The Republic of Kazakhstan, having vast reserves of natural resources and being located at the intersection of Europe and Asia, competes for investments in the region. As such, and as laid out in this article, the government consistently makes efforts to improve the investment climate.
Kazakhstan is a civil law jurisdiction. There is a constitution and other laws, including the Entrepreneurial Code, Civil Code, Tax Code, Customs Code, and laws governing different types of companies. Kazakhstan is a party to key international agreements supporting investments, such as the 1958 New York Convention (Convention on the Recognition and Enforcement of Foreign Arbitral Awards) and bilateral investment treaties signed with various countries.
The current tax rates are as follows:
Exemptions, reductions, and carve-outs are available depending on the industry/project.
Note that Kazakhstan is currently developing a new tax code, which is expected to enter into force January 1, 2026.
Investments in Kazakhstan are defined as all types of assets contributed to a company’s charter capital or increase in a company’s fixed assets (as well as the implementation of a public-private partnership project).
Investors are provided with various rights and guarantees by the state, including asset protection, noninterference, and free use of income (exceptions apply).
Furthermore, investors may be eligible for certain government-related incentives, such as exemptions from corporate income tax and the provision of property in-kind.
Key Investment Regulations
Investment issues in Kazakhstan are primarily governed by the Entrepreneurial Code and the Tax Code.
For further details, (1) Annex A contains a summary of investment regimes and (2) Annex B contains a summary of issues that should be taken into consideration in relation to the implementation of investment projects.
AIFC
The Astana International Financial Centre (AIFC) is a distinct territory within Kazakhstan’s capital city of Astana with its own law, court, stock exchange, and other infrastructure aimed at creating an international financial center.
AIFC provides carve-outs in different areas of the law, such as taxation (e.g., no dividend tax), currency control, and migration.
The key law governing AIFC is the Constitutional Law on International Financial Centre Astana, dated December 7, 2015.
The International Technological Park ‘Astana Hub’
An investor willing to engage in software development and the implementation of IT systems may opt to become a participant of the International Technological Park Astana Hub. This platform provides for certain incentives such as tax and migration.
The key law governing Astana Hub is the Law on Informatization, dated November 24, 2015.
Special Economic Zones
Special economic zones (SEZs) represent territories within Kazakhstan with a special legal regime related to tax, customs, migration, and other matters. There are currently 15 SEZs in Kazakhstan, each with its own profile (e.g., technology, construction, industry).
The main law addressing SEZs in Kazakhstan is the Law on Special Economic and Industrial Zones, dated April 3, 2019.
International Agreements
There is a practice of concluding international agreements dedicated to specific projects/industries, such as the Abu Dhabi Plaza agreement between Kazakhstan and the United Arab Emirates, an agreement on the establishment of a long-term strategic partnership for the development of projects in priority industries between Kazakhstan and Qatar and others.
For more information please refer to Annex C, which summarizes certain specific projects/regimes covered by international agreements.
Other Investment-Specific Regimes
There are many other regimes or specific provisions applicable to investments in different industries, such as agriculture, complex offshore projects (subsoil use), and education, among others. Please see Annex A for more details.
Industries to Watch
The Kazakhstan government puts an emphasis on certain industries, such as agriculture, renewable energy (e.g., wind and solar), and information technology/digital solutions. This focus may lead to the development of related infrastructure, including battery storage and server/data centers. Additionally, the legal system and related investment regimes are expected to evolve in response to new realities.
Challenges and Outlook
While Kazakhstan has made significant improvements in the investment climate in recent years, there are still challenges faced by investors, including the following:
It is difficult to make predictions, especially in the current international environment, but it appears that Kazakhstan will continue the trend of aligning its laws with international standards, such as those set by the OECD, while providing digital solutions and increased transparency for investors.
See Annex A for a summary of investment regimes >>
See Annex B on issues to consider when implementing investment projects >>
See Annex C on specific projects/regimes covered by international agreements >>