Legislative News. September-October 2016

This Client Update covers the key amendments to the laws of the Republic of Kazakhstan ("RK") and various legal developments introduced in September and October 2016.

NOVELTIES IN LEGISLATION

The laws covered by the present Client Update relate to both public and private sectors. Some of them may be of interest to you as they may affect your business activity in Kazakhstan. We would like to draw your attention to the following legal acts.

LAWS

Payments And Payment Systems

On 26 July 2016, the President of the RK signed the Law No. 12-VІ "On Amendments To Certain Legislative Acts On Payments And Payment Systems" ("the Law").

The Law provides for the following amendments and novelties to the Civil Code of the RK:

Any funds of citizens and legal entities, available in bank accounts can be arrested pursuant to court rulings and by judicial enforcement agents pursuant to court award enforcement acts; No arrest is allowed for money in the bank account designated for social benefits and welfare. The Law provides for the following amendments and novelties in the Tax Code of the RK:

Taxpayers must: notify tax authorities of receiving money and/or other property; submit to tax authorities data on receipt and disposal of money and/or other property from foreign states, international and foreign organizations, foreigners, stateless persons in the amount exceeding 5% of total amount of outbound wire payments of the bank and the taxpayer in case of rendering legal assistance. This requirement does not apply to: government agencies/institutions; public servants; second-tier banks, insurance companies; major taxpayers approved by the Government of the RK; educational organizations; persons engaged in advocacy or notarial services, activities of private bailiffs, mediators, arbitrators, appraisers, auditors; diplomatic and consular representative offices of foreign states; money and/or other property obtained as profit under cross-border trade contracts; money and/or other property obtained for organization and implementation of international transport services and international postal services; money and/or other property obtained under investment agreements concluded in accordance with the laws of the RK; dividends, fees, winnings, for which personal income tax has previously withheld; and other cases. DECREES

E-Money Issuance, Disposal and Repayment Rules

On 31 August 2016, the Chairman of the National Bank of the RK signed the Decree of the Management...