CHAPTER I THE ESSENCE AND TYPES OF INVESTMENT PROJECTS 4
1.1 Investment projects. Key aspects of analysis and assessment 4
1.2 Requirements for the architecture of the model for the appraisal of investment projects’ economic efficiency 5
1.3 Methods for investment appraisal 7
CHAPTER II INVEST IN KAZAKHSTAN - AN ERA OF UNIQUE POSSIBILITIES 10
2.1 Invest in Kazakhstan - an era of unique possibilities 10
2.2 Term “investment” in economy of the republic of Kazakhstan and general description of its types 11
CHAPTER III MAJOR DIRECTIONS IN THE ESTABLISHMENT AND DEVELOPMENT OF INVESTMENT LAW IN KAZAKHSTAN 13
CHAPTER II INVEST IN KAZAKHSTAN - AN ERA OF UNIQUE POSSIBILITIES
2.1 Invest in Kazakhstan - an era of unique possibilities
At the World Oil Congress held in Moscow, Kazakhstan was in the centre of special attention as the business community discussed the new unprecedented package of measures introduced by the Kazakhstan President, Nursultan Nazarbayev, to stimulate foreign investments. The related law ‘On the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan regarding Improvements to the Investment Climate’ had been signed literally the day before on 12 June 2014, at the 27th Plenary Session of the Foreign Investors’ Council (FIC), held at the Borovoye leisure resort in Akmola Oblast.
Kazakhstan has always been known for its good business climate and its ability to attract investment, partially thanks to the country’s macroeconomic and socio-political stability, but the new changes really do create unique conditions for investors. The new law introduces additional measures of state support for investor within the framework of contracts. In particular, investors receive 10-year exemptions from corporate income tax and land tax, and an 8-year property tax exemption. In addition, the state intends to compensate investors for up to 30% of their capital costs once an object has been commissioned. The last point, by the way, was well picked up on. Tax rates (except for VAT and excise duties), apart from subsoil user taxes, are to be stabilised along with ecological charges and payments for 10 years from the conclusion of investment contracts.
The above incentives will be provided for new investment projects in priority sectors valued at least US$ 20 million. Investors will also be able to hire foreign nationals for the entire period of construction of an investment project and for one year once an object is commissioned, irrespective of quotas and without work permits. In addition, an ‘investment ombudsman’ has been created to protect investors’ rights and interests.
Administrative procedures have also been simplified, with a ‘one-stop-shop’created by the Ministry of Industry and New Technologies Investment Committee to reduce the number of authorities windows investors entering into contracts are to apply while preparing and submitting documents, thus reducing their direct contact with civil servants. Immigration procedures for investors have also been simplified as Kazakhstan introduced unilateral visa-free procedures for one year from 15 July 2014 for nationals of the 10 countries that have shown the highest investment activities in Kazakhstan, such as the USA, the Netherlands, Great Britain, France, Germany, Italy, Malaysia, the UAE, Republic of Korea and Japan. The new rules allow nationals from those countries with valid diplomatic, business and travel passports to enter Kazakhstan for up to 15 calendar days.