The Legal 500

On 16 November 2009, Kazakhstan adopted certain amendments to its Tax Code (the "Tax Amendments"). Most of the Tax Amendments take effect from 1 January 2010. However, some changes are effective retroactively from 1 January 2009. The primary purpose of the Tax Amendments is to keep the current rates of the corporate income tax and the mineral extraction tax until 2012. Another objective is to simplify tax administration and clarify certain provisions of the Tax Code.

The draft law combines the principles of the Law of the RK in effect on ”Subsoil and Subsoil use” of January 27, 1996 (further the Law on Subsoil) and the Law of the RK on “Oil” of June 28, 1995 (further the Law on Oil), and involves the provisions and requirements of certain governmental resolutions and other delegated legislation.

At the present time, the government subsoil users tax policy is one of the most important issues for subsoil users. The export duty, discussions as to the severance tax levy and the new draft of transfer pricing demonstrate the urgency and importance of analysis of the government tax policy and the possible consequences of its implementation for subsoil users.