Issues of state support of investments are regulated by the Ministry of Foreign Affairs of the Republic of Kazakhstan (hereinafter – the MFA). State support for investment is provision of state preferences.
Investment preferences are targeted advantages, provided in accordance with the legislation of the Republic of Kazakhstan to legal entities of the Republic of Kazakhstan, implementing investment project, and to leasing companies, importing technological equipment under the investment project on the basis of financial lease agreement for the legal entity of the Republic of Kazakhstan, implementing the investment project.
In accordance with the Decree of the Government of the Republic of Kazakhstan dated January 14, 2016 No. 13, the production of electricity and gaseous fuel is included in the List of priority activities for implementation of investment projects. In this regard, RES projects fall under the category of investment projects, in the framework of which investors are provided with the following investment preferences:
- exemption from customs duties:
- when importing technological equipment and components for duration of investment contract, but not more than 5 years from the date of registration of the investment contract;
- when importing spare parts for technological equipment, raw materials and materials for a period of up to 5 years, depending on the volume of investments in fixed assets and in case of compliance of investment project with the list of priority activities;
- exemption from value added tax on imports, provided that:
- raw materials are included in the Order of the Minister for investment and development of the Republic of Kazakhstan dated February 27, 2018 No. 140, import of raw materials completed by documents provided for by the customs legislation of the Eurasian economic Union and/or the customs legislation of the Republic of Kazakhstan; imported raw materials will be used exclusively in implementation of activities under the investment contract;
- state grant-in-kind (land plots, buildings, structures, machinery and equipment, computer equipment, measuring and regulating devices and devices, vehicles) under the following conditions: the amount of grant-in-kind should not exceed 30% of the amount of investment in fixed assets; it is necessary to provide a document confirming the prior consent of the local Executive body.
More detailed information on investment preferences is available on the website of JSC "National Company "KAZAKH INVEST", authorized to implement measures of state support of industrial and innovative activities in the field of investment in the economy of the Republic of Kazakhstan.