A new tool to support strategic investors has been created in Kazakhstan

As part of the execution of the order of the Head of State on further support of investors and the introduction of a strategic investment agreement, since the beginning of this year in Kazakhstan, investors have been able to directly conclude an investment agreement with the Government in Parliament.

A number of amendments have been made to the Entrepreneurial and Tax Codes of the Republic of Kazakhstan aimed at improving the business environment and expanding investment incentives. The Government has also identified priority activities for investment agreements, as well as established norms that allow investors and the Government to come to a general agreement on the procedure for providing and a package of preferences in a targeted manner for each project.

The agreement provides for the stability of legislation for a period of 25 years, with a particular focus on tax and labor legislation.

The investment agreement opens up an opportunity for the effective implementation of large projects involving investments of at least 7.5 million-оf monthly calculation index ($ 51 million) in strategically important industries such as pharmaceuticals, agriculture, food production, medical devices, etc. Unlike the existing investment contract, large investors will be able to enter into agreements with the Government without following the standard or standard form. The procedure for providing and support tools will also be set individually in the agreement.

Under the investment agreement, strategic investors will be able to receive tax holidays in respect of corporate income tax, property tax, land tax, and value added tax if the project is implemented in the SEZ. In addition, investors can reduce their tax liabilities by up to 20 percent. In addition to tax holidays, the state will reimburse investors up to 20% of the cost of construction and installation work and the purchase of equipment.

It is worth noting that the ban on obtaining tax preferences under the investment agreement is provided for subsoil users and manufacturers of excisable goods.

Source: https://invest.gov.kz/media-center/press-releases/v-kazakhstane-sozdan-novyy-instrument-podderzhki-strategicheskikh-investorov/

Posted: 01.02.2021 - Last modified date: 25.03.2021

Kazakhstan Increases Investment Cooperation with the United States of America

The United States of America, Kazakhstan, and Uzbekistan have announced the launch of the Central Asia Investment Partnership. 

The document signed in Nur-Sultan with the United States International Development Finance Corporation («DFC») provides financing for the implementation of joint investment projects for at least $1 billion.

The Central Asia Investment Partnership will advance private sector led projects that exemplify international standards for quality infrastructure and promote inclusive, transparent, and sustainable investments. In doing so, partners will maximize the success and positive impact of the projects and mobilize additional private investment to the region.

The Central Asia Investment Partnership is an important step in advancing U.S. efforts to support economic growth and prosperity for Central Asia. Working through the C5+1 platform, the initiative will seek to take advantage of opportunities for increasing trade, development, and connectivity to make each country in Central Asia stronger and more prosperous.

The Chief Executive Officer of DFC Mr. Adam Boehler highlighted that «The United States was the first to recognize Kazakhstan’s independence. I’m very proud of our partnership. Under the Central Asia Investment Partnership our goal is to drive jobs for people in Kazakhstan and increase income levels».

KAZAKH INVEST is working closely on investment projects with the American side over the past several years. In 2018, KAZAKH INVEST signed the investment memorandum with OPIC (predecessor of DFC). 2020 was intense in terms of structuring and presenting dozens of projects across various sectors to the project office of DFC. Creation of the Central Asia Investment Partnership is designed to facilitate implementation of the joint projects in such sectors as infrastructure, logistics, agribusiness, tourism, finance, and technology.

For reference: 

The U.S. International Development Finance Corporation (DFC) was established through the merger of Overseas Private Investment Corporation (OPIC) and Development Credit Authority (a former division of USAID). DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests in various sectors globally, including energy, healthcare, infrastructure development, agriculture, innovation and financial services. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in the emerging markets.

Posted: 11.01.2021 - Last modified date: 25.03.2021

2.2 billion tenge invested by Turkish investors in a plywood plant in North-Kazakhstan region

Turkish investors, with support of National Company KAZAKH INVEST JSC and the Embassy of Kazakhstan in Turkey, have implemented an investment project for timber processing in the North-Kazakhstan region. Akim of the region Kumar Aksakalov, director of RCE Atameken Arman Urazgulov and regional director of KAZAKH INVEST for North-Kazakhstan region Daniyar Shalabayev took part in the opening ceremony of the enterprise.

The production organized on basis of the former workshop of the Petropavlovsk pipe plant. According to experts, about 18 thousand cubic meters of laminated plywood will be produced annually at the new plant with an area of ​​10 thousand square meters. The project, with total cost 2.2 billion tenge, will provide jobs for more than 150 people.

“A high percentage of localization is important for us. Therefore, basically, we are planning to buy Kazakh timber, which has high quality. The laminate will be producing and delivering from Germany. We purchase equipment from Turkey, Germany and Russia. We pay attention to the quality of our products. Therefore, we use advanced technologies for steaming, gluing and pressing. Today products from Russia are widely used in the Kazakhstan market. We hope that Kazakhstani products will be able to replace imported goods”, said Oguzkhan Celik, director of Northern Plywood Plant LLP.

The plant will use modern processing technologies, the whole process will be automated. Warehouses are also equipped on the territory of the plant.

“This plant will work to meet the demand not only in our region, but also for sales throughout the country. By attracting a foreign investor, a unique production will be created in the region. KAZAKH INVEST provided support at all stages of the project. In particular, with our assistance, the company has got an investment contract and received exemption from customs duties on the import of expensive equipment”, Daniyar Shalabayev said.

Laminated plywood is widely used in monolithic construction and for the manufacture of formwork. Such products are in great demand in the Kazakhstan’s market. This is the first project of this kind in the North-Kazakhstan region.

Source: https://invest.gov.kz/media-center/press-releases/2-2-mlrd-tenge-vlozhili-turetskie-investory-v-fanernyy-zavod-v-sko/

 

Posted: 06.01.2021 - Last modified date: 25.03.2021