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INVESTMENT CLIMATE IN KAZAKHSTAN

Kazakhstan, undoubtedly, is one of the leaders on post-soviet space in the sphere of attraction of the foreign investments to the national economy. Kazakhstan is attractive not only as the exporter of strategic kinds of raw material, but also as the state, in which the necessary legislative base and favourable environment for realization of the investments was created.

In the whole procedure of attraction and protection of the foreign capital now is regulated by more than 20 legislative and normative legal acts. According to them in Kazakhstan the foreign investments can be put in any objects and kinds of activity in all authorized legal-organizing forms, including by creation of foreign firms, that is completely belonging to the foreign investors, their branches and representations, or joint ventures, in which a part of property belonged to them. To the foreign investors use at own discretion the incomes received from the activity, for reinvestment in republic, purchase of the goods and for other purposes is guaranteed.

Taking into account necessity of attraction in a national economy of large-scale investment resources, rational and their effective use the Decree of the President creates the uniform authorized body - State committee of Republic of Kazakhstan on the investments. In republic the certain advertising work on attraction of the direct investments in priority economy sectors will be carried out.

FOR THE FOREIGN INVESTORS THE FOLLOWING TAX PRIVILEGES ARE STIPULATED:

N	The name of priority sector of economy with the indication of total amount of the investments in the fixed assets (fixed capital)	Validities of tax privileges (The quantity of years, on which investor is released from the tax)
N		Income tax*	Assessed tax	Land-tax
1.	Industrial infrastructure
	Up to 10 $mln USA inclusive	4	5	4
	More than 10 $mln USA	5	5	5
2.	Manufacturing industry
	Up to 1 $mln USA inclusive	2	3	3
	From 1 $mln USA up to 5 $mln USA inclusive	3	4	4
	More than 5 $mln USA	5	5	5
3.	Objects of city Àstana
	Up to 10 $mln USA inclusive	3	4	4
	More than 10 $mln USA	5	5	5
4.	House-building **, objects of social sphere and tourism
	Up to 4 $mln USA inclusive	2	3	3
	From 4 $mln USA up to 10 $mln USA inclusive	4	4	4
	More than 10 $mln USA	5	5	5
5.	Agriculture
	Up to 1 $mln USA inclusive	3	4	5
	More than 1 $mln USA	5	5	5

* - the exemption of payment of surtax is given for the term of till 5 years from the moment of reception of the taxed income, but no more than 8 years from the moment of the conclusion of the contract.
** - the Incomes received from realization of constructed habitation, are exempted from payment of income tax per year of execution of the specified realization.

The accepted acts, organizational measures promoted inflow of the foreign investments in the Kazakhstan economy. Today financial resources about 40 countries are put in it. Basic volume of the foreign investments is directed on creation of the fixed assets of the mining industry enterprises (75 %). The greatest share of hole volume of the foreign investments in building settles in West-Kazakhstan (66 %), Atyrau (22 %), Aktobe and Ìàngystau (4-5 %) areas.

Volume of the direct foreign investments in economy of Kazakhstan in 2002 will make approximately $ 4,5 billions., that on 1 billion is more last year's. This is the facts of Zhaksybek Kulekeyev - the minister of economy and trade of the Republic of Kazakhstan. He considers, that since 2003 volume of the direct foreign investments should be not less than 5 billion dollars. In nearest 10 years the investors are ready to put up in strengthening a petroleum infrastructure of western Kazakhstan more than $ 65 billion.

According to the experts Kazakhstan has received more than 80 % of all direct investments which have gone in Central Asia. Last year the World bank has included Kazakhstan in number 20 of the countries of the world attracting the greatest volumes of the investments.

RECEIPT OF THE DIRECT FOREIGN INVESTMENTS FROM SEPARATE COUNTRIES-DONORS (January - June 2001):

The country	Volume ($ mln)	Weight in total amount (%)
USA	994	46,6
Canada	252	11,8
Great Britain	232	10,9
Italy	191	9,0
Russian Federation	81	3,8
The Netherlands	79	3,7
China	96	4,5
Germany	16	0,8
Indonesia	47	2,2
Southern Korea	25	1,2

Now within the framework of the official help to development Kazakhstan expands financial cooperation with a lot of the international financial, economic organizations, such, as the International currency fund , International bank of reconstruction and development, Asian bank of development, European bank of reconstruction and development, Islam bank of development and governments of the donor -countries - Japan, USA, Germany etc.

The foreign trade turnover of the Republic of Kazakhstan, on the data of customs statistics without unorganized trade in 2001 has made 15009,9 mln. US dollars. Commodity circulation with Russia has made 4,7 billion dollars, with China has exceeded 1,5 billion dollars, between Kazakhstan and Iran - 220 mln. dollars, Ukraine - 645 mln. dollars, Uzbekistan - 204 mln. dollars.

THE AGREEMENTS ON AVOIDANCE OF THE DOUBLE TAXATION CONCERNING THE TAXES TO THE INCOMES AND PROPERTY:

Republic of Tadjikistan, Germany, Ukraine, Belarus, Kyrgyzstan, Uzbekistan, Iran, Turkish Republic, Switzerland, Moldova, Estonian Republic, Romania, Belgium, Czech Republic, French , Bulgaria, Georgia, Korea, Sweden, Lithuanian Republic, Turkmenistan, India, Russian Federation, Canada, Azerbaijan Republic, Netherlands, Pakistan, Hungarian Republic, Italy, Poland, United Kingdom of Great Britain and Northern Ireland, USA, Norway, Latvian Republic.

THE AGREEMENTS ABOUT THE LEGAL HELP, EXCHANGE OF THE LEGAL INFORMATION AND LEGAL RELATIONS, ABOUT PARTNERSHIP AND COOPERATION:

Republic of Uzbekistan, Korean National Democratic Republic, Turkmenistan, Georgia, Kyrgyzstan, Pakistan, Turkish Republic, Lithuanian Republic, Mongolia, China, Iran, Russian Federation.

THE AGREEMENTS ON ENCOURAGEMENT AND MUTUAL PROTECTION OF THE INVESTMENTS:

THE AGREEMENTS IN FORCE: Republic of Tadjikistan, Bulgaria, Russian Federation, Belgium-Luxembourg Economic Union, French Republic, Kuwait, Uzbekistan, Kyrgyzstan, India, Czech Republic, Georgia, Azerbaijan, Malaysia, Romania, Korea, Iran, Israel, United Kingdom of Great Britain and Northern Ireland, Hungarian Republic, Mongolia, Saudi Arabia, Republic of Poland, Ukraine, Lithuanian Republic, Switzerland, Arabian Republic Egypt, Finnish Republic, China, USA, Republic of Turkey, Spain, Germany.

THE PROJECTS OF THE AGREEMENTS: the Greek Republic, The Netherlands, Australia.

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