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Amnesty Associated with Property Legalisation Tax and Legal Alert / Issue No. 7 / July 2014 Property legalization p. 1 / International agreements p. 1/ Restructuring of the Government of Kazakhstan p. 2 Amnesty associated with Property Legalisation Issues covered include a property amnesty, measures related to exchange of information associated with tax evasion, and restructuring of the government Amnesty law Protocol to the Kazakhstan and A law on amnesty for Kazakh citizens and Singapore DTT those holding a residence permit, regulating The Protocol amends the exchange of property legalization has been signed. The information on tax matters related to legalization starts on 1 September 2014 and preventing tax evasion. It was signed on 30 ends on 31 December 2015. June 2014 and is expected to come into force 2 The law provides an exemption from criminal after certain conditions are met. and administrative liability, and disciplinary responsibility for failing to submit appropriate declarations and information. 1 www.pwc.kz Memorandum of Understanding and Cooperation between Kazakhstan and Switzerland This memorandum establishes direct interaction between the countries particularly in customs affairs, tax transparency, treasury issues, and state procurement. It was signed on 9 July 2014. In addition, the provisions on the avoidance of double taxation have been extended. 3 Restructuring of Government A Presidential decree has reorganized various Ministries, in particular the Ministry of Finance (transferring functions and powers in budget planning from the Ministry of Economy and Budget Planning). Certain functions were also transferred to the Ministries of Internal Affairs and Agriculture. The decree created other ministries including: National Economy that assumes some functions and powers of the: Ministry of Economy and Budget Planning; Ministry of Regional Development; Ministry of Emergency Situations; Agency of Statistics; Agency for Regulation of the Natural Monopolies; Agency for Competition Protection (Antimonopoly agency); Agency for Consumer Rights Protection. Energy that assumes some functions and powers of the: Ministry of Oil and Gas; Ministry of Industry and New Technologies; Ministry of Environment and Water Resources. Culture and Sport; Investment and Development; Health and Social Development that assumes some functions and powers of the: Ministry of Public Health; Ministry of Labor and Social Protection. Various ministries and agencies were abolished. In terms of the decree the Prime Minister has two deputies. The amendments to the President’s decree “On the structure of the Government of the Republic of Kazakhstan” establish the following structure: Chancellery of the Prime-Minister of the Republic of Kazakhstan; Ministry of Internal Affairs; Ministry of Foreign Affairs; Ministry of Culture and Sport; Ministry of National Economy; Ministry of Defence; Ministry of Investment and Development; 2 PwC Ministry of Education and Science; Ministry of Health and Social Development; Ministry of Agriculture; Ministry of Finance; Ministry of Energy; Ministry of Justice. The changes took effect on 6 August 2014.4 New appointments A Presidential decree made the following appointments: Aset Issekeshev - Investment and Development Minister; Bakhyt Sultanov - Finance Minister; Yerbolat Dossaev - Minister of National Economy; Vladimir Shkolnik - Minister of Energy; Tamara Duysenova - Minister of Health and Social Development; Arystanbek Muhamediuly - Minister of Culture and Sport. Kairat Kozhamzharov - Chairman of the Agency for Civil Service Affairs and Anti-Corruption. The appointments took effect on 6 August 2014.5 3 PwC References 1. The Law of the Republic of Kazakhstan #213-V dated 30 June 2014 “On amnesty of citizens of the Republic of Kazakhstan, repatriates and persons holding a residence permit in the Republic of Kazakhstan due to legalization of their property” The Law of the Republic of Kazakhstan #214-V dated 30 June 2014 “On amendments to some legislative acts of the Republic of Kazakhstan concerning amnesty of citizens of the Republic of Kazakhstan, repatriates and persons holding a residence permit in the Republic of Kazakhstan due to legalization of their property”. 2. The Law of the Republic of Kazakhstan #216-V dated 30 June 2014 “On ratification of the Protocol between the Government of the Republic of Kazakhstan and the Government of Singapore on changes and amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of Singapore on avoidance of double taxation and fiscal evasion prevention with respect to taxes on income”. 3. http://www.primeminister.kz/news/show/21/glavy-finansovyh-vedomstv- kazahstana-i-shvejtsarii-podpisali-memorandum-o-vzaimoponimanii-i- sotrudnichestve/09-07-2014 . 4. Decree №875 dated 6 August 2014 “On the reform of the public administration of the Republic of Kazakhstan” 5. Decree №876 dated 6 August 2014 “On appointment of A.O. Issekeshev as Minister for Investment and Development of the Republic of Kazakhstan” Decree №877 dated 6 August 2014 “On appointment of B.T. Sultanov as Minister of Finance of the Republic of Kazakhstan” Decree №880 dated 6 August 2014 “On appointment of Y. A. Dossayev as Minister of National Economy of the Republic of Kazakhstan” Decree №881 dated 6 August 2014 “On appointment of V.S. Shkolnik as Minister of Energy of the Republic of Kazakhstan” Decree №878 dated 6 August 2014 “On appointment of T. B. Duysenova as Minister of Health and Social Development of the Republic of Kazakhstan” Decree №879 dated 6 August 2014 “On appointment of A. Muhamediuly as Minister of Culture and Sports of the Republic of Kazakhstan” Decree №886 dated 6 August 2014 “On appointment of K.P. Kozhamzharov as Chairman of Kazakhstan Agency for Civil Service Affairs and Anti-Corruption” 4 PwC Let’s talk For a deeper discussion of how this issue might affect your business, please contact: Tax and Legal Services Michael Ahern, Partner Elena Kaeva, Partner [email protected] [email protected] Timur Zhursunov, Partner Richard Bregonje, Partner [email protected] [email protected] Walter Daniel, Director Omon Tursunov, Director [email protected] [email protected] PwC Kazakhstan 34 Al-Farabi Ave. 6 Sary-Arka Street Building A, 4th floor Business Centre “Arman”, 16th floor Almaty, Kazakhstan, 050059 Astana, Kazakhstan, 010000 Tel : +7 (727) 330-3200 T: +7 (7172) 55-07-07 Fax : +7 (727) 244-6868 F: +7 (7172) 55-07-08 www.pwc.kz www.pwc. kz 5 PwC © 2014 PwC. All rights reserved. Not for further distribution without the permission of PwC. "PwC" refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind another member firm or PwCIL in any way. This and all other Tax and Legal Alerts have been prepared by PricewaterhouseCoopers Tax & Advisory LLP, a Kazakhstan limited liability partnership. Each Tax and Legal Alert is effective as of its given date and not any other date. Each Tax and Legal Alert has been prepared for general information on matters of interest only and does not constitute professional advice. You should not act upon the information contained in any Tax and Legal Alert without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in any Tax and Legal Alert and, to the maximum extent permitted by law, PwC (as defined above), PwCIL (as defined above), PricewaterhouseCoopers Tax & Advisory LLP and all of their respective members, partners, employees, representatives and agents (collectively, the “PwC Parties”) do not accept or assume any liability, responsibility, obligation or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this or any other Tax and Legal Alert or for any decision based thereon. The PwC Parties do not accept or assume any liability, responsibility, obligation or duty of care to update this or any other Tax and Legal Alert or provide any information on changes or events occurring after the date of this or any other Tax and Legal Alert. .
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