G/SCM/N/284/KAZ/Suppl.1  
 
21 December 2016  
(16-7003) Page: 1/20 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF  
THE GATT 1994 AND AR TICLE 25 OF THE AGRE EMENT ON  
SUBSIDIES AND COUNTE RVAILING MEASURES  
KAZAKHSTAN  
Supplement  
The following communication, dated 14 December  2016, is being circulated at the re quest 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 Government of the Republic of Kazakhstan submits new and 
full notifi cation of the Republic of Kazakhstan. In accordan ce with Article 25.7 of the 
SCM Agreement, this notification does not prejudge, under the GATT 1994 and the 
SCM Agreement the legal status of the notified programs, their effects, or nature of the programs 
themselves.  
 
TABLE OF CONTENTS  
 
1. INVESTMENT PREFERENC ES ................................ ................................ ....................  3 
2. PREFERENCES WITHIN S PECIAL ECONOMIC ZONE S ................................ ................  4 
3. PREFERENCES WITHIN T HE FRAMEWORK OF THE "FREE WAREHOUSE" 
CUSTOMS REGIME  ................................ ................................ ................................ ............  5 
4. INDUSTRIAL SUPPORT R ELATED TO DEVELOPMEN T OF INNOVATIVE 
ACTIVITY  ................................ ................................ ................................ .........................  6 
5. INTEGRATED BUSINESS SUPPORT AND DEVELOPM ENT PROGRAM 
"BUSINESS ROAD MAP 2 020"  ................................ ................................ ..........................  7 
6. PROMOTING OF KAZAKHS TAN'S GOODS IN FOREI GN MARKETS  ..............................  9 
7. PROMOTING OF KAZAKHS TAN'S GOODS IN DOMES TIC MARKETS  .........................  10 
8. THE PROGRAM "PRODUCT IVITY 2020" ................................ ................................ .. 11 
9. THE PROGRAM OF POST -CRISIS RECOVERY (REC OVERY OF COMPETITIVE  
ENTERPRISES)  ................................ ................................ ................................ ...............  12 
10. THE PROGRAM OF FINAN CING OF THE REGIONAL  BUSINESS PROJECTS 
COVERED BY THE F UNDS OF LOCAL EXECUT IVE BODIES AND THE " FUND OF THE 
ENTREPRENEURSHIP DEV ELOPMENT "DAMU" (HER EINAFTER REFERRED AS  – 
FUND DAMU)  ................................ ................................ ................................ ..................  13 
11. THE PROGRAM OF SUPPO RT OF PRIVATE ENTREP RENEURS INVOLVED IN  
THE MANUFACTURING IN DUSTRY "DAMU -ONDIRIS"  ................................ .....................  14 G/SCM/N/284/KAZ/Suppl.1  
 
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  12. THE PROGRAM ON OPERA TIONS OF FINANCIAL L EASING OF SMALL AND 
MEDIUM ENTERPRISES  ................................ ................................ ................................ .. 15 
13. THE PROGRAM OF INTER -BANK LENDING  ................................ .............................  16 
14. PROGRAMS ON CONDITIO NAL ALLOCATION OF FU NDS TO THE SECOND -
TIER BANKS FOR FURTH ER LENDING TO SMALL AND MEDIUM ENTERPRIS ES (I – 
III TRANCHES) ................................ ................................ ................................ ...............  17 
15. THE PROGRAM ON FINAN CING OF THE REGIONAL  PRIORITY PROJECTS OF  
THE SMALL AND MEDIUM  ENTERPRISES "DAMU RE GIONS II" AND "DAMU 
REGIONS III"  ................................ ................................ ................................ .................  18 
16. THE PROGRAM ON FINAN CING OF LEASING OPER ATIONS OF SMALL AND 
MEDIUM ENTERPRISES I NVOLVED IN MANUFACTU RING INDUSTRY  ..............................  19 
17. THE PROGRAM ON ALLOC ATION OF FUNDS TO SE COND -TIER BA NKS FOR 
FURTHER MICRO -LENDING OF WOMAN ENT REPRENEURSHIP  ................................ ........  20 
 
 
 
  G/SCM/N/284/KAZ/Suppl.1  
 
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  1. INVESTMENT PREFERENC ES 
Title of the subsidy program  
 
Investment preferences.  
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the  subsidy  
 
The State investment support is aimed at creation of favorable conditions for investors investing 
into new technologies, expansion and renovation of existing production facilities, training of 
Kazakhstani staff and protection of the environment.  
 
Background and authority for the subsidy  
 
One of the main tasks of the Government of Kazakhstan is to diversify the national economy by 
creating favorable investment climate for foreign investments into processing industries and 
production of high value -added goods and services. National legislation provides for investment 
preferences aimed at attraction of investments into priority economy sectors.  
 
Investment preferences are administered by the Investments Committee of the Ministry of 
Investments and Dev elopment  of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
1) Law of the Republic of Kazakhstan No. 373 "On Investments" of 8 January 2003;  
 
2) Code of the Republic of Kazakhstan No. 99 -IV "On Taxes and Other Mandatory Payments to the 
Budget " of 10 December 2008.  
   
Form of the subsidy  
 
Within the investment project: customs duty exemption for imported goods, in -kind state grants;  
 
Within the investment priority project: customs duty exemption, in -kind state grants, tax 
preferences, inv estment subsidy.  
 
To whom and how the subsidy is provided  
 
Investment preferences are granted based on an investment contract concluded between 
authorized body and juridical person of the Republic of Kazakhstan implementing an investment 
project in accorda nce with the list of priority activities, approved by the Government of the 
Republic of Kazakhstan.  
 
Investment preferences are granted  to existing and newly established juridical persons of the 
Republic of Kazakhstan.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
Сustoms duties - 5.4 bln. tenge . 
Tax preferences – 299.7 bln. tenge  
In-kind grants – 0 tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Duration of investment preferences is indicated in the investment contract for each type of 
investment preferences.  
 G/SCM/N/284/KAZ/Suppl.1  
 
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  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.  
 
2. PREFERENCES WITHIN S PECIAL ECONOMIC ZONE S 
Title of th e subsidy program  
 
Preferences within Special Economic Zones (hereinafter  - SEZs) . 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Preferences granted within SEZs are aimed at attracting investments with the purp ose to develop 
competitive industries, contribute to the development of regions and to create jobs.  
 
Background and authority for the subsidy  
 
In order to diversify Kazakhstan 's economy and support economic activities in SEZs, the 
Government adopted legal acts regulating establishment and operation of SEZs, as well as tax and 
customs preferences applicable to SEZs residents.  
 
Preferences within SEZs are administered by the Ministry of Finance of the Republic of Kazakhstan 
and Ministry of Investment and Dev elopment of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
1) Agreement on Free (Special) Economic Zones on the Territory of the Customs Union and 
Customs Procedure of Free Economic Zone of 18 June 2010;  
 
2) Law of the Republic of Kazakhstan  No. 469 -IV "On Special Economic Zones of the Republic 
of Kazakhstan " of 21 July 2011;  
 
3) Code of the Republic of Kazakhstan No. 99 -IV "On Taxes and Other Obligatory Payments in 
the Budget " of 10 December 2008.  
 
Form of the subsidy  
 
Customs duty exemption; t ax preferences.  
  
To whom and how the subsidy is provided  
 
Subsidy is provided to juridical persons registered as SEZ residents prior to 1 January 2012.  
 
Goods produced (processed) in the SEZs containing imported components and recognized as EAEU 
products based on sufficient processing criteria, i.e. substantial transformation, are not subject to 
import customs duties when exported from SEZs into the rest of the EAEU customs territory. 
These provisions expire on 1 January 2017.  
 
This transition period is se t in the EAEU Treaty (Protocol No. 28 "On Single Rules of Providing 
Industrial Subsidies ") and Paragraph 934 of the Report of Working Party on the Accession of the 
Republic of Kazakhstan to the WTO.  
  
Subsidy per unit, or in cases where this is not possib le, the total amount or the annual amount 
budgeted for that subsidy  
 
1) Customs duties: 842 million tenge;  
 
2) VAT exemption: 16.6 billion tenge.  G/SCM/N/284/KAZ/Suppl.1  
 
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Duration of the subsidy and/or any other time -limits attached to it  
 
1) Customs duty is effective till 1 Janu ary 2017;  
 
2) Duration of tax exemptions - up to expiry date of SEZ.   
 
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.  
 
3. PREFER ENCES WITHIN THE FRA MEWORK OF THE "FREE WAREHOUSE" CUSTOMS 
REGIME  
Title of the subsidy program  
 
Preferences within the framework of the "Free Warehouse" customs regime . 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subs idy 
 
The "Free Warehouse" regime is aimed at creating favorable conditions for development of certain 
types of production, such as assembly of vehicles, assembly of agricultural machines and 
equipment, production of food, and production of construction mat erials.  
 
Background and authority for the subsidy  
 
Diversification of the national economy is one of the main tasks of the Government of Kazakhstan. 
In order to attract investments into manufacturing sectors of the economy, the Government 
established "Free Warehouse " customs regime that envisages a number of tariff and tax 
preferences for producers of certain goods.  
 
The preferences provided within the free warehouse customs regime are administered by the 
Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
1) The Custom Union Agreement "On Free Warehouses and Free Warehouse Customs 
Procedure " of 18 June 2010;  
 
2) Law of the Republic of Kazakhstan No. 100 -IV "On Entering Into Force of the Code of the 
Republic of Kazakhs tan "On Taxes and Other Mandatory Payment s to the Budget" of 
10 December  2008;  
 
Form of the subsidy  
 
1) Customs  duty exemptions ; 
 
2) Exemption from VAT.  
 
To whom and how the subsidy is provided  
 
Goods produced in free warehouses and recognized as Kazakhst ani products according to sufficient 
processing criteria established by the Government of Kazakhstan are exempt from the value -added 
tax when being sold to the rest of the customs territory of Kazakhstan.  
 
Goods produced (processed) in free warehouses by the free warehouse owners, which were 
included into the Register of Free warehouse users prior to 1 January 2012 are exempt from G/SCM/N/284/KAZ/Suppl.1  
 
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  customs duties when exported to the rest of the territory of the Customs Union provided that they 
meet the sufficient processin g criteria adopted by the Commission of the Customs Union.  
  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1) Customs duty exemptions: 105.5 bln. tenge;  
 
2) VAT exemption: 71.8 mln. tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
In accordance with the EAEU Treaty (Protocol No. 28 "On Single Rules of Providing Industrial 
Subsidies ") and paragraph 934 of the Report of Working Party on the Accession of  the Republic of 
Kazakhstan to the WTO, preferences such as customs duty exemptions and VAT exemption are 
effective till 1 January 2017.  
 
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.  
 
4. INDUSTRIAL SUPPORT R ELATED TO DEVELOPMEN T OF INNOVATIVE ACTI VITY  
Title of the subsidy program  
 
Support of innovative activity.  
 
Period covered by the notification  
 
2015. 
 
Policy objective and/o r purpose of the subsidy  
 
Creation of favorable conditions for development of innovations, faci litation of innovative activity.  
 
Background and authority for the subsidy  
 
The program is aimed at development of innovative infrastructure. The Government supp ort is 
provided in the form of servicing support to the entities performing industrial and innovative 
activities in the form of (i) providing infrastructure on preferential terms, (ii) rendering 
consultative and engineering services.  
 
The subsidies are adm inistered by the Ministry of Investments and Development of the Republic of 
Kazakhstan.  
 
Legislation under which it is granted  
 
1) Law of the Republic of Kazakhstan No. 534 -IV "On State Support of Industrial and 
Innovative Activity " of 9 January 2012;  
 
2) Resolution of the Government of the Republic of Kazakhstan No. 1036 "On Approval of Rules 
on Providing Innovative Grants for Acquisition of Technologies, Carrying out of Industrial Research, 
Supporting of Activity on Manufacturing of High -Technology Produ cts on the Initial Stage of 
Development, Patenting in Foreign Countries and (or) Regional Patenting Organizations " of 
9 August 2012;  
 
3) Resolution of the Government of the Republic of Kazakhstan No. 1035 "On Approval of Rules 
on Providing Innovative Grant s for Upgrading Qualification of Engineering Staff Abroad, Attracting 
High-Qualified Foreign Specialists, Attracting of Consulting, Project and Engineering Organizations, 
Adoption of Administrative and Productive Technologies " of 9 August 2012;  
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  4) Resolut ion of the Government of the Republic of Kazakhstan No. 1037 "On Approval of Rules 
on Providing Innovative Grants for Commercialization of Technologies " of 9 August 2012.  
 
Form of the subsidy  
 
Grants . 
 
To whom and how the subsidy is provided  
 
Budgetary fun ds are provided to the entities performing industrial and innovative activity for 
implementation of industrial and innovative projects in priority sectors of economy. Grants are 
allocated to a cquisition of technologies, production of high technological pro duction, adoption of 
managerial and production technologies,  attraction of highly qualified foreign specialists . 
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
Acquisition of tech nologies: 0 tenge;  
Production of high technological production: 0 tenge;  
Attraction of highly qualified foreign specialists: 16.9 million tenge;  
Attraction of consulting, project and engineering organizations: 1.067 million tenge;  
Adoption of administrativ e and productive technologies: 0 tenge;  
Commercialization of technologies: 0 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.  
 
5. INTEGRATED BUSINESS SUPPORT AND DEVELOPM ENT PROGRAM "BUSINES S ROAD 
MAP 2020"  
Title of the subsidy program  
 
Integrated Business Support and Development Program "Business Road Map 2020 ". 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
To facilitate balanced growth of regional entrepreneurship, and to create jobs.  
 
Background and authority for the subsidy  
 
Integrated Business  Support and Development Program «Business Road Map 2020» was adopted 
pursuant to the Address of the President of the Republic of Kazakhstan "New Decade –New 
Economic Growth – New Opportunities of Kazakhstan " and the Nationwide Development Plan of 
Kazakhst an till 2020. The Program is aimed at achieving the goals proclaimed in the Addresses of 
the President of Republic of Kazakhstan "Kazakhstan Strategy – 2030" and "Kazakhstan 's Way – 
2050: Single Goals, Single Interests, Single Future ".  
 
The Program is adm inistered 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. 168 "On Approval of Integrated 
Business Support and Development Program "Business Road Map 2020 " of 31 March 2015, G/SCM/N/284/KAZ/Suppl.1  
 
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  Amendments to Regulation of the Government of the Republic of Kazakhstan No. 556 "On Certain 
Measures of Implementation of the Program "Business Road Map 2020 " and Repealing of Certain 
Decisions of the Government of the Republic of Kazakhstan " of 10 June 2010 . 
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program operates until 2020.  
 
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.  
 
The First Component:  
Supporting of New Business Initiatives of Entrepreneurs in Mono -Industry Towns,  
Small Towns and Rural Areas  
 
Form of the subsidy  
 
1) interest rate subsidies for loa ns/contracts on financial leasing;  
2) Partial guarantees on loans;  
3) State grants;  
4) Micro -loans for small businesses;  
5) Subsidization of interest rate for micro -loans given by private micro -financing 
organizations;  
6) Partial guarantees for loans of micro -financing organizations before banks.  
 
To whom and how the subsidy is provided  
 
The subsidy is available for existing entrepreneurs and start -ups, implementing and (or) planning 
to implement projects in rural areas, small towns and mono -industry town s. 
 
Interest rate subsidy is provided for loans with nominal interest rate not exceeding 16 per cent, 
where 10 per cent is compensated by the Government and 6 per cent is paid by the entrepreneur.  
 
The maximum value of the grant for one entrepreneur may n ot exceed 3 million tenge.  
 
Interest rate subsidies for micro -loans is made only to micro -loans with nominal interest rate not 
exceeding 20 per cent, 50 per cent of which is compensated by the Government, and the rest is to 
be paid by small businesses.  
 
Annual nominal interest rate for final micro -loan borrower may not exceed 12 %.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy:  
 
520.5 billion tenge.  
 
The Second Component:  
Industri al Support of Entrepreneurs Performing Activities  
in Priority Sectors of Economy and Processing Industry  
 
Form of the subsidy  
 
1) subsidization of interest rate of financial leasing;  
2) partial guarantees on bank/ Development Bank loans;  
3) development of  production (industrial) infrastructure;  
4) establishment of industrial zones.  
 
To whom and how the subsidy is provided  
 
Subsidies are available for entrepreneurs implementing and (or) planning to implement projects in 
the priority sectors of economy and priority sectors of the processing industry.  G/SCM/N/284/KAZ/Suppl.1  
 
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Subsidies for interest rate are provided only for loans/contracts on financial leasing with nominal 
interest rate not higher than 16 per cent, where 7 percentage points is compensated by the 
Government, and 9 percentage points is paid by the entrepreneur.  
 
Funding  of establishment  of industrial  zones  is made  by the authorized  body as a result of 
selection of development business plans on the competitive basis.  
 
Subsidy per unit, or in cases where this is not p ossible, the total amount or the annual amount 
budgeted for that subsidy:  
 
8.064 bln. tenge.  
 
The Third Component:  
Reduction of Currency Risks of Entrepreneurs  
 
Form of the subsidy  
 
Interest rate subsidies for existing loans/contracts on financial leasing  for entrepreneurs  involved 
in the priority sectors of economy  
 
To whom and how the subsidy is provided  
 
Subsidies are available for entrepreneurs involved in priority economy sectors and in processing 
sectors, which have currency earnings in the amount o f at least 10 per cent of the total cash 
receipts for the last six months prior to submission of the application to the Regional Coordinator 
of the Program.  
 
The value of the loan/contract on financial leasing eligible for the program may not exc eed 
4.5 billion tenge per one entrepreneur.  
 
Subsidies are available for loans with nominal interest rate not exceeding 16%, where 6% is 
compensated by the Government, and the rest to be covered by the entrepreneur.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2.791 bln. tenge.  
 
6. PROMOTING OF KAZAKHS TAN'S GOODS IN FOREI GN MARKETS  
Title of the subsidy program  
 
Partial Reimbursement of Expenses borne by Entities Performing Industrial and Inn ovative Activity 
for Promoting their Processed Goods and Services in Foreign Markets.  
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Promotion of Kazakhstani goods and services in foreign markets . 
 
Background an d authority for the subsidy  
 
The subsidy is one of the instruments aimed at implementation of the State Program on 
Accelerated Industrial and Innovative Development of the Republic of Kazakhstan for 2010 -2014.  
 
The subsidy is administered by the Ministry o f Investment and Development of the Republic of 
Kazakhstan.  
 G/SCM/N/284/KAZ/Suppl.1  
 
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  Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 1017 "On Approval of the Rules of 
Partial Reimbursement of Expenses of Subjects of Industrial  and Innovative Activity on Promotion 
of Processed Domestic Goods, Services in Foreign Markets, and List of Processed Domestic Goods, 
Services for Which Expenses of their Promotion in the Foreign Markets are Partially Reimbursed" of 
2 August 2012 . 
 
Form of  the subsidy  
 
Partial reimbursement of costs  
 
To whom and how the subsidy is provided  
 
The subsidy is provided to entities performing industrial and innovative activity in order to promote 
their processed goods and services in foreign markets. The subsidi es are provided in the form of 
reimbursement of 50 per cent of costs. The Rules provide for the list of goods and services of 
domestic production eligible for partial reimbursement for the purposes of promotion in external 
markets.  
 
Subsidy per unit, or i n cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  
1) branding, promoting: 137.8 million tenge;  
2) Registration and certification: 41.5 million tenge;  
3) Payment for training: 0.2 million tenge;  
4) Creati on and starting of the Internet resource: 0.4 million tenge;  
5) Marketing research : 0 tenge .  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program was ceased by Resolution of the Government No. 73 of 18 February 2016.  
 
Statisti cal 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. PROMOTING OF KAZAKHS TAN'S GOODS IN DOMES TIC MARKETS  
Title of the subsidy  program   
 
Partial Reimbursement of Costs Borne by Subjects of Industrial and Innovative Activity for 
Promotion of Their Processed Goods, Services in the Domestic Market .  
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Promo tion of Kazakhstan's goods and services in the domestic market . 
 
Background and authority for the subsidy  
 
The subsidy is one of the instruments of the State Program on Accelerated Industrial and 
Innovative Development of the Republic of Kazakhstan for 201 0-2014.  
 
The subsidy is administered by the Ministry of Investment and Development of the Republic of 
Kazakhstan  
 G/SCM/N/284/KAZ/Suppl.1  
 
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  Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 922 "On Approval of Rules on 
Partial Re imbursement of Costs of Subjects of Industrial and Innovative Activity for Promoting 
Domestic Processed Goods, Services in Domestic Markets" of 9 July 2012.  
 
Form of the subsidy  
 
Partial reimbursement of costs  
 
To whom and how the subsidy is provided  
 
Kazakhstani companies are compensated 50 per cent of the costs but not more than three 
thousand monthly calculation indices (~ 18500 USD, 1 MCI for 2016 = 2121 tenge).  
 
The partial reimbursement covers (i) costs of certification of goods and services, and 
(ii) implementation of quality management system recommended by international standards, 
permitted for application on the territory of the Republic of Kazakhstan in accordance with 
legislation and included in the register of state system of technical regulat ion. 
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy:  
 
100 million tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program was repealed by Resolutio n of the Government No. 73 of 18 February 2016.  
 
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.  
 
8. THE PROGRAM "PRODUCT IVITY 202 0"   
Title of the subsidy program  
 
The Program "Productivity 2020 ". 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
To increase competitiveness of industries in priority sectors of the economy through increasing 
labor productivity.  
 
Background and authority for the subsidy  
 
The Program "Productivity 2020" was developed under the methodological assistance of the World 
Bank as one of the instruments for implementation of the State Program on Accelerated Industrial 
and Innovative Development of Kazakhstan for 2010 -2014.  
 
The Ministry of Investments and Development of the Republic of Kazakhstan is the competent 
authority for implementation of this Program.  
 
Legislation under which it is granted  
 
Resolution of the Gove rnment of the Republic of Kazakhstan of 14 March 2011 No. 254 "On 
Approval of the Program "Productivity 2020 "  
 G/SCM/N/284/KAZ/Suppl.1  
 
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  Form of the subsidy  
 
Long-term financial leasing, partial reimbursement of costs.  
  
To whom and how the subsidy is provided  
 
Subsidies are avai lable for financially sustainable entrepreneurs implementing or planning to 
implement investment projects in priority economy sectors and who has developed comprehensive 
investment plan for this purpose.  
 
State support consists in the following:  
 
 Compens ation of expenses related to development or expertise of comprehensive 
investment plan;  
 Long-term financial leasing;  
 Hiring of qualified design and engineering companies;  
 Innovation grants;  
 Hiring of highly qualified foreign experts;  
 Implementation o f up-to-date management and production technologies.  
 
Long-term financial leasing is provided in the form of net leasing, i.e. the leaseholder bears all 
costs associated with obtaining of the leasing. Maximum interest rate of financial leasing contract – 
5 per cent. The value of facility subject to leasing shall not be less than 150 million tenge.  
 
Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy:  
 
12.424 million tenge;  
 
Duration of the  subsidy and/or any other time -limits attached to it  
 
The Program operates until 2020.  
 
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.  
 
9. THE PROGRAM OF POST -CRISIS RECOVERY (REC OVERY OF COMPETITIVE  
ENTERPRISES)  
Title of the subsidy program  
 
The Program of Post -Crisis Recovery (Recovery of Competitive Enterprises) .  
 
Period covered by the notification  
 
2015. 
 
Policy objective and/ or purpose of the subsidy  
 
Recovery of solvency of the competitive enterprises . 
 
Background and authority for the subsidy  
 
On 11 February 2011 during the XIII Conference of the Party "Nur Otan " the President of the 
Republic of Kazakhstan N.A. Nazarbayev ta sked the Government of the Republic of Kazakhstan,the 
National Bank of the Republic of Kazakhstan  and the Agency of the Republic of Kazakhstan on 
Regulation and Supervision of the Financial Market and Financial Organizations to develop a 
program of post -crisis recovery in order to recover competitiveness of enterprises and to save 
jobs. 
 
The Program is administered by the Ministry of Finance of the Republic of Kazakhstan.  G/SCM/N/284/KAZ/Suppl.1  
 
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  Legislation under which it is granted  
 
Resolution of the Government of the Republic o f Kazakhstan No. 225 "On Approval of the Program 
of Post -Crisis Recovery (Recovery of Competitive Enterprises) " of 4 March 2011.  
 
Form of the subsidy  
 
Subsidies to reduce interest rate and tax preferences  
 
To whom and how the subsidy is provided  
  
Partici pants of the Program are SMEs operating in strategic sectors of the economy, excluding 
those operating in mining sector and alcohol and tobacco producers.   
 
1) Subsidization of interest rate on existing loans (credits) and/or leasing operations, warrants;  
2) Deferral of taxes and other mandatory payments to the budget;  
3) Tax preferences ; 
4) Assistance in searching of strategic partner;  
 
Financial leasing contracts shall be concluded no later than 1 January 2012. Total value of 
obligation per one borrower  by 1 January 2011 shall not exceed 4.5 billion tenge. The term of 
subsidization is up to 5 years, amount of subsidy – up to 7 per cent of annual interest rate.  
 
Subsidy per unit or in cases where this is not possible, the total amount or the annual amount  
budgeted for that subsidy  
 
1,911 million tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program operates until 2016.  
  
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to est imate what, if any, trade effects may result from the use of this program.  
 
10. THE PROGRAM OF FINAN CING OF THE REGIONAL  BUSINESS PROJECTS CO VERED 
BY THE FUNDS OF LOCA L EXECUTIVE BODIES A ND THE "FUND OF THE 
ENTREPRENEURSHIP DEV ELOPMENT "DAMU" (HER EINAFTER REFE RRED AS – FUND 
DAMU)  
Title of the subsidy program  
 
The Program for Financing of Regional Business Projects Using the Funds of Local Executive Bodies 
and the Fund "DAMU ". 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the sub sidy 
 
To support small and medium enterprises (hereinafter – SMEs) in priority economy sectors . 
 
Background and authority for the subsidy  
 
The Program is aimed at development of SMEs  in priority sectors of economy.  
 
Administrators of Program: Fund DAMU, l ocal executive bodies.  
 
 
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  Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 1039 "On Approval of the First -
Priority Action Plan on Providing Stability of Social and Economic Development of the Republic of  
Kazakhstan " of 6 November 2007.  
 
Form of the subsidy  
 
Soft loans . 
 
To whom and how the subsidy is provided  
 
Joint funds of the Fund "DAMU " and local budgets are allocated to second -tier banks for further 
lending to SMEs.  
 
Nominal interest rate shall not e xceed 11% a year. Maximum funding per one borrower - 3 million 
tenge.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
4.559 billion tenge .  
 
Duration of the subsidy and/or any othe r time -limits attached to it  
 
The loans are provided for the term of not more than 84 months.  
 
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 o f this program.  
 
11. THE PROGRAM OF SUPPO RT OF PRIVATE ENTREP RENEURS INVOLVED IN THE 
MANUFACTURING INDUST RY "DAMU -ONDIRIS"  
Title of the subsidy program  
 
The Program of Support of Private Entrepreneurs Involved in the Manufacturing Industry "Damu -
Ondiris ". 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Funding of the projects of private entrepreneurs involved in manufacturing sectors . 
 
Background and authority for the subsidy  
 
The Program was developed to stimulate economic activity of private entrepreneurs in the sphere 
of processing industry.  
 
Program Administrator: 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. 1553 "On Certain Issues on 
Supporting of Enterprises in the Sphere of Manufacturing Industry and Solving Property Market 
Problems " of 9 October 2009 . 
 
 
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  Form of the subsidy  
 
Soft loans  
 
To whom and how the subsidy is provided  
 
Maximum fun ding per one entrepreneur is 750 million tenge. Annual interest rate may not exceed 
8%. 
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
15.024 billion tenge.  
 
Duration of the subsi dy and/or any other time -limits attached to it  
 
The Program is operational until 2017.  
 
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.  
 
12. THE PROGRAM ON OPERA TIONS OF FINANCIAL L EASING OF SMALL AND MEDIUM 
ENTERPRISES  
Title of the subsidy program  
 
The Program on Operations of Financial Leasing of Small and Medium -Sized Enterprises .  
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Funding of projects of private entrepreneurs in the manufacturing industry . 
 
Background and authority for the subsidy  
 
The Program was developed for the purposes of support of private entrepreneurs engaged in 
manu facturing industry.  
 
Program Administrator: 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. 1553 "On Certain Issues on 
Supporting Subject s in the Sphere of Manufacturing Industry and Solving Property Market 
Problems" of 9 October 2009.  
 
Form of the subsidy  
 
Financial leasing operations . 
 
To whom and how the subsidy is provided  
 
The program covers financial leasing operations and is availabl e only for SMEs implementing new 
projects in priority economy sectors. The term of leasing shall not exceed 84 months; maximum 
interest rate of leasing - 8%. 
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  Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2.406 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The term of leasing shall not exceed 84 months.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not pos sible to estimate what, if any, trade effects may result from the use of this program.  
 
13. THE PROGRAM OF INTER -BANK LENDING  
Title of the subsidy program  
 
The Program of Inter -bank Lending . 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or  purpose of the subsidy  
 
Funding of projects of up to USD 30 million in priority economy sectors,  and stimulating of funding 
by second -tier banks into the priority economy sectors.  
 
Background and authority for the subsidy  
 
Pursuant to the Joint Action Pl an of the Government of the Republic of Kazakhstan and the 
National Bank of the Republic of Kazakhstan, approved by Resolution of the Government of 
Kazakhstan No. 364 of 14 April 2014, the Government and the "National Managing Holding 
"Baiterek " shall prov ide  funding to (i) second -tier banks for further financing of SMEs involved in 
manufacturing and services sector, (ii) current assets of SMEs, and (iii) large enterprises of 
manufacturing industry.  
 
Legislation under which it is granted  
 
Resolution of the  Government of Kazakhstan No. 1276 "On Approval of Joint Action Plan of the 
Government of the Republic of Kazakhstan and the National Bank of the Republic on Financing of 
Subjects in the Manufacturing Industry " of 5 December 2014.  
 
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 SMEs and large enterprises of 
manufacturing sector. A nominal interest rate in tenge – 6 per ce nt, term of the loan – up to 
10 years, grace period is 24 months.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
92.887 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Not specifie d. 
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  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.  
 
14. PROGRAMS ON CONDITIO NAL ALLOCATION OF FU NDS TO THE SECOND -TIER 
BANKS FOR F URTHER LENDING TO SM ALL AND MEDIUM ENTER PRISES (I – 
III TRANCHES)  
Title of the subsidy program  
 
Programs on Conditional Allocation of Funds to the Second -tier Banks for Further Lending to the 
Small and Medium Enterprises . 
 
Period covered by the notificatio n  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Reduction of costs of lending .  
 
Background and authority for the subsidy  
 
The Program on Conditional Allocation of Funds is one of the instruments of implementation of 
state policy on financial su pport of SMEs of the Republic of Kazakhstan.  
 
Program Administrator: Fund "DAMU ". 
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 1039 "On Approval of Initial 
Action Plan on Ensuring Stability of the S ocial and Economic Development of the Republic of 
Kazakhstan " of 6 November 2007;  
 
Resolution of the Government of the Republic of Kazakhstan No. 1085 "On Joint Action Plan of the 
Government of the Republic of Kazakhstan, the National Bank of the Republic  of Kazakhstan and 
the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and 
Financial Organizations on Stabilization of Economy and Financial System for 2009 -2010" of 
25 November 2008.  
 
Form of the subsidy  
 
Soft loans . 
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Maximum term of the loans - 84 months . 
 
Statistical data permitting an assessment of the trade effects of a subsidy   
 
It is not possible to estimate what, if any, trade effects may resu lt from the use of this program.  
 
To whom and how the subsidy is provided  
 
I TRANCHE  
 
Funds are allocated to second -tier banks for further lending to SMEs. Purpose of funding: 
refinancing of existing loans and replenishing of current assets. Interest rate  for SMEs is 
determined by the bank -partner, individually.  
 
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  II TRANCHE  
 
Funding of SMEs is provided via second -tier banks. Bank -partners shall participate by own funds in 
the ratio 1:1 to the funding made by the Fund "DAMU ".  
 
Interest rate for SMEs may n ot exceed 12.5%.  
 
III TRANCHE  
 
Funding of SMEs is provided via second -tier banks. Bank -partners may allocate their own funds as 
well.  
 
Purpose of funding – refinancing of existing loans and replenishing of current assets. Interest rate 
for SMEs may not ex ceed 12.5%.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
4.008 billion tenge.  
 
15. THE PROGRAM ON FINAN CING OF THE REGIONAL  PRIORITY PROJECTS OF  THE 
SMALL AND MEDIUM ENT ERPRISES "DA MU REGIONS II" AND " DAMU REGIONS III"  
Title of the subsidy program  
 
The Program of Financing of the Regional Priority Projects of the Small and Medium Enterprises 
"Damu Regions II " and "Damu Regions III ". 
 
Period covered by the notification  
 
2015. 
 
Policy  objective and/or purpose of the subsidy  
 
Reduction of lending costs . 
 
Background and authority for the subsidy  
 
The Program is implemented through allocation of funds by DAMU in the bank -partners for further 
lending to SMEs. Other conditions are determine d by second -tier banks individually.  
 
Administrator of the Program – "Fund of Entrepreneurship "DAMU ". 
 
Legislation under which it is granted  
 
Resolution of the Republic of Kazakhstan No. 1039 "On Approval of Initial Actions Plan on Providing 
of Stability of the Social and Economical Development of the Republic of Kazakhstan " of 
6 November 2007.  
 
Form of the subsidy  
 
Soft loans . 
 
To whom and how the subsidy is provided  
 
The maximum funding per one borrower – 500 million tenge. Nominal interest rate  - not h igher 
than 14 per cent.  
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  Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
 Damu Regions II: 4.679 billion tenge;  
 
 Damu Regions III: 24.778 billion tenge.  
 
Duration of the subsidy a nd/or any other time -limits attached to it  
 
The term of lending shall not exceed 84 months . 
 
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.  
 
16. THE PROGRAM ON FINAN CING OF LEASING OPER ATIONS OF SMALL AND MEDIUM 
ENTERPRISES INVOLVED  IN MANUFACTURING IND USTRY  
Title of the subsidy program  
  
The Program on Financing of Leasing Operations of Small and Medium Enterprises Engaged in the 
Manufacturing Industry via Second -Tier Banks and Leasing Companies . 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Reduction of leasing costs . 
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 1553 "On Certain  Issues  of 
Supporting  of Subjects of Entrepreneurship in the Sphere of Manufacturing Industry and Solving 
Property Market Problems " of 9 October 2009.  
 
Form of the subsidy  
 
Financing of leasing operations . 
 
To whom and how the subsidy is provided  
 
Only new projects (leasing operations) of SMEs are funded. Total amount of contract on financial 
leasing may not exceed 150 million tenge.  
 
Annual interest rate shall not be higher than 8%.  
 
Subsidy per unit, or  in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
0 tenge . 
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The term of leasing shall not exceed 84 months . 
 
Statistical data permitti ng 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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  17. THE PROGRAM ON ALLOC ATION OF FUNDS TO SE COND -TIER BANKS FOR FURTH ER 
MICRO -LENDING OF WOMAN ENT REPRENEU RSHIP  
Title of the subsidy program  
 
The Program on Allocation of Funds to Second -tier Banks for Further Micro -lending of Woman 
Entrepreneurship . 
 
Period covered by the notification  
 
2015. 
 
Policy objective and/or purpose of the subsidy  
 
Stimulating of econ omic activity of women -entrepreneurs through lending of existing and new 
woman entrepreneurs .  
 
Background and authority for the subsidy  
 
The Program is implemented pursuant to the Address of the President of the Republic of 
Kazakhstan on Women Forum of Ka zakhstan of 5 March 2009.  
 
The Program is administered by the Fund "DAMU ". 
 
Form of the subsidy  
 
Soft loans  
 
To whom and how the subsidy is provided  
 
The subsidy is available for women involved in entrepreneurial activity in the juridical form of 
private e ntrepreneur and juridical persons. Participation of women in charter capital of the juridical 
person shall not be less than 50 per cent and 30 per cent of all employees shall be women.  
 
Annual effective interest rate shall not exceed 14%.  
 
Subsidy per unit , or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  
1.518 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
For replenishing of current assets – up to 36 months;  
 
For acquisition and renovation of fixed assets – up to 60 months.  
 
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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