Kazakhstan to exempt investors from corporate income tax
By Aynur Jafarova
Kazakhstan is planning to exempt the investors from corporate income tax for 10 years.
It was announced by Kazakh President Nursultan Nazarbayev at the 47th annual meeting of ADB Board of Governors in Astana.
"We intend to create the most appropriate ground for foreign investments. To this end, we will adopt a new law to improve investment laws this year. We plan to exempt investors from corporate income tax for 10 years, to input investment subsidies, to ensure a stable legislation and predictable tariff and to simplify import of foreign labor," Nazarbayev said.
He noted that cooperation with investors will be on a single window system.
"In addition to the institute of investment ombudsman, we will pursue inclusive economic growth and increase investment in human capital development," the Kazakh president added.
In his remarks Kazakh Deputy Prime Minister and Minister of Industry and New Technologies Asset Isekeshev said Kazakhstan considers 160 transnational companies wishing to operate in the country as potential investors for priority industry sectors.
"We have identified about 160 transnational companies which have
the best technology and experience in the priority areas, including
engineering, agriculture, transport and logistics, chemicals and
petrochemicals, as well as metallurgy," he noted.
The minister went on to add that the transnational companies have
expressed their desire to work in Kazakhstan, set up their
production and enter the markets of Russia, Central Asia and
Western China.
"We expect to hear about new projects of major companies in the
second half of the year. Today global giant Toyota Motors has
announced its plans. This is a company that all countries across
the world want to see it in their area. Toyota will produce cars in
our country," Isekeshev noted.
Isekeshev also said Kazakhstan is creating all necessary conditions
for investors.
"Our country intends to actively support the development of
tourism, pharmaceutical and light industries. In this regard, the
Kazakh government encourages foreign investors to get actively
involved. We hope that during the ADB meeting, you will see that
Kazakhstan is an ideal place for investment, regional center, the
hub for investment in trade," he said.
"Kazakhstan also intends to develop food production, metallurgy,
chemistry, petrochemicals, engineering and production of
construction materials," the minister added.
Isekeshev stressed Kazakhstan has embassies in all countries and
the Kaznext Invest agency operates as the 'front office on work
with investments.'
"We are ready to separately contact each company and support their
projects," Isekeshev said.
He also noted that today all conditions have been created for
foreign investments in Kazakhstan. Over the past 12 years, real GDP
grew by average 8 percent in Kazakhstan and gross investment
amounted to more than $180 billion since 2005. Inflow of direct
investments from Asia to Kazakhstan's economy has made up more than
$23 billion in the last eight years.
"Today, Asian investors have implemented more than 40 large
investment projects in the country totaling over $12 billion. More
than 50 projects worth $20 billion are at the implementation
stage," the Deputy Prime Minister said.
Also, Kazakhstan intends to make a new breakthrough for the radical
improvement of the investment climate.
"We would like to invite Asian companies to work in Kazakhstan with
a focus not only on our market - it is quite small - but also on
the markets of our partners in the Customs Union and Central Asia,
as well as fast-growing regions of Asia," Isekeshev said.
Kazakhstan is interested in taking several measures to improve the investment climate in the country. The country plans to introduce additional measures to improve the investment climate.
A draft law on improving the investment climate is expected to be introduced at the Kazakh parliament before June 1, 2014. The draft law includes a new format of contracts with investors describing the government support measures in details.