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Starting 1 January 2026, new rules will come into effect
in Kazakhstan, introducing a comprehensive update to the
legal framework for investment activities under the Entrepreneurial
Code of the Republic of Kazakhstan. The amendments, adopted in
2025, abolish the previously applied mechanisms of priority and
special investment projects and establish new contractual forms of
investment incentives.
The Code has been supplemented with provisions establishing new
legal instruments: the investment agreement, the investment
obligations agreement, and the simplified investment
contract. These contractual models replace the previous
system of investment incentives and are intended to create a more
transparent, differentiated, and results-oriented approach to
supporting investors.
The investment agreement is
established as a contract between the authorised investment
authority and a legal entity of the Republic of Kazakhstan
implementing an investment project in priority sectors of the
economy. The law sets out specific minimum investment thresholds
and types of projects eligible for such agreements. A significant
innovation is the requirement for reciprocal obligations on the
part of the investor, without which investment incentives are not
granted. In addition, a closed list of entities and types of
activities ineligible for investment agreements has been
established, reflecting the legislator's intention to limit
state support to the real economy. The list of priority activities
eligible for investment agreements is determined by the
Government.
Under the investment agreement, investors may receive tax
incentives, state in-kind grants, and the right to employ foreign
labor. The duration of tax incentives is limited and
depends on the project's cost and investment category, but
cannot exceed 10 years.
A major new element is the introduction of the
investment obligations agreement, concluded
directly with the Government of the Republic of Kazakhstan. This
instrument is aimed at large and medium-sized producers and
requires the investor to undertake long-term commitments to finance
capital expenditures and create or increase the value of fixed
assets by no less than 75,000,000 MRP over an eight-year period.
The law imposes stricter requirements on both the volume of
investments and the structure of the investor's revenues, and
introduces additional obligations, including financing the training
of Kazakh personnel. The total amount of investment obligations is
to be implemented in stages according to a financing schedule
attached as an integral appendix to the agreement. The legislation
also sets an imperative requirement that at least 50 percent of the
total investment volume must be financed within the first four
years from the date of signing the agreement. In return, the state
guarantees stability of tax legislation for a period of ten years.
Clear grounds for early termination of the agreement are provided
in the event of non-fulfillment of investment obligations.
The simplified investment contract retains its
role as a tool to support projects with a lower regulatory burden,
but its content has been significantly revised. It now provides
exclusively non-tax incentives, including the provision of state
property in the form of in-kind grants and exemption from customs
duties on the import of equipment, components, raw materials, and
supplies. The law details the procedure for granting these
benefits, establishes a maximum size for state grants of 30 percent
of the investment amount, and introduces enhanced mechanisms for
controlling the proper use of the provided property and imported
goods.
Additionally, the definition of an investment project has been
revised to explicitly include projects related to the creation of
tourism infrastructure in priority territories. Procedures for
submitting and reviewing applications, as well as for concluding
and implementing simplified investment contracts, have also been
clarified. For the first time, a provision on evaluating the
effectiveness of investment incentives has been introduced, which
will come into force on July 1, 2026. This provision requires the
authorised body to analyse the impact of granted investment
benefits on the socio-economic development of the Republic of
Kazakhstan.
Overall, the changes coming into force on January 1, 2026,
establish a new system of investment regulation in Kazakhstan,
focused on attracting large and long-term investments, enhancing
transparency and investor accountability, and ensuring control over
the effectiveness of state support.
***
Sources:
- Law of the Republic of Kazakhstan No. 215-VIII dated 18 July 2025 "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Taxation Matters" https://online.zakon.kz/Document/?doc_id=37011497
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