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Tuesday, February 25th, 2020

The draft law aimed at ensuring the rapid establishment and development of the AIFC was considered

by January 23, 2020 Market

The draft Constitutional Law On amendments and additions to some constitutional laws of the Republic of Kazakhstan was considered at the enlarged meeting of the Committee on Finance and Budget.

The bill is designed to implement the National Plan on Implementation of President’s Address to the People of Kazakhstan dated October 5, 2018, Plan of the Nation 100 concrete steps, as well as legal instructions given at the 9th plenary meeting of Foreign Investors’ Council under the President of the Republic of Kazakhstan, according to which the AIFC in cooperation with state bodies is instructed to consider the introduction of investment residence on the model of the Dubai International Financial Centre.

The objectives of the draft law are to ensure the rapid establishment and development of the AIFC as the main financial platform of the country and to use its jurisdiction to attract investment.

The bill provides for the introduction of the concept of investment resident, as well as regulates the requirements and benefits provided to investment residents.

The concept of investment tax residency program is being introduced. The program will determine the volume and instruments of investment, procedures for obtaining investment tax residency.

The draft law proposes exemption from value added tax (hereinafter � VAT) of targeted transfers from the budget aimed at financing the AIFC. It is also proposed not to consider the services/works of non-residents rendered for the AIFC and the services of the AIFC participants as a turnover subject to VAT.

In addition, the draft law introduces amendments to the Constitutional Law of the Republic of Kazakhstan On elections in the Republic of Kazakhstan in terms of postponing the introduction of universal declaration from 2020 to 2021 in accordance with the provisions of the Code of the Republic of Kazakhstan On taxes and other mandatory payments to the budget (Tax Code).

The document was submitted to the Chamber for consideration.

Source: Mazhilis of the Parliament of the Republic of Kazakhstan