State In-Kind Grants

State In-Kind Grants

State in-kind grants is the state support instrument for investment activity granted to investors engaged in investment project and investment priority projects.

In order to get the state in-kind grants the investors should obtain and file a prior formal approval of a local executive body(akimat) along with an application for signing investment contract. Thereby, prior to applying for the state in-kind grants, the investors must precisely know the regional area where the investment project will be developed and total amount of investments for the projects, as the state in-kind grant is maxium 30% of investments volume.

1. State in-kind grants shall mean the assets, the property of the Republic of Kazakhstan, which are  granted for temporary free use on the right of temporary free land use to a legal entity of the Republic of Kazakhstan engaged in investment project and subsequently can be delivered into possession of investor.

2. Pursuant to the laws, an authorised investment state agency (Investments Committee of the Ministry for Investments and Development) provides  the state in-kind grants based on the approvals of the authorised agency for state property management and (or) the agency for the land resources management and local executive bodies. The state in-kind grants are provided for the temporary free use based on the right of temporary free land use and subsequently transferred into the private ownership of the land user given that all conditions of the investment contract are fulfilled.

3. Subject to complete fulfillment of investment obligations by the investor under the investment contract between the investor and the authorized investment body delivery of granted state in-kind grant into possession of investor is based on decision of the authorized investment body to be adopted after expiry of an investment contract.

4. Land plots, buildings, structures, machinery and equipment, computers, measuring and control devices and devices, vehicles (excluding motor vehicles), production and household equipment can be granted as state in-kind grant.

5. The state in-kind grants shall be evaluated at market value in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

6. The size of a state in-kind grant is maximum 30% of investment amount in the fixed assets of a Kazakhstani legal entity.  

7. When the estimated cost of the requested state in-kind grant exceeds the established maximum, the Kazakhstani legal entity may receive the requested grant by reimbursing the difference between the estimated actual value and the maximum amount (30%) of the grant.

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