Investment activity - Tax preferences

Tax preferences are granted to legal entities of the Republic of Kazakhstan in the manner and under the conditions stipulated by the tax legislation of the Republic of Kazakhstan.

For investment projects, with the exception of investment priority projects, there is an exemption from value added tax on the import of raw materials and (or) materials within the framework of an investment contract.

IMPORT EXEMPTION FROM VAT

within the framework of an investment contract

Exemption from  value added tax on the import of raw materials and (or) materials  within the framework of an investment contract for investment projects, with the exception of priority investment projects, subject to simultaneous compliance with the following conditions:

• raw materials and (or) materials are included in  the list   of raw materials and (or) materials, the import of which is exempt from value added tax within the framework of an investment contract, approved by the authorized state body for investments in agreement with the central authorized body for state planning and the authorized body;
• the import of raw materials and (or) materials is documented by the documents provided for by  the customs legislation of the Eurasian Economic Union  and (or)  the customs legislation of the Republic of Kazakhstan ;
• imported raw materials and (or) materials will be used by the value added tax payer within the limitation period exclusively when carrying out activities within the framework of the investment contract.

Exemption from value added tax on import of raw materials and (or) materials under an investment contract is granted to legal entities of the Republic of Kazakhstan for a period of five consecutive years, starting from the 1st day of the month in which fixed assets provided for in the work program, which is an appendix to the investment contract concluded in accordance with the legislation of the Republic of Kazakhstan in the field of entrepreneurship, are put into operation. If the work program provides for the introduction of two or more fixed assets, the calculation of the period of exemption from value added tax on import of raw materials and (or) materials under an investment contract is carried out starting from the 1st day of the month in which the first fixed asset under the work program is put into operation.