Kazakhstan to offer benefits to foreigners investing at least $20 mln
By Aynur Jafarova
Kazakhstan will offer benefits to foreigners investing at least $20 million in new projects in the country, Deputy Economy and Budget Planning Minister Marat Kusainov said at a meeting of Kazakh Senate while presenting a draft law on the improvement of investment climate in the country.
"The stimulus law will be enforced for new investment projects
worth at least $20 million. These projects are considered important
in the state program of industrial-innovative development," he
said.
The law is aimed at improving the investment climate, stimulating
further activities of investors, providing a mechanism for the
investment incentives provision through concluding investment
contracts, as well as ensuring the state support for investors,
implementing investment projects in important sectors.
The stimulus package includes some additional measures of
government's support for investors within the framework of
concluded contracts. They include exemption from the payment of
corporate income tax for ten years, exemption from land tax for 10
years, exemption from property tax for eight years, state
compensation up to 30 percent of capital expenses of the investor
after commissioning of the facility (investment subsidy).
Furthermore, it is under consideration to introduce the 'stability'
concept of tax rates (excluding VAT and excise duties),
environmental fees and charges for a period of 10 years after the
conclusion of contracts with investors in Kazakhstan.
Based on concluded contracts, investors have the right to employ
foreign labor during investment projects and one year after their
commission (out of quotas and permits).
Kazakhstan is set to contribute to investment by providing a
guaranteed order issued by the related organizations (in case of
concluding investment contracts with them). The principle of
'single window' will be implemented based on laws developed by the
Investment Committee of the Ministry of Industry and New
Technologies. It is aimed at minimizing the participation of
investors who have concluded a contract for the collection and
preparation of documents and limiting their direct contact with the
subjects of public services.
The Kazakh government decided to accelerate adopting measures aimed at improving the investment climate in the country after President Nursultan Nazarbayev said works on attracting foreign investments in the country is not carried out at a sufficient level.
The Kazakh president instructed the government to adopt a law aimed at attracting a new wave of investment.
Kazakhstan is interested not only in foreign investment, but also in domestic funds. The country plans to allocate one trillion Tenges for economic development in 2014-2015.
It will also allocate over 164 billion tenges to financing national geological projects in 2015-2019.
The volume of foreign investment in this sector increased from
$1.8 billion in 2009 to $3.4 billion in 2012.
The total volume of direct foreign investment grew by 34 percent,
reaching $28 billion.
The volume of investment made in Kazakhstan's oil and gas sector
amounted to about $10 billion in 2013.
The U.S., China and EU countries are the top 3 leading countries whose investment in the mentioned spheres is considered vital in Kazakhstan.
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