November 16, 2021
What you need to know about the SEZ: briefly about the conditions of participation and preferences
- Special economic zone, the procedure for inclusion in the register
- Industrial zone, the order of inclusion in the register
- Special industrial zone
- Special regime of the economic zone and special conditions for the functioning of special economic and industrial zones
In order to accelerate the development of sectors of the economy and regions of Kazakhstan, attract investment and create highly productive and competitive industries, as well as modern technologies, special economic zones, industrial zones, and special industrial zones have been created in Kazakhstan. The legislation of Kazakhstan provides for uniform requirements for domestic and foreign companies to obtain the status of a participant in the SEZ and receive tax and customs benefits.
The functioning and special legal regime of the SEZ is regulated by the following legislative acts:
1) Agreement on Free Warehouses and Free Warehouse Customs Procedure, ratified by the law of the Republic of Kazakhstan dated June 30, 2010 (hereinafter referred to as the CU Agreement).
2) Law of the Republic of Kazakhstan dated April 3, 2019 No. 242-VI “On special economic and industrial zones”
3) Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI “On taxes and other obligatory payments to the budget (Tax Code)”.
4) Code of the Republic of Kazakhstan dated December 26, 2017 No. 123-VI “On customs regulation in the Republic of Kazakhstan”.
1. Special economic zone, the procedure for inclusion in the register
A special economic zone is a part of the territory of the Republic of Kazakhstan with precisely defined borders, on which a special legal regime of a special economic zone operates for the implementation of priority activities (hereinafter – SEZ).
List of SEZs in Kazakhstan:
SEZ “Astana – a new city”
SEZ “Seaport Aktau”
SEZ “Park of Information Technologies”
SEZ “Ontustik”
SEZ “National Industrial Petrochemical Technopark”
SEZ “Burabay”
SEZ “Pavlodar”
SEZ “Saryarka”
SEZ “Khorgos – Eastern Gate”
SEZ “Chemical Park Taraz”
SEZ “Qyzyljar”
SEZ “MCBC” Khorgos “
SEZ “TURKISTAN”.
The activities of a participant in a special economic zone are carried out in accordance with an agreement on the implementation of activities, for the conclusion of which the applicant submits an application for carrying out activities as a participant in a special economic zone to the management company of a special economic zone, as well as documents according to the list. After the conclusion of the contract, the applicant is entered in the unified register and is recognized as a participant.
The management company of the special economic zone considers applications for carrying out activities as a participant in the special economic zone in accordance with the rules and criteria for the selection of projects.
2. Industrial zone, preferences for participants, the procedure for inclusion in the register
Industrial zone – a territory provided with an engineering and communication infrastructure provided to private entrepreneurs for the placement and operation of business facilities, including in the field of industry, agro-industrial complex, tourism industry, transport logistics, waste management, in the manner prescribed by the legislation of the Republic of Kazakhstan.
Industrial zones are subdivided into public and private.
State industrial zones are subdivided into the following types:
1) an industrial zone of republican significance;
2) an industrial zone of regional significance;
3) small industrial zone.
A private industrial zone is created by individuals or non-state legal entities at the expense of their own funds, private investments, loans.
The admission of participants to carry out activities on the territory of the industrial zone is carried out on the basis of agreements on the implementation of activities concluded between the management company of the industrial zone and the participants of the industrial zone. After the conclusion of the contract, the applicant is entered in the unified register and is recognized as a participant.
3. Special industrial zone
A special industrial zone is a kind of a private industrial zone, on the territory of which the direct application of international building codes and regulations, as well as international regional standards and standards of foreign states, created by individuals and (or) non-state legal entities, is allowed.
The activities of the management company of a special industrial zone must be carried out in accordance with international quality management system standards. The owner of a special industrial zone independently provides financing, construction, operation and maintenance of objects of internal engineering infrastructure (engineering communications) of a special industrial zone.
4. The special legal regime of the special economic zone and the conditions for the functioning of the special economic and industrial zones
According to the Tax Code of the Republic of Kazakhstan, SEZ participants are exempt from paying:
corporate income tax
property tax
land tax
payments for the right to use land plots, but not more than 10 years from the date of granting land plots
taxation of VAT at a zero rate of sale to the territory of the SEZ of goods completely consumed in the implementation of activities that meet the goals of creating such a SEZ, according to the list of goods determined by the Government of the Republic of Kazakhstan.
Taxation
Procedure for calculating VAT
Taxation of goods sold on the territory of a special economic zone (Article 389 of the Tax Code of the Republic of Kazakhstan).
The sale to the territory of the SEZ of goods that are completely consumed in the implementation of activities that meet the goals of creating special economic zones, according to the list of goods determined by the authorized state body, is subject to value added tax at a zero rate.
The aforementioned goods are understood as goods placed (placed) under the customs procedure of a free customs zone and under customs control.
According to Article 394 of the Tax Code of the Republic of Kazakhstan, turnovers on the sale of the following goods, works, services, the place of sale of which is the Republic of Kazakhstan, are exempt from value added tax:
– goods, works and services sold on the territory of a special economic zone, the boundaries of which fully or partially coincide with the sections of the customs border of the Eurasian Economic Union;
– goods produced and sold on the territory of the special economic zone “Astana – a new city”, subject to certain conditions.
– goods produced and sold in the implementation of priority activities on the territory of special economic zones, subject to certain conditions, such as the existence of a contract for the supply of goods, the availability of documents confirming the shipment of goods to a participant in a special economic zone, the availability of documents confirming the receipt of goods by a buyer who is a participant in a special economic zone.
According to paragraphs 15) clause 1 of Article 399 of the Tax Code of the Republic of Kazakhstan, the import of raw materials and (or) materials as part of vehicles and (or) agricultural machinery, as well as their components placed under the customs procedure of a free warehouse or a free customs zone is exempt from value added tax. economic zone “Qyzyljar” by a legal entity within the framework of a special investment contract concluded with an authorized body.
Procedure for calculating social tax
An organization operating on the territory of the special economic zone “Park of Innovative Technologies” shall reduce by 100 percent the amount of the calculated social tax payable to the budget on the employer’s expenses paid in the form of income to employees engaged in the implementation of priority activities, provided that such expenses for the tax period amount to at least 70 percent of the total accounting expenses of such an organization.
Procedure for calculating land tax
Organizations operating in the territories of special economic zones – for land plots located on the territory of a special economic zone and used in the implementation of priority activities, a coefficient of 0 is applied to the corresponding rates when calculating the land tax.
The procedure for calculating corporate income tax.
An organization operating on the territory of a special economic zone, when determining the amount of corporate income tax payable to the budget, reduces the amount of corporate income tax by 100 percent on income received from the sale of goods, works, services resulting from the implementation of priority activities.
Customs regulation
On the territory of a special economic zone or its part, the customs procedure of a free customs zone is in effect. The territory of the special economic zone is part of the customs territory of the Eurasian Economic Union. The customs procedure of the free customs zone is applied in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan.
According to clause 1 of Article 201 of the EEC Customs Code, the customs procedure of a free customs zone is a customs procedure applied to foreign goods and goods of the Union, in accordance with which such goods are placed and used within the territory of the FEZ or part of it without paying customs duties and taxes , special, anti-dumping, countervailing duties, subject to the conditions for placing goods under this customs procedure and their use in accordance with such customs procedure.
Attraction of labor for work on the territory of a special economic or industrial zone
Norms on quotas for foreign labor and the issuance of permits for employers to attract foreign labor, according to the Law of the Republic of Kazakhstan dated April 6, 2016 “On employment of the population” does not apply to foreigners and stateless persons working in legal entities that are members of special economic zones, with projects worth more than one million monthly calculation indices, as well as in organizations involved by the specified participants in special economic zones during the period of construction and installation work on the territory of special economic zones and before the expiration of one year after the commissioning of the facility (facilities) in accordance with the list of categories and numbers determined by the commission from representatives of the authorized body on issues employment of the population.
