Under this law investors in priority sectors of the company may be entitled to certain incentives. A list of such sectors was published on 5 April 1997 and includes production infrastructure, processing industry, construction in the new capital of Kazakstan - Akmola, housing, tourism and agriculture. The following incentives to facilitate the effective implementation of an investment project may be available:
1)state grants, credits and subsidies;
2)for a period of 5 years from the contract signing date a reduction of income tax, land tax rate and property tax rates of up to 100% and for the subsequent 5 year period - a reduction of the income tax rate, land tax rate and property tax rate of no more than 50%;
3)full or partial exemption from customs duties on the import of equipment, raw or finished materials necessary for implementation of the investment project.
A list of the more important and preferred areas for attracting foreign and domestic direct investments are stated to include the following:
- airports, seaports, electric and thermo-stations, telecom nets;
- production of transport vehicles, industrial electronics, construction materials, high technology equipment, reprocessing of wastes;
- the city of Akmola necessary for relocation of state bodies of Kazakstan;
- tourism and recreation
- cattle breeding and some agricultural sectors.
A format of an application to the investment Committee which shall consider relevant contracts includes a request for information on:
- the investor;
- the priority sector chosen by him;
- a business plan;
- a list of privileges which the investor believes are necessary;
- confirmation of investor's financial strengths;
- confirmation of investors technical and organisational abilities;
- the investor's commitment to ensure complete and timely realisation of the project.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Jonathan Wale on tel: +7 3272 622 or enter a text search 'Coopers and Lybrand' and 'Business Monitor'.