G/SCM/N/372/KAZ  
 
15 September 2021  
(21-6857) 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  
The following communication, dated  and received  on 9 September 2021, is being circulated at the 
request of the delegation of Kazakhstan.  
 
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In accordance with Article 25.1 of the Agreement on Subsidies and Countervailing Measures and 
Article XVI:1 of the GATT 1994, the Government of the Rep ublic 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 programs under the GATT 1994 and the SCM Agreement, 
their effects under th e SCM Agreement, or nature of the programs themselves.  
  G/SCM/N/372/KAZ  
 
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  TABLE OF CONTENTS  
1   INVESTMENT PREFERENCES  ................................ ................................ ...........  3 
2   PREFERENCES WITHIN SPECIAL ECONOMIC ZONES  ................................ ....... 4 
3   BUSINESS SUPPORT AND DEVELOPMENT STATE PROGRAM  
"BUSINESS ROAD MAP 2025"  ................................ ................................ .............  5 
4   THE COMPONENT "INDUSTRIAL SUPPORT OF ENTREPRENEURS /SUBJECTS  
OF INDUSTRIAL AND INNOVATIVE ACTIVITIES"  ................................ ................  5 
5   TECHNOLOGICAL DEVELOPMENT OF ENTERPRISES  ................................ ........  6 
6   THE PROGRAM OF SUPPORT OF SMALL AND MEDIUM -SIZED ENTERPRISES  ... 7 
7   THE PROGRAM OF INTER -BANK LENDING  ................................ ......................  8 
8   LEASING FINANCING FOR RENOVATION OF EQUIPMENT  ...............................  9 
 
  G/SCM/N/372/KAZ  
 
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  1  INVESTMENT PREFERENCES  
Title of the subsidy program  
Investment preferences . 
Period covered by the notification  
2020. 
Policy objective and/or purpose of the subsidy  
Investment support is aimed at creation of favorable investment climate for economic development 
and to stimulate investment  to set up  new production, expansion and r enovation  of existing 
production facilities , training  of Kazakhstani personnel , and protection of the environment.  
Background and authority for the subsidy  
Investment preferences are administered by the Ministry of Foreign Affairs of the Republic of 
Kazakhstan and the Ministry of Finance 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.   
Form of the subsidy  
Preferences within  the investment project s: 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 project s: customs duty exemption for imported goods ; 
in-kind state grants, tax preferences (zero rate for corporate, land and property tax es). 
To whom and how the subsidy is provided  
Investment preferences are  granted based on an investment contract concluded between authorized 
investment body and juridical person of the Republic of Kazakhstan implementing an investment 
project.  
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 . 
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 custo ms 
duty exemption which is granted for a period not exceeding five years from the date of registration 
of the investment contract  and tax preferences which are granted for a period of 3 to 10 years.  
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.  G/SCM/N/372/KAZ  
 
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  2  PREFERENC ES WITHIN SPECIAL ECONOMIC ZONES  
Title of the subsidy program  
Preferences within Special Economic Zones (hereinafter - SEZs) . 
Period covered by the notification  
2020. 
Policy objective and/or purpose of the subsidy  
Preferences within SEZs are aimed at attrac ting investments.  
Background and authority for the subsidy  
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 2015;  
3) Code of the Republic of Kazakhstan No. 120 -VI "On Taxes and Other Obliga tory Payments in 
the Budget " of 25 December 2017.   
Form of the subsidy  
Tax preferences . 
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 . 
 
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.   
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 fo r a fifteen -year period, but no  more than the 
validity period of spec ial economic zones . 
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.  
 G/SCM/N/372/KAZ  
 
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  3  BUSINESS SUPPORT AND DEVELOPMENT STATE PROGRAM "BUSINESS ROAD MAP 
2025 " 
Title of the subsidy program  
 
Business Support and Development State Program "Business Road Map 2025 ". 
 
Period covered by the notification  
 
2020. 
 
Policy objective and/or purpose of the subsidy  
 
To facilitate balanced growth of entrepreneurship, and to create new permanent jobs .  
 
Background and authority for the subsidy  
 
The Program is administered by the Ministry of National Economy of the Republic of Kazakhstan.   
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 968 "On Approva l of Business 
Support and Development State Program 'Business Road Map 2025 '" of 24 December 2019.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program operates until 2025.  
 
Statistical data permitting an assessment of the trad e effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
 
4  THE COMPONENT "INDUSTRIAL SUPPORT OF ENTREPRENEURS/SUBJECTS OF 
INDUSTRIAL AND INNOVATIVE ACTIVITIES " 
Form of the subsidy  
 
1) subsidizing part of the  interest rate on loans/financi al leasing  agreements ; 
2) subsidizing of markups on products and lease payment which are income components of 
Islamic banks ; 
3) subsid izing part of the interest rate  on loans for the manufacturing indus try 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 banks/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.  
 
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 . Subsid izing part of the interest rate  is 
provided for new loans/financial leasing agreements issued for th e implementation of new effective 
investment projects, as well as projects aimed at moderni sation, expansion of production, 
replenishment of working capital and franchising.  
 
Subsidizing 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 moderni sing, expanding production and replenishing working capital.   G/SCM/N/372/KAZ  
 
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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 interest 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 t o finance the 
implementation of new investment projects, as well as projects aimed at moderni sation, expansion 
of production and replenishment of working capital.  
 
Partial guarantees are provided only for loans issued for the implementation of effective investment 
projects, as well as projects aimed at moderni sation, expansion of production, replenishment of 
working capital and franchising.  
 
State grants are provided to small businesses for the implemen tation of new business ideas.  
 
The development of production (industrial) infrastr ucture consists in bringing the missing 
infrastructure to small and medium -sized enterprises projects aimed at creating new industries, 
moderni sing and expanding existing ind ustries.  The missing infrastructure is brought up to the 
border of the 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 
entrepreneurship in the industrial sector, optimi ze the development of general infrastructure, 
increase production efficiency, and ensure employment of the popula tion. 
 
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 . 
5  TECHNOLOGICAL DEVELOPMENT OF ENTERPRISES  
Title of the subsidy program  
Technological development of enterprises  
 
Period covered by the notification  
 
2020. 
 
Policy objective and/or purpose of the subsidy  
 
The program is aimed to  increase labor productivity and develop territorial clusters.   
 
Background and authority for the subsidy  
 
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.  
 
Form of the subsidy  
 
Support is provided to the subjects of industrial and innovative activities through reimbursement of 
expenses.  
 G/SCM/N/372/KAZ  
 
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  To whom and how the subsidy is provided  
 
Program participants are subjects of industrial and innovative activities . 
 
Reimbursement of expenses is carr ied out in the following areas:  
1) to increase the competence of the enterprise s; 
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 efficie 0ncy. 
 
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 . 
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Not specified.  
 
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.  
 
6  THE PROGR AM OF SUPPORT OF SMALL AND MEDIUM -SIZED ENTERPRISES   
Title of the subsidy program  
 
The Program of Support of small and medium -sized Enterprises  
 
Period covered by the notification  
 
2020. 
 
Policy objective and/or purpose of the subsidy  
 
The program is aimed to stimulate an economic activity of small and medium -sized enterprises.  
 
Backgrou nd and authority for the subsidy  
 
Program Administrator - Fund "DAMU ". 
 
Legislation under which it is granted  
 
Resolution of the Government of the Repub lic 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.  
 
Form of the subsidy  
 
Soft loans . 
 
To whom and how the subsidy is provided  
 
Program 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 loan : up to 
10 years . 
 
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 . G/SCM/N/372/KAZ  
 
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Duration of the subsidy and/or any other time -limits attached to it  
 
Not specified.  
 
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.  
 
7  THE PROGRAM OF INTER -BANK LENDING  
Title of the subsidy program  
 
The Program of Inter -bank Lending.  
 
Period covered by the notification  
 
2020. 
 
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 .  
 
Background and authority for the subsidy   
 
The Program 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 App roval of Joint 
Action Plan of the Government of the Republic of Kazakhstan 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.  
 
Form of the subsidy  
 
Soft loans . 
 
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.  
 
Subsidy per unit, or in cases where this is not possibl e, the total amount or the annual amount 
budgeted for that subsidy  
 
63.767 billion tenge.  
  
Duration of the subsidy and/or any other time -limits attached to it  
 
Not specified.  
 
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.  
 G/SCM/N/372/KAZ  
 
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  8  LEASING FINANCING FOR RENOVATION OF EQUIPMENT  
Title of the subsidy program  
 
Leasing financing for equipment upgrade . 
 
Period covered by the notification  
 
2020. 
 
Policy objective and/or purpose of the subsidy  
 
Equipment upgrade  of subjects of industrial and innovative activities . 
 
Background and authority for the subsidy  
 
Administrator of the Program: 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 of industrial and innovative development of the Republic of Kazakhstan for 2020 - 2025" 
of 31 December 2019 . 
 
Form of the subsidy  
 
Lease financing . 
 
To whom and how the subsidy is provided  
 
Provided to the subjects of industrial and innovative activities, implementing and (or) planning to 
implement  innovative  projects. Entity ensures the partici pation in the implementation of the project 
in the amount of at least 15% of the total cost of the leased items.  
 
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.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Term of lending : up to 10  years.   
 
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.  
 
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