According to Minister of Science and Higher Education Sayasat Nurbek, those who invest in scientific research can apply for tax deductions of up to 150% of the money they have spent.
«We are working on a law on science and technological policy. We are going to present this law in September or October. Once it is in the parliament, the process of consideration will begin. Therefore, we expect this law to be approved in the first half of next year. The draft legislation will include different mechanisms aimed at making private businesses more interested in scientific agenda. The legislation will allow tax deduction of up to 150% of all tax payments in order to get businesses interested in developing high-tech products and increasing added value,» he said at the second conference on Kazakhstani-Chinese cooperation.
He noted that the Ministry of Science is discussing all the details of the tax deduction mechanism with the Ministry of Finance and the State Revenue Committee (part of the finance ministry). Once the legislation is approved, these rules will be added to the tax, entrepreneur and budget codes.
As Nurbek noted, the government is planning to invest $1.4 billion in the sphere of science over the next three years, including $19.5 million for fundamental research by eleven research institutes across the country. The official said that Kazakhstan is going to invest about 1% of the national GDP in science by 2027-2028, which will be a significant increase compared to 0.25% in 2023 and 0.13% in 2022.
As of 1991, Kazakhstan’s investments in science were at 0.84% of the GDP. Due to economic turmoil after the dissolution of the Soviet Union, the country’s allocations for science sharply dropped forcing thousands of researchers and teachers to quit the field. According to the minister, in 1991, there were 52,000 employees in the industry and just 12,000 in 2000. The Ministry of Science is now seeking a way to boost scientific potential. For instance, the agency plans to make science more attractive to youth at the expense of high salaries. Since 2022, about 1,000 young scientists in Kazakhstan have received a monthly salary of $1,080. In addition, the ministry wants the young scientists to obtain their own houses. This issue is currently being considered.
