Transcript Document
National Export and Investment Agency Gaukhar Zainullina Regional Director Country overview Political status: Republic Area of land: 2.7 mln. sq. km Capital city: Astana Population: 16,5 million Key Economy Information, 2009 • GDP/GDP per capita: USD 134 bln/USD 8,547 • Industry Production: 85 bln. USD • Trade turnover: 109 bln. USD • Export: 71.2 bln. USD • Import: 37.9 bln. USD Main religions: Islam, Russian Orthodox Main languages • Kazakh (state language) • Russian (official/business language) Key ethnic groups • Kazakh: 65% • Russian: 25% • Ukrainian: 2.9% • Uzbek: 2.8% • German: 1.5% • Korean:0.7% Currency: Tenge (KZT, USD 1 = ~ KZT 150) Source: KazStat 2 Preferable Geographic Location: Gateway between Europe and Asia Location features • Strategic location between European and Asian business centers Russia Gate to Russian and European market • Main transit area in region Europe Kazakhstan China Middle East India Gate to China, India and South-East Asia • Surrounded by attractive markets – China and Russia • 3 out of 4 Eurasian rail corridors go through Kazakhstan Stable Macroeconomic Environment GDP per capita, USD Kazakhstan's GDP, USD billion 9,000 160 132.5 140 134 104.9 100 40 2008 2009 6,772 6,000 5,292 5,000 81 80 3,771 4,000 57.1 60 8,547 8,000 7,000 120 8,452 3,000 43.2 30.8 2,874 2,068 2,000 20 1,000 0 0 2003 2004 2005 2006 2007 2008 2003 2009 0 Kyrgyz… Tajikistan Moldova Armenia Turkmenistan Uzbekistan Azerbaijan Belarus Kazakhstan Ukraine Russia 4 5 6 10 19 30 50 60 134 153 1480 500 1000 2005 2006 2007 GDP per capita, 2009, USD GDP, 2009, USD billion Kyrgyz… Tajikistan Moldova Armenia Turkmenistan Uzbekistan Azerbaijan Belarus Kazakhstan Ukraine Russia 2004 1500 2000 0 951 795 1809 2800 4078 1100 5814 6234 8547 2797 10873 2000 4000 6000 8000 10000 12000 4 Source: KazStat Inward FDI Performance Investor Protection Country Strength of investor protection index (0-10) New Zealand 9.7 Kazakhstan 5.7 Russia 5.3 Tajikistan 5.3 Ukraine 4.7 Moldova 4.7 Source: Doing Business 2010 Gross inflow of FDI to Kazakhstan from 1993 – 102,9 bln. USD Main investors by gross inflow of FDI in 1993 – 2009 World’s Leading Reformer Doing business 2010 Global competitive Index 2009-2010 Economy Ease of doing business Economy Global competitiveness Index ranking Singapore 1 USA 2 Finland 14 Finland 6 Georgia 15 Austria 15 Korea 23 Korea 19 Austria 27 UAE 23 UAE 46 Mongolia 58 China 29 Kazakhstan 63 Czech Republic 31 Czech Republic 75 Russia 63 China 83 Kazakhstan 67 Russia 120 Ukraine 82 Ukraine 145 Georgia 90 Kyrgyzstan 123 State Forced Industrial and Innovative Development Program: Priority sectors State Forced Industrial and Innovative Development Program Agriculture complex and agricultural production Purpose: To diversify and enhance the competiveness of Kazakhstan economy and increase GDP by the year of 2015 by 7 trillion tenge or approximately 50% of 2008 GDP. Construction industry and production of construction materials Uranium industry Oil refining industry and oil and gas infrastructure Chemical, pharmaceutical industries Light industry Metallurgy development and production of final metallic products Energy Transportation and telecommunication infrastructure Space industry Tourism Machinery and equipment building Objectives: Concentration country’s resources on development of economy’s priority sectors; Creation of favorable macro and investment climate; Enhance of national economy production; Support of export oriented industries and innovative manufacturing. Access to New Markets: Kazakhstan, Russia and Belarus Customs Union from January 1, 2010 Advantages for potential investors: SIMILAR TRADE RULES 1. Single custom’s territory; 2. Single foreign trade policy; 3. Single custom’s legislation, single custom code; 4. Free goods mobility inside single custom’s union Russia Kazakhstan Belarus INCENTIVES FOR THE INVESTORS Exemption from import customs duties on import of non-produced technological equipment and raw materials in Kazakhstan in the implementation of investment projects. Kazakhstan has more liberal taxation for opening and doing business comparing with Russia and Belarus. Developing Infrastructure: “Western Europe – Western China” International Transit Corridor Russia ASTANA Martuk Russia Karabutak Khromtau Aralsk Saryozek Kyzylorda Baykonyr Khorgos Korday China Almaty Taraz LEGEND Uzbekistan Shymkent International Transport Logistic Centre Communicator Turkmenistan Kyrgyzstan ALMATY Korday Operator Communication centre Base station of trunking communication Strong Partners to Cooperate: Development Institutes National welfare fund “Samruk-Kazyna” National holding "KazAgro" (national companies and development institutions in railway, energy, oil and gas, telecommunications sectors) Development Bank of Kazakhstan Entrepreneurship Development Fund State Insurance Corporation Investment Fund of Kazakhstan Kazyna Capital Management National Innovation Fund 10 Strong Partners to Cooperate: Special Economic Zones LEGEND: - construction - high-tech industries - IT, software - textile - petrochemicals - tourism Incentives Given in Special Economic Zones Operating Incentives Tax Code of RK: exemption from corporate tax exemption from land tax Proposed Incentives - guaranteeing SEZ participants tax regime stability during project implementation; - introduction of a special regime for foreign labor imports to SEZ; exemption from property tax - introduction of “one-stop shop” service for SEZ participants. Customs Code of RK: Exemption from VAT for selling Kazakhstani goods on SEZ territory for consumption when performing SEZ-specific activity Exemption from custom duties on SEZ territory Increasing marginal rate of depreciation for taxing software Exemption from land rent on SEZ territory for terms determined by agreement but no longer than 10 years since receiving right of temporary use Additional Incentives Proposed in Special Economic Zones For SEZ “Astana – New City”: 1. Decrease of existing 20 per cent corporate tax for “construction and putting into operation infrastructural objects, administrative and residential complexes in accordance with construction documents”. 2. Use 0 rate of land tax. 3. Decrease property tax rate from 0.5 per cent for individuals, 1.5 per cent for legal entities up to 0 per cent 4. Decrease of VAT when selling goods and equipment fully consumed for building and putting into operation infrastructural objects, administrative and residential complexes. For SEZ “IT Park Alatau”: 1. Increase marginal rate of depreciation charges. Investment Preferences Machinery Equipment Waiving of import duties Corporate tax rate is down to 20% Land Buildings Machinery State grants in kind INVESTOR Favorable tax regime Equipment Minimal long-term purchase contract from state and national companies VAT tax rate is down to 12% Reduction of taxable income for corporate income tax Special order for entrance visa issue for foreign experts and for foreign labor Support measures under the «Business – 2020» Road Map: • Subsidizing interest rates on loans • Partial loan guarantees • Development of industrial infrastructure 14 National Agency for Export and Investments «KAZNEX INVEST» – your partner in Kazakhstan Creation of favorable climate one-stop shop INVESTOR Ministry of Industry and New Technologies Promotion of investment opportunities KAZNEX INVEST Support of foreign investors and providing services Investor protection Export promotion Our contacts: www.kaznex.kz Tel.: +7 (7172) 791-718 Fax: +7 (7172) 791-719 E-mail: [email protected] THANK YOU FOR YOUR ATTENTION!