Financial Benefits

Tax Benefits

Investors are welcome in Kazakhstan and can take advantage of a rapid and cost-effective company founding. International investors are legally equal to Kazakh investors in Kazakhstan and can establish companies on their own or with Kazakh partners, as a legal or natural person. There is an unlimited freedom of establishment, whether a joint venture or a wholly owned shareholder. With internationally regulated double taxation agreement, reverse charge system, as well as nationally well-defined guidelines for corporate taxation, VAT, input tax deductions and income tax, Kazakhstan provides a stable business for investors, importers and foreign workers. International investors who are doing business in Kazakhstan through a permanent establishment are subject to Kazakh tax law. However, the profit tax is levied only on those profits made by that permanent establishment.

For priority investment projects, including renewable energy, the Kazakh government grants tax allowance. The exemption from corporation tax is granted for a maximum of 10 years, of property tax for a maximum of 8 years.

Tax benefits are also provided for special economic zones in Kazakhstan. Special economic zones serve to promote and develop modern industries in specific regions and sectors. Investors benefit from their position within the SEZ and their involvement in modernization plans of the government. Investors are exempt from corporation tax, property tax, property tax, VAT in the special economic zone and social security tax for the first five years. In addition, the government offers simplified procedures for permits, a personal contact, exemption from customs duties, free infrastructural development and free land. For promotion in the field of renewable energy, a special economic zone is planned in the Almaty region.

Feed-in tariffs

Kazakhstan promotes the sale of electricity and heat from renewable energies. Energy producers have the freedom of choice whether to sell the electricity to the billing and finance center or directly to consumers.

In Kazakhstan, feed-in tariffs for electricity generated from renewable energies are set by law and fixed. The fixed feed-in tariffs are audited annually in order to offset the inflation of energy producers with liabilities in a foreign currency. The deadline is always the 1st October. If the exchange rate changes against the dollar and by 25% or more compared to the previous year, an indexation of the feed-in tariffs will be made. Feed-in tariffs are recalculated using a formula.

This provides investors with more transparency in planning security for the implementation of renewable energy projects. Also, the income can be calculated.

Feed-in tariff for electricity in Kazakhstan, valid since 04/2017

Investment grants

There are funding programs worldwide. These provide financial and conceptual support to investors.

Financial support for projects and companies is provided by local and international banks, global development banks and fund companies. Financing forms such as leasing, lending, equity participations and export guarantees ensure long-term investments.