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LAW OF THE REPUBLIC OF KAZAKHSTAN

of April 3, 2019 No. 242-VI ZRK

About special economic and industrial zones

(as amended on 01-04-2021)

Chapter 1. Basic provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) the special commission - the permanent commission performing consideration of the applications of managing companies and potential participants of special economic zones about inclusion of the types of activity which are not provided by such list or not answering the purpose of creation of special economic zone in the list of priority types of activity;

2) special economic zone - part of the territory of the Republic of Kazakhstan with precisely designated borders on which the special legal regime of special economic zone for implementation of priority types of activity acts;

3) managing company of special economic zone - the legal entity created or determined according to this Law and the Law of the Republic of Kazakhstan "About innovative cluster "The park of innovative technologies" for ensuring functioning of special economic zone;

4) the participant of special economic zone - the legal entity performing priority types of activity in the territory of special economic zone and included in the unified register of participants of special economic zones.

At the same time:

to participants of the special economic zone "Park of Innovative Technologies" implementation of priority types of activity out of the territory of this special economic zone is allowed;

the individual entrepreneurs performing priority types of activity in the territory of the specified special economic zone can act as participants of special economic zone which limits fully or partially match with sites of customs border of the Eurasian Economic Union;

5) priority types of activity - the types of activity determined by authorized body to which the special legal regime of special economic zone extends;

6) the principle of "one window" - the form of provision of the state and other services in the territories of special economic and industrial zones providing minimization of participation of applicants in collection and preparation of documents and restriction of their direct contact with subjects of rendering the state and other services;

7) single engineering procedure - set of technologically interconnected and consecutive operations (works) performed in production process within one priority type of activity. Set of types of activity within single engineering procedure is integral part of priority type of activity and forms with it single whole;

7-1) special industrial zone - kind of private industrial zone in the territory of which direct application of the international construction standards and rules, and also international regional standards and standards of foreign states, created by physical and (or) non-state legal entities is allowed;

7-2) managing company of special industrial zone - the legal entity created or determined by the owner of the parcel of land of special industrial zone for ensuring functioning of special industrial zone;

8) the project - complex of the actions providing creation of modern high-productive, competitive productions and services for implementation of priority types of activity by the potential participant, applicant or participant of special economic zone, and also for implementation of business activity by the potential participant, applicant or participant of industrial zone;

9) industrial zone - the territory provided with engineering and communication infrastructure, provided to subjects of private entrepreneurship for placement and operation of objects of business activity, including in the field of the industry, agro-industrial complex, the tourist industry, transport logistics, waste management, according to the procedure, established by the legislation of the Republic of Kazakhstan;

10) managing company of industrial zone - the legal entity created or determined according to this Law for ensuring functioning of industrial zone;

11) the participant of industrial zone - the individual entrepreneur, the legal entity performing placement and operation of objects of business activity in the territory of industrial zone according to the procedure, established by the legislation of the Republic of Kazakhstan with which the managing company of industrial zone signs the agreement on activities implementation;

12) infrastructure facilities - the objects which are part of objects of production and (or) transfer of heat and electrical energy, water supply and gas supply, the sewerage, transport communications, communication services and other objects of special economic or industrial zone;

13) auxiliary types of activity - the types of activity necessary for servicing of activities of participants of special economic zone performed by persons who are not participants of special economic zone in its territory;

14) persons performing auxiliary types of activity - the individual entrepreneurs or legal entities who are not participants of special economic zone, performing auxiliary types of activity according to this Law;

15) the agreement on activities implementation - the agreement signed between the participant or several participants of special economic or industrial zone and managing company of special economic or industrial zone, establishing conditions of implementation of activities in the territory of special economic or industrial zone and (or) in their legal regime, the rights, obligations and responsibility of the parties;

16) regional coordination council - the advisory advisory body headed by the akim of area, city of republican value, the capital or his deputy, performing functions according to this Law and other functions determined by the legislation of the Republic of Kazakhstan;

17) the applicant - person submitting the application to managing company of special economic zone for implementation of priority or auxiliary types of activity or the statement in managing company of industrial zone for implementation of business activity as the participant of industrial zone;

18) advisory council - the permanent interdepartmental advisory advisory body considering questions of feasibility of creation, prolongation of term of functioning and abolition of special economic zones and also feasibility of creation, prolongation of term of functioning and abolition of industrial zones of republican value according to this Law;

19) authorized body - the central executive body performing state regulation in the field of creation, functioning and abolition of special economic and industrial zones.

Article 2. Legislation of the Republic of Kazakhstan on special economic and industrial zones

1. The legislation of the Republic of Kazakhstan on special economic and industrial zones is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

Article 3. Coverage of this Law

Operation of this Law extends to the state and local executive bodies, and also on the physical persons and legal entity which are subjects of the public relations arising during creation, functioning and abolition of special economic and industrial zones in the territory of the Republic of Kazakhstan.

Article 4. Principles of state regulation of special economic and industrial zones

1. State regulation of special economic and industrial zones in the Republic of Kazakhstan is based on the principles of balance of interests, justice, transparency and production incentive.

2. The legislation of the Republic of Kazakhstan on special economic and industrial zones cannot contradict the principles provided by this Law.

Article 5. Principle of balance of interests

This Law provides balance of interests of all subjects of the public relations arising during creation, functioning and abolition of special economic and industrial zones in the territory of the Republic of Kazakhstan.

For chains of this Law the balance of interests is understood as such condition of legal relationship in which the rights and obligations of the Parties are proportional and the parties have equal opportunities for realization of the legitimate interests.

Article 6. Concept of justice

Potential participants of special economic and industrial zones are given equal opportunities of access for implementation of activities in the territory of such zones on condition of observance of requirements for implementation of such activities.

Article 7. Principle of transparency

The principle of transparency consists in providing transparent, open and public procedures during creation of special economic and industrial zones, and also during the implementing of activities of participants of special economic and industrial zones and the admission for implementation of activities in the territory of such zones of new participants.

Article 8. Principle of production incentive

The principle of production incentive consists in support of goods to domestic manufacturers, and also domestic suppliers of works and services in that measure in which it does not contradict the international treaties ratified by the Republic of Kazakhstan.

Article 9. Purposes of creation of special economic and industrial zones

1. The special economic zone is created for the purpose of the accelerated development of modern high-productive, competitive productions, forming of qualitatively new level of provision of services, investment attraction, implementation of new technologies in industries of economy and regions, and also population employment increases.

2. The special economic zone which limits fully or partially match with sites of customs border of the Eurasian Economic Union is created also for the purpose of development of border trade and economy of the adjacent border territories, development of transport infrastructure, tourism and cultural interaction of the border territories of the Republic of Kazakhstan.

3. The industrial zone is created for the purpose of infrastructure ensuring development of entrepreneurship in regions.

Chapter 2. Competence of the Government, central state and local executive bodies

Article 10. Competence of the Government of the Republic of Kazakhstan

Are within the competence of the Government of the Republic of Kazakhstan:

1) development of the main directions of state policy in the field of creation and functioning of special economic and industrial zones;

2) decision making:

about creation of special economic zone, including determination of its purposes, approval of regulations on it and target indicators;

about prolongation of term of functioning of special economic zone with establishment of conditions of such prolongation;

about abolition of special economic zone;

about creation or determination of managing company of special economic zone or industrial zone of republican value;

3) determination of the single coordination center;

4) determination of standard functions of regional coordination council;

5) determination of procedure for selection of the projects realized by participants of special economic zones to whom the international, regional standards and standards of foreign states can be applied;

6) accomplishment of other functions assigned to it by the Constitution, this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 11. Competence of authorized body

Are within the competence of authorized body:

1) realization of state policy in the field of creation and functioning of special economic and industrial zones;

2) implementation of cross-industry coordination of activities of state bodies and managing companies of special economic and industrial zones in the field of creation, functioning and abolition of special economic and industrial zones;

3) development and approval of the list of priority types of activity by special economic zones in coordination with the central authorized body on state planning and the authorized state body performing management in the field of ensuring receipts of taxes and other obligatory payments in the budget;

4) approval of the decision on creation, prolongation of term of functioning or abolition of industrial zone of republican value;

5) development and approval of the following standard agreements and forms:

standard agreements of temporary paid land use (lease) by the parcels of land which are in state-owned property on which the special economic or industrial zone is created;

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