Investment activity in Kazakhstan
In general terms, the investment activity is a target process, undertaken to attract necessary investment resources, to choose effective objects (instruments) of investment, to form an investment program balanced on selected parameters (an investment portfolio) and to provide its implementation.
The Government of the Republic of Kazakhstan have developed and put into operation laws and normative acts controlling the investment activity in the Republic, including with the purpose of attraction of foreign investments: Entrepreneurial Code of the Republic of Kazakhstan, State Program of Innovative Industrial Development RK for 2015-2019, List of priority investment projects implementing activity, Rules of Investment grants providing, Rule of reception, registration and consideration of application for granting investment preferences, Rules and conditions of issuing of employment permit to a foreign worker and to employers to recruit foreign workers, Rule on organization of activity of “one window” for investors, On appointment of investment ombudsman, Regulations on activity investment ombudsman, etc.
Investments comprise all types of assets, other than private consumption goods, which are invested by an investor in the authorized capital of a legal entity or in increasing the fixed assets used in business activities, including assets under capital lease from the date of the lease agreement as well as the rights thereto and also for implementing the project of public-private partnership, including concessionary project.
The investor means an individual and a legal entity investing in the Republic of Kazakhstan.
According to article 3 of clause 274 of the Enterprise Code of the Republic of Kazakhstan "Investment Activity" means an activity of an individual and a legal entity related to participating in the authorized capital of business organizations, or creating or increasing fixed assets used in operations and also for implementing the project of public-private partnership, including concessionary project. Also the Enterprise Code defines objects of investment activity, a guarantee of stability in amendment of the legislation of the Republic of Kazakhstan, a guarantee of a legal protection of activity of investors.
Much attention has been given to the state support of investments and subjects of innovative industrial activity which aims to build a favorable investment climate for development of economy and development of investments to create new, expand and update operating productions through the use of modern technologies, improvement of professional skill of the Kazakhstan staff, and also preservation of the environment.
Measures of the state support of subjects of innovative industrial activity are:
1) financing, including co-financing of projects, lease financing;
2) issuing guarantee obligations and security for loans;
3) crediting through financial institutions;
4) Financing of interest rate on loans granted by financial institutions and coupon payment on the bonds;
5) investing in authorized capitals;
6) a guaranteed order;
7) issuing of innovative grants;
8) providing with qualified personnel resources;
9) providing with engineering-communication infrastructure;
10) proving with land plots, subsoil use;
11) supporting in the domestic market;
12) attracting of foreign investments;
13) developing and promoting of export of the domestic processed goods, services;
14) supporting the increase of labour productivity and development territorial clusters;
15) re-structuring of debts within the framework of financial and economic improvement.
The state support of investments consists in granting of investment preferences. Investment preferences are the advantages of an address character given according to the legislation of the Republic of Kazakhstan to legal entities of the Republic of Kazakhstan, realizing the investment project.
The following types of investment preferences are given for the investment project (including for the investment priority project):
1) exemption from custom duties and VAT;
2) state natural grants.
The following types of investment preferences are given for the investment priority project (further - investment preferences for the investment priority project):
1) tax preferences;
2) investment grants.
The state support of investments is made by the authorized organ for investments, defined by the Government of the Republic of Kazakhstan, on concluding of investment contracts and overseeing their implementation.
Thus, the efforts on improving the investment climate and the legislation meet their high standards and constantly strive for improvement. All the scale measures, accepted within the framework of improvement of investment climate, are implemented in order to provide comfortable conditions for investors.