Law On State Support To Foreign And Domestic Direct Investments

On February 1997 the Parliament of Kazakstan adopted a Law on the State Support for Direct Investments in the Republic of Kazakstan.

Under this law investors in priority sectors of the company may be entitled to certain incentives. A list of such sectors was published on 5 April 1997 and includes production infrastructure, processing industry, construction in the new capital of Kazakstan - Akmola, housing, tourism and agriculture. The following incentives to facilitate the effective implementation of an investment project may be available:

1)state grants, credits and subsidies;

2)for a period of 5 years from the contract signing date a reduction of income tax, land tax rate and property tax rates of up to 100% and for the subsequent 5 year period - a reduction of the income tax rate, land tax rate and property tax rate of no more than 50%;