At the beginning of this year, a number of codes and laws were amended due to the introduction of a new investor support instrument: the Investment Agreement.

The investment agreement is concluded for implementation of investment projects in priority sectors of the economy that provide investments of not less than 7.5 million MCI (~ US$ 51.8 million).

The list of priority activities approved by the government for the investment agreement includes activities in such sectors as agriculture, pharmaceuticals and production of agricultural goods. It is worth noting that the government plans to expand this list. In particular, according to the Ministry of National Economy, the following is planned to be included in the list: "manufacturing industry, the agro-industrial complex, mechanical engineering, food and other industries for the production of end products and deep processing".

The investment agreement has a number of additional benefits compared to other investment contracts (depending on applicable conditions):

• no template form for the investment agreement;
• the agreement can be concluded not only by Kazakhstan companies, but also by foreign companies and legal entities registered at the Astana International Financial Center;
• tax preferences for a longer period;
• exemption from VAT;
• compensation by the state of up to 20% of the costs of construction and installation works and purchase of equipment;
• possibility to sell products to the government through public procurements by way of ‘single-source’ (i.e. by directly concluding public procurement agreements with the government).

According to the information on the prime minister’s official website, the government is working on a new set of urgent investment stimulation measures and further legislative amendments are to be expected. We will continue to monitor all changes in the investment legislation and keep you informed of the most significant news in this sphere.

We would be happy to help if you have any questions.