Kazakhstan wants to speed up reviewing process of investors’ applications
Kazakhstan’s government wants to make investment agreements a more effective tool and cut the timeline for reviewing investors’ applications from 12 to 3 months, according to Primeminister.kz.
Authorities use investment agreements to attract big investors and guarantee that the tax legislation won’t change within the next ten years.
Within the framework of investment agreements, the Ministry of Economy suggested in March that corporate income tax would be lifted for investors whose projects are in the initial stages. The ministry also promised to provide taxpayers with fiscal assistance from their registration until the moment of deregistration.
The government also plans to revise a mechanism for freezing accounts while collecting debts. The volume of tax reporting will be cut by 30% as some declarations will be canceled, while tax payments will be reduced by 20%. On the other hand, authorities will keep the existing incentives and benefits. For instance, companies will be able to continue to pay VAT for their imports in a simplified way, while new projects in the processing industry will enjoy tax benefits within three years.
Green corridor and investments in big projects
On April 4, the investment council discussed the criteria for investment projects eligible for a green corridor mechanism. A month earlier, Minister of National Economy Nurlan Baibazarov presented the Fast Track mechanism (green corridor) designed to support investment projects worth at least $15 million This time, authorities promised to simplify the interaction between public agencies and investors within this mechanism.
The council also discussed issues related to investments in road construction while implementing big projects, energy recovery from waste, and pharmaceutics. After the meeting, the Investment Council instructed authorized agencies to implement all the novelties and said it would monitor the issue.
Authorities to support investors
On March 5, Minister Baibazarov said that his agency will develop a National Infrastructural Plan designed until 2029 to improve the country’s investment climate and facilitate access to infrastructure for investment projects. Kazakhstan’s authorities also want to actualize a Concept of Investment Policy until 2029 to synchronize it with the National Development Plan. The document is expected to be adopted by July 1, 2024.
The Ministry of Economy also promises to «fully launch» the National Investment Platform, which would allow for the tracking of investment project implementation in different regions and economic sectors. So far, it is operating as a pilot project.
At the time, Prime Minister Olzhas Bektenov wondered about the effectiveness and quality of such investment support measures, as tough bureaucracy around allocating land parcels, connecting a project to the utility network and the complexity of construction rules aren’t helpful for the country’s investment climate.
According to Bektenov, the government is ready to guarantee that it delivers all its obligations on each big investment project. He has promised that authorities will facilitate investors’ access to resources, infrastructure and consulting support. Investors can also rely on the government’s support to sell their products. Moreover, all investors will be protected from «pressure of any sort from public entities and law enforcement agencies,» according to Bektenov.
This year, the government plans to implement 234 projects worth $5.1 billion and boost equity capital investment to $49.4 billion, a 22% increase over 2023.
