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The document ceased to be valid since  March 8, 2017 according to Item 2 of the Order of the Deputy prime minister of the Republic of Kazakhstan - the Minister of Agriculture of the Republic of Kazakhstan of February 1, 2017 No. 48

ORDER OF THE MINISTER OF AGRICULTURE OF THE REPUBLIC OF KAZAKHSTAN

of August 7, 2015 No. 9-3/726

About approval of Rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments

(as amended of the Order of the Minister of Agriculture of the Republic of Kazakhstan of 09.06.2016 No. 254)

According to the subitem 15) article 6 of the Law of the Republic of Kazakhstan of July 8, 2005 "About state regulation of development of agro-industrial complex and the rural territories", PRIKAZYVAYU:

1. Approve the enclosed Rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments.

2. To provide to department of investment policy and financial instruments of the Ministry of Agriculture of the Republic of Kazakhstan in the procedure established by the legislation:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan the direction it the copy on official publication in periodic printing editions and in information system of law of Ad_let;

3) placement of this order on Internet resource of the Ministry of Agriculture of the Republic of Kazakhstan and the intranet portal of state bodies.

3. This order becomes effective after ten calendar days after day of its first official publication.

Minister of Agriculture of the Republic of Kazakhstan

A. Mamytbekov

Approved by the Order of the Minister of Agriculture of the Republic of Kazakhstan of August 7, 2015 No. 9-3/726

Rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments

1. General provisions

1. These rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments (further - Rules) are developed according to the Law of the Republic of Kazakhstan of July 8, 2005 "About state regulation of development of agro-industrial complex and the rural territories" and determine procedure for subsidizing by compensation of part of the expenses incurred by the subject of agro-industrial complex (further - the AIC), in case of investment attachments.

2. Main objective of subsidizing on compensation of part of the expenses incurred by the subject of the AIC in case of investment attachments, is increase in goods availability, works and services within implementation of investment projects in the priority directions (sectors) of the AIC by decrease in capital intensity and increase in payback of the enclosed investments.

3. In these rules the following terms and determinations are used:

1) the priority directions (sectors) of the AIC - the direction (sectors) of the AIC which have the considerable potential of development, specified in the list of the priority directions (sectors) according to appendix 1 to these rules;

2) the investment project in the AIC (further - investment the project) - the complex of actions providing investments into creation new or expansion of the operating production capacities;

3) investment attachments in the AIC (further - investment attachments) - the costs directed to creation new or expansion of the operating production capacities, including acquisition of the machinery and equipment within the investment project, except for purchase costs of the parcels of land;

4) investment subsidies in the AIC (further - investment subsidies) - compensation of part of the expenses incurred by the subject of the AIC within implementation of investment projects;

5) the investor in the AIC (further - the investor) - the subject of the AIC according to the legislation of the Republic of Kazakhstan performing investment attachments in the priority directions (sectors) of the AIC;

6) the administrator of the budget program (further - the administrator) - the Ministry of Agriculture of the Republic of Kazakhstan;

7) the passport of the project - the list and the most allowable cost for calculation of subsidies of investment attachments in the form of the fixed assets, works and services which are subject to investment subsidizing;

8) expansion of the operating production capacities - the actions providing equipment of the operating production capacities the missing or necessary equipment (equipment) or the increase in production capacities and other actions directed to growth in volumes of production and (or) reduction of cost of the made products and (or) improvement of quality of the made products, change of its packaging and (or) expansion of the range, and also other actions which purpose is occupation of new commodity niche in the market, expansion of the markets and another;

9) the commission on questions of investment subsidizing (further - the commission) - permanent collegiate organ for consideration of the applications of investors and decision making about provision/refusal in provision of investment subsidies;

10) working body of the commission on questions of investment subsidizing (further - working body) - Deraptment of Agriculture of akimats of areas, cities of republican value and the capital;

11) the agreement of investment subsidizing - the written agreement signed between working body, the investor and the operator, providing procedure and conditions of money transfer of investment subsidies, the monitoring course, responsibility of the parties and other conditions;

12) financial institutions - the banks of the second level, credit institutions having the corresponding license for the right of banking operations, leasing companies, credit partnerships;

13) operator - the organization performing operator services in subsidizing in compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments;

To the conclusion of the agreement on rendering services, the functions of the operator provided by these rules are performed by working body;

14) industrial complex - set of the interconnected production capacities (buildings, constructions, the mounted equipment, engineering networks and another) directed to production, conversion, storage, packaging of agricultural products;

15) escrow account - the account of the investor at financial institute / bank of the second level on which the amount of investment subsidies for providing terms of the contract of investment subsidizing according to Items 37, of 38 these rules is credited.

2. Procedure for subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments

Paragraph 1. General terms of investment subsidizing

4. Investment subsidies are paid to investors according to the list of the priority directions (sectors), according to appendix 1 to these rules, on objects, the machinery and equipment acquired or Section 5 of the list of the investment passports which are subject to subsidizing, specified in appendix 2 to the these rules put into operation within the investment project, except for.

The investment projects put into operation, since January 1, 2014, directed to creation new or expansion of the operating production capacities (investment attachments) are subject to subsidizing. At the same time the expenses on acquisition of the machinery and equipment within the investment project incurred by the investor till January 1, 2014, but not earlier than 24 months before date of input of the investment project in operation are subject to subsidizing.

If the investment project supposes only acquisition of the equipment and (or) equipment, the equipment and (or) the equipment acquired since January 1, 2014 are subject to subsidizing.

At the same time till July 1 of the corresponding calendar year requests of investors for provision of investment subsidies in the directions (sectors) of the first group according to appendix 1 to these rules are accepted and considered. In the first group first of all requests of investors according to the procedure of priority on the priority provided in appendix 1 to these rules are considered.

After July 1 of the corresponding calendar year requests of investors in the directions of the first and second groups are accepted and considered. At the same time requests of investors of the first group are considered according to the procedure of the priority provided in appendix 1 to these rules irrespective of date of application. Requests of the second group are considered on priority according to date of their receipt.

On commission session in priority procedure requests of agricultural cooperatives according to the procedure of the priority provided in appendix 1 to these rules are considered.

The requests of investors accepted, but not satisfied in last financial year are subject to consideration and/or satisfaction with the commission prior to consideration of requests of the investors accepted in the current financial year.

The commission is not competent to make the decision on suspension of order taking of investors.

Subsidizing is performed in the place of implementation of the investment project.

5. Part of investment attachments in fixed assets, works and services which list is specified in investment passports, according to appendix 2 to these rules is subject to compensation.

6. Calculation of investment subsidies is perfromed on actually enclosed investments. The percent of cost recovery is established according to the share of compensation provided according to appendix 2 to these rules. Compensation share is not subject to change.

The size of investment subsidy is determined by one of the following methods:

1) according to the established share of compensation of investment attachments, but no more approved maximum allowable cost for calculation of subsidies per unit of capacity according to each investment project, according to the list of the investment passports which are subject to subsidizing, specified in appendix 2 to these rules;

2) according to the established share of compensation of investment attachments, but no more approved maximum allowable cost for calculation of subsidies for one piece of equipment and the equipment according to each investment project, according to the list of the investment passports which are subject to subsidizing, specified in appendix 2 to these rules;

3) according to the established share of compensation of investment attachments from project cost according to the design estimates.

If expansion of production capacities provides only acquisition and installation of separate types of the equipment without development of the design estimates, subsidizing of the acquired equipment within the established compensation percent from equipment cost on purchase and sale agreements (leasing), delivery agreements and (or) installation of equipment, and also to related documents (the cargo customs declaration, invoices, documents confirming payment) is allowed. Installation of equipment is subject to subsidizing if it is provided by the purchase and sale agreement (leasing) of the equipment.

If in the design estimates expenses on acquisition of the machinery and equipment are not specified, subsidizing on them is performed according to purchase and sale agreements (leasing), and also related documents (the cargo customs declaration, invoices, documents confirming payment). At the same time for the purpose of subsidizing, purchase costs of the equipment are summed up with the costs specified in the design estimates.

7. According to investment passports "Creation and expansion of objects for cultivation of cattle of the meat direction capacity from 50 cows", "Creation and expansion of dairy and commodity farm from 50 to 400 cows", "Creation and expansion of objects for cultivation of horses/camels capacity from 100 heads of uterine livestock" and "Creation and expansion of objects for cultivation of sheep/goats capacity from 300 heads of uterine livestock", "Laying of the intensive apple orchard from 5 hectares", "Laying of fruit and berry cultures and grapes from 5 hectares", "Acquisition of agricultural machinery" is allowed subsidizing of the second and subsequent piece of equipment and the equipment of one type specified in the passport of the investment project.

The second and subsequent pieces of equipment and the equipment of one type are subsidized in case of exceeding of the minimum standard rate of uterine livestock on one piece of equipment and the equipment.

The minimum standard rate of uterine livestock on one piece of equipment and the equipment of one type constitutes 100 conditional heads of uterine livestock.

The second and subsequent pieces of equipment and the equipment of one type which are subject to subsidizing are determined by the following formula:

Wk = Wzh/N, where:

Wk - the number of the subsidized machinery and equipment of one type;

Wzh - quantity of uterine livestock of the farm animals registered in economy in recalculation in the conditional head of cattle according to the coefficients of transfer of livestock of farm animals in the conditional head of cattle specified in appendix 3 to these rules;

N - the admissible standard rate.

In case of receipt of fractional figure the result is rounded in the mathematical way to the whole value.

The number of uterine livestock of farm animals is determined by the operator by means of the database on identification of farm animals at the time of application for subsidizing. The statement certified by the operator from the database on identification of farm animals is put by the operator to the request of the investor.

The minimum standard rate of the areas of the intensive apple orchard, fruit and berry cultures and grapes on one piece of equipment of one type constitutes 20 hectares. Availability corresponding to the established standard rate of acreage under the intensive apple orchard, fruit and berry cultures and grapes is confirmed by the act on the property right to the parcel of land and (or) the act on the right temporary (long-term, short-term) land use (lease).

According to the investment passport "Acquisition of agricultural machinery and the equipment" it is performed according to the minimum standard rate of the squares (arable land) at one piece of equipment and the equipment.

The second and subsequent pieces of equipment and the equipment of one type which are subject to subsidizing are determined by the following formula:

Wk = Wg/N, where:

Wk - the number of the subsidized machinery and equipment of one type;

Wg - the area of land grounds (arable land);

N - the admissible standard rate.

In case of receipt of fractional figure the result is rounded in the mathematical way to the whole value.

Availability corresponding to the established standard rate of the areas of land grounds under arable lands is confirmed by the document certifying the property right to the parcel of land or the right temporary paid (long-term, short-term) land use (lease) of the investor in the presence of the signed cooperation agreement.

In case of application from agricultural cooperative the total area of land grounds (arable land) and number of uterine livestock of the farm animals registered at members of agricultural cooperative is considered.

8. Investment subsidies are paid on investment attachments of the investor on acquisition new, earlier unused the machinery and equipment, year of release not earlier than three calendar years preceding year of application by the investor.

9. Subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment attachments, is performed for the account and within the means provided in the budget for the corresponding financial year.

In case of shortage of means for payment of subsidies for the investment projects approved by the commission in the current financial year, the decision of the commission is the basis for payment of subsidies in priority procedure in the following financial year, on priority according to receipt date of the request prior to consideration of requests of the investors given in the following financial year.

10. Investment subsidies are paid in full after commissioning new or expansions of the operating production capacities, acquisitions of the machinery and equipment within the investment project, except as specified, provided by this Item, and also Item 37 of these rules.

Payment of investment subsidies after introduction of queue (stage) of the investment project in operation, according to the design estimates is allowed, during creation of new production capacities or to the business plan in case of expansion acting.

Investment subsidies for creation of new production capacities in the directions of development of processing industry provided in Items 12-18 of the List of the priority directions (sectors) according to appendix 1 to these rules, are paid by two tranches, except for investment passports "Acquisition of the vehicle for milk transportation", "Acquisition of vehicles for transportation of farm animals", "Acquisition of vehicles for transportation of agricultural products":

1) the first tranche in the amount of 50% of the total amount of investment subsidies after commissioning of the facility;

2) the second tranche in the amount of 50% of the total amount of investment subsidies after achievement of load of production volume at least 30% in the terms provided by the business plan.

Paragraph 2. Creation of the commission on questions of investment subsidizing and commission of experts

11. Akims of areas, cities of republican value and the capital create the decision the commission under the chairmanship of the deputy akim of area, the cities of republican value and the capital concerning agricultural industry and determine the secretary of the commission.

The secretary of the commission is not its part.

The commission acts on the permanent basis and consists of the chairman, his deputy and other members who are representatives of local executive bodies, public and non-governmental industry organizations, at the same time their quantity shall make at least a half from general structure of the commission (apart from the chairman) and shall be approved with regional chamber of entrepreneurs. In case of lack of consent of the public and non-governmental industry organizations in participation in structure of the commission, reduction of number of their representatives in structure of the commission to the consent of regional chamber of entrepreneurs is allowed.

The total quantity of members of the commission constitutes odd number and at least 7 (seven) people.

The decision of the commission is made by open voting and deemed accepted if for it the majority of votes from total number of members of the commission is given.

In case of equality of votes, accepted is considered the decision for which the commission chairman or in case of its absence - the vice-chairman voted.

Commission session is competent to make decisions if at least two thirds of total number of members of the commission participate in meeting.

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