Conditions for doing business in Kazakhstan’s jewelry industry are more favorable than in neighboring Kyrgyzstan, according to Kazakhstan’s Ministry of Industry and Construction.
The ministry said Kazakhstan offers a more comprehensive and flexible support system for jewelry manufacturers, with policies covering the entire production chain — from importing equipment and sourcing raw materials to manufacturing and selling finished products.
Tax incentives and access to raw materials
According to the ministry, companies can use a VAT deferral scheme when importing equipment and technologies that are not manufactured in Kazakhstan.
Jewelry manufacturers can also purchase refined gold from Kazakh refineries without paying VAT within an established annual quota. The ministry said the measure provides access to legally sourced raw materials, lowers production costs and encourages domestic processing of precious metals.
Additionally, jewelry businesses are eligible to operate under special tax regimes and are exempt from VAT on annual turnover of up to 600,000 monthly calculation indexes (MCIs), equivalent to about 2.6 billion tenge. As a result, qualifying jewelry products can be sold on the domestic market without VAT, improving their competitiveness, the ministry said.
Comparison with Kyrgyzstan
The ministry said that in Kyrgyzstan, the VAT exemption applies only to the import of equipment, technologies, reagents and raw materials used in domestic jewelry production.
However, sales of finished jewelry products on the domestic market remain subject to a 12% VAT rate, and the exemption does not extend to the sale of finished goods.
According to the ministry, this difference makes Kazakhstan a more attractive jurisdiction for establishing jewelry manufacturing facilities, expanding existing operations and launching new industry projects.
Industry support measures
The ministry said Kazakhstan has 4,542 registered participants in the jewelry market, including 445 manufacturers and 3,759 companies engaged in jewelry sales.
Among the key support measures cited by the ministry are:
- An annual quota allowing jewelry manufacturers to purchase up to 300 kilograms of gold.
- The elimination of VAT on purchases of quota gold, effective Jan. 1, 2023.
- The inclusion of jewelry manufacturing among the priority industries in the Astana Free Economic Zone.
- The elimination of mandatory assay marks for domestically produced silver jewelry.
