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Business Environment

Business Practices | Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards

Business Practices

General information
Bisnis, The Business Information Services for Newly Independent States
Chamber of Commerce and Industry of Astana city
Chamber of Commerce and Industry of Kazakhstan
Opening hours and days
The public agencies and most of the companies and banks are open from 0900 hrs or 1000 hrs to 1700 hrs or 1800 hrs with one hour lunch break between 1200 hrs and 1500 hrs for banks and between 1200 hrs and 1400 hrs for administrations. Some offices are open only in the morning.

Food stores and bakeries are open everyday (including Sundays) from 0900 to 2000h with a break at noon. Supermarkets are open 24 /24 hrs and 7/7 days.

 

Public holidays

New year 1 and 2 January
Women's day 8 March
Naouruz (Festival marking beginning of spring) 22 March
Solidarity day among Kazakh people 1 May
Victory of 1945 9 May
Constitution day 30 August
Republic day 25 October
Independence day 16 December
 
 

Periods when companies usually close

 

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Accounting Rules

Tax year
The financial year starts from 1st January and ends on 31st December of the same year.
Accounting standards
They can be consulted on the address , as well as on the website of Ministry of Finance.
Accounting regulation bodies
Ministry of Finance
Accounting reports
The accounting balance sheet is presented with shareholder capital and debts as liability, the latter will be broken down into long term and short term debts.
The income statement gives the priority to the referential of total production and classification of expenses per function.
(Russian model).
Publication requirements
The law pertaining to companies in the Republic of Kazakhstan encourages companies to post up the operational accounts. The accounts should be established in national currency according to the new Russian accounting plan introduced in January 1992. Accounting should be held as per the standards in force but the companies do not have any obligations for the annual reports, except for financial reports.
Professional accountancy bodies
Ministry of Finance gives a list of audit bodies
Certification and auditing
There is no formal obligation for the audit, except for registration of daily activity. However, the rights, obligations and qualifications of auditors tend to be more and more specific and subjected to laws and regulations .
Accounting news
Website of the Ministry of Finance
Information portal on accounting sector

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Tax Rates

Consumption taxes

Nature of the tax
Value added tax.
Tax rate
12%
Reduced tax rate
There are VAT exemptions, particularly for medical products.
Other consumption taxes

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Corporate taxes

Company tax
20%
Capital gains taxation
Capital gains are treated as normal income and taxed at the standard corporate tax rate of 20%.
Main allowable deductions and tax credit
Tax benefits are granted to companies carrying out their activities in the 4 special economic zones: Astana city, Information Technology park, Aktau sea port and Ontustyk. These benefits concern income tax and can consist of a tax exemption on land and property.

 

There are tax benefits also for petrochemical industry, companies producing and selling very high value added products as well as for those who have signed investment contracts with the government.

Other corporate taxes
Taxes on export of certain products (hides and skins, certain oil products,...) taxes on import of some products.

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Individual taxes

Tax rate

Individual income is taxed at a flat rate 10%
Allowable deductions and tax credit
Visit the government website .
Special expatriate tax regime
A non-resident having a trading activity in Kazakshtan is liable to pay income tax on Kazakh at source after deduction at a rate of 30%.

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Double taxation treaties

Countries with whom a double taxation treaty have been signed
List of countries having a Double Taxation Agreement with Kazakhstan.
Whithholding taxes
Dividends: 15%, Interest: 15%, Royalties: 20%

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Sources of fiscal information

Tax Authorities
Customs
Tax Committee
Information portal on taxes
Other domestic resources
Ministry of Finance

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Intellectual Property

National organizations
In the area of intellectual property, Kazakhstan adheres to the following international agreements: the Convention instituting World Intellectual Property Organisation, the Paris Convention for protection of industrial property, the Madrid Agreement concerning the international registration of trademarks, the Patent Cooperation Treaty (PCT) and the Eurasian Convention on patents. The last three agreements enable to obtain the protection for trademarks or patents in Kazakhstan by registration of requests in Paris or in Geneva.

Kazakhstan has a National Institute of Intellectual Property and a Committee on Intellectual Property Rights which can be consulted in English.

Regional organizations
Kazakhstan is member of Euroasian Patent Organisation.
 

National regulation and international agreements

 
Type of property and law Validity International agreements signed
Patent
 
Patent Law of 1999
Patents: 20 years, renewable over a period not exceeding 5 years
Trademark
 
Law on trademarks and services and on origin manes, No456-I LRK dated 26 July 1999
10 years, renewable for consecutive periods of 10 years Trademark law treaty
Nice agreement
Protocol relating to the Madrid Agreement
Design
 
Patent Law, No. 428-I LRK dated 16 July 1999
10 years, renewable over a period not exceeding 5 years  
Copyright
 
Industrial Models
 
 

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Legal Framework

Independence of justice
The Constitution of Kazakhstan restricts the independent power of the judiciary significantly, which is subordinate to the executive.
Equal treatment of nationals and foreigners
Foreign nationals are not guaranteed the benefit of an impartial process regarding legal issues.
The language of justice
Two legal languages are used in the country: Kazakh and Russian.
Recourse to an interpreter
Sources of the law and legal similarities
The main source of the law is the new Constitution, adopted during the national referendum held in August 1995. The judicial system of the country is based on a system of civil law. The Constitution is available on-line on the Parliament website .
Checking national laws online
Website of the Parliament

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Standards

National standards organizations
Kazakh Institute of Standardisation and Certification (part of Committee for Technical Regulation and Metrology)
Comittee for Technical Regulation and Metrology (KAZMEMST)
Kazakh Institute of Metrology (part of Committee for Technical Regulation and Metrology)
National Centre of Accreditation
Integration in the international standards network
KAZMEMST is a member of:

- International Organisation of Standardisation ;

- International Association for Standardisation.

Le National Centre of Accreditation is associated with ILAC.

Classification of standards
Since 1992, certain Member-states of CIS have enacted laws aimed at protecting the consumers and the environment. Due to this, imported goods are also subject to a system of certification, which corresponds to the technical requirements. All suppliers from Kazakhstan should therefore follow these rules to market their goods. A large number of machines, equipment and scientific products should be certified. Nearly all the food products are subject to certification. If the product is already certified as per International standards, the procedure for certification is therefore faster.
Concerning labeling, the country of origin should be specified, sometimes the batch number, expiry date and shelf life. The information can be mentioned in Kazakh, Russian, English and in German: Importer's indications should be followed.
Online consultation of standards
see website of Kazmemst
Certification organizations
The website of KAZMEMST gives a list of 6 certification organizations.

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Last updates: November 2009