Investment activity - Terms of Service

Conditions for concluding an investment commitment agreement

An agreement on investment obligations is concluded with a legal entity that simultaneously meets the following conditions:

1) a legal entity is an export-oriented commodity producer, with the exception of exporters of hydrocarbon minerals and oil products. An export-oriented commodity producer is a legal entity whose export sales income is at least seventy percent of the total annual income for the previous year;

2) the legal entity is a large taxpayer that is on horizontal monitoring, including participation in a pilot project on horizontal monitoring;

3) does not carry out activities for the production of excisable goods;

4) does not apply special tax regimes.

Fulfillment of obligations under the agreement on obligations

The fulfillment by a legal entity that has entered into an agreement on investment obligations, obligations, is carried out in accordance with the investment investment schedule, which is an annex to the agreement on investment obligations.

At the same time, financing of at least seventy percent of the amount must be carried out within the first five years, including the year of filing an application for concluding an agreement on investment obligations.

When a legal entity that has entered into an agreement on investment obligations fulfills its obligations:

1) the cost of goods, works and services under contracts concluded with an interrelated party is taken into account in the amount of actually incurred expenses, but not more than fifty percent of the amount of obligations;

2) when concluding contracts for the purchase of goods, works and services, the cost of which is taken into account in the amount of actually incurred expenses, with a related party, such related party must be a resident of the Republic of Kazakhstan.

During the term of the agreement on investment obligations, starting from the second year from the date of its conclusion, a legal entity that is not a subsoil user is also obliged to annually finance the training of Kazakhstani personnel in the amount of at least twenty thousand times the monthly calculation index established by the law on the republican budget and the current as of 1 January of the year in which such funding is made.

A legal entity that is a subsoil user specified in part one of this paragraph shall finance expenses in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use.

Application for concluding an investment commitment agreement

An application for concluding an agreement on investment obligations is submitted to the authorized investment body.

The authorized body for investments, within twenty working days from the date of receipt of the application for the conclusion of an agreement on investment obligations, develops a draft resolution of the Government of the Republic of Kazakhstan for signing such an agreement.

The procedure for concluding, amending, terminating an agreement on investment obligations and a standard form of an agreement on investment obligations are developed by the authorized body for investments and approved by the Government of the Republic of Kazakhstan.

Changes to the agreement on investment obligations can be made only in terms of changing the investment schedule, taking into account the preservation of the provisions established in the second part of paragraph 3 of Article 295-3 of the Entrepreneurial Code of the Republic of Kazakhstan.

The conclusion of an agreement on investment obligations does not prevent the conclusion of investment contracts for the provision of investment preferences in accordance with the requirements established by this Code. At the same time, tax preferences are provided in accordance with this Code and  the Code   of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code), in force at the time of the conclusion of the agreement on investment obligations.

The agreement on investment obligations before the expiration of the period specified in paragraph 3 of  Article 289 of the  Entrepreneurial Code of the Republic of Kazakhstan may be terminated by agreement of the parties or unilaterally in accordance with this paragraph.

In case of non-fulfillment of obligations and conditions stipulated by the legislation of the Republic of Kazakhstan in relation to the obligations of the applicant company and / or non-compliance with the criteria, during the period of validity of the agreement on investment obligations, the Government of the Republic of Kazakhstan prematurely terminates the agreement on investment obligations unilaterally after three months from the date of sending the notification.

In case of early termination of an agreement on investment obligations, a legal entity that has concluded such an agreement recalculates its tax obligations in the manner established in accordance with the  Code  of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code).