www.pwc.kz Doing Business Guide Kazakhstan December 2014 PRICEWATERHOUSECOOPERS IN KAZAKHSTAN www.pwc.kz Almaty Office: Astana Office: PwC PwC 34 Al-Farabi Ave. 6 Saryarka street Building A, Business Center “Arman” 4th Floor 16th floor Almaty, 050059, Astana 010000 Republic of Kazakhstan Republic of Kazakhstan Main office number Main office number Tel: +7 (727) 330 3200 Tel: +7 (717) 255 0707 APPENDICES Please see Appendices A through C for key facts and tax and legal information. Doing Business Guide November 2014 TABLE OF CONTENTS 1 KAZAKHSTAN – A PROFILE .............................................................................. 5 1.1 Government Structure ....................................................................................................... 5 Politics ................................................................................................................................... 5 The President ........................................................................................................................ 5 National Government ......................................................................................................... 6 Local Government ............................................................................................................... 7 The Parliament ..................................................................................................................... 7 Courts ..................................................................................................................................... 8 Supreme Court ..................................................................................................................... 8 Local Courts .......................................................................................................................... 8 Constitutional Council ........................................................................................................ 9 1.2 Legal System ....................................................................................................................... 9 Legislative Framework ....................................................................................................... 9 Hierarchy of normative legal acts .................................................................................. 10 International Agreements ................................................................................................ 11 1.3 People ................................................................................................................................. 12 Population ........................................................................................................................... 12 Language ............................................................................................................................ 12 1.4 Economy ............................................................................................................................ 12 General Overview .............................................................................................................. 12 Transportation ................................................................................................................... 13 1.5 Foreign Trade .................................................................................................................... 14 2 BUSINESS ENTITIES ......................................................................................... 15 2.1 Legal Framework .............................................................................................................. 15 2.2 Limited Liability Partnerships ....................................................................................... 15 2.3 Joint Stock Company ...................................................................................................... 15 2.4 Branches and Representative Offices ........................................................................... 16 2.6 Registration Process ........................................................................................................ 17 3 FOREIGN INVESTMENT ................................................................................... 17 3.1 General Overview ............................................................................................................. 17 3.2 Special Economic Zones ................................................................................................. 19 4 FOREIGN CURRENCY MARKET AND FOREIGN CURRENCY RULES ...... 21 5 BANKING AND FINANCE ................................................................................. 22 5.1 Banking System ................................................................................................................ 22 5.2 Capital Markets ................................................................................................................ 22 6 LABOUR RELATIONS ....................................................................................... 24 6.1 Labor Relations ................................................................................................................ 24 6.2 Working Conditions ........................................................................................................ 24 6.3 Social Security System .................................................................................................... 25 Doing Business Guide December 2014 6.4 Foreign Personnel ............................................................................................................ 25 6.5 Secondment and corporate transfer.............................................................................. 25 7 OIL AND GAS, MINING ..................................................................................... 26 7.1 Legal Regime ..................................................................................................................... 26 7.2 Subsurface Use Contracts ............................................................................................... 26 7.3 Transfer Restrictions ....................................................................................................... 27 7.4 Participation of the State ................................................................................................ 27 7.5 Local Content .................................................................................................................... 28 7.6 Procurement Requirements ........................................................................................... 28 8 REAL ESTATE AND AGRICULTURE ............................................................... 29 8.1 Immovable property ........................................................................................................ 29 8.2 Ownership restrictions in respect of agricultural land plots ..................................... 29 9 OTHER REGULATORY MATTERS .................................................................. 30 9.1 Antitrust Regulation ........................................................................................................ 30 9.2 Consents ............................................................................................................................ 31 Strategic assets .................................................................................................................. 31 Telecommunications ......................................................................................................... 31 9.3 Intellectual Property ....................................................................................................... 31 9.4 Consumer Protection ...................................................................................................... 32 10 IMPORTING AND EXPORTING ..................................................................... 33 10.1 Trends in Customs Policy .............................................................................................. 33 10.2 Import Restrictions ....................................................................................................... 33 10.3 Customs Duties .............................................................................................................. 34 10.4 Temporary Import Relief .............................................................................................. 36 10.5 Import VAT Incentives .................................................................................................. 36 10.6 Documentation and Procedures .................................................................................. 37 10.7 Warehousing and Storage ............................................................................................. 38 10.8 Re-Exports ...................................................................................................................... 38 11 ACCOUNTING AND AUDITING REQUIREMENTS ...................................... 39 11.1 Accounting ....................................................................................................................... 39 11.2 Audit Requirements ....................................................................................................... 41 12 TAX SYSTEM AND ADMINISTRATION ........................................................ 42 12.1 Tax System ......................................................................................................................