   
  
G/SCM/N/372/KAZ/Rev.1  
 
22 May 2023 
(23-3500) Page: 1/9 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF  
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
KAZAKHSTAN  
Revision  
The following communication , dated and received on 17 May 2023, is being circulated at the request 
of the delegation of  Kazakhstan . 
 
_______________  
 
 
In accordance with Article 25.1 of the Agreement on Subsidies and Countervailing Measures and 
Article XVI:1 of the GATT 1994, the Go vernment of the Republic of Kazakhstan submits its new and 
full notification. In accordance with Article 25.7 of the SCM Agreement, this notification does not 
prejudge the legal status of the notified program mes under the GATT 1994 and the SCM Agreement, 
their effects under the SCM Agreement, or nature of the program mes themselves.  
  G/SCM/N/372/KAZ/Rev.1  
 
- 2 - 
 
  TABLE OF CONTENTS  
 
1   INVESTMENT PREFERENCES  ................................ ................................ ...........  3 
2   PREFERENCES WITHIN SPECIAL ECONOMIC ZONES  ................................ ....... 4 
3   BUSINESS SUPPORT AND DEVELOPMENT STATE PROGRAMME "BUSINESS 
ROAD MAP  2025"  
THE COMPONENT "INDUSTRIAL SUPPORT OF ENTREPRENEURS/SUBJECTS OF 
INDUSTRIAL AND INNOVATIVE ACTIVITIES"  ................................ .....................  5 
4   TECHNOLOGICAL DEVELOPMENT OF ENTERPRISES  ................................ ........  6 
5   THE PROGRAMME OF SUPPORT OF SMALL AND MEDIUM -SIZED ENTERPRISES
 ................................ ................................ ................................ ...........................  7 
6   THE PROGRAMME OF INTER -BANK LENDING  ................................ ..................  8 
7   LEASING FINANCING FOR RENOVATION OF EQUIPMENT  ...............................  9 
 
  G/SCM/N/372/KAZ/Rev.1  
 
- 3 - 
 
  1  INVESTMENT PREFERENCES  
1. Title of the subsidy programme  
Investment preferences.  
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
Investment support is aimed at creation of favorable investment climate for economic devel opment 
and to stimulate investment to set up new production, expansion and renovation of existing 
production facilities, training of Kazakhstani personnel, and protection of the environment.  
4. Background and authority for the subsidy (including identificatio n of the legislation under which 
it is granted ) 
Investment preferences are administered by the Ministry of Foreign Affairs of the Republic of 
Kazakhstan and the Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which it is granted : 
1) Code of the Republic of Kazakhstan No. 375 -V "The  Entrepreneurial Code of the Republic of 
Kazakhstan" of 29 October 2015;  
2) Code of the Republic of Kazakhstan No. 120 -VI "On Taxes and Other Obligatory Payments in the 
Budget" of 25 December 2017.  
5. Form of the subsidy  
Preferences within the investment projects: customs duty exemption for imported goods, exemption 
from the VAT payment on imported raw material and /or supplies, in -kind state grants.  
Preferences within the priority investment projects: customs duty exemption for imported goods; 
in-kind state grants, tax preferences (zero rate for corporate, land and property taxes).  
6. To whom and how the subsidy is provided  
Investment preferences are granted based on an investment contract concluded between authorized 
investment body and juridical p erson of the Republic of Kazakhstan implementing an investment 
project.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
35.245 billion tenge.  
8. Duration of the subsidy and/or any other  time-limits attached to it  
Investment preferences are granted for the duration of the investment contract, except customs 
duty exemption which is granted for a period not exceeding five years from the date of registration 
of the investment contract and ta x preferences which are granted for a period of 3 to 10 years.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from the use of this program me. G/SCM/N/372/KAZ/Rev.1  
 
- 4 - 
 
  2  PREFERENCES WITHIN SPECIAL ECONOMIC ZONES  
1. Title of the subsidy program me 
Preferences within Special Economic Zones (hereinafter - SEZs).  
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
Preferences within SEZs are aimed at attracting investments.  
4. Background and authority for the subsidy (including identification of the legislation under which 
it is granted ) 
Preferences within SEZs are administered by the Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which it is granted : 
1) Law of the Republic of Kazakhstan No. 242 -VІ "On Special Economic and Industrial Zones" of 
3 April 2019;  
2) Code of the Republic of Kazakhstan No. 375 -V "The Entrepreneurial Code of the Republic of 
Kazakhstan" of 29 October 20 15; 
3) Code of the Republic of Kazakhstan No. 120 -VI "On Taxes and Other Obligatory Payments in the 
Budget" of 25 December 2017.  
5. Form of the subsidy  
Tax preferences.  
6. To whom and how the subsidy is provided  
Preferences are provided to juridical persons registered as SEZ participants.  
The Tax Code provides customs duty exemption for imported goods and exemption from payment 
of the following taxes:  
- corporate income tax;  
- land tax or land use fees;  
- property tax;  
- VAT on goods.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
58.836 billion tenge.  
8. Duration of the subsidy and/or any other time -limits attached to it  
Duration of application of tax preferences: until expiration of SEZ.  
Exemption from import customs duties is granted for a fifteen -year period, but no more than the 
validity period of special economic zones.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from the use of this program me. G/SCM/N/372/KAZ/Rev.1  
 
- 5 - 
 
  3  BUSINESS SUPPORT AND DEVELOPMENT STATE PROGRAM ME "BUSINESS ROAD 
MAP 2025"  
THE COMPONENT "INDUSTRIAL SUPPORT OF ENTREPRENEURS/SUBJECTS OF 
INDUSTRIAL AND INNOVATIVE ACTIVITIES"  
1. Title of the subsidy program me 
Business Support and Development State Program me "Business Road Map 2025".  
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
To facilitate balanced growth of entrepreneurship, and to create new permanent jobs.  
4. Background and authority for the subsidy (including identification of the legislation under which 
it is granted ) 
The Program me is administered by the Ministry of National Economy of the Republic of Kazakh stan. 
 
Legislation under which it is granted : 
Resolution of the Government of the Republic of Kazakhstan No. 968 "On Approval of Business 
Support and Development State Program me 'Business Road Map 2025'" of 24 December 2019.  
5. Form of the subsidy  
1) subsidizing part of the interest rate on loans/financial leasing agreements;  
2) subsidizing of markups on products and lease payment which are income components of Islamic 
banks;  
3) subsidizing part of the interest rate on loans for the manufacturing industry and services, as well 
as for processing in the agro -industrial complex;  
4) subsidizing the coupon rate on bonds issued by business entities;  
5) partial guarantee on loans of bank s/development bank;  
6) partial guarantee on loans issued by banks in the manufacturing industry and services, as well as 
for processing in the agro -industrial complex;  
7) state grants;  
8) development of production (industrial) infrastructure;  
9) establishment of industrial zones.  
6. To whom and how the subsidy is provided  
Participants are effective entrepreneurs/subjects of industrial and innovative activities who 
implement and /or plan to implement their own projects. Subsidizing part of the interest  rate is 
provided for new loans/financial leasing agreements issued for the implementation of new effective 
investment projects, as well as projects aimed at modernisation, expansion of production, 
replenishment of working capital and franchising.  
Subsidiz ing of markups on products/parts of the lease payment that make up the income of an 
Islamic bank is carried out on financing provided for the implementation of new investment projects, 
as well as projects aimed at modernising, expanding production and repl enishing working capital.  
Subsidizing part of the interest rate on loans for the manufacturing industry and services, as well as 
processing in the agro -industrial complex is carried out by subsidizing projects on loans/leasing 
transactions with a nominal i nterest rate not exceeding 15% per annum. Subsidizing the coupon 
rate on bonds issued by business entities is used to reimburse part of the expenses paid by issuers 
as bonuses. Subsidizing the coupon rate on bonds is carried out on bonds issued to finance the 
implementation of new investment projects, as well as projects aimed at modernisation, expansion 
of production and replenishment of working capital.  G/SCM/N/372/KAZ/Rev.1  
 
- 6 - 
 
  Partial guarantees are provided only for loans issued for the implementation of effective investment 
projects, as well as projects aimed at modernisation, expansion of production, replenishment of 
working capital and franchising.  
State grants are provided to small businesses for the implementation of new business ideas.  
The development of production (indust rial) infrastructure consists in bringing the missing 
infrastructure to small and medium -sized enterprises projects aimed at creating new industries, 
modernising and expanding existing industries. The missing infrastructure is brought up to the 
border of t he territory of the object of small and medium -sized enterprises without bringing the 
infrastructure inside the territory of the entrepreneur's object.  
The establishment of industrial zones is carried out to accelerate the development of private 
entreprene urship in the industrial sector, optimize the development of general infrastructure, 
increase production efficiency, and ensure employment of the population.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
4.831 billion tenge.  
8. Duration of the subsidy and/or any other time -limits attached to it  
The Program me operates until 2025.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from the use of this program me. 
4  TECHNOLOGICAL DEVELOPMENT OF ENTERPRISES  
1. Title of the subsidy program me 
Technological development of enterprises . 
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
The program me is aimed to increase labor productivity and develop territorial clusters.  
4. Background and authority for the subsidy (including identification of the legislation under which 
it is granted ) 
The subsidy is administered by QazIndustry JSC.  
 
Legislation under which it is granted : 
1) Order of the Minister for Investment and Development of the Republic of Kazakhstan No. 1194 
"On approval of the Rules for the provision of state support to the subjects of industrial and 
innovative activities aimed at increasing labor productivity and the development of territorial 
clusters" of 9 December 2015;  
2) Code of the Republic of Kazakhstan No. 375 -V "The Entrepreneurial Code of the Republic of 
Kazakhstan" of 29 O ctober 2015.  G/SCM/N/372/KAZ/Rev.1  
 
- 7 - 
 
  5. Form of the subsidy  
Support is provided to the subjects of industrial and innovative activities through reimbursement of 
expenses.  
6. To whom and how the subsidy is provided  
Program me participants are subjects of industrial and innovative activities.  
Reimbursement of expenses is carried out in the following areas:  
1) to increase the competence of the enterprises;  
2) for the development and/or examination of a comprehensive plan for an industrial and innovative 
project;  
3) to improve technological processes;  
4) to improve the production organization efficiency.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
285.334 million tenge.  
8. Duration of the subsidy and/or any other time -limits attached to it  
Not specified.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from th e use of this program me. 
5  THE PROGRAM ME OF SUPPORT OF SMALL AND MEDIUM -SIZED ENTERPRISES  
1. Title of the subsidy program me 
The Program me of Support of small and medium -sized Enterprises  
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
The program me is aimed to stimulate an economic activity of small and medium -sized enterprises.  
4. Background and authority for the subsidy (including identification of the legislation under which 
it is granted ) 
Program me Administrator - Fund "DAMU".  
 
Legislation under which it is granted : 
Resolution of the Government of the Republic of Kazakhstan No. 354 "On Approval of Joint Action 
Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic on 
Funding of SMEs Projects in Processing Industry" of 14 April 2014.   
5. Form of the subsidy  
Soft loans.  G/SCM/N/372/KAZ/Rev.1  
 
- 8 - 
 
  6. To whom and how the subsidy is provided  
Program me participants are small and medium -sized enterprises. Fund "DAMU" allocates funds to 
second -tier banks to finance projects of small and medium -sized enterprises. Term of loa n: up to 
10 years.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
9.882 billion tenge.  
8. Duration of the subsidy and/or any other time -limits attached to it  
Not specified.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from the use of this program me. 
6  THE PROGRAM ME OF INTER -BANK LENDING  
1. Title of the subsidy program me 
The Program me of Inter -bank Lending.  
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
Financing of second -tier banks to provide access to loans for small and medium -sized enterprises, 
as well as large entities.  
4. Background and authority for the subsidy (including identification of the legislation under which 
it is granted ) 
The Program me is administered by the Development Bank of Kazakhstan and Fund "Damu".  
 
Legislation under which it is granted : 
1) Resolution of the Government of the Republic of Kazakhstan No. 1276 "On Approval of Joint Action 
Plan of the Government of the Republic of Ka zakhstan and the National Bank of the Republic on 
Funding of Entities in the Processing Industry" of 5 December 2014;  
2) Resolution of the Government of the Republic of Kazakhstan No. 124 "On Approval of Joint Action 
Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic on 
Funding of SMEs in the Processing Industry" of 11 March 2015.  
5. Form of the subsidy  
Soft loans.  
6. To whom and how the subsidy is provided  
The funds are allocated to second -tier banks for further financing of business entities. A nominal 
interest rate in tenge: 6%, term of the loan: up to 10  years, a grace period is 24  months.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
63.767 billion tenge.  G/SCM/N/372/KAZ/Rev.1  
 
- 9 - 
 
  8. Duration of the subsidy and/or any other time -limits attached to it  
Not specified.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from t he use of this program me. 
7  LEASING FINANCING FOR RENOVATION OF EQUIPMENT  
1. Title of the subsidy program me 
Leasing financing for equipment upgrade.  
2. Period covered by the notification  
2020.  
3. Policy objective and/or purpose of the subsidy  
Equipment upgrade of subjects of industrial and innovative activities.  
4. Background and authority for the subsidy (including identification of the legislation under which 
it is granted ) 
Administrator of the Program me: Industrial Development Fund JSC.  
 
Legislation under which it is granted : 
Resolution of the Government of the Republic of Kazakhstan No. 1050 "On approval of the State 
program me of industrial and innovative development of the Republic of Kazakhstan for 2020 - 2025" 
of 31 December 2019.  
5. Form of the subsidy  
Lease financing.  
6. To whom and how the subsidy is provided  
Provided to the subjects of industrial and innovative activities, imp lementing and /or planning to 
implement innovative projects. Entity ensures the participation in the implementation of the project 
in the amount of at least 15% of the total cost of the leased items.  
7. Subsidy per unit, or in cases where this is not possible,  the total amount or the annual amount 
budgeted for that subsidy  
16.777 billion tenge.  
8. Duration of the subsidy and/or any other time -limits attached to it  
Term of lending: up to 10  years.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from the use of this program me. 
__________  