Legislation Alert - February 2016

Main amendments to the legislation

  1. Regarding the simplification of procedures for legalization of property

    On November 13, 2015 the President of the Republic of Kazakhstan (further - the "RoK") signed Law №400-V "On amendments and additions to certain legislative acts on the amnesty of citizens of Kazakhstan, oralmans and individuals with a residence permit in the RoK in connection with the legalization of the property" (further - the "Law").

    According to the Law, the deadline for legalization of funds and property was extended until December 31, 2016. The Law entered into force on November 30, 2015.

    Further, the Law simplifies legalization of funds by offering two options:

    Option 1 - in accordance with article 8 of the Law, individuals would report funds in national or foreign currency transferred to bank accounts opened by the National postal operator in second-tier banks of the RoK at the individual's requests. These funds would not be subject to the 10% charge; Option 2 - an individual can report funds located abroad without transferring them to a Kazakh second-tier bank, but in this case the 10% charge will apply. It should be noted that in both cases individuals must lodge to the State Revenue Committee a special declaration in the form approved by Order of Ministry of Finance of the RoK №593 dated November 27, 2015 (in force since January 2, 2016).

  2. Regarding introduction of floating rate of export custom duty (further-"ECD")

    On February 17, 2016 the Order of the Ministry of National Economics of the RoK №81 "On the approval of the list of goods to which export custom duties, rates, its duration and size are applied and Rules for the calculation of export customs duties on crude oil and oil products" (further - the "Order") was officially signed and published.

    In order to support mining and oil and gas industries, starting from March 1, 2016 it is planned to introduce minerals extraction tax preferences along with the introduction of a floating export customs duty (further - "ECD") rate on crude oil which will depend on the market prices.

    In case world prices for oil are lower than 25 US dollars per barrel, then the ECD rate would be equal to 0.

    If world prices for oil are higher than 25 US dollars per barrel, then the ECD rate would be determined in accordance with the scale established in the Order.

    In other words, with the increase of global oil prices, the ECD rate will rise too.

    Additionally, ECD rate on fuel oil was reduced...

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