New mechanisms for investment
agreements have been introduced in Kazakhstan, as reported by the press service
of the country’s Prime Minister. The issue of limiting deductions for intangible
services acquired from related non-resident entities has been resolved. Now, that
restriction will only apply to transactions with offshore companies. In addition,
stability in tax legislation is guaranteed for 10 years when entering into the Investment
Commitment Agreement. Fiscal incentives have been introduced when concluding
the Improved Model Contract for complex projects. Furthermore, a new Tax Code
has been developed to enhance the country’s investment attractiveness. As a
result, the range of activities eligible for the retail tax regime will be
expanded twofold, covering over one million taxpayers. Besides, new projects in
the manufacturing industry will be exempt from taxes for three years.
“Currently, the Tax Code is extensively being
discussed on various platforms with representatives of the business community
and international organizations. While retaining existing incentives, a taxpayer-oriented
service administration model will be introduced within the new Tax Code. Tax
reporting will be reduced by 30 percent, and the number of tax payments by 20
percent,” said Dinara Alimova, Press Secretary to the Kazakh Prime Minister.
