Preferences

PREFERENCES AND BENEFITS

According to the current law on Special Economic and Industrial Zones No. 242-VI of April 03, 2019, participants of special economic zones apply for tax benefits by the tax legislation of the Republic of Kazakhstan, which exempts participants from paying three types of taxes: corporate income, land, property tax. Also, the customs procedure of the free customs zone is in effect on the territory of the special economic zone or its part.

Participants implementing projects on the territory of the administrative and business center and the historical center, before the commissioning of the facility for the implementation of the project, are exempt from these taxes and provided a land plot free of charge (According to subparagraph 1) of paragraph 3 of Article 17 of the Law of the Republic of Kazakhstan «On Special Economic and Industrial Zones» dated April 3, 2019 No. 242-VI SAM).

Participants of the production zone have the right to use the land plot until the expiration of the FEZ - 2043, as well as tax and customs privileges.

Import customs duties 0% - customs privileges (According to paragraph 1 of Article 281 of Chapter 29 «On Customs regulation in the Republic of Kazakhstan» of the Code of the Republic of Kazakhstan dated December 26, 2017 No. 123-VI SAM.);

Приоритетные виды деятельности:

1) construction and commissioning of tourist accommodation, sanatorium, and wellness facilities are subject to the following conditions: the objects under construction and put into operation are not related to gambling; construction and commissioning are carried out by the project documentation;

2) construction and commissioning of infrastructure facilities, administrative and residential complexes by design and estimate documentation;

3) construction and commissioning of hospitals, polyclinics, schools, kindergartens, museums, theaters, higher and secondary educational institutions, libraries, palaces of schoolchildren, and sports complexes by design and estimate documentation;

4) construction and commissioning of production and processing facilities by design and estimate documentation;

5) production of building materials;

6) production of other non-metallic mineral products;

7) production of finished metal products;

8) construction and commissioning of the international airport of the city of Turkestan, including the airfield, terminal and runways, and others by the design and estimate documentation;

9) airport activities;

10) construction of residential and non-residential buildings;

11) provision of services by hotels and similar places to stay;

12) rent and management of owned or leased real estate;

13) recreation and entertainment activities;

14) comprehensive maintenance of facilities;

15) landscaping activities;

16) repair of furniture and interior items;

17) provision of food and beverage services;

18) repair of electronic and optical equipment;

19) other activities in the field of information technology and information systems, are not included in other groupings.

Effect of sub-items 14), 15), 16), 17), 18), 19) Paragraph 11 applies only to healthcare facilities put into operation as part of the implementation of a public–private partnership project.

Tax and customs preferences:
Investors

CORPORATE INCOME TAX 0%

Exemption from corporate income tax (CIT) (by paragraph 4 of Article 709 of Chapter 79 "On Taxes and other mandatory contributions to the Budget" of the Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI of the SAM.)
*Important: At the same time, the provision of part one of this paragraph does not apply to income from the sale of the following construction projects, except in cases when such sale is included in the list of priority activities on the territory of the special economic zone, the limits of which fully or partially coincide with the sections of the customs border of the Eurasian Economic Union:
• hospitals, polyclinics, schools, kindergartens, museums, theaters, higher and secondary educational institutions, libraries, palaces of schoolchildren, and sports complexes by design and estimate documentation;
• infrastructure, administrative and residential complexes by the design and estimate documentation;

LAND TAX 0%

Rent for land - exemption from land tax (by paragraph 1 of Article 709 of Chapter 79 «On taxes and other mandatory payments to the budget» of the Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI of the SAM.)

PROPERTY TAX 0%

Exemption from property tax (by paragraph 1 of Article 709 of Chapter 79 «On taxes and other mandatory payments to the Budget» of the Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI of the SAM.)

VAT ON IMPORTED GOODS 0%

Exemption from value-added tax (VAT) when selling goods fully consumed in the production process to the territory of the FEZ (by paragraph 1 of Article 389 of Chapter 44 «On Taxes and other mandatory payments to the Budget» of the Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI ZRK.)

IMPORT CUSTOMS DUTIES 0%

Customs privileges (According to paragraph 1 of Article 281 of Chapter 29 «On Customs regulation in the Republic of Kazakhstan» of the Code of the Republic of Kazakhstan dated December 26, 2017 No. 123-VI SAM.)

LAND RENT 0%

Exemption from land tax (by paragraph 1 of Article 709 of Chapter 79 «On taxes and other mandatory payments to the Budget» of the Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI ZRK.)