The state support of investments meant to create favourable investment climate to boost economy and investments into development of new, expansion and renovation of the existing production facilities along with the use of modern technologies, upgrade qualification of Kazakhstani human resources and environmental protection.
The state support instruments for the investment activity are investment preferences (incentives). The laws of the Republic of Kazakhstan establish procedures of granting the investment preferences for the investment project, investment priority and special investment project.
The laws do not provide for any division into local and foreign investors and the definition investor means any individual or legal entity that makes investments into charter capital or expansion of fixed assets. All investors should have an equal access to investment preferences schemes.
The investment preferences shall mean the specifically targeted benefits provided under the laws of the Republic of Kazakhstan to the:
- Legal entities duly registered under the laws of the Republic of Kazakhstan that implement investment projects;
- Leasing companies that import technological equipment for the legal entities under the financial leasing agreement , that develop investment project.
A legal entity of the Republic of Kazakhstan shall mean a legal entity, inter alia with foreign shareholders, which was set up in manner, prescribed by laws of the Republic of Kazakhstan.
The investment project preferences scheme comprises of the:
- Exemption from customs duties and VAT for import (Duties and VAT free import);
- State In-Kind Grants, i.e. land plots, buildings, structures, machinery and equipment, computers, measuring and control instruments and devices, vehicles (except for motor vehicles), production and household equipment; the maximum value of any state in-kind grant is thirty percent of the volume of investments into fixed assets of a legal entity of the Republic of Kazakhstan.
The investment priority project preferences scheme comprises of:
- Tax Incentives:
- Property Tax;
- Land Tax;
- Corporate Income Tax
- Investment Subsidies (Cashback);
- Import duties exemption;
- State in-kind grants.
The special investment project scheme is based on exemption from:
- Import duties;
- Taxes (VAT) pursuant to taxation laws of the Republic of Kazakhstan.
Learn more at invest.gov.kz