EXPO-2017 facilities to be exempt from taxes

Nov 08. Tengrinews

By Baubek Konyrov

EXPO-2017 facilities to be exempt from taxesEXPO-2017 facilities will be exempt from taxes, Minister of Economy and Budget Planning of Kazakhstan Yerbolat Dosayev told Tengrinews.

“The Tax Code is being amended to exempt the national companies from the corporate income tax, land tax and property tax. The changes are necessary to make sure they fulfill the obligations undertaken by Kazakhstan when bidding to hold the EXPO-2017. Besides, the technical profile provides for exemption of those involved in construction of the EXPO-2017 facilities from the corporate income, land and property taxes,” Dosayev said at the presentation of the draft law called to introduce amendments into the country’s legislation in relation to the EXPO-2017 to be held in Astana in the Majilis (Lower Chamber of the Parliament) earlier this week.

According to him, the proposed amendments also provide for exemption of the organizations involved in designing and construction of the exhibition facilities from the corporate income tax.

“The list of the companies covered by the exemption is going to be put together by the government. Our analysis of the foreign experience has revealed that all the hosting countries applied similar stimulating tax measures for organizations involved in the events,” the minister pointed out.

He added that amendments would be introduced into the Budget Code to enable the state budget to provide funding for the national companies in the form of dedicated contributions, similar to those used for Nazarbayev University. “The amendment allows to transfer dedicated contributions from the budget to a specially created noncommercial organization, like a fund, to subsequently channel 100% of the fund into a national company’s project,” Yerbolat Dosayev said.

The Minister said that the Special Economic Zones Law would also be amended to make sure the obligations undertaken under the technical profile as fulfilled timely, and for unhindered construction of the EXPO facilities. “We are proposing simplify the procedure of obtaining the Astana New City free economic zone member status, and to speed up signing of contracts with Astana New City participants, provided that the participants are involved in the priority activities of the free economic zone,” Dosayev said.

Besides, he offered to vest Astana EXPO-2017 National Company with a right to independently issue architectural and designing requirement specification for the exhibition’s facilities.

http://en.tengrinews.kz/laws_initiatives/EXPO-2017-facilities-to-be-exempt-from-taxes-23855/

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Kazakhstan to lift foreign workforce restrictions to be ready for EXPO-2017 in time

Nov 07. Tengrinews

By Baubek Konyrov

Experienced guest workers will be involved to construct EXPO-2017 facilities in Kazakhstan. The Kazakhstan Government is going to amend the Employment Law to bring in more foreign workers and experts that the regular yearly quota permits to participate in the organization and holding of the international exhibition EXPO-2017 in Astana, Tengrinews reports.

Earlier Director of the New Technologies Department of Astana EXPO-2017 Azamat Bilyalov expressed concern that Kazakhstan may be unable to train enough professionals of different areas in time for the EXPO 2017 in Astana.

According to Bilyalov, the remaining time before the EXPO 2017 may not be enough to arrange training of new experts and get them ready to man the facilities after the fair is over. “The fair will start on June 10, 2017. So we virtually have 4 years left. One year out of the remaining four will be used to design (the EXPO facilities), then they have to be build really fast and find people to man and maintain them. And we lack the people,” Bilyalov said.

Kazakhstan is using foreign workforce quotas and special permit procedure for employment of foreign workers to limit the inflow of foreigners into the oil-fueled economy and stimulate companies, especially foreign ones, to higher more locals.

The legislation of Kazakhstan distinguishes Work Permits depending on the category of workers, establishing different conditions of validity and different quotas for blue collar and white collar professionals.

“The Employment Law is getting a new provision regarding employment of people working for companies involved in organizing and holding of the international exhibition outside of the set foreign workforce quotas,” Minister of Economy and Budget Planning Yerbolat Dosayev said at the presentation of the new draft law called to introduce amendments into the country’s legislation in relation to the EXPO-2017 to be held in Astana in the Majilis (Lower Chamber of the Parliament).

According to him, the amendment are going to simplify the procedures to bring in foreign experts with vast experience in designing and construction of global scale facilities with the use of advanced energy-saving technologies for the EXPO-2017.

“The Law on Migration of the Population is going to get a provision enabling the government to introduce a special regime for entry and registration of certain categories of immigrants, arriving within the frames of the organization and holding of the specialized international exhibition,” the minister said.

The Minister offered to bring in more than 200 thousand contractors for the exhibition. “What concerns the number of people who will be involved as contractors, according to the preliminary estimates this will be over 200 thousand people before 2017. Once the feasibility study is ready, we will giver you the exact figure,” he said.

http://en.tengrinews.kz/laws_initiatives/Kazakhstan-to-lift-foreign-workforce-restrictions-to-be-ready-for-EXPO-2017-in-23852/

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