President Kassym-Jomart Tokayev has reinforced his stance on maintaining the current tax regime in the Astana International Financial Centre (AIFC), according to Akorda (the official residence of the president of Kazakhstan). This announcement followed a proposal to cancel tax benefits for investors at the Astana International Exchange, a platform within the AIFC. The initiative was part of the discussions surrounding the updated Tax Code.
«The tax regime within the AIFC is guaranteed by constitutional law and is a crucial element of the center’s development strategy. It is vital for making Kazakhstan more attractive to global investors. This is our firm position and we cannot change it,» the president stated during the AIFC Management Council meeting.
In other words, President Tokayev emphasized that the established rules will remain unchanged, his press service said in a statement. He also highlighted the need to continue attracting foreign investments into the country’s economy and improving the investment ecosystem.
«Although the AIFC has not been operating for long, it has achieved significant results. The center has created the best environment in the region for attracting investments, while offering investors various tax, visa and labor benefits. Each investor at the center receives tailored and comprehensive support. A fair and impartial judicial system has been established. Thanks to new digital solutions, almost every Kazakhstani can participate in IPOs,» Tokayev added.
He also stressed that developing a carbon market is one of Kazakhstan’s top priorities, particularly as EU member states prepare to implement the Carbon Border Adjustment Mechanism (CBAM), which could pose a serious challenge for Kazakhstani exports to Europe.
According to the president, Kazakhstan needs to create effective financial mechanisms for emergency response. He believes that various state insurance funds could play a key role in natural disaster recovery. To advance this, he has instructed the cabinet, the Agency for Regulation and Development of the Financial Market and the AIFC to consider establishing such a fund within the center.
The National Economy Ministry’s Initiative to Cancel Tax Benefits for the AIFC
The Ministry of National Economy had proposed canceling tax benefits for dividend payouts and capital gains from securities during discussions about a new Tax Code. These benefits were originally introduced to offset the standard tax rates for residents (10%) and non-residents (15%). The ministry suggested a 5% tax for residents instead (with a higher tax rate for non-residents).
All market experts interviewed by Kursiv criticized the proposal, arguing that it would harm the development of Kazakhstan’s stock market and lead to a potential loss of both current and prospective investors. For instance, investment fund managers operating in the AIFC stated at a press conference that they would relocate to another jurisdiction if the new rules were implemented. These companies have collectively written to the economy ministry, urging it to retain the tax benefits within the exchange.
