Investment preferences are granted only to Kazakh legal entities that plan to implement investment projects in priority activities according to the list of priority activities established by the Government of the Republic of Kazakhstan. The list of priority activities consists of two parts: part 1-list of activities for investment projects; part 2-list of activities for investment priority projects. Extensive conditions for granting preferences are provided only for investment priority projects, while for investment projects the main and only condition is the status of a legal entity of the Republic of Kazakhstan with the recipient, and in a special investment project, recipients can only be participants in special economic zones, owners of free warehouses and legal entities that have concluded an agreement on the industrial Assembly of motor vehicles.
Investment preferences for an investment priority project are granted subject to the following conditions:
1) the recipient is a legal entity of the Republic of Kazakhstan;
2) a legal entity makes investments in the amount of at least two million times (for the creation of new production facilities) or five million times (for the expansion and (or) renewal of existing production facilities) of the monthly calculation index established by the law on the Republican budget and effective on the date of filing an application for investment preferences;
3) a legal entity carries out activities included in the list of priority activities defined for the implementation of investment priority projects;
4) a legal entity is not:
an Autonomous educational organization in accordance with the tax legislation of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on education;
an organization that operates on the territory of a special economic zone in accordance with the tax legislation of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on special economic zones;
5) the share of the state and (or) a quasi-public sector entity - a legal entity of the Republic of Kazakhstan as a founder and (or) participant (shareholder) of a legal entity of the Republic of Kazakhstan does not exceed twenty-six percent.
Participation of the state and (or) a quasi-public sector entity - a legal entity of the Republic of Kazakhstan as a founder and (or) participant (shareholder) of a legal entity of the Republic of Kazakhstan is not more than five years from the date of registration of the investment contract. Within five years, the state and (or) a quasi-public sector entity must withdraw from the founders and (or) participants (shareholders) of a legal entity of the Republic of Kazakhstan. If this condition is not met, the application of investment preferences shall be suspended until its (their) full withdrawal from the founders and (or) participants (shareholders) of the legal entity of the Republic of Kazakhstan, but not for more than one year.
Failure to comply with the condition of withdrawal from the founders and (or) participants (shareholders) of a legal entity of the Republic of Kazakhstan during the suspension period entails early termination of the investment contract and the return of previously granted investment preferences.
The provisions of this subparagraph shall not apply if a quasi-public sector entity, in which the share of the state and (or) a quasi-public sector entity as a founder and (or) participant (shareholder) of a legal entity of the Republic of Kazakhstan is less than fifty percent, carries out its activities within the framework of the implementation of an investment priority project for the extraction of coalbed methane;
6) for the implementation of an investment priority project, budget funds are not attracted as sources or guarantees of financing, with the exception of money allocated on the terms of repayment, urgency and payment, including leasing financing and lending;
7) investment activities are not carried out within the framework of a public-private partnership agreement, including a concession agreement.
