Kazakhstan – the largest state of the region in Central Asia
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.
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