ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of January 14, 2016 No. 13

About some questions of realization of the state support of investments

According to Articles 282, the Government of the Republic of Kazakhstan DECIDES: 286 and 294 Entrepreneurial codes of the Republic of Kazakhstan

1. Approve enclosed:

1) the model contract for implementation of the investment project providing implementation of investments and provision of investment preferences (further – the model contract);

2) the list of priority types of activity for implementation of investment projects;

3) Rules of involvement of specialists of state bodies, consultants and experts from among physical persons and legal entities of the Republic of Kazakhstan.

2. Recognize invalid some decisions of the Government of the Republic of Kazakhstan according to appendix to this resolution.

3. This resolution becomes effective from the date of its first official publication, except for the paragraph of the fourth subitem 1) of Item 3 of the model contract which becomes effective since January 1, 2017.

Approved by the Order of the Government of the Republic of Kazakhstan of January 14, 2016 , No. 13

The model contract for implementation of the investment project providing implementation of investments and provision of investment preferences

This investment contract for realization of investment
the project, providing implementation of investments and provision
investment preferences, it is concluded between
____________________________________________________________ on behalf of
                   (name of authorized body)
__________________________________________________________________,
(surname, name, middle name (in the presence) the head or person fulfilling its duties)
acting on the basis of the _____________ (further – authorized body)
                               (provision or order)
and _________________________________________________________________,
            (name of the legal entity of the Republic of Kazakhstan,
                             number, date of state registration)
enabling the realization of the investment project, on behalf of
___________________________________________________________________,
(surname, name, middle name (in the presence) first head or other authorized person)
acting on the basis of the _________________________ (further - the investor),
                                           (charter or power of attorney)
the hereinafter referred to as Parties.

In view of that:

1) the legislation of the Republic of Kazakhstan in the sphere of entrepreneurship based on the Constitution of the Republic of Kazakhstan, one of the directions of which are creation of the favorable investment climate for development of economy and stimulation of investments into creation new, expansion and updating of the operating productions using modern technologies, advanced training of the Kazakhstan personnel, and also environmental protection;

2) the authorized body is given the rights which are directly connected with the conclusion and control of execution of the investment contract;

3) the authorized body and the investor agreed that the investment contract will regulate their mutual rights and obligations in case of realization

_________________________________________________________________,
                                         (name of the investment project)

the authorized body and the investor signed this investment contract as follows.

1. Basic concepts

1. The basic concepts used in this investment contract:

1) the investment contract – the contract for implementation of the investment project providing implementation of investments and provision of investment preferences;

2) the income – income gained from investing activities or related irrespective of form in which they are paid, including profit, dividends and other remunerations;

3) intangible assets – the non-material objects used during the long-term period (more than one year) for receipt of gross annual income;

4) force majeure – the force majeure circumstances complicating the course or resulting in impossibility of further execution of the investment contract (the spontaneous phenomena, military operations, emergency state, etc.);

5) the third party – any person which is not the Party under the investment contract;

6) the working program – the appendix 1 to the investment contract determining the schedule of works on implementation of the investment project before input of production in operation;

7) the investment project – complex of the actions providing investments into creation new, expansion and (or) updating of the operating productions of goods, works and services including the productions of goods, works and services created, expanded and (or) updated in the project progress of public-private partnership, including the concessionary project;

8) the investment priority project – the investment project:

on creation of new productions of goods, works and services, providing implementation by the legal entity of investments into construction of new production facilities in the amount of at least dvukhmillionnokratny size of the monthly settlement indicator established by the law on the republican budget and operating for date of application for provision of investment preferences if other is not provided by the Entrepreneurial code of the Republic of Kazakhstan;

on expansion and (or) updating of the operating productions of goods, works and services, providing implementation by the legal entity of investments in the amount of at least pyatimillionnokratny size of the monthly settlement indicator established by the law on the republican budget and operating for date of application for provision of investment preferences in change of fixed assets, including updating (renovation, reconstruction, upgrade) of the operating production facilities which are turning out products if other is not provided by the Entrepreneurial code of the Republic of Kazakhstan.

9) it is excluded.

2. Subject of the investment contract

2. Subject of this investment contract is provision to the investor of investment preferences, stipulated by the legislation the Republic of Kazakhstan in the sphere of entrepreneurship, within the investment project.

3. To the investor:

1) according to the investment project (including to the investment priority project) the following types of investment preferences are provided:

release from taxation by customs duties when importing processing equipment and accessories to it on effective period of the investment contract, but no more than 5 (five) years from the moment of registration of the investment contract according to appendix 2 to this investment contract;

release from taxation by customs duties when importing spare parts to processing equipment for up to 5 (five) years depending on the volume of investment into the fixed assets according to appendix 3 to this investment contract;

release from taxation by customs duties when importing raw materials and (or) materials for a period of 5 (five) years, according to appendix 3 to this investment contract, from the date of commissioning of the fixed assets according to the working program;

tax exemption on value added of import of raw materials and (or) materials for term within 5 (five) consecutive years since 1 date in which the fixed assets provided in the working program according to appendix 4 to this investment contract are put into operation;

the state natural grant in type: _________ on the right _________ with subsequent ___________________, in case of accomplishment of investment obligations according to the investment contract;

2) according to the investment priority project the following types of investment preferences are provided:

preferences on taxes:

on creation of new productions of goods, works and services:

and finishing reduction of the corporate income tax according to income gained from implementation of the priority types of activity specified in the investment contract for 100 percent since January 1 of year in which the investment contract for implementation of the investment priority project is signed no later than 10 (ten) consecutive years which are estimated since January 1 of the year following after year in which the investment contract for implementation of the investment priority project is signed;

application of coefficient 0 to rates of the land tax since 1 date in which the investment contract is signed, and finishing no later than 10 (ten) consecutive years which are estimated since January 1 of the year following after year in which the investment contract for implementation of the investment priority project is signed;

calculation of the property tax at the rate of 0 percent to tax base since 1 date in which the first asset is considered as a part of fixed assets according to International Financial Reporting Standards and (or) requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting, and finishing no later than 8 (eight) consecutive years which are estimated since January 1 of the year following after year in which the first asset is considered as a part of fixed assets according to International Financial Reporting Standards and (or) requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting;

on expansion and (or) updating of the operating productions of goods, works and services:

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