Invest in KazakhstanInvest in Kazakhstan
National Export & Investment Agency “KAZNEX INVEST”
Ministry of Investment and Development
Invest in KazakhstanInvest in Kazakhstan
Basic Facts
● Area: 2,724,000 km2 (1,051,742
sq.miles), 9th largest
National Flag National Emblem
sq.miles), 9 largest
● Population: 17,476,141
● Official language: Kazakh, Russian
● Currency: Tenge (KZT)
● Capital: Astana
● Administrative division: 14 regions + 2 cities of
republican significance
● Member of organizations: UN, IMF, WB, OSCE, OIC
DOING BUSINESS 2016
Rank Country1 Singapore
8 South Korea
20 Turkey
25 Kazakhstan
36 Azerbaijan
49 Armenia
57 Belgium
66 Russia
81 Hungary
Protecting minority investors
Economy
Kazakhstan ranked 41st
43
42
41
35
25
4
1
Belgium
Hungary
Kazakhstan
Armenia
Poland
South Korea
Singapore
81 Hungary
134 China
Rank Country1 UAE
5 Singapore
18 Kazakhstan
34 Azerbaijan
41 Armenia
47 Russia
61 Turkey
90 Belgium
95 Hungary
132 China
Paying taxes
Source: World Bank, Doing Business 2016
84
83
68
63
61
60
55
53
51
45
44
43
China
Ukraine
Qatar
Azerbaijan
Luxembourg
Greece
Turkey
Israel
Russia
Italy
Belarus
Belgium
GLOBAL COMPETITIVENESS INDEX RANKINGS
Economy
Rank Country Score
1 Switzerland 5,76
2 Singapore 5,68
3 USA 5,61
4 Germany 5,53
5 Netherlands 5, 50
Source: World Economic Forum, Global Competitiveness Report 2015-2016
5 Netherlands 5, 50
6 Japan 5,47
… … …
42 Kazakhstan 4,49
45 Russia 4,44
51 Turkey 4,37
80 Tajikistan 4,03
102 Kyrgyz Republic 3,83
Economy
TAXATION: COMPARISON WITH CHINA AND RUSSIA
Kazakhstan Russia China
Corporate income tax
(CIT)20% 20% 25%
Value-added tax (VAT)12% 18% 17%
TAXES
Land taxfrom 0.03 to 0.16 USD
per 1 sq.m (10.8 sq.ft);0.3%, 1.5% -
Property tax
1.5% 2.2%
1.2% assessed value;
12% rental property.
Source: Ministry of Finance of the RK; Federal Tax Service of Russia; State Administration of
Taxation of the People’s Republic of China
Top 5 host economies, FDI inflows
Transition economies, 2014, $ bln. (change)
Top 5 host economies, FDI inflows
Landlocked developing countries, 2014, $ bln. (change)
Economy
FDI ATTRACTION
4,4
9,6 (-6,4%)
21 (-69,7%)
Azerbaijan
Kazakhstan
Russia
3,2 (+2,8%)
4,4 (+68,3%)
9,6 (-6,4%)
Turkmenistan
Azerbaijan
Kazakhstan
Source: UNCTAD, World Investment Report 2015
According to the UNCTAD, in 2014 Kazakhstan has entered top 5 host economies for FDI
inflow among transition economies and became the largest FDI recipient in the landlocked
developing countries group. Among all countries Kazakhstan was ranked the 28th.
2 (-2,7%)
3,2 (+2,8%)
4,4 (+68,3%)
Serbia
Turkmenistan
Azerbaijan
1,2 (+26%)
2,5 (+37%)
3,2 (+2,8%)
Ethiopia
Zambia
Turkmenistan
Metallurgy1
1. Ferrous metallurgy
2. Non-ferrousmetallurgy
3. Agricultural chemistry4. Production ofchemicals for industry
5. Oil refining6. Petrochemical industry
Chemical Industry2 Petrochemical Industry
3
Machinery4 Production of5 Food Industry6
Priority sectors
13. Production ofconstruction materials
7. Manufacture of motor vehicles8. Electrical equipment9. Agricultural machinery engineering10. Railway machinery engineering 11. Mining equipment12. Oil producing equipment; oil and gas refining equipment
14. Food production
Machinery4 Production ofconstruction materials
5 Food Industry6
INCENTIVES
IN-KIND GRANTS
In-kind grants of not more than 30%
of the total investment in fixed assets.
EXEMPTION FROM CUSTOMS DUTIES
1) When transporting manufacturing
equipment and spare parts for it the exemption
from customs taxation is granted for the term
of investment contract but not later than 5
Investment
Free land
of investment contract but not later than 5
years after the investment contract
registration.
2) When importing components for the
manufacturing equipment, raw stock and (or)
materials for term up to 5 years the exemption
from customs taxation is granted to the legal
companies depending on the volume of
investment in the fixed assets.
FREE ENTRY FREE WORK PERMITS
Visa-free entranceVisa-free entrance for citizens of Australia,
Hungary, Italy, Monaco, Belgium, Spain, the
Netherlands, Norway, Sweden, Malaysia, the
Foreign labor
Without permit
NEW INCENTIVES (since 2014)
Investment
Netherlands, Norway, Sweden, Malaysia, the
United Arab Emirates, Singapore, the United
Kingdom, the United States of America,
Germany, Finland, France, Switzerland, and
Japan for the period from 16 July 2015 till 31
December 2017 if the stay does not exceed 15
days (general application).
Without permit
for the duration of construction + 1 year after
commissioning of the investment project for
those with investment contracts
In 2017, Kazakhstan plans to abolish visa
requirements for citizens of the 34 member states
of the OECD,
CASHBACK ON INVESTMENTS
Reimbursement up to
Corporate income
tax (10 years)
TAX EXEMPTIONS:
Incentives for priority investment projects*
NEW INCENTIVES (since 2014)
Investment
30 %
*Criteria for priority investment projects:
- matching the List of Priority Activities (approved by the Government)
- newly created legal entity with investments of more than 2 million MCI (MCI – monthly calculated index,
approved by the Law on the national budget)
of the actual expenses for installation and
construction works and equipment
acquisition without value added tax and
excises on the basis of supporting
documents, but not exceeding the cost of
expenses provided by preproject
documentation having the conclusion of
state expertise.
tax (10 years)
Land tax (10 years)
Property tax (8 years)
30 %
0 %
STABLE LEGISLATION STRONG PROTECTION OF INVESTOR’S RIGHTS
Stability of tax legislation for all taxes except
VAT and excise (subject to investment contract)
Ombudsman’s Office
For ensuring protection of the rights and legitimate
interests of the investors, the investment
Investment
Incentives for priority investment projects*
NEW INCENTIVES (since 2014)
interests of the investors, the investment
ombudsman:
1) considers addresses of investors on issues
arising during the implementation of investment
activity and gives recommendations for their
solution, including interacting with government
bodies;
2) assists to investors in solution of arising issues
in extrajudicial and pre-judicial procedures.
*Criteria for priority investment projects:
- matching the List of Priority Activities (approved by the Government)
- newly created legal entity with investments of more than 2 million MCI (MCI – monthly calculated index,
approved by the Law on the national budget)
SPECIAL ECONOMIC ZONES
«Pavlodar» SEZ
Petrochemical industry
«Burabai» SEZ
Tourism
«Astana
- new city» SEZ
Mixed
Investment
«NIPT» SEZ
Petrochemical
industry
SEZ «Saryarka»
Metallurgy
«Seaport Aktau» SEZ
Mixed
«Ontystik» SEZ
Textile industry
«Chemical
Park Taraz» SEZ
Chemical industry
«Khorgos – Eastern
Gate» SEZ
Logistics
«Park of Innovative
Technologies» SEZ
IT - Innovations
Social Tax (for 5 years)
FISCAL INCENTIVES
INVESTMENT INCENTIVES IN SEZs
Investment
Corporate income tax
Land tax
Property tax0 %
Social Tax (for 5 years)
• Free plot of land for the entire period of existence of a SEZ
• Simplified procedure for employment of foreign labor
NON-FISCAL INCENTIVES
Exemption from VAT (for products consumed in SEZ)
EXEMPTION FROM CUSTOMS DUTIES
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).
*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
LOCATION AND INFRASTRUCTURE
● The Kazakhstan’s geographical position makes it a natural crossroads for major transit corridors from
East to West, from North to South.
● The transcontinental automobile road corridor “Western Europe – Western China” passes through the
territory of Kazakhstan. The corridor will allow to deliver freights from China to Europe in 10 days.
● There is a territory with population of more than 3.3 bln. people within a radius of 2 thsd. km
(1,243 miles) from Kazakhstan.
● The flight time from most European destinations is five hours.
Infrastructure
RUSSIAN FEDERATION
143.5 mln.
KAZAKHSTAN
17 mln.
PEOPLE’S REPUBLIC
OF CHINA
1.4 bln.
MONGOLIA
2.8 mln.
INDIA
1.3 bln.
BELARUS
9.5 mln.
IRAN
77.4 mln.PAKISTAN
182.1 mln.
TURKEY
74.9 mln. LianyungangLianyungang
St. PetersburgSt. Petersburg
AktobeAktobe
ShymkentShymkent
Western Europe – Western China
corridor on the territory of Kazakhstan
(2,787 km=1,732 miles)
Western Europe – Western China
corridor (8,445 km=5,247 miles)
SUCCESS STORIES
Investment
Ministry of Investment and Development of the RK
www.mir.gov.kz
Electronic Government
www.egov.kz
Useful Links
National Export and Investment Agency
«KAZNEX INVEST»
www.kaznexinvest.kz
www.facebook.com/KaznexInvest
National Investment Internet Resource
www.invest.gov.kz
Thank you Thank you
National Export & Investment Agency “KAZNEX INVEST”
Ministry of Investment and Development
Thank you Thank you
for your attentionfor your attention