Kaza­khstan – the largest state of the re­gion in Cen­tral Asia

The Baltic Times - - LITHUANIAN NEWS -

Dur­ing the last few years, Kaza­khstan held a course for in­dus­tri­al­iza­tion of the econ­omy and be­came par­tic­u­larly at­trac­tive for in­vestors.

Kaza­khstan is sit­u­ated in the cen­tre of the Eurasian con­ti­nent, so it has a con­sid­er­able transit po­ten­tial. To­day, both the North-south di­rec­tion and the East-west di­rec­tion are be­ing de­vel­oped in the coun­try. The Western Euro­pean – Western China cor­ri­dor, in the frame of the New Silk Road, is ac­tively used al­ready. It helps to en­sure de­liv­ery of car­goes from China to Europe and back within 14-15 days. In 2016, the new rail­way cor­ri­dor Kaza­khstan-turk­menistan-iran was placed in ser­vice as well.

Kaza­khstan has iden­ti­fied the sec­tors opened by the state for in­vestors. They in­clude: the ma­chine-build­ing in­dus­try, agro-in­dus­trial com­plex, food in­dus­try, re­tail trade and chem­i­cal in­dus­try.

The ba­sic set of priv­i­leges for in­vestors in­cludes-- an ex­emp­tion of cus­tom du­ties and land grants. In pri­or­i­tized sec­tors, for in­vestors with in­vest­ments over 13 mil­lion USD, a sup­ple­men­tal set is pro­vided; it in­cludes an ex­emp­tion of the Cor­po­rate Tax and the Land Tax for 10 years and an ex­emp­tion of the Prop­erty Tax for 8 years. In ad­di­tion, the au­thor­i­ties of Kaza­khstan war­rant a cash back re­ward up to 30 per cent of capital ex­pense spent for capital con­struc­tion and ac­qui­si­tion of equip­ment.

In ad­di­tion, there are 10 spe­cial eco­nomic zones in the coun­try where an ex­emp­tion of all prin­ci­pal taxes (in­clud­ing cus­toms du­ties and the Cor­po­rate Tax) for 10 years is ap­plied. More­over, а land par­cel with com­plete in­fra­struc­ture is pro­vided free of charge for con­struc­tion works (for the to­tal 25-year pe­riod of op­er­a­tion of the spe­cial eco­nomic zone). Re­gional in­dus­trial zones pro­vide ar­eas and pref­er­ences for small and medium busi­ness.

In to­tal, 42 such ar­eas are fore­seen in all re­gions of Kaza­khstan.

Kaza­khstan pro­vided to in­vestors an op­por­tu­nity of us­ing their own (for­eign) work­force with­out spe­cial per­mits. Such em­ploy­ees may be en­gaged for the pe­riod of con­struc­tion of ob­jects and pre-com­mis­sion­ing ac­tiv­i­ties.

Since the pre­vi­ous year, Kaza­khstan pro­vided a visa free regime for rep­re­sen­ta­tives of a num­ber of coun­tries. At present, cit­i­zens of 56 coun­tries may come with­out a visa to Kaza­khstan for a pe­riod up to 30 days.

Sim­i­lar re­forms for im­prov­ing the in­vest­ment cli­mate en­abled Kaza­khstan to im­prove its po­si­tion in the World Bank rat­ing - Do­ing Busi­ness: it was 35th in the pre­vi­ous year.

An­tanas Duda Paid ar­ti­cle

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