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Invest inKazakhstan

Investment attractiveness of KazakhstanWhy Kazakhstan

Investors are attracted to Kazakhstan for a variety of reasons

Ease of Doing Business Competitive climate

Rich natural resources

Favorable tax climate

Development of new technologies

Competitive labor market

Stable economic and political climate in the region- The economy of Kazakhstan is the largest economy in Central Asia.- According to The GCI 2015-2016, Kazakhstan is 25th by the macroeconomic environment and 30th by the transparency of government policymaking.

Competitive geographic location and transit potential

- Strategic location between Europe and China- Membership of the Eurasian Economic Union- “New Silk Way” large scale infrastructure project will allow Kazakhstan to become a connecting link in the continent and a largest business and transit hub of the region.

- Kazakhstan stands at 18 in the ranking of 189 economies on the ease of paying taxes.- According to the joint report by PwC and the World Bank Group «Paying Taxes 2016» Kazakhstan is 18th in terms of favorable tax climate in comparison with tax regimes of 189 economies.

- Young, talented and well-educated workforce- Kazakhstan is the only country in the region to have a high efficiency of the labor market.- Potential investors allocate pay level in Kazakhstan as one of the most attractive factors.

According to the 2016 World Bank report

Kazakhstan ranks 41st

out of 189 countries in the Doing Business rating

According to the World Economic Forum data

Kazakhstan ranks 42nd

out of 140 countries in the Global Competitiveness Index (The GCI)

State support Investor protection - In Kazakhstan investors are granted a package of investment incentives for the implementation of priority projects in the priority sectors of the economy. This package is unique in the region.

- Investors, who have entered into investment contracts for the implementation of priority investment projects, have the right to engage foreign specialists without quotas and permits.

- The government provides various guarantees that minimize risks an investor may incur in carrying out investment activities in Kazakhstan.- Investment Ombudsman is operating in order to protect the rights and legitimate interests of investors.- The country holds one of the top positions in the world for the protection of investors (25th in the protection of minority investors).

- Kazakhstan is an industrial country with mining operations being one of the main sources of its economic growth. - The country’s mineral raw material base consists of more than 5 000 deposits. - 1st place for reserves of zinc, tungsten and barite, 2nd -silver, lead and chromites, 3rd - copper and fluorite, 4th -molybdenum, 6th - gold.

- Kazakhstan will be hosting the world EXPO 2017. The theme of the exhibition is the “Future Energy” and is dedicated to the alternative energy sources and “green” technologies. - As a part of "Smart Astana" concept various smart projects, including introduction of smart technologies to offer comfort, high quality of life for citizens and increase competitiveness are being implemented in Astana.

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Investment attractiveness of KazakhstanWhy Kazakhstan - Location and infrastructure

RUSSIAN FEDERATION143.5 mln.

KAZAKHSTAN17.7 mln.

PEOPLE’S REPUBLIC OF CHINA

1.4 bln.

MONGOLIA2.8 mln.

INDIA1.3 bln.

BELARUS9.5 mln.

IRAN77.5 mln.

PAKISTAN182.1 mln.

TURKEY74.9 mln.

Lianyungang

St. Petersburg

Aktobe

Shymkent

AFGHANISTAN30.6 mln.

ARMENIA3 mln.

The Kazakhstan’s geographical position makes it a natural crossroads for major transit corridors from East to West, from North to South.

The transcontinental automobile road corridor “Western Europe – Western China” passes through the territory of Kazakhstan. The corridor will allow to to reduce cargo transportation time from Lianyungang in China to St. Petersburg in Russia to 10 days.

Western Europe – Western China corridor on the territory of Kazakhstan (2,787 km=1,732 miles)

Western Europe – Western China corridor (8,445 km=5,247 miles)

Over the past five years, new railways with a total length of 1,791km have been constructed. The country develops port infrastructure through the ports of other countries: the seaport of Batumi in Georgia, providing access to the Black Sea; Kazakh-Chinese logistics terminal in the Pacific port of Lianyungang.

Kazakhstan is a member of the Eurasian Economic Union – an international association of economic integration, along with Armenia, Belarus, Kyrgyzstan and Russia.

(access to the Russian market with more than 140 mln. people and a common market of the Union with more than 180 mln. consumers)

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Investment attractiveness of KazakhstanWhy KAZNEX INVEST

Assistance in the signing of the investment contract for the implementation of investment project and obtaining investment

preferences

Service support of exporters - Analytical support - Financial support of exporters (export grants)

National Export and Investment Agency «KAZNEX INVEST» JSC is one of the National Development Institutes, serving to diversify national economy by creation of optimum conditions for development and promotion of Kazakhstani processed export and FDI attraction to the priority

sectors of economy.

Analytical supportAnalytical support for potential investors (Information about the economy, industry, law, etc.)

First step to success

Communication with state authoritiesAssistance in negotiations with the state authorities for obtaining land, buildings, infrastructure for the project

Project assistance - Search for project partners- Search for the best location, site visits- Possibility of locating production in the Special Economic Zones and Industrial Zones

Investors Support Center and Aftercare- Attracting and accompanying investors in the regions; - Improving investment climate in the region; - Solving issues related to investments (Investment Ombudsman)

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Metallurgy1

1. Ferrous metallurgy

2. Non-ferrousmetallurgy

3. Agricultural chemistry

4. Production ofchemicals for industry

5. Petrochemical industry

6. Manufacture of motor vehicles7. Electrical equipment

8. Food production

Chemical Industry2 Petrochemical Industry

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Machinery4 Food Industry5

Priority sectors

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Special conditions for attraction of foreign labour force

Tax preferences

Preferences under investment priority projects

Investment attractiveness of KazakhstanGovernment support - Investment incentives

Corporate income tax (up to 10 years depends on the contract)

Land tax (up to 10 years , depends on the contract)

Property tax (up to 8 years, depends on the contract)

0%

Reimbursement up to 30 % of actual costs of construction and installation works and purchase of equipment

Exemption from customs duties

Preferences under investment projects (including investment priority projects)

Customs duties 0% up to 5 years on imported:– major equipment and spare parts to it; – accessories, raw materials and (or) materials.

The state grants in kind Free land, buildings, structures, machinery and equipment, etc.

Investment Ombudsman

Criteria for preferences

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Investments volume not less than two-million-fold rate of MCI

Implement a project in any of the business sectors contained in the List of Priority

Business Activities for investment priority projects (approved by the Government)

Implement a project in any of the business sectors contained in the List of Priority

Business Activities for investment projects(approved by the Government)

Investment subsidy

A newly established legal entity

The state registration of such legal entity has been completed not earlier than 24

months before filing an application for the investment preferences

Visa-free entrance For nationals of 19 countries visa-free regime has been established for up to 15 calendar days from the date of crossing the state border for the period from July 16, 2015 till December 31, 2017

Investors Service Centre (One Stop Shop)

Stability of Investment Contracts

The purpose of the Investment Ombudsman is to protect the rights and legitimate interests of foreign investors in Kazakhstan.

Provides 363 public services for investors, associated with obtaining an investment contract, land, visa support, etc. In addition, investors can get advice on any question arising at any stage of planning or implementation of investment projects.

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Social Tax (for 5 years)

Free plot of land for the entire period of existence of a SEZ

Simplified procedure for employment of foreign labor

FISCAL INCENTIVES

Corporate income taxLand taxProperty tax 0 %Exemption from the VAT (for products consumed in SEZ)

EXEMPTION FROM THE CUSTOMS DUTIES

Exemption from customs duties for goods imported into the SEZ territory and exported* from the SEZ territory to the rest of the customs territory of the Customs Union (CU).*CU commodities produced (processed) by SEZ residents registered before January 1, 2012 with the use of imported components, but recognized as EAEU products, are not subject to customs duties until January 1, 2017

Investment attractiveness of KazakhstanGovernment support - Investment incentives in Special Economic Zones

Investment incentives in SEZs

1. Registration as a SEZ member and as a taxpayer in the SEZ;

2. Absence of structural subdivisions outside the SEZ;

3. Income from the sale of own-produced goods under the SEZ priority activities will be at least 90% of the total annual income (for the "Part of Innovative Technologies" SEZ –70%).

4. For Social tax, payroll expenses will be at least 50% of annual revenue and 90% of payroll expenses will be expended on Kazakhstan residents – participants of the "Park of Innovative Technologies" SEZ.

«Pavlodar» SEZ

«NIPT» SEZ «Saryarka» SEZ

«Seaport Aktau» SEZ

«Ontystik» SEZ

«Astana - new city» SEZ

«ChemicalPark Taraz» SEZ

«Khorgos – Eastern Gate» SEZ

«Park of Innovative Technologies» SEZ

Kazakhstan has created 10 special economic zones with specific industry focus:

1. «Astana - new city» SEZ - Mixed2. «Saryarka» SEZ - Metallurgy3. «Burabai» SEZ - Tourism4. «NIPT» SEZ - Petrochemical industry5. «Seaport Aktau» SEZ - Mixed6. «Pavlodar» SEZ - Petrochemical industry7. «Khorgos – Eastern Gate» SEZ - Logistics8. «Chemical Park Taraz» SEZ - Chemical industry9. «Ontystik» SEZ - Textile industry10. «Park of Innovative Technologies» SEZ- IT and Innovations

«Burabai» SEZ

Criteria:

NON-FISCAL INCENTIVES

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SUCCESS STORIES

Investment

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Ministry of Investment and Development of the RKwww.mid.gov.kz

Electronic Governmentwww.egov.kz

National Export and Investment Agency «KAZNEX INVEST»

www.kaznexinvest.kzwww.facebook.com/KaznexInvest

National Investment Internet Resource www.invest.gov.kz

Useful Links

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Thank you for your attention

National Export & Investment Agency “KAZNEX INVEST” Ministry of Investment and Development

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Disclaimer

This presentation (the "Presentation") and the information contained herein (the "Information") are being delivered by KAZNEX INVEST, for the

sole purpose of providing certain summary information about investment climate and government support provided for investors.

The Information has been compiled by KAZNEX INVEST as from sources believed by KAZNEX INVEST to be reliable, but has not been

independently verified or audited. Under no circumstances should a recipient of this Presentation assume that the Information is correct. This

Presentation is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and no offer or solicitation of an offer

for an interest is being made by the communication of this Presentation and the Information. This Presentation is being provided on an

"information only" basis and no reliance should be placed upon the Information by any person. The Information is not to be relied on in any

manner as legal, tax or investment advice. This Presentation may not be accepted or used by any person in any jurisdiction where receipt or use

thereof would be contrary to law or would subject KAZNEX INVEST to any licensing or registration requirements. It is the responsibility of each

recipient of this Presentation to satisfy itself as to full compliance with the applicable laws and regulations of any relevant jurisdiction. No person

has been authorized to make any statement concerning KAZNEX INVEST other than as set forth in this Presentation and any such statements, if

made, may not be relied upon.

No representation, warranty or undertaking (express or implied) is given, and no responsibility is accepted as to the adequacy, accuracy,

completeness, currency or reasonableness of the Information, or any oral or other communication in connection with the Information, by KAZNEX

INVEST and accordingly KAZNEX INVEST will not be liable (except in the case of fraud) for the consequences of reliance upon the Information

or for any omissions from this Presentation. KAZNEX INVEST shall be under no obligation to update or correct any inaccuracy in this

Presentation.

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