Kazakhstan’s Special Economic Zones ... - Kazakh...

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Kazakhstan’s Special Economic Zones SEZs of Kazakhstan are ideal locations for the implementation of projects in various sectors and have all necessary infrastructure and attractive preferential tax regime. Who can become a member of SEZ? Legal entities including foreign legal entities planning to realize priority activities on SEZ territory. 100% foreign ownership; No restriction on capital repatriation; No currency restrictions; Business ready infrastructure; SEZ management body – coordination and support in all internal processes; 0% corporate income tax; 0% property tax; 0% land rent/tax; 0% VAT for suppliers; 0% customs duties and VAT for goods IMPORTED into SEZ territory; * The above benefits do not depend on the volume of investment and are provided for the whole SEZ lifetime Recruitment of the employees without quotas and permits for projects costing more than 1 million MCI (1 MCI = 2269 KZT) or 7 mln USD, during construction period and 1 year after commissioning. KAZAKH INVEST acts as a single coordinating center on special economic zones of the Republic of Kazakhstan. Kazakhstan’s Industrial Zones Industrial zones of Kazakhstan are set up to establish conditions and modern infrastructure for stimulating creation of import-substituting and competitive industries as well as attracting foreign and domestic investment. Currently there are 20 industrial zones in Kazakhstan, the other 24 are at the implementation stage. Industrial zones preferences Possibility of obtaining land plot with the installed infrastructure Promotion and information support of project participants from the state authorities of Kazakhstan Assistance and consultations by the Managing Company on preparation and construction of industrial areas Provision of centralized utility services by the Managing Company Comprehensive Privatization Plan for 2016–2020 Within the framework of the program, privatization of more than 780 objects of the Government and quasi-public sector is planned. We also suggest to pay attention to the investment projects and business ideas in other sectors of the economy, as well as privatization objects and public-private partnership opportunities. More information is available on the web-site www.invest.gov.kz Special Economic Zones preferences: NIPT SEZ (2007 – 2032) Petrochemistry Aktau Sea Port SEZ (2003 – 2028) Logistics, oil equipment «Burabai» SEZ (2007 – 2017) Tourism Astana – New City SEZ (2002 – 2027) Mixed Taraz Chemical Land (2012 -2037) Chemistry Ontustik SEZ (2005 – 2030) Textile Saryarka SEZ (2011 – 2036) Metallurgy Pavlodar SEZ (2011 – 2036) Chemistry, petrochemistry Khorgos Eastern Gates SEZ (2011 - 2036) Logistics PIT SEZ (2003 – 2028) ICT Analytical support Analysis of export niches and world demand Identifying export potential Kazakhstan’s regions export potential analysis Marketing research for local producers Export promotion Trade missions (potential buyers search, В2В meetings) Exhibitions abroad National Pavilions (specific sector collective presentation of producers) Presentation of trade marks Assistance in products promotion to humanitarian procurement market Export development Study courses for entrepreneurs on export activities Specialized literature («Export guide book», «Support for exporter» and «Export products of Kazakhstan») Export encouragement Reimbursement of 50% of exporters expenses Export potential www.export.gov.kz Made in Kazakhstan Food Machinery and equipment Construction materials Pharmaceuticals Textile Fertilizers Oil products Metallurgy INVEST IN KAZAKHSTAN invest.gov.kz [email protected] +7 (7172) 620-620 010000, Astana, 2 Kunaev Street, 6th floor KAZAKH INVEST National Company Investor Support KAZAKH INVEST Providing guidance and pre-advisory, learning investor needs Preparing investment project together Supporting investor at all stages of the project including export promotion Project aſtercare including full protection All FDI projects are being supported during the project life cycle «ONE STOP SHOP» for investor in Kazakhstan Primary negotiations Organization of visit to Kazakhstan Visa support Review of business terms Conclusion of an investment contract Interaction with Central state bodies, national companies, local executive bodies Initial project evaluation Investor support Project implementation Representatives abroad Regional Representatives Export support Central office Company functions Solution of emerging issues Export Promotion Investment Project Implementation Unified negotiator acting on behalf of the Government Foreign investor regional support Foreign investor support Monitoring of investment projects’ implementation Representatives abroad

Transcript of Kazakhstan’s Special Economic Zones ... - Kazakh...

Page 1: Kazakhstan’s Special Economic Zones ... - Kazakh Investinvest.gov.kz/uploads/files/2017/08/01/invest-in-kz_en.pdf · Kazakhstan’s Special Economic Zones ... (specific sector collective

Kazakhstan’s Special Economic Zones SEZs of Kazakhstan are ideal locations for the implementation of projects in various sectors and have all necessary infrastructure and attractive preferential tax regime.

Who can become a member of SEZ? Legal entities including foreign legal entities planning to realize priority activities on SEZ territory.

• 100% foreign ownership; • No restriction on capital repatriation; • No currency restrictions; • Business ready infrastructure; • SEZ management body – coordination and support in all internal processes; • 0% corporate income tax; • 0% property tax; • 0% land rent/tax; • 0% VAT for suppliers; • 0% customs duties and VAT for goods IMPORTED into SEZ territory;

* The above benefits do not depend on the volume of investment and are provided for the whole SEZ lifetime • Recruitment of the employees without quotas and permits for projects costing

more than 1 million MCI (1 MCI = 2269 KZT) or 7 mln USD, during construction period and 1 year after commissioning.

KAZAKH INVEST acts as a single coordinating center on special economic zones of the Republic of Kazakhstan.

Kazakhstan’s Industrial Zones Industrial zones of Kazakhstan are set up to establish conditions and modern infrastructure for stimulating creation of import-substituting and competitive industries as well as attracting foreign and domestic investment.

Currently there are 20 industrial zones in Kazakhstan, the other 24 are at the implementation stage.

Industrial zones preferences • Possibility of obtaining land plot with the installed infrastructure • Promotion and information support of project participants from the state

authorities of Kazakhstan • Assistance and consultations by the Managing Company on preparation and

construction of industrial areas • Provision of centralized utility services by the Managing Company

Comprehensive Privatization Plan for 2016–2020Within the framework of the program, privatization of more than 780 objects of the Government and quasi-public sector is planned.

We also suggest to pay attention to the investment projects and business ideas in other sectors of the economy, as well as privatization objects and public-private partnership opportunities.More information is available on the web-site www.invest.gov.kz

Special Economic Zones preferences:

NIPT SEZ(2007 – 2032)

Petrochemistry

Aktau Sea Port SEZ(2003 – 2028)

Logistics, oil equipment

«Burabai» SEZ(2007 – 2017)

Tourism

Astana – New City SEZ (2002 – 2027)

Mixed

Taraz Chemical Land (2012 -2037)

Chemistry

Ontustik SEZ (2005 – 2030)

Textile

Saryarka SEZ (2011 – 2036)

Metallurgy

Pavlodar SEZ (2011 – 2036)

Chemistry, petrochemistry

Khorgos Eastern Gates SEZ (2011 -

2036)Logistics

PIT SEZ (2003 – 2028)

ICT

Analytical support • Analysis of export niches and world demand • Identifying export potential • Kazakhstan’s regions export potential analysis • Marketing research for local producers

Export promotion • Trade missions (potential buyers search, В2В meetings) • Exhibitions abroad • National Pavilions (specific sector collective presentation of producers) • Presentation of trade marks • Assistance in products promotion to humanitarian procurement market

Export development • Study courses for entrepreneurs on export activities • Specialized literature («Export guide book»,

«Support for exporter» and «Export products of Kazakhstan»)

Export encouragementReimbursement of 50% of exporters expenses

Export potential www.export.gov.kz

Made in Kazakhstan 

• Food • Machinery and equipment • Construction materials • Pharmaceuticals

• Textile • Fertilizers • Oil products • Metallurgy

INVEST IN KAZAKHSTAN

invest.gov.kz [email protected] +7 (7172) 620-620010000, Astana, 2 Kunaev Street, 6th floor

KAZAKH INVEST National Company

Investor SupportKAZAKH INVEST

Providing guidance and pre-advisory, learning

investor needs

Preparing investment project together

Supporting investor at all stages of the

project including export promotion

Project aftercare including full protection

All FDI projects are being supported during the project life cycle

«ONE STOP SHOP» for investor in Kazakhstan

• Primary negotiations • Organization of visit to Kazakhstan • Visa support

• Review of business terms • Conclusion of an investment contract • Interaction with Central state bodies,

national companies, local executive bodies

• Initial project evaluation • Investor support • Project implementation

Representatives abroad

Regional Representatives

Export support

Central office

Company functions

Solution of emerging issues

Export Promotion

Investment ProjectImplementation

Unified negotiator acting on behalf of the Government Foreign investor

regional support

Foreign investor support

Monitoring of investment projects’

implementation

Representativesabroad

Page 2: Kazakhstan’s Special Economic Zones ... - Kazakh Investinvest.gov.kz/uploads/files/2017/08/01/invest-in-kz_en.pdf · Kazakhstan’s Special Economic Zones ... (specific sector collective

Investors about business in Kazakhstan

Duty-free access to the EAEU market

Priority sectors for obtaining state preferences

Danone is operating in more than 120 countries worldwide with the mission to bring health through food to as many people as possible. In Kazakhstan we are present from early 2000 and after seeing the market potential - have opened our own fresh dairy products factory in Almaty region in 2010. We have brought to the Republic of Kazakhstan the highest quality standards and we are very proud to see how we have been successfully transmitting these to our local employees but also to our suppliers and especially to the farmers we buy our raw milk from. As foreign investor we see the constant efforts of the Government of the Republic of Kazakhstan to attract new investors and better conditions for existing ones through improvement of the investment climate in the country. We, at Danone, received concrete support from KAZAKH INVEST National Company and local authorities to protect and develop our investment here and we have an optimistic and hopeful outlook into the future!Renaud Chamonal General Director Danone – Berkut LLC

VICAT Group has been working in Kazakhstan since 2008 when it implemented the Mynaral Cement Plant project totaling to 300 million USD. We established the first greenfield cement plant using dry process production technology. Kazakhstan is a country with the vast territory, rich natural resources, modern legislation, strong economic potential and stability. The state provides various preferences and support programs to investors. Our investment experience during the last 10 years in Kazakhstan has proven that the VICAT Group made the right decision. Jambyl Cement has become a well-known and trusted brand in Kazakhstan and one of the leaders in the cement sector. We are proud of our contribution to the social and economic growth of the region and country.Murtaza BULUTAYGeneral Director Mynaral Tas Company LLP GE has been working in Kazakhstan since supplying industrial equipment for the mining industry in the 1930s. Today, GE is partnering with the region’s leading companies to solve key infrastructure challenges across the power, oil & gas, transportation, and healthcare industries. GE is committed to localizing expertise, creating new jobs, increasing industrial productivity, and introducing next-generation technologies to lower environmental impact. We appreciate and value the support of the President and Government of Kazakhstan in providing a stable foundation with a positive business climate, and we are proud to be investing and participating in modernizing the region’s industrial infrastructure. Bela FerencziCEOGE Central Asia & Azerbaijan

Machinery (Automotive industry

and electrical engineering)

Petroleum refining (oil refining)

Metallurgy (ferrous and non-ferrous)

Processing industry (food production)

Chemical industry

(petrochemistry and agricultural

chemistry)Competitive advantages of Kazakhstan in the sphere of foreign trade

• ➢ Customs Union with Russia and Belarus, established in 2010 • ➢ Eurasian Economic Union Treaty, effective from January 1, 2015 • ➢ Extensive trade ties with China and EU Member States, mainly in the energy

sector • ➢ In 2015, Kazakhstan joined the World Trade Organization as the 162nd member

The efficiency of state regulation and investor support – significant improvements according to the estimates of World Economic Forum 2015-2016.

KAZAKHSTAN - THE HEART OF EURASIAWHY KAZAKHSTAN?

182 millionconsumers in directaccess to the market

Port infrastructure in other countries: • ➢ ➢➢Batumi seaport in Georgia; • ➢ Logistics terminal in the Pacific port of Lianyungang.

• “Western Europe – Western China” transcontinental automobile corridor • ➢ 14 days from China to Western Europe • ➢ New Silk Road – railway route from China through Kazakhstan to Europe

Republic of Kazakhstan is a prosperous, safe and dynamically developing state. The country has rich natural resources and, most importantly, Kazakhstan citizens have high level of education, knowledge, skills and motivation to effectively use them.

1-st Chrome

2-nd Uranium

3-rd Manganese

4-th Zinc

Place in the world rankings of reserves:

20th among 138 countries around the world

Labor market efficiency:

38th in ration of wages and productivity

17 855 000people

Population (2016):

1,6% Average increase of population

40% Population aged under 25 years

9 days – time required to start a business in Kazakhstan

20% Сorporate tax rate

Tax regime:

12% Standard VAT rate

62 bln USD

Trade turnover (2016):

36,8 bln USDexport:

25,2 bln USDimport:

135 bln USD

GDP (2016):

1 760,7 bln USD(2006-2016):

235 bln USD

(2006-2016):

20,6 bln USD

FDI (2016):

Attractive cost positions

Source: Financial Times Limited 2016 (latest available data), expert analysis

Turkey

Germany

Poland

China

Kazakhstan

Malaysia

South Korea

Russia 19

39

54

54

62

133

219

401

12

188

20

13

31

57

57

42

6

5

9

7

11

12

24

11

1

1

1

0,4

1

5

4

8

7

24

3

4

4

10

48

6

WaterCents/m3

GasCents/m3

Electricity Cents/kWh

MobileCents/min

Salaries in the manufacturing industryUSD/hour

Transparency of government decisions: 30th positionout of 140 (45 positions higher as compared with the 2010-2011 report)

Investor protection: 25th position out of 140 (20 positions higher as compared with the 2010-2011 report)

Logistics potential

State support and preferences for investorsPreferences under priority investment projects

A project implementation in any of the economic priority sectors listed as priority economy sectors for investment projects

implementation of an investment project by a newly registered legal entity (date of state registration is not earlier than 24 months before the application date)

investment volumeis not less than 2 million MCI (1 MCI = 2269 KZT) or 14 mln USD

Tax preferencesCorporate income tax (up to 10 years)Land tax (up to 10 years)Property tax (up to 8 years)

Exemption from customs dutiesCustoms duties 0% up to 5 years on imported: • major equipment and spare parts to it; • accessories, raw materials.

0%

State in kind grantsFree land, buildings, structures, machinery and equipment, etc.

From January 1, 2017, a 30-day visa-free regime will be introduced for citizens of 60 countries, including all 35 OECD member-countries.

Investment Ombudsman To protect the rights and legitimate interests of foreign investors in Kazakhstan

Investors Service Centre (One Stop Shop) Provision of 363 public services for

investors (investment contract, land, visa support, etc.)

Investment law consultations

Preferences under investment projects

Implementation of an investment project by sector of economy identified as priority for investment projects

Exemption from customs duties Customs duties 0% up to 5 years on imported:– major equipment and spare parts to it; – accessories, raw materials. VAT Exemption on import

State in kind grants

Free land, buildings, structures, machinery and equipment, etc.

Free foreign labour employmentEmployment of foreign labour on a non-quota (limit) and work permits basis