Alida Tuyebekova, a senior lawyer of Linkage & Mind presented a report ‘On Legal Aspects of Doing Business in Kazakhstan’, for business delegation from Spain at the seminar organised by the Department of Economy and Trade of Spanish Embassy.

1. 1

2. About Us
2

3. 3
AboutUs
Consistentlyawardedandrecognizedbyglobalratingagencies
20+clientsfromNationalBusinessList
75%ofourclientsareforeigncorporations
PartnershipwithleadinglawfirmsfromtheEU,US,AsiaandCIS
OfficesinAstana,Almaty&London
FluentinEnglish,Kazakh,RussianandGerman
Innovativesolutionstothemostcomplexbusinessandlegalissues

4. Awards
4
M&A -Law Firm of the Year in Kazakhstan, 2013
Tax -Law Firm of the Year in Kazakhstan,2012, 2013
Tax -Law Firm of the Year in Kazakhstan, 2013, 2014
European Women in Business Law-Law Firm of the Year in Kazakhstan, 2011, 2012, 2013
Public Private Partnerships -Law Firm of the Year in Kazakhstan, 2011
Corporate Tax Law -Law Firm of the Year in Kazakhstan, 2011 and 2012

5. HIGHLIGHTED ТRACK RECORD OF OUR SPANISH PROJECTS
5
2013
2012
Typsa
Kazakhstan-Spanish Joint Venture«Tulpar-Talgo»
Corporate and M&A
Corporate and M&A,
Tax & Investment privileges,
Government Relations
Construction & Infrastructure
Industrial & Manufacturing
Comprehensive support for the Spanish Enterprise in negotiations and entering into general agreement for contracting and engineering works on construction of LRT in Astana
Comprehensive advice for JV TULPAR-TALGO on corporate, tax, contractual and customs issues in the project related to building of
passenger cars

6. LegalAspects ofDoingBusinessinKazakhstan
6

7. General Overview
7

8. GENERAL OVERVIEW
KazakhstanislocatedintheheartoftheEurasiancontinent.
Territory–2.7millionsq.km.
Population–17millionpeople
Mainethnicgroups:
Kazakhs:65%
Russians:25%
Other:10%
Majorlanguages
Kazakh(statelanguage)
Russian(official,businesslanguage)
English(businesslanguage)
It is the CIS’ second and world’s ninth largest country. Kazakhstan borders with China, Kyrgyz Republic, Turkmenistan, Uzbekistan and Russian Federation. 8

9. Setting Up a Business
9

10. START UP A BUSINESS IN KAZAKHSTAN
AsaruleforeigncompaniesstartuptheirbusinessinKazakhstanbyestablishingalegalpresenceinformofarepresentativeoffice(RO),branchoffice(BO)orasubsidiarycompany.ThedifferencebetweenarepresentativeofficeandabranchofficeliesinthescopeofbusinessactivitiesthattheycancarryoutundertheRKlaws.
10
SCOPE OF BUSINESS ACTIVITIES
REPRESENTATIVE OFFICE (RO)
BRANCH OFFICE (BO)
SUBSIDIARY COMPANY
Representation and protection of interests of a mother company, no business activity is permitted
All or part of types of business activities on behalf of and in the name of the head company
Any types of permitted business activities on behalf of its name

11. RO v. BO
BothROandBOareconsideredtobestructuralsubdivisionsofalegalentity(company)andshallnotacquirerightsandobligationsofalegalentity.
Unlikealegalentity,ROandBO:
Carryoutactivityonbehalfandinthenameoftheheadcompany;
DonothaveanyseparateassetsotherthanassetsprovidedtoaBObytheheadcompany;
Donothavefullandsoleliabilityforviolationofobligations.
TheheadcompanyvestsassetsandpropertyinitsBOorROinKazakhstan,thusbothROandBOdonotownanyassets.Allassetsofastructuralsubdivisionareownedbytheheadcompany.BothROandBOcarryoutactivityonbehalfofandinthenameoftheheadcompanyandcanhirepersonnel,openbankaccounts,leaseofficesandpaytaxes.
11

12. BRANCH v. SUBSIDIARY
Adifferencebetweenabranchandasubsidiaryisinthelegalstatus(i.e.structuralsubdivisionandlegalentity).
Alegalentityisliableforitsobligationstothefullextentofitspropertyandassetswhichitowns(includingtherightsofpossession,useanddisposalof),economicjurisdictionoroperationmanagement(possessionanduse).
Alegalentitycanacquireandexerciseproprietaryandnon-proprietaryrights,beaclaimantandplaintiffincourts.Alegalentityshallhaveautonomousbalancesheetandbudget.
AsubsidiarycanbeestablishedinanyofthelegalformsasstipulatedbytheCivilCode,howeverthemostpopularandcommonlyusedlegalformsareJOINTSTOCKCOMPANY(JSC)andLIMITEDLIABILITYPARTNERSHIP(LLP),thelatterismoresimpleform,therebymoreused.
12

13. JOINT-STOCK COMPANY
AJSCissuessharesandraisesfundsforcarryingitsactivity.Itcanbefoundedbyoneorseverallegalentitiesandindividuals.JSCfoundershavejointliabilityonexpensesandcostsassociatedwiththefoundationofJSCpriortoitsstateregistration.
TheconstitutivemaindocumentofaJSCisArticlesofAssociation
AJSC’supremebodyistheGeneralMeetingofShareholdersorsoleshareholder.
Someorganizationssuchasbanks,pensionfunds,investmentfundsmustbecreatedonlyintheformofaJSC.
AchartercapitalofaJSC,exceptforinvestmentprivatizationfund,shouldbenotlessthan50000foldofMAI.
MAI(MONTHLYASSESSMENTINDEXisKZT1852(approximatelyEUR8)asof01January2014.
TheminimumamountisKZT92600000ornearlyUSD508792.Bankingregulationstipulatesfordifferentamountsforcharterandnetworthorshareholders’stock.
13

14. JOINT-STOCK COMPANY
Specificrequirements:
CompulsoryagreementwiththeINTEGRATEDSECURITIESREGISTRARwhichmaintainsashareregisterpriortoregistrationofsecuritiesemission;
Placementofsharesafterregistration;
FilingreportsonplacementsofshareswiththeNationalBankofKazakhstan;
Placementofconsolidated(incaseofexistenceofBOandRO)ornon- consolidatedfinancialstatementsinnewspapers.
AJSCshouldsubmitafullbundleofdocumentsrequiredforstateregistrationofdeclaredshareswithin30(thirty)calendardaysfromthedateofitsstateregistration.
Ingeneral,aregistrationofaJSC,excludingregistrationofshares,takes5-11workingdays.
14

15. LIMITED LIABILITY PARTNERSHIP
AnLLPcanbeestablishedbyoneorseveralindividualsand/orlegalentities(alsoknownasLLPParticipants).Atthesametime,thepartnershipconsistingofoneparticipantcannotbeasoleparticipantinanotherLLP.
ParticipantsarenotliablefortheirobligationsandbeartheriskoflossassociatedwiththeactivitiesoftheLLPtotheextentoftheirparticipatoryinterest.
AnLLPisestablishedwiththechartercapitaldividedintoshares(alsoknownasParticipatoryInterest)theamountofwhichisdeterminedandsetoutintheconstituentdocuments(ArticlesofAssociationandFoundationAgreement).
AminimumchartercapitalmustbenolessthanKZT100forasmall-scaleLLPandKZT185200ornearlyUSD1000formediumandlarge-scaleLLP(100-foldofMAI).
StateregistrationofanLLPtakes1-3workingdays.
15

16. LIMITED LIABILITY PARTNERSHIP
Theparticipant(s)shallapprovethecharterofLLP,adocumentthatdefinesthelegalstatusofthepartnershipasalegalentity.FormationofanLLPrequires:
FoundationAgreement(MemorandumofAssociation)
Charter(ArticlesofAssociation)
TheGeneralDirector(CEO)ofanLLPmusthaveaworkpermit
AsforthehiringcitizensofmemberstatesoftheCustomsUnion(RussiaandBelarus),aswellasforforeigncitizensholdingapermanentresidencepermitintheRepublicofKazakhstan,obtainingofsuchworkpermitisnotrequired.
16

17. SCALE OF BUSINESS
Allprivatebusinessescanbedividedintosmall,mediumandlargescalebusinessbasedonthecriterionofaverageannualnumberofemployeesandannualaverageincome.
17
SMALL
MEDIUM
LARGE
CRITERION
SOLEPROPRIETOR ORLEGAL ENTITY
ANNUAL AVERAGENUMBER OF EMPLOYEES
NO MORE THAN 50 (FIFTY)EMPLOYEES
MORE THAN 50
(FIFTY) AND UP TO 250
(TWO HUNDRED FIFTY)
EMPLOYEES
MORETHAN 250
(TWO HUNDRED FIFTY) EMPLOYEES
AND
AND
AND (OR)
ANNUAL AVERAGE INCOME
UP TO
EUR 465 000
FROM
EUR 465 000
TO
EUR 23 MLN
FROM
EUR 23 MLN
AND MORE

18. LEGAL REGIMEBRANCH & SUBSIDIARY
18
Criteria
Branch Office
LLP
Charter capital
No
Mediumand large scale business –USD 1 000
Small scale business
–KZT 100 (EUR 0.4)
Confirmation fromthe tax authorities on absence of outstanding debts to the state budget at the head company
(during state registration, re-registration due to change of participants)
No
Required
Tax registrationof Director (CEO)
Required
Required

19. LEGAL REGIMEBRANCH & SUBSIDIARY
19
Criteria
Branch
LLP
Documents confirming location of an entity (lease agreement, sale-purchase agreement)
Required
Physical presence of CEO in Kazakhstan for signing tax declarations and
financial statements
Required
Registration in local area, where
business is carried out
Required
Tax residence (for tax purposes)
Permanent establishment of a non-resident
Resident

20. LEGAL REGIMEBRANCH & SUBSIDIARY
20
Criteria
Branch
LLP
Localcontent requirement (for subsoil use contracts –content of local personnel, works and services are established)
Minimum
Extensive
Foundationof another legal entities
No, thefounder will be a mother company
Shareholder of participant will be an LLP.An LLP with a sole participant cannot create another LLP
Licensing
Required for certain types of businessactivities
Corporate Income Tax
20%
VAT
12%

21. LEGAL REGIMEBRANCH & SUBSIDIARY
21
Criteria
Branch
LLP
Property tax
From0,1 up to 1,5%
Social tax
11%
Netrevenue tax
(revenue less corporate income tax)
15%
None
Repatriationof incomes
Netrevenue can be repatriated with no need to pay any additional taxes and to comply with the currency control
Transferof net profit in form of a dividend to participants will be levied with withholding tax at rate of 15%. If it is transferred in form of a fee for some services on the basis of contract, it will be subject currency control, transfer pricing, withholding tax at 15%and VAT at 12%

22. LEGAL REGIMEBRANCH & SUBSIDIARY
22
Criteria
Branch
LLP
Work permit
Mustbe obtained for all foreigners in personnel except for CEO or Director
Must be obtainedfor any foreigners, including management staff and CEO
Engagementof accounting firm or hire an accountant for keeping and filing tax returns, declaration, statements and etc.
Stronglyrecommended
Currency control
EitherKZT or any other foreign currency can be used on the territory of the RK
Can work with residentsonly with KZT, some transactions with foreign currency are subject to currency control

23. 23
Work Permits

24. WORK PERMITS
Employingaforeigncitizen:
Annualquoteforforeignemployees,setbythelegislation;
Ageofanattractedemployee(notyounger23andolder63formenand58forwomen);
Requiredproportionalratioofforeignemployeesinrelationtolocalstaff,forexamplenomorethan30%offoreignersinthemanagementstaff;
RegionofKazakhstan;
Personalcharacteristicsofaforeignemployee;
Plansontraining,replacementandattractionoflocals;
Jobpositions.
24

25. WORK PERMITS
AforeigncitizenwhoisbeingemployedbyaKazakhstaniemployershouldgetaworkpermitofacertaincategory.ThetablebelowshowstheexistingcategoriesofworkpermitsinKazakhstan.
UNIFIEDRATINGANDSKILLSGUIDEforjobsandoccupationsofworkerssetsoutandspecifiesqualificationrequirementsforforeigncitizensthatarebeingattractedforII-IVcategories.
25
I
II
III
IV
Chief Executive, Top Managers (head) and Deputies
Directors of structural units (departments, offices)
Experts, managers, specialists and other employees
Workers

26. WORK PERMITS
Thereisnoneedtoobtainaworkpermit,ifaforeigncitizenisattractedforthefollowingjobpositions,butnotlimitedtothis:
Head(Director)ofBOorRO;
CEOofcompanies,whichsignedinvestmentagreementswiththeKazakhstanigovernmentforUSD50000000;
CEOofcompanieswhicharecarryingoutbusinessactivityinpriorityeconomicsectoraspertheLawonInvestmentsand,accordinglysignedinvestmentagreement;
Shipandrivercraftcrew,balletdancers,professionalentertainersandetc.
Thegovernmentannuallyestablishesquoteforworkpermitsissuancetoforeigners.In2014quoteequalsto0,7%toeconomicallyactivepopulation.Employersshallrequestquotesforworkpermitsforthenextyearbeforethis1stdayofSeptember.
26

27. Currency Control
27

28. CURRENCY CONTROL
NationalBankoftheRepublicofKazakhstanisthemainstateagencyoncurrencycontrol.
Inordertogatherstatisticaldataaboutcapitalmovementoperations(financialloans,foreigndirectinvestments,commercialcredits,foreignbankaccounts)theLawonCurrencyregulationandcontrolprovidesforregimesofregistrationandnotification.
Registrationandnotificationregimescoveronlylargecapitalmovementoperationswhichassumecapital(goods,money)inflowexceedinganequivalentofUSD500000,andcapital(goods,money)outflowexceedingUSD100000.
RegistrationregimereckonsforprovidingtheNationalBankofKazakhstanwithacopyofadocument(contract)onthebasisand(or)inpursuanceofwhichcapitalmovementoperationsarecarriedoutbeforetheconductionofsuchoperation,whilenotificationregimecallsforprovidinginformationaboutcapitalmovementoperation(includingacopyofacontract)aftertheoperationwasconducted. RegistrationandnotificationregimesspreadonlyonresidentsofKazakhstan.
28

29. Construction
29

30. CONSTRUCTION
Thelegalframeworkofconstructionactivitydoesnotcontainaspecificlawonconstructionandtechnicalregulationonconstructiononly,insteadthereisaLAWONARCHITECTURAL,TOWN-PLANNINGANDCONSTRUCTIONACTIVITIESwhichisthecentralandmainlegalactregulatingconstructionactivities.Thislawprovidesfordefinitionsofeachofthesebusinessactivities.
Ifacompanyoranindividualdecidestocarryoutoneoftheseactivities,theyshouldgetaspecialpermitfromtherelevantstateagency,whichiscommonlycalledinKazakhstanasthe“ConstructionLicense”(the“ConstructionLicense”).
Thesethreebusinessareas–architecturalactivity,town-planningandconstrictionaresubjecttolicensingandcannotbecarriedoutwithoutalicense.
30

31. CONSTRUCTION LICENSE
31
I CATEGORY
IICATEGORY
III CATEGORY
FACILIITIES:Technicalandproductionfacilities;
FACILITIES:Technicalandproductionfacilities, laboursafetyrules;
FACILITIES:Technicalandproductionfacilities, laboursafetyrules;
STAFF:similartocriterionofIIcategoryandnotlessthan20%ofengineeringstaffmustbepermanentemployeesanddonotcombinejobsORNOTREQUIREDFORANAPPLICANTFOUNDEDBYACOMPANYWITH30YEARSOFINTERNATIONALEXPERIENCE;
STAFF:notlessthanoneengineeringstaffworkerdulyqualifiedandexperienced(5years–highereducationand7years–mediumeducation)andadmissiontorworksinzonesofhighseismichazard;
STAFF:notlessthanoneengineeringstaffworkerdulyqualifiedandexperienced(3years–highereducationand5years–mediumeducation)andadmissiontorworksinzonesofhighseismichazard,and
APPLICANT”SEXPERIENCE:notlessthan10(ten) yearsofexperiencefromthedayofobtainingalicenseorsimilarforeignpermissivedocumentorfiveyearsofexperienceasaIIcategorylicenseholder,
FORANAPPLICANTFOUNDEDBYACOMPANYWITH30YEARSOFINTERNATIONALEXPERIENCE-6(six)years;
APPLICANT”SEXPERIENCE:notlessthan5(five) yearsofexperiencefromthedayofobtainingalicenseorsimilarforeignpermissivedocumentorfiveyearsofexperienceasaIIIcategorylicenseholder;
APPLICANT”SEXPERIENCE:NOTREQUIRED.
COMPLETEDPROJECTS–notlessthan10ofIIandIIIlevelofcomplexityasageneralcontractorandnotlessthan20ofIandIIlevelofcomplexityassubcontractor;NOTREQUIREDFORANAPPLICANTFOUNDEDBYACOMPANYWITH30YEARSOFINTERNATIONALEXPERIENCE
COMPLETEDPROJECTS–notlessthanfiveofIIandIIIlevelofcomplexityasageneralcontractorandnotlessthan10ofIandIIlevelofcomplexityassubcontractor;and
CLIENTREFERENCES-notlessthanfivereceivedasageneralcontractorortenasasubcontractor
NOTREQUIREDFORANAPPLICANTFOUNDEDBYACOMPANYWITH30YEARSOFINTERNATIONALEXPERIENCE
CLIENTSGOODREFERENCES-notlessthanfiveasageneralcontractorortenassubcontractor

32. CONSTRUCTION
ForeigncompaniescannotgetalicenseinKazakhstanwithoutlegalrepresentationhere,i.e.branchofficeoralimitedliabilitypartnership(LLP).
BasedonreviewofqualificationrequirementsforgettingtheConstructionLicenseandourexperience,includingdealingwiththecompetentstateagency,WEADVISEFOREIGNCOMPANIESTOSETUPABRANCHINORDERTOGETTHECONSTRUCTIONLICENSE,asanewlysetupcompanycannotgettheConstructionLicenseofIcategoryandiseligibleonlyforIIIcategorylicense,whilstabranchofaforeigncompanywithlongandextensiveexperiencecangettheConstructionLicenseofIcategory.
TheConstructionLicenseisissuedwiththeattachment“SpecificConditions”,inwhichthecompetentstateagencywritesthecategoryandsetsoutspecificconditions.
Theauthorisedstateagencyforarchitectural,town-planningandconstructionactivitiesisCOMMITTEEONCONSTRUCTIONANDHOUSINGANDUTILITIESINFRASTRUCTUREINTHEMINISTRYOFNATIONALECONOMYOFTHEREPUBLICOFKAZAKHSTAN.
32

33. CONSTRUCTION MATERIALS
Constructionmaterialsandproductsusedforconstructionofbuildings,erectionsaswellasforpersonalanddailyneedsofpeopleduringdifferentconstructionandrepairworks,canbebroughttotheKazakhstanimarketonlyiftheyconformtostandardsofTechnicalRegulations.«SAFETYREQUIREMENTSTOERECTIONS, BUILDINGS,CONSTRUCTIONMATERIALSANDPRODUCTS”andidentified.
AconstructionproductisbeingidentifiedwithcodeofCOMMONCUSTOMSTARIFFoftheCustomsUnionandrelevantcodeofNATIONALCLASSIFICATORYOFECONOMICACTIVITIESonthebasisofmarking,submitteddocuments,indicatorsandothercharacteristics,sufficientforidentification.
33

34. CONSTRUCTION
Constructionmaterialsandproducts,includingimportedones,mustbeprovidedwithtechnicaldocumentationforcustomersthatisinstructionsforusage,qualitycertificate,conformancecertificate,compliancedeclarationandothertechnicaldocuments,necessaryforevaluationofpossibleconstructionrisks.
Executivepersonnel,responsibleforconstructionofbuildingmustensureavailabilityofCertificateofConformanceorComplianceDeclaration(dependingonkindofmaterial)forconstructionmaterialsusedduringtheprocess.
Theconformityassessmentisbeingdonebythe:
1)conformityagencybywayofassessmentandissuanceofconformityassessment;
2)consumerofconstructionproductsbywayofassessmentbyaconformityagency;
3)producer(executor)ofaconstructionproductsbywayofissuanceofconformancedeclaration.
Conformityassessmentiscompulsoryandvoluntarydependingonthenatureofconstructionproducts.
34

35. 35
Legal Tips

36. LEGAL TIPS
PriortostartbusinessactivityinKazakhstanitisadvisabletonotethefollowing:
ALLPisthemostpopularandcommonlyusedlegalformofacompany;
AnysettlementbetweenresidentsshouldbemadeinnationalcurrencyTENGE, whilstsettlementsbetweennon-residentsincludingBOandROofforeigncompaniescanbemadeinanycurrency;
Obtainingaworkpermitisasophisticatedprocess,howevertherearecertainexceptions;
Transferofmoneyintochartercapitalofalocalcompanyinparticipatoryinterestshallbeconsidereddirectinvestmentsandsubjecttocurrencycontrol;
Morethantwenty(20)businessactivitiesaresubjecttolicensingandcannotbecarriedourwithoutalicense.
36

37. LEGAL TIPS
Kazakhstanisamemberofmorethanfortyconventionsonavoidanceofdoubletaxationandpriortosettleanytaxpaymentoneshouldcheckwhetherthetaxcanbeavoidedunderaconvention;
CEOofBOandROdonotneedtoobtainaworkpermit;
PriortopurchasingparticipatoryinterestinanLLPoraJSC,capitalgaintaxmustbechecked;
RKLawsestablishextensiveincentivesforcertaininvestors,settingoutpriorityeconomicsectorsforinvestmentsandcurrentlythereareseveralSPECIALECONOMICZONESontheterritoryofKazakhstan,whereinvestorscanworkunderspecialtaxregime.
Asoftodaythereareten(10)specialeconomiczones–areaswithintheterritoryofKazakhstanwithneatly-definedborderswithspeciallegalregime(taxandcustoms).
37

38. Investing in Kazakhstan
38

39. SECTOR-SPECIFIC INCENTIVES IN 10 DEDICATED SEZs ACROSS THE COUNTRY
•SLIDE TEXT
“NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan
SEZ “Petrochemical park”
(Oil and gas industry, petrochemicals)
SEZ“Burabai”
(Tourism)
SEZ“Astana new city”
(construction industry)
SEZ“Pavlodar”
(chemical industry)
SEZ “Saryarka”
(metallurgy)
SEZ “Khorgos Eastern Gate”
(Trade, logistics)
SEZ “Innovation TechnoPark”
(IT-industry, innovations)
SEZ “Chemicalpark Taraz”
(chemical)
SEZ“Ontystik”
(textile industry)
SEZ “Marine Port Aktau”
(logistics, transport)
Aktau
Atyrau
Astana
Pavlodar
Karaganda
Shymkent
Taraz
Almaty

40. FOREIGN INVESTMENT
FISCAL INCENTIVES in SEZs
0%CorporateIncomeTaxuntil2020-2025withpossibilityforextension
0%forlandandpropertytaxuntil2020-2025withpossibilityforextension
VAT–0%(forproductsconsumedinSEZ)until2020-2025withpossibilityforextension
Increaseofmarginalrateofdepreciationfortaxontheproductionofsoftwareto40%
ForSEZ“Innovationtechnopark”–socialtaxis0%for5years,undercertainconditions
ForSEZ“Innovationtechnopark”–depreciationrateforsoftwareincreasedto40%
NON-FISCAL INCENTIVES
ProvisionoffreelandinSEZforaperiodofupto10yearsfromregistrationtimeasSEZresident
Simplifiedprocedurefortherecruitmentofforeignlabour
40

41. FOREIGN INVESTMENT
TherearesomeadditionaltaxbenefitsforSEZ“InnovationTechnologyPark”participants:
Conditionsfortaxbenefits:
registrationasataxpayerwithinSEZterritory;
registrationasaSEZparticipant;
absenceofstructuralsubdivisionsoutsidetheSEZ;
incomefromthesaleofown-producedgoodsbythepriorityactivitiesofSEZshallbeatleast90percentofthetotalannualincome(forSEZ"ITP"-70%).
41

42. FOREIGN INVESTMENT
CUSTOMS PRIVILEGES
ForgoodsIMPORTEDintoSEZterritory
Exemptionfromcustomsduties
ForgoodsEXPORTEDfromSEZterritory*
CUcommoditiesexportedfromtheSEZtotherestterritoryoftheCustomsUnion,arenotsubjecttocustomsduties.
CUcommoditiesexportedfromtheSEZterritorytooutsidetheCustomsUnion,aresubjecttothepaymentofexportcustomsduties.
ForeigncommoditieswithnostatusasCUgoods(simpleassembly)exportedfromtheSEZtotherestterritoryofCustomsUnion,aresubjecttothepaymentofcustomsduties.
InthecaseofforeigncommoditieswhicharenotusedandnotprocessedwithinSEZterritory,atexport(tothethirdcountries),thecommoditiesareexemptedfrom"re-export"customsduties,.
InacaseofforeigncommoditiesprocessedwithinSEZterritory,atexport,,exportdutiesshallbepaidaccordingtotheregulation#520oftheGovernmentoftheRepublicofKazakhstandated07June2010.
MoredetailedinformationconcerningcustomsbenefitsarereflectedintheAgreementonthefree(special) economiczonesinthecustomsterritoryofthecustomsunionandthecustomsprocedureofcustoms-freezone(St.Petersburg,June18,2010).
•**ThesebenefitsareapplicablebyJanuary1,2017onlyforparticipantsregisteredbeforeJanuary1,2012
42

43. FOREIGN INVESTMENT
43
Political Stability and GoodInvestment Climate
Regionally Attractive Fiscal and Non-fiscal Regime and Protection of ForeignInvestment
Ahighleveloftrustinpoliticalinstitutionsandtheeffectiveallocationoffunds(WEF2012)incomparisonwiththecountriesoftheCIS
Attractivecorporatetaxrate(20%)LowVAT(12%)
Fiscalandnon-fiscalincentivesforinvestors, includinginSEZs
48BilateralAgreementsonmutualprotectionofinvestments(USalso)
Maininternationalarbitrationinstrumentsratified
Stable Macroeconomic Indicators and High Growth
Spring Board to Circa 3 Billion Potential Customers
GDPgrowth:5.5%(IMF2012)
LowDebt/GDPRatio:15.8%(IMF2012)
BudgetDeficit:2.5%(IMF2012)
InflationRate:6.0%(IMF2012)
3ofthe5BRICSCountriesarein4hoursflight
CustomsUnion(Kazakhstan,Russia,Belarus)withpopulationof170million
totalGDPof2trillion
Openeconomy(trade70%ofGDP)EntryintotheWTOisexpectedin2014-2015

44. Thank You
44
WE WOULD BE HAPPYTO HELP WITH LEGAL ADVICE AND
DISCUSS ANY OF THE RAISED ISSUES…

45. 45
Astana
Almaty
London
7 Imanov St, #21Astana
Kazakhstan
010000
T+ 7 7172 200701info@linkagemind.com
180 Dostyk ave,
6th floorKoktem B/C
Almaty, Kazakhstan
050000
T+ 7 7172 200701info@linkagemind.com
London, UK
T+ 44 79 5183 4638info@linkagemind.com

46. 46