhstan Code "On taxes and other obligatory payments to the budget (Tax
Code)" № 99-IV dated December 10, 2008.

– property income;
– individual entrepreneur income;
– income of private notaries, private law enforcement officers, lawyers,
professional mediators;
– other income.
Objects of taxation are defined as a difference between taxable income,
subject to adjustments as provided in Article 156 of the TC and tax deductions in
the cases, the procedure and the amount stipulated by the TC.
3. Value Added Tax (VAT)
3.1 Payers
VAT payers are as follows:
1) entities which have performed VAT registration in Kazakhstan:
– individual entrepreneurs;
– resident legal entities, except for government agencies;
– non-residents operating in Kazakhstan through a branch or representative
office;
– trust managers generating turnover from the sale of goods, work or services
under trust management agreements with the owner of the trust or beneficiaries
in other cases of fiduciary management.
2) entities importing goods into Kazakhstan according to the customs legislation
of the CU (currently – EAEU) and (or) customs legislation of the Republic of
Kazakhstan.
The below items are subject to VAT:
1) taxable turnover;
2) taxable import.
4. Excise
4.1 Payers
Excise payers are individuals and legal entities, which:
1) produce and import excise goods in the territory of Kazakhstan;
2) wholesale and retail gasoline (except for aviation fuel) and diesel fuel in the
territory of Kazakhstan;
3) sell seized, unclaimed, transferred by inheritance to the state and transferred
gratis to the state ownership in the territory of Kazakhstan excise goods specified
below in the List in subparagraphs 4) – 6), unless on such goods the excise in
KazakhstanhasbeenpaidearlierinaccordancewiththeRepublicofKazakhstanlaws;
4) sell the excise goods specified in the List, unless on such goods the excise in
Kazakhstan has not been paid earlier in accordance with the RepublicofKazakhstan
laws;
5) perform assembly (packaging) of excise goods under sub-paragraph 5) of the
below List.
4.2 The List of excise goods
1) all types of alcohol;
2) alcoholic products;

3) tobacco products (and articles with heated tobacco, fluid for use in
electronic cigarettes);
4) gasoline (except for aviation fuel) and diesel fuel;
5) motor vehicles for transportation of 10 or more people with engine capacity
of more than 3 thousand cm3
, except for minivans, buses and trolleybuses;
– motor cars and other motor vehicles principally designed for transportation
of people with engine capacity of more than 3 thousand cm3
(excluding vehicles
for disabled people);
– motor vehicles on car chassis with a platform for cargo and a driver’s cab
separated from the cargo compartment with a stationary rigid wall, with engine
capacity of more than 3 thousand cm3
(excluding vehicles for disabled people);
6) crude oil and gas condensate;
7) alcohol-containing medical products, registered as drugs.
The authorized body regulating commercial activities shall define an
additional list of imported goods to be subject to excise duties according to the
country of origin.
5. Rent Tax
5.1 Payers
Payers of rent export tax are individuals and legal entities, exporting:
1) crude oil and crude oil products, except for:
– subsoil users which export crude oil and gas condensate, produced under
contracts;
– legal entities, the list of which is established by the oil and gas regulating
body, that have implemented the customs export procedure for crude oil in
volumes determined by the oil and gas regulating body, and previously placed
under the customs procedure for processing outside the customs territory.
2) coal.
Taxation object
Rent export tax object is a volume of crude oil and crude oil products and
coal sold for export.
6. Taxation of subsoil users
6.1 Special charges and taxes of subsoil users include:
1) special payments of subsoil users:
– signature bonus;
– commercial discovery bonus;
– payments to reimburse historical costs;
2) tax on extraction of mineral resources;
3) excess profits tax.
6.2 Signature bonus
Signature bonus is a one-time fixed payment of a subsoil user for the
acquisition of the subsoil use rights in the contract area, and in the expansion
of the contract area.
6.3 Commercial discovery bonus
Commercial discovery bonus shall be paid by a subsoil user under the contracts
for the extraction of mineral resources and (or) for the combined exploration and
production for each commercial discovery of mineral resources in the contract
area, including any discovery in the course of further exploration.

6.4 Payment for reimbursement of historical costs
Payment for reimbursement of historical costs is a fixed payment of a subsoil
user to reimburse the total costs incurred by the government for geological study
of the contract area and exploration before awarding subsoil use contracts.
6.5 Mineral extraction tax
Mineral extraction tax shall be paid by a subsoil user separately for each
type of minerals, oil, underground water and therapeutic mud extracted in the
territory of Kazakhstan.
6.6 Excess profits tax
Excess profits tax is calculated for the tax period for each individual subsoil use
contract under which a subsoil user is a payer of the excess profits tax in accordance
with Article 347-1 of the TC.
7. Social Tax
7.1 Payers
Social Tax payers are:
1) individual entrepreneurs;
2) private notaries, private law enforcement officers, lawyers, professional
mediators;
3) Kazakhstan resident legal entities;
4) non-resident legal entities operating in Kazakhstan through a permanent
establishment;
5) non-resident legal entities operating through a branch or representative
office, which do not lead to the formation of a permanent establishment in
accordance with an international treaty on avoidance of double taxation.
8. Land Tax
8.1 Payers
Land Tax payers are individuals and legal entities with objects of taxation:
1) fully owned by them;
2) owned on the right of a permanent land use;
3) owned on the right of a primary gratuitous temporary land use.
Taxation object
The object of taxation is a plot of land (in common ownership of land – a
land share).
9. Tax on property of legal entities and individual entrepreneurs
9.1 Payers:
Property tax payers are:
1) legal entities with the object of taxation beneficially owned by them or on
the right of economic management or operational management in the territory
of Kazakhstan;
2) individual entrepreneurs, with the object of taxation beneficially owned by
them in the territory of Kazakhstan;
3) concessionaires with the right of ownership or use for the object of taxation,
which is subject to concession in accordance with a concession agreement;
4) entities and persons referred to in Article 395 of the TC.
10. Taxation of an organization implementing an investment priority project
An organization that implements an investment priority project and does not
apply the special tax regime, shall:

1) reduce CIT by 100% up to 10 consecutive years, which shall be calculated
from 1 January of the year following the year when an investment contract for the
implementation of priority investment project has been signed.
2) in calculation of land tax for land plots used for the implementation of an
investment priority project, apply coefficient 0 to the corresponding land tax
rates up to 10 consecutive years, which shall be calculated from 1 January of the
year following the year when an investment contract for the implementation of
an investment priority project has been signed.
3) on objects, first entered into service in the territory of Kazakhstan, calculate
property tax at the rate of 0% to the tax base up to 8 consecutive years, which
shall be calculated from 1 January of the year following the year when the first
asset has been accounted for as fixed assets in accordance with international
financial reporting standards and requirements of the Republic of Kazakhstan
legislation on accounting and financial reporting.
11. VAT exemption for imported raw materials and (or) materials29
Under investment contracts, investors are exempt from VAT on imports of
raw materials and (or) materials subject to simultaneous compliance with the
following conditions:
– raw materials and (or) materials are included in the list of raw materials
and (or) materials, the import of which is exempt from VAT under investment
contracts;
– import of raw materials and (or) materials is formalized with the documents
provided for by the customs legislation of the CU and (or) customs legislation of
the Republic of Kazakhstan;
– VAT payers have submitted a commitment to the customs authorities on the
use of imported raw materials and (or) materials within the limitation period only
in the implementation of activities under investment contracts.
VAT exemption for imported raw materials and (or) materials under
investment contracts is provided to Kazakhstan legal entities for a period of 5
consecutive years, starting from the 1st
day of the month in which fixed assets
have been commissioned as provided for in the work program, which is an annex
to an investment contract . In case the work program covers commissioning of 2
or more fixed assets, the calculation of the VAT exemption period for imported
raw materials and (or) materials shall be from the 1st
day of the month in which
the first fixed asset has been commissioned as per the work program.
12. Taxation of organizations operating in the SEZ
1) exemption from CIT;
2) exemption from Land Tax;
3) exemption from Property Tax;
4) exemption from VAT in case of realization of goods in the SEZ territory
which will be completely consumed in the production process;
5) exemption from Social Tax for 5 years, provided that payroll expenses will be
at least 50% of annual revenue and 90% of payroll expenses will be expended on
Kazakhstan residents – participants of the "Park of innovative technologies" SEZ;
6) an organization registered in Kazakhstan and located outside of the "Park of
innovative technologies" SEZ until January 1, 2018, is considered to be a participant
of the "Park of innovative technologies" SEZ, if:
– such organization has no any structural departments;
– at least 70% of the total annual income is income receivable (received) from
sales of own goods, works and services from the following activities:
29
Effective from January 1, 2017.

• design, development, introduction and production of databases and
hardware, design, development, introduction and production of software
(including prototype models);
• services on information storage and processing in electronic form using the
server info-communication equipment (data-center services);
• research and development works on the creation and implementation of
projects in the field of information technology
Conditions for tax incentives:
1) registration as a tax payer in the SEZ territory;
2) registration as a SEZ member;
3) no structural departments outside the SEZ;
4) income from the sales of goods produced under the SEZ priority activities
shall not be less than 90% of the total annual income (for the "Park of innovative
technologies" SEZ – 70%).
4.8. CUSTOMS LEGISLATION30
1. Customs duties and taxes
1.1 Customs duties and taxes include:
1) import duty;
2) export duty;
3) VAT levied on goods imported into the territory of Kazakhstan;
4) excise duty(s), charged (charged) on goods imported into the customs
territory of the CU;
5) customs fees (customs fees for customs declaration of goods, for customs
escort, a fee for a preliminary ruling).
1.2 Types of custom duties
1) ad valorem – defined as a percentage of the customs value of goods;
2) specific – established depending on the physical characteristics in kind
(quantity, mass, volume or other characteristics);
3) combined – combined types referred to in subparagraphs 1) and 2).
1.3 Customs fees and charges
Customs fees and charges are compulsory payments levied by customs authorities
for their activities related to the release of goods, customs escort of goods, and other
activities specified by the Customs Code.
Types of customs fees:
1) customs charges for customs declaration of goods;
2) customs charges for customs escort;
3) a fee for a preliminary ruling.
1.4 Exemptions from payment of customs duties and taxes
In the Customs Code, exemptions from payment of customs duties and taxes
mean:
1) tariff preferences;
2) tariff privileges (privileges on payment of customs duties);
3) tax relief;
4) customs duties relief.
30
The Republic of Kazakhstan Code "On Customs Affairs in the Republic of Kazakhstan" №
296-IV dated June 30, 2010.

2. Calculation of customs duties and taxes
Objectsofcustomsdutiesandtaxesaregoodsconveyedacrossthecustomsborder
of the CU.
Calculation of customs duties and taxes payable shall be in tenge, except for cases
stipulated by the Republic of Kazakhstan international treaties.
Theamountofcustomsdutiespayable,and(or)leviable,isdeterminedbyapplying
the customs duties calculation base and an appropriate type of customs duties rates,
unless otherwise provided by the Customs Code.
The amount of taxes payable, and (or) leviable, is determined in accordance with
the Republic of Kazakhstan tax legislation.
3. Rates of customs duties31
Rates of customs duties are set in Euro (EUR)
1) customs charges for customs declaration of goods – EUR 60 for the main
list of the declaration;
2) EUR 25 for each additional page of the declaration;
3) customs charges for customs escort:
EUR 11 for a distance up to 50 km; EUR 283 for a distance from 600 to 800 km;
EUR 16 for a distance from 50 to 100 km; EUR 385 for a distance from 800 to 1000 km;
EUR 26 for a distance from 100 to 200 km; EUR 523 for a distance from 1000 to 1500 km;
-EUR 128 for a distance from 200 to 400 km; EUR 743 for a distance from 1500 to 2000 km;
EUR 178 for a distance from 400 to 600 km; EUR 878 for a distance from 2000 to 2500 km.
4) Preliminary ruling charge is EUR 70.
4. Import/export of currency, securities, promissory notes, checks:
1. Import into Kazakhstan or export from Kazakhstan by individuals of cash
in foreign and (or) national currency, promissory notes, checks (including travel
checks), securities in documentary form from the territory or in the territory, which
is a part of the customs territory of the CU, is carried out without restrictions and
customs declaration.
2. In case of one-time import into Kazakhstan from third countries or export
from Kazakhstan to third-country cash in foreign and (or) national currency
(except for coins made of precious metals), and (or) traveler
,
s checks for a total
amount exceeding the equivalent of 10,000 USD, specified values shall be subject
to customs declaration in writing by filing a passenger customs declaration for
the whole amount of imported or exported values.
For detailed information, please visit:
– www.keden.kz – Customs Control Committee of the MF of the Republic of
Kazakhstan;
– www.customs.kz – Customs information portal
– www.eaeunion.org –EAEU;
– eec.eaeunion.org – Eurasian Economic Commission.
5. Customs privileges for SEZ members
When goods are IMPORTED into the SEZ territory
Exemption from customs duties.
When goods are EXPORTED from the SEZ territory
CU commodities produced (processed) by SEZ residents registered before
January 1, 2012 with the use of imported components, but recognized as EAEU
31
Rates of customs duties are established by Resolution № 24 of the Government of the
Republic of Kazakhstan dated January 21, 2011.

products, based on the criteria of sufficient processing, exported from the SEZ
to the rest customs territory of the CU, are not subject to customs duties until
January 1, 2017.
CU commodities exported from the SEZ outside the customs territory of the
CU shall be subject to payment of export customs duties.
If foreign goods do not have the status of CU commodities (simple assembly),
exported from the SEZ to the rest customs territory of the CU, they shall be
subject to payment of customs duties.
If foreign goods have not been used or processed in the SEZ, when exported
(to third countries), such goods shall be exempted from customs "re-export"
duties.
If foreign goods have been processed in the SEZ, when exported they shall be
subject to export duties according to Resolution of the Republic of Kazakhstan
Government № 520 dated June 7, 2010.
Details on customs privileges have been specified in the Agreement on free
(special) economic zones in the customs territory of the Customs Union and
customs procedure of free customs zones.
4.9. BANKING SYSTEM
Kazakhstan has a two-tier banking system.
The National Bank of the Republic of Kazakhstan is the central bank of the
state and represents the upper (first) tier of the banking system.
All other banks represent the lower (second) tier of the banking system except for
the Development Bank of Republic of Kazakhstan, which has a special legal status
1. The National Bank of the Republic of Kazakhstan (NB RK)32
NB RK functions
The NB RK is a public authority representing the interests of Kazakhstan in
relations with central banks and banks of other countries, international banks
and other financial and credit institutions.
2. Second tier banks33
Principal activities of second tier banks include attraction of deposits and
provision of loans to individuals and legal entities.
The list of second tier banks operating in Kazakhstan34
№ Bank Assets, mln. USD34
1. "Kazkommertsbank" JSC 16,845.7
2. "Halyk Bank of Kazakhstan" JSC 13,670.1
3. "Sberbank of Russia" SB JSC 7,658.2
4. "Tsesnabank" JSC 7,441.3
5. "Bank Center Credit" JSC 6,067.1
32
The Republic of Kazakhstan Law "On the National Bank of the Republic of Kazakhstan" . №
2155 dated March 30, 1995.
33
The Republic of Kazakhstan Law "On banks and banking activity in the Republic of Kazakhstan"
№ 2444 dated August 31, 1995.
34
According to the rate of the National Bank of the Republic of Kazakhstan as of Q3 2015 1
USD = 216.2 KZT

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