Invest In Kazakhstan | Special Economic Zones

Special Economic Zones

Pursuant to the Law of the Republic of Kazakhstan No. № 242-VI of 3 April 2019 “On Special Economic Zones and Industrial Zones” (hereinafter – the Law) special economic zone - a part of the territory of the Republic of Kazakhstan with precisely defined borders, in which a special legal regime of a special economic zone operates for carrying out activities in accordance with the Law..

The SEZ is created for a period of up to twenty-five years, but by virtue of the Government of the Republic of Kazakhstan, the lifetime period may be extended.

Priority Activities

The list of priority activities for SEZ has been set up against the objectives of each SEZ and was established by virtue of the Order No. 142 of the Minister for Investment and Development of the Republic of Kazakhstan dated February 27, 2018.

SEZ Members

A legal entity can become a SEZ member given that it carries out priority activities on the territory of the SEZ and listed in the unified members register. SEZ membership cannot be given to business entities that:

1) Carry out mining;

2) Carry out production of excisable goods, with the exception of organizations engaged in the production, assembly (assembly) of excisable goods provided for in subparagraph 6) of Article 462 of the Tax Code;

3) Business entities and individual entrepreneurs that apply special tax regimes;

4) Business entities that apply investment tax incentives under valid contracts concluded with the authorized state investment authority before January 1, 2009;

5) Business entities that implement (have implemented) investment priority projects and investment strategic projects;

6) Carry out gambling.

Foreign individuals and legal entities cannot be members in the SEZ, whose borders in full or or partially coincide with the customs borders of the Eurasian Economic Union..

Legal Regime/Incentives

The laws establish a special legal regime in the SEZ area that means a range of special legal conditions for SEZ operation and its members in accordance with the SEZ laws, tax, customs, land legislation of the Republic of Kazakhstan, as well as the legislation of the Republic of Kazakhstan on employment.

Tax Incentives

An organization or an individual entrepreneur that carries out activity in the territory of the SEZ may reduce by 100 percent the amounts of the following calculated taxes and (or) payments:

1) corporate income tax (to be applied to incomes received from the sale of goods, works, services resulting from the implementation of priority activities);

2) land tax;

3) property tax;

4) payment for the use of land plots;

5) social tax to be applied by business entities – members of the SEZ "Park of Innovative Technologies" only (the employers expenses on employee income must be at least 70% of the total amount of expenses)

Since January 1, 2024, the tax incentives are differentiated as per the principle of "more investments, more benefits", so the period of tax incentives depends on the volume of investments (in effect from January 1, 2024). The SEZ tax incentives are granted for the following period subject to the cost and project categories:

category A – the cost of the project is up to 3,000,000 times the monthly assessemnt index (KZT 3,692) established by the law on the republican budget and effective on January 1 of the corresponding financial year – 7 years;
category B – the cost of the project from 3,000,000-fold to 14,500,000-fold of the monthly assessment index established by the law on the republican budget and effective on January 1 of the corresponding financial year – 15 years;
category C – the cost of the project from 14 500 000 times the monthly assessement index established by the law on the republican budget and effective on January 1 of the corresponding financial year – 25 years.

Notably, SEZ members that carry out activity in the field of of food production, textiles, clothing, leather and related products, computers production, electronic and optical equipment, production of electrical equipment fall, by default, under the category B with projects cost from 1,000,000 times to 14,500,000 times the monthly assessment index.

The effective period of the above incentives cannot extend the force period of SEZ membership contract and lifetime of the SEZ.

The above incentives can be applied by business entities and individual entrepreneurs that carry out activity in the territory of a SEZ given that SEZ contract is signed after 1 January 2024 pursuant to the laws of the Republic of Kazakhstan on special economic and industrial zones.

Customs Incentives

The SEZ territory in full or its part is a free customs zone, it means SEZ members may apply a 0% rate for import customs duties. Goods which are imported into the territory of the SEZ, where the customs procedure of the free customs zone is established, are placed under the customs procedure of the free customs zone and shall be deemed to be beyond the customs territory of the Eurasian Economic Union for the purposes of applying customs duties, taxes, as well as non-tariff regulation measures.

Attraction of Foreign Labour Force

Pursuant to the Law “On migration of the population”, foreign nationals who are employed in legal entities, SEZ members, which carry out projects amount more than one million monthly assessment index, as well as in business entities that have been contracted by such SEZ members (or their contractors) as a general contractor, contractor, subcontractor or service provider are exempt from lawful duties to abide foreign labor force quotas and obtain work permits for the whole period of construction and installation works in the SEZ area up to the expiry of one year after commissioning of the facilities

On the territory of the Republic of Kazakhstan there are 15 SEZs with different industry orientations.

SEZ "Astana - New City"

Created: June 29, 2001

Area: 15421.72 hectares, includes the territory of the Industrial Park No. 1 and the Administrative and Business Center of Astana.

Purposes of creation:

accelerated development of the city of Astana by attracting investments and using advanced technologies in construction, as well as creating modern infrastructure;
creation of highly efficient, including high-tech and competitive industries, mastering the release of new types of products.

Since the establishment of the SEZ, more than 187 billion tenge has been attracted to the territory, including more than 2,837.4 billion tenge for construction. The main products of the enterprises are: diesel locomotives, electric locomotives, passenger cars, military armored vehicles, electro-optical devices, gold refining, furniture products, building materials and equipment.

Tariff cost:

Water supply cubic meters 218.86 tenge;
Heat supply Gcal 4337 tenge;
Power supply kW 16.95 tenge;
Sewerage cubic meters / hour 227.48 tenge.

More details: www.technopolis.kz

SEZ "Astana - Technopolis"

Created: November 24, 2017

Area: 631.92 hectares, located in the city of Astana.

The implementation of projects by type of activity will be mainly carried out using projects for the scientific development of the Astana Business Campus park of the autonomous educational organization Nazarbayev University.

Purposes of creation:

innovative development of the city of Astana by attracting investments and using existing and attracted advanced technologies, know-how, creating modern infrastructure;
creation of highly efficient, including high-tech and competitive industries in the manufacturing industry;
accelerated development of new technologies, further improvement of the organizational, economic and social conditions for research, development of new technologies, assistance in their commercialization.

More details: www.technopolis.kz

SEZ "ICBC "Khorgos"

Created: October 6, 2017

Area: 608.56 hectares, is an integral part of the territory of the Republic of Kazakhstan, located on the territory of the Panfilov district of the Almaty region.

The SEZ is a special economic zone, the limits of which completely or partially coincide with sections of the customs border of the Eurasian Economic Union in accordance with the Customs Code of the Eurasian Economic Union. The activities of the SEZ are regulated by the Constitution of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan dated April 3, 2019 "On Special Economic and Industrial Zones", this Regulation and other regulatory legal acts of the Republic of Kazakhstan.

Tariff cost:

Water supply cubic meters 105.24 tenge;
Power supply kW 22.06 tenge.

Briefly about SEZ "ICBC "Khorgos"

More details: www.khorgos.kz

SEZ “Qyzyljar”

Created: October 11, 2019

Area: 197.3 hectares, located in the city of Petropavl.

Purposes of creation:

Accelerated development of the city of Petropavl;
Accelerated development of the region to enhance the entry of the republic's economy into the system of world economic relations, the creation of highly efficient, including high-tech and competitive industries, the development of the production of new types of products, attracting investments, improving the legal norms of market relations, introducing modern methods of management and management, as well as solutions social problems.

More details: www.sezqyzyljar.kz

SEZ "Jibek Joly"

Created: November 13, 2012

Area: 505 hectares, located on the territory of the Shu district of the Zhambyl region.

Purposes of creation: Formation of new production of chemical products based on highly efficient technologies. Activity

SEZ is regulated by the Constitution of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan dated July 21, 2011 "On Special Economic Zones in the Republic of Kazakhstan", this regulation and other regulatory legal acts of the Republic of Kazakhstan

Tariff cost:

Water supply services (technical water) tenge/m3 114 tenge;
Water supply services (drinking water) tenge/m3 171 tenge;
Water disposal services tenge/cubic meters 212.8 tenge;
Service for the transmission and distribution of electricity tenge / kWh 27 tenge;
Gas supply services tenge / m3 26.3 tenge.

More details: www.seztaraz.kz

SEZ "Saryarka"

Created: November 24, 2011

Area: 595.01 hectares, located on the territory of the city of Karaganda and adjacent lands of the Bukhar-Zhyrau district of the Karaganda region.

The territory of the SEZ includes the Industrial Park "Metallurgy-metalworking" with an area of 534.9 hectares and subzone No. 1 "Silicon Valley" with an area of 60.11 hectares.

Tariff cost:

Water supply services through distribution networks m3: 170.3 tenge;
Electricity transmission services kWh: 0.82 tenge;
Services for the provision of an access road for the passage of rolling stock in the absence of a competitive access road 1 wagon / km: 3610 tenge.