Investment contract

Investment contract – an agreement for the implementation of an investment project, providing for the implementation of investments and the provision of investment preferences, between the investor and the authorized investment authority, taking into account the provisions of the model contract.

Investment priority project:

1) Creation of new production facilities with the volume of investments of legal entities in the construction of new production facilities, at least 2,000,000 times the size of the MCI (approximately 15 million US dollars);

2) Expansion and (or) renewal of existing production facilities with the volume of investments of legal entities in the change of fixed assets, existing production facilities, manufacturing products, including renewal - at least 5,000,000 times the size of the MCI (approximately 38 million US dollars).

3) When creating new objects of investment activity in the fields of food and light industry, the size of the investment of the legal entity is at least 1,000,000 times the size of the MCI (approximately 8 million US dollars). 

4) When creating facilities that can meet the needs of tourists in priority tourist areas, the amount of investment of a legal entity is at least 200,000 MCI (approximately 1.5 million US dollars).

The advantage of an investment contract.

Investment project:

1. Exemption from customs duties and value added tax on imports;
   
   
2. State in-kind grants.

Investment priority project:

1. Exemption from customs duties on imports;
   
   
2. State in-kind grants;
   
   
3. Tax preferences – CPN, property tax and land tax.
   
   

Conditions for granting preferences for an investment priority project

The share of the state's participation in the machine-building industry, including the production of foundry products and the extraction of coalbed methane, is a maximum of 50 (fifty) percent. 

In all other industries - a maximum of 26 (twenty-six) percent. 

The permitted period of state participation in the engineering industry, including the production of foundry products, is a maximum of 20 (twenty) years from the date of registration of the investment contract. 

In all other cases, a maximum of 5 (five) years from the date of registration of the investment contract.

Duration of preferences under the investment contract

VALIDITY PERIOD OF PREFERENCES UNDER THE INVESTMENT CONTRACT
Category	Tax preferences / term of years				Exemption from imposing customs duties on imports	State grants in kind
	VAT on imports	CTN (100% reduction)	Land Tax (0%)	Property tax
Investment	+/5	____	___	___	+/5	+
Priority investment project
Creation of new industries	___	+/10	+/10	+/8	+/5	+
Expansion or modernization of existing industries	___	+/3	___	___	+/5	+
Content
Concept	Land plots, buildings, structures, machines and equipment, computer equipment, measuring and regulating devices and devices, vehicles (with the exception of passenger cars), production and economic inventory.
Size	The maximum amount of the state grant in kind does not exceed 30 (thirty) percent of the volume of investments in fixed assets of the law of the Republic of Kazakhstan. If the estimated value of the requested state grant in kind exceeds the specified maximum amount, a legal entity of the Republic of Kazakhstan has the right to receive the requested property with payment of the difference between its estimated value and the maximum amount of the state grant in kind
Terms of submission	In accordance with paragraph 14 of the application for obtaining preferences approved by the order of the Minister for investment and development of the Republic of Kazakhstan dated November 30, 2015 No. 1133, a document confirming the preliminary consent of the local executive body is required to obtain a state grant in kind.
Transfer to ownership	State grants in kind are provided by the authorized investment body in accordance with the procedure established by law for temporary gratuitous use in agreement with the authorized body for land management, as well as local executive bodies, or for land use with the right of temporary gratuitous land use with subsequent gratuitous transfer to ownership, or in case of fulfillment of investment obligations in accordance with the investment contract. The basis for the gratuitous transfer of the state grant in kind to ownership or land use is the decision of the authorized investment body, which is made no later than three months from the date of receipt of the audit report, which provides for the Fulfillment by the investor of investment obligations in accordance with the investment contract concluded between the investor and the authorized investment body.

Required package of documents

1) Application letter, passport of the investment project;

2) The layout of the requested land plot (if available); 

3) The business plan of the investment project according to the requirements approved by the Order of the Minister for Investment and Development of the Republic of Kazakhstan dated November 30, 2015 No. 1133;

4) Certificate of state registration (re-registration) of the investor's legal entity;

5) A copy of the charter of the investor's legal entity;

6) Certificate of absence (presence) of the applicant's debt on taxes and other mandatory payments of the investor's legal entity;

7) A document confirming the availability of funds or a document establishing the sources of financing of the project.

Astana Development Center LLP

Republic of Kazakhstan, Astana, 24 Mambetova str., 3rd floor (actual address)

+7 (7172) 57-00-86

adc@mail.kz