Legislative News. November-December 2016, January 2017

This Client Update covers the key amendments to the laws of the Republic of Kazakhstan ("RK") and various legal developments introduced in November and December 2016, and January 2017.

NOVELTIES IN LEGISLATION

The laws covered by the present Client Update are related to both public and private sectors. Some of them may be of interest to you as they may affect your business in Kazakhstan.

We would like to draw your attention to the following legal acts.

LAWS

Tax Residence Confirming Documents

On 14 November 2016, the President of the RK signed the Law1 ratifying the Agreement relating to mutual recognition of the official documents confirming the residence of the RK and of the Russian Federation and issued as part of the Convention on elimination of double taxation and prevention of income and capital gain tax evasion ("Agreement").

The Agreement sets forth the following:

Documents issued and officially sealed by the competent authority of one contracting state must be recognized in the other contracting state without any special certification, including apostille or consular legalization; Official documents in one contracting state must have the same legal force in the other contracting state. The Agreement applies to all official documents issued by government authorities of both contracting states as from 1 January 2011.

The Agreement came into force on 29 November 2016.

Republican Budget

On 29 November 2016, the President of the RK signed the Law No.25-VI "On Republican Budget for 2017-2019".

The Law sets out the following rates:

Minimum wage rate - KZT 24,459; Basic state pension - KZT 12,802; Minimum pension - KZT 28,148; Monthly calculation index for calculation of allowances, other social payments, fines, taxes and other payments in accordance with Kazakhstan laws - KZT 2,269; Living minimum wage for calculation of basic social payments - KZT 24,459. The Law also outlines that as of 1 January 2017 age retirement and long service pension payments have been increased for up to 9%.

The Law came into force on 1 January 2017.

DECREES

E-banking Services

On 31 August 2016, the Chairman of the National Bank of the RK signed the Decree of the Management Board of the National Bank of the RK No. 202 "On Approval of the Rules for Rendering E-banking Services by Banks and Organizations Performing Certain Types of Banking Transactions".

The Decree now enables individuals to receive electronic payment and information banking services by means of...