a) for an investment project, an investment priority project — a legal entity of the Republic of Kazakhstan;

b) under a special investment project — a legal entity of the Republic of Kazakhstan that operates as a participant in a special economic zone or owner of a free warehouse or who has concluded an agreement on the industrial assembly of motor vehicles.

2. Implementation of the investment priority project is carried out exclusively within the framework of one investment contract.

3. Investment preferences are granted when the legal entity implements an investment project on the types of activities included in the list of priority activities approved by the Government of the Republic of Kazakhstan.

Determination of priority activities is carried out in accordance with the general classifier of economic activities approved by the authorized body in the field of technical regulation.

The following types of activities are not included in the list of priority activities defined for the implementation of investment priority projects:

a) activity in the sphere of gambling;

b) activities in the field of subsoil use, except for methane extraction of coal seams;

c) activities for the production of excisable goods, excluding production, assembly (picking) of excisable goods stipulated in subparagraphs 5) and 6) of the first part of Article 462 of the Code of the Republic of Kazakhstan «On Taxes and Other Mandatory Payments to the Budget» (Tax Code).

The list of priority activities, including a list of priority activities identified for the implementation of investment priority projects, can be reviewed no more than once a year.

4. Investment preferences for an investment priority project are provided subject to the following conditions:

a) the beneficiary is a legal entity of the Republic of Kazakhstan;

b) the legal entity carries out investments in the amount of at least two million (to create new productions) or five-million-fold (by expansion and (or) renovation of existing production facilities) of the monthly calculation index established by the law on the republican budget and effective as of the date of filing an application for investment preferences ;

c) the legal entity carries out the types of activities included in the list of priority activities identified for the implementation of investment priority projects;

d) a legal entity is not:

• An autonomous organization of education in accordance with the tax legislation of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on education;
• An organization that carries out activities in the territory of a special economic zone in accordance with the tax legislation of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on special economic zones;

e) the share of the state and (or) the subject of the quasi-public sector-the legal entity of the Republic of Kazakhstan as a founder and (or) participant (shareholder) of the legal entity of the Republic of Kazakhstan does not exceed twenty-six percent.

The participation of the state and (or) the subject of the quasi-public sector-the legal entity of the Republic of Kazakhstan as the founder and (or) participant (shareholder) of the legal entity of the Republic of Kazakhstan is no more than five years from the date of registration of the investment contract. Within five years, the state and (or) the subject of the quasi-public sector are obliged to withdraw from the founders and (or) participants (shareholders) of the legal entity of the Republic of Kazakhstan. In case of non-fulfillment of this condition, the application of investment preferences shall be suspended until its (their) complete exit from the founders and (or) participants (shareholders) of the legal entity of the Republic of Kazakhstan, but not more than one year.

Failure to comply with the condition to withdraw from the founders and (or) participants (shareholders) of a legal entity of the Republic of Kazakhstan during the suspension period entails the early termination of the investment contract and the return of previously granted investment preferences.

The provisions of this subparagraph do not apply in the case when the subject of the quasi-public sector in which the share of the state and (or) the subject of the quasi-public sector as a founder and (or) participant (shareholder) of the legal entity of the Republic of Kazakhstan is less than fifty percent, investment priority project for the extraction of coalbed methane;

e) for the implementation of the investment priority project, no budgetary funds are used as sources or guarantees of financing, except for money allocated on terms of repayment, urgency and payment, including leasing financing and lending;

g) investment activity is not carried out within the framework of a public-private partnership agreement, including a concession agreement.

5-1. For the purposes of applying investment preferences for a special investment project, a legal entity of the Republic of Kazakhstan must meet one of the following conditions:

a) a legal entity of the Republic of Kazakhstan is registered as a participant in a special economic zone in accordance with the legislation of the Republic of Kazakhstan on special economic zones;

b) a legal entity of the Republic of Kazakhstan is registered as the owner of a free warehouse in accordance with the customs legislation of the Republic of Kazakhstan;

c) the legal entity of the Republic of Kazakhstan has concluded an agreement on the industrial assembly of motor vehicles;

d) the legal entity carries out the types of activities included in the list of priority activities approved by the Government of the Republic of Kazakhstan.

Source: https://investinastana.kz 

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