On taxes and other obligatory payments to the budget (Tax Code)

Article 712-1. General provisions

1. For the purposes of this Code, a person that entered into an investment agreement shall be a legal entity that simultaneously meets the following conditions:

1) in accordance with the Entrepreneurial Code of the Republic of Kazakhstan, an investment agreement has been concluded with a state body authorized by the Government of the Republic of Kazakhstan to conclude such an agreement, providing for tax preferences;

2) implements an investment project on the type of activity provided for in the investment agreement;

3) is not a person carrying out:

activities related to the circulation of narcotic drugs, psychotropic substances and precursors;

production and (or) wholesale of excisable products;

holding a lottery;

activities in the gambling business;

activities related to the circulation of radioactive materials;

banking activities (or certain types of banking operations) and activities in the insurance market (except for the activities of an insurance agent);

audit activity;

professional activity in the securities market;

digital mining activities;

activities of credit bureaus;

security activities;

activities related to the circulation of civilian and service weapons and cartridges for them;

activities in subsoil use, including the activities of miners;

sale of minerals, including the activities of traders, activities for the sale of coal, oil;

4) does not apply special tax regimes.

2. If the changes and (or) additions to the tax legislation of the Republic of Kazakhstan provide for an increase in the coefficients and (or) rates applied when calculating land tax and (or) property tax, or changing the amount of reduction when calculating corporate income tax, the person who has concluded the investment agreement, shall determine tax liabilities for activities within the framework of the investment project using coefficients and (or) at rates, and also applies the amount of reduction in the calculation of corporate income tax that was in force on the date of conclusion of the investment agreement.

When making changes and (or) additions to this Code, providing for the abolition of the exemption of imports into the territory of the special economic zone or turnover on the sale of goods, works, services from value-added tax in the territory of the special economic zone, such exemption shall be applied by the person who has concluded an investment agreement before the end of the investment agreement.

3. In case of early termination of the investment agreement, tax preferences and the guarantee of the stability of the tax legislation of the Republic of Kazakhstan are annulled from the date of its conclusion.

In the case specified in part one of this paragraph, the taxpayer shall be obliged, no later than thirty calendar days from the date of termination of the investment agreement, to submit additional tax reporting for tax periods from the date of conclusion of this agreement to the date of its termination inclusive.

4. If a person who has concluded the investment agreement carries out activities in the territory of a special economic zone, upon the abolition of the special economic zone, the taxpayer shall apply tax preferences until the expiration of the investment agreement.

Footnote. Article 712-1 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).