RESTRICTED  
  
WT/ACC/KAZ/74  
 
27 February 2013  
(13-1112) Page: 1/19  
Working Party on the Accession of Kazakhstan  Original: English  
 
 ACCESSION OF KAZAKHSTAN 
NOTIFICATION OF INDUSTRIAL SUBSIDIES PROVIDED BY THE REPUBLIC OF KAZAKHSTAN 
IN THE YEARS 2011, 2012 
Compiled in accordance with the instructions provided in Article 25  
of the Agreement on Subsidies and Countervailing Measures. 
 
 The following submission, 19 February 2013, is  being circulated at the request of the 
Delegation of the Republic of Kazakhstan. 
_______________ 
 WT/ACC/KAZ/74 
 
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  I. INVESTMENT PREFERENCES 
1. Title of the subsidy programme 
Investment Preferences. 2. Period covered by the notification 
2011, 2012. 3. Policy objective and/or purpose of the subsidy  
The State's investment support was directed towards the creation of favourable conditions for 
investors investing in new technologies, the expansion and renovation of existing production 
facilities, training and protection of the environment. 
4. Background and authority for the subsidy  
From the date when the Republic of Kazakhstan gained its independence, the major investment 
flows have been directed to oil and gas and othe r extracting sectors of the economy. In this 
regard, one of the main tasks of Kazakhstan's Government is to diversify the national economy through creating favorable investment climate for attracting foreign investments into processing 
industries and production of high value-added good s and services. National legislation provides for 
investment preferences directed at attraction of investments into priority sectors of the economy. 
Investment preferences are administered by th e Investments Committee under the Ministry of 
Industry and New Technologies. 
5. Legislation under which it is granted 
Law of the Republic of Kazakhstan No. 373 "On Investments" No. 373-2 (8 January 2003); Tax Code No. 99-IV (10 December 2008); 
Law of the Republic of Kazakhstan No. 534-IV "On State Support of Industrial and Innovative 
Activity" (9 January 2012). 
6. Form of the subsidy  
Investment tax preferences, in-kind state grants, custom duty exemptions, industrial preferences 
for juridical persons implementing strategic investment projects in socially and economically disadvantaged regions. 
7. To whom and how the subsidy is provided 
Investment preferences are granted in accordance wi th the list of priority activities approved by 
the Government Resolution No. 436 of May 2003 or the list of investment strategic projects 
approved by Resolution of the Government of the Republic of Kazakhstan (the list is under 
development). 
Investment preferences are granted upon conclusion of an investment contract with a juridical 
person of the Republic of Kazakhstan implementing an investment project or investment strategic 
project. The preferences include: 
 
1. Exemption from customs duties  for imported technological equipment, related 
components and spare parts, raw materials and (or) materials imported for 
implementation of an investment project or a strategic investment project within the investment contracts concluded with the authorised body. Customs duty exemptions were granted for a period of no more than five years after registration 
of a contract.  WT/ACC/KAZ/74 
 
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  2. Exemptions from land tax and property tax are provided in the tax legislation of 
the Republic of Kazakhstan. These preferen ces are granted to juridical persons that 
implement strategic investment projects included into the of strategic investment projects approved by the Government. 
3. State in-kind grants can be granted by the Government to investors in the form of 
land plots, buildings, machinery, equipment, computational devices, measuring and regulating units, vehicles (except for automobiles), industrial and household 
equipment.  The authorised body, with th e approval of relevant state agencies, 
provides investors with in-kind state grants for temporary free use with their following free transfer into ownership in case that all obligations under the investment contract had been fulfilled by the investor. 
4. Industrial preferences are granted in the form of partial or full compensation of 
expenses (on gas, electricity, acquisition of land, acquisition (construction) of buildings) of juridical persons implementing investment strategic projects in 
socially and economically disadvanta ged regions  (introduced by the Law 
No. 535-IV dated 9 January 2012). 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
Not available.  9. Duration of the subsidy and/or any other time-limits attached to it  
Not specified. 
10. 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 provision. 
II.  PREFERENCES WITHIN SPECIAL ECONOMIC ZONES 
1. Title of the subsidy programme  
Preferences within Special Economic Zones (hereinafter- SEZs). 
2. Period covered by the notification  
2010, 2011. 
3. Policy objective and/or purpose of the subsidy 
Preferences granted within SEZs are aimed at attracting investments with the purpose to develop 
competitive industries, contribute to the development of regions and create jobs. 
4. Background and authority for the subsidy  
The Government adopted legal acts that regulate creation and operation of SEZs, as well as tax 
and customs preferences applicable to SEZs residents.  
Preferences within SEZs are administered by the Mi nistry of Finance of the Republic of Kazakhstan 
and Ministry of Industry and New Techno logies of the Republic of Kazakhstan. 
5. Legislation under which it is granted  
The Custom Union Agreement "On Free (Special) Economic Zones on the Territory of the 
Customs Union and Customs Procedure of Free Economic Zone" (18 June 2010); 
Article 229 of the Customs Code of the Republic of Kazakhstan (5 April 2003); WT/ACC/KAZ/74 
 
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  Articles 150, 224 of the Tax Code of the Republic of Kazakhstan of 10 December 2008; 
Government Resolution of the Republic of Ka zakhstan No. 703 "On Approval of the List of 
Own-Produced Goods (Works, Services) in Acco rdance with the Types of Activities which 
Correspond to the Purposes of the Establishment of Special Economic Zones" (13 May 2009). 
6.  Form of the subsidy 
Customs duty and tax exemptions. 
7. To whom and how the subsidy is provided  
Subsidy is provided to juridical persons registered as SEZ participants. 
Foreign goods are placed and used within the corresponding territorial borders of a SEZ without 
levying import customs duties, taxes and without application of non-tariff regulation. 
According to the Customs Union Agreement on SEZ,  goods produced (processed) in the SEZs by 
residents registered prior to 1 January 2012 incorporating imported components, but recognized 
as goods of the CU based on sufficient processing, i.e. substantial transformation criteria are not subject to payment of import customs duties wh en exported from SEZs into the rest of the 
CU customs territory.  These latter provisions will expire on 1 January 2017. 
The Tax Code provides for: - reduction by 100% of the corporate income tax rate; 
- 0 (zero) coefficient to related rates in calculation of the land tax; 
- 0% rate to the average value of the property subject to taxation in calculation of the 
property tax. 
- sales to the territory of SEZ of goods that we re included into the list of goods determined 
by the Government and fully consumed in conducting business activities that meet the 
purposes of the SEZ are to be taxed at 0 rate VAT. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
Not available. 9. Duration of the subsidy and/or any other time-limits attached to it  
Not specified. 
10. 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 provision. 
III.  PREFERENCES WITHIN THE FRAMEWOR K OF THE "FREE WAREHOUSE" CUSTOMS 
REGIME 
1. Title of the subsidy programme 
Preferences within the framework of the "Free Warehouse" customs regime. 
2. Period covered by the notification 
2011, 2012. WT/ACC/KAZ/74 
 
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  3. Policy objective and/or purpose of the subsidy  
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, food production, and production of construction materials. 
4. 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 the manufacturing sectors of the economy the Government 
established a Free Warehouse customs regime that envisages a number of tariff and tax 
preferences for producers of certain goods.   
The preferences provided within the free wareho use customs regime are administered by the 
Ministry of Finance of the Republic of Kazakhstan and Ministry of Industry and New Technologies of 
the Republic of Kazakhstan. 
5. Legislation under which it is granted 
The Customs Union Agreement "On Free Warehouses and Free Warehouse Customs Procedure" of 
18 June 2010. 
The Tax Code of the Republic of Kazakhstan. Law of the Republic of Kazakhstan No. 100-IV "On En tering Into Force of the Code of the Republic 
of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" of 10 December 2008.   
Resolution of the Government of Kazakhstan No. 133 "On the List of Goods Produced in the 
Territory of Free Warehouse and Sold by the Owne r of a Free Warehouse to the Territory of the 
Republic of Kazakhstan, Sales Turnover of whic h are Exempted from VAT, and the List of Goods 
Produced in the Territory of Free Warehouse and Sold from this Territory to the Rest of the 
territory of the Republic of Kazakhstan" of 19 January 2012. 
6. Form of the subsidy 
Tax and import duty preferences. 7. To whom and how the subsidy is provided  
Foreign goods imported into free warehouses are exempted from duties and taxes.  
Goods produced (processed) in free warehouses by free warehouse owners that were included into 
the Register of Free warehouse users prior to 1 January 2012 are exempted from customs duties 
when exported to the rest of the territory of the Customs Union provided that they meet the 
sufficient processing criteria adopted by the Commission of the Customs Union. This provision 
expires on 1 January 2017. 
Goods produced in free warehouses and recognized as Kazakhstani products according to the 
sufficient processing criteria established by the Government of the Republic of Kazakhstan are 
exempted from the value-added tax when being sold to the rest of the customs territory of the 
Republic Kazakhstan. This provision expires on 1 January 2017. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy  
Not available. WT/ACC/KAZ/74 
 
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  9. Duration of the subsidy and/or any other time-limits attached to it  
Exemption from taxes and import duties for products  that meet sufficient processing criteria when 
exported from the Free Warehouse to the rest of the customs territory is valid until 1 January 2017. 
Since 1 January 2017 customs duties will be levied  on imported components when exporting goods 
produced in free warehouses to the rest of the customs territory and VAT will be applied to all goods produced in free warehouse when sold to the rest of the customs territory. 
10. 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 provision. 
IV. PREFERENCES WITHIN THE FRAMEWORK OF AGREEMENTS ON INDUSTRIAL 
ASSEMBLY OF MOTOR VEHICLES 
1. Title of the subsidy programme 
Preferences within the Framework of the Agreements  on Industrial Assembly of Motor Vehicles.  
2. Period covered by the notification  
2011, 2012. 
3. Policy objective and/or purpose of the subsidy 
The preferences under industrial assembly agreemen ts in the form preferential rates of import 
duties (including exemption from import duties) are aimed at attracting investors into automotive 
sector of the economy. 
4. Background and authority for the subsidy  
The preferences under the Agreement on Industrial  Assembly are administered by the Industrial 
Committee under the Ministry of Industry and New Technologies. 
5. Legislation under which it is granted 
CU Commission Decision No. 130 of 27 November 2009.  
"Rules on Concluding the Agreement on Industrial Assembly of Motor Vehicles" approved by Order 
of the Deputy Prime Minister and Minister of  Industry and Trade" No. 113 of 11 June 2010. 
6. Form of the subsidy  
Import duty exemptions or preferential import duties. 
7. To whom and how the subsidy is provided 
Juridical persons that signed an agreement on industrial assembly qualify for preferential import 
duties (from 0 to 5%) on the import of parts and components used in the assembly of automobiles 
under tariff lines of the Unified Customs Tariff of the Customs Union "for the industrial assembly of 
motor vehicles under headings 8701-8705, their components and assemblies" provided they meet the following conditions: 
1. to have productive assets of at least 2 billion tenge as of the agreement signing 
date; and 
2. to have an obligation in a period not ex ceeding 84 months from the signing date of 
the agreement: WT/ACC/KAZ/74 
 
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  - to launch the industrial assembly of at least one model of the motor 
vehicles of CU HS heading 8703; 
- to import car parts originating from countries not party to the Customs 
Union under the positions of the Unified Customs Tariff of the Customs 
Union "For the Industrial Assembly of Motor Vehicles under Headings 
8701-8705, their Components and Assemblies" in volume of no more than 70% of the total value of the auto-components used in the production, 
taking into account the cost of the body, being classified in CU HS heading 
8707. 
Industrial assembly of motor vehicles means a system of serial production based on technological 
processes providing for project production capaci ty under two-shift operation of no less than 
25,000 pieces per year and featuring the following technical operations: 
- welding, assembly and painting of the body; 
- installation of cabin equipment; 
- installation of a power train, steering mechanism, and exhaust system; 
- installation of electrical equipment, suspension components; - installation of exterior elements; and 
- conducting control tests of finished motor vehicles. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
Not available. 
9. Duration of the subsidy and/or any other time-limits attached to it  
Not specified. 
10. 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 provision. 
V. PROGRAMME "BUSINESS ROAD MAP 2020": FIRST COMPONENT: SUPPORTING 
NEW BUSINESS INITIATIVES 
1. Title of the subsidy programme 
The Programme "Business Road Map 2020" (hereinafter- the Programme).  The first component:  
Supporting New Business Initiatives.   
2. Period covered by the notification 
2011, 2012. 3. Policy objective and/or purpose of the subsidy  
To support new business initiatives. State support of implementation of projects in non-primary 
sectors of the economy in accordance with the priorities of the Programme. 
4. Background and authority for the subsidy  
The Programme is one of the instruments aimed at  the implementation of the State Programme on 
Accelerated Industrial and Innovative Development of Kazakhstan for 2010-2014.  The primary 
goal of the Programme was to address the negative impacts of the world financial and economic crisis.  The Programme stipulates measures aimed at maintaining the existing and creating new jobs, providing sustainable and balanced growth of  regional entrepreneurship in the non-primary 
sectors of economy. WT/ACC/KAZ/74 
 
- 8 - 
 
  The Programme is administered by the Ministry of  Economy and Budget Planning of the Republic of 
Kazakhstan. 
5. Legislation under which it is granted  
Government Resolution of the Republic of Kazakhstan No. 301 "On the Approval of the Programme 
"Business Road Map 2020" (13 April 2010). 
6. Form of the subsidy 
Partial guaranteeing on bank loans; subsidization of interest rate for new bank loans; allocation of 
funds for the development of industrial infrastructure. 
7. To whom and how the subsidy is provided  
The subsidy is provided for enterprises implementing or planning to implement investment 
projects in the priority sectors of the econom y approved by the Government Resolution No. 301 
(13 April 2010), including agricultural sector, mi ning industry, light industry and furniture 
production, production of construction material s, metallurgy, machinery building, transport, 
warehousing, tourism services.  
1. Guarantee is granted only on the loans from commercial banks for implementation 
of new projects as well as for implemented projects directed at modernization and enlargement of the production.  The loan for which guaranteeing is made may not 
exceed 4.5 billion tenge for one borrower.  Guarantee exposure may not be higher 
than 50% of the loan amount.  Guarantee is granted free of charge for entrepreneurs. The interest rate on bank loans for which guarantee is granted can not be higher than 14%. 
2. Subsidization of interest rate is made only for loans from commercial banks for 
implementation of new projects as well as for implemented projects aimed at modernization and enlargement of the production.  Subsidization of interest rate 
may be made only for loans of banks with nominal interest rate not exceeding 
14%, where 7% is paid by the participants (beneficiaries) of the Programme and 7% is compensated by the Government.  Value of the loan on which subsidization 
of interest rate is granted may not ex ceed 4.5 billion tenge for one borrower. 
Period of subsidization is from one to three years with possibility of further prolongation to 10 years.  
3. Development of production (industrial) infrastructure includes the infrastructure 
building and may be fulfilled for projects directed at modernization and 
enlargement of productions.  Allocation of funds is assigned for construction and reconstruction of the following infrastruc ture:  roads, sewage, heat supply, water 
supply systems, dead-end tracks, installation of telephones, electric power 
substations, power transmission lines.  Allocation of funds shall be made on the basis of feasibility study or business plan for construction or reconstruction. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy: 
1. Partial guaranteeing on bank loans:  
2011 – 306.604 million tenge ( ≈ US$2 044 026);  
2012 – 2 442.138 million tenge ( ≈ US$16 147 586). 
2. Subsidization of interest rate for bank loans: 
2011 – 1 499.781 million tenge ( ≈ US$9 998 540);   
2012 – 2 805.406 million tenge ( ≈ US$18 702 706).  WT/ACC/KAZ/74 
 
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  3. Allocation of funds for developm ent of industrial infrastructure: 
2011 – 15 546 million tenge ( ≈ US$103 640 000); 
2012 – 15 010 million tenge( ≈ US$100 066 000). 
9. Duration of the subsidy and/or any other time-limits attached to it 
The Programme is operating until 2020.  10. 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 provision. 
VI.  PROGRAMME "BUSINESS ROAD MAP 2020" : SECOND COMPONENT: RECOVERY OF 
BUSINESS SECTOR 
1. Title of the subsidy programme 
The Programme "Business Road Map 2020".  The se cond component: Recovery of the Business 
Sector. 
2. Period covered by the notification  
2011, 2012. 
3. Policy objective and/or purpose of the subsidy  
To support enterprises in distress in non-primary sectors of the economy. 
4. Background and authority for the subsidy  
The Programme is one of the instruments aimed at  the implementation of the State Programme on 
Accelerated Industrial and Innovative Development of Kazakhstan for 2010-2014.  The primary goal of the Programme was to address the negative impacts of the world financial and economic crisis.  The Programme stipulates measures aimed at maintaining the existing and creating new 
jobs, providing sustainable and balanced growth of  regional entrepreneurship in the non-primary 
sectors of economy. 
The Programme is administered by the Ministry of  Economy and Budget Planning of the Republic of 
Kazakhstan. 
5. Legislation under which it is granted  
Government Resolution of the Republic of Kazakhstan No. 301 "On the Approval of the Programme 
"Business Road Map 2020" of 13 April 2010. 
6. Form of the subsidy  
1. Subsidization of an interest rate for bank loans; 
2. Deferral of tax liabilities to the Budget.  
7. To whom and how the subsidy is provided 
The subsidy is provided for enterprises in the pr iority sectors of the economy approved by the 
Government Resolution No. 301 (13 April 2010): agricu ltural sector, mining industry, light industry 
and furniture production, production of construction materials, metallurgy, machinery building, 
transport, warehousing, tourism services. WT/ACC/KAZ/74 
 
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  1. Subsidization to a debtor of an interest rate for already received bank loans and 
new debt within one credit line which ar ose after the approval of the project. 
Subsidization of interest rate may be granted only for loans for which commercial banks decrease the interest rate to 12% where 7% is paid by the participants 
(beneficiaries) of the Programme and 5% is compensated by the State.  The sum 
of subsidized credits may not exceed 4.5 billion tenge for one debtor.  The term of subsidies may not exceed three years. 
2. Providing a debtor with deferral on tax liabilities to the Budget (except for 
individual income tax withhold at payment source) without incurring penalties. Deferral of taxes may be granted only to debtors approved for subsidization of interest rates for bank loans within the second direction of the Programme.  
The deferral is granted on the debt which has emerged in the period from 
1 January 2008 until 13 April 2010 when the Re solution of the Government of the 
Republic of Kazakhstan No. 301 "On the Approval of the Programme "Business 
Road Map 2020" was adopted. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
1. 2011 – 1 820.103 million tenge ( ≈ US$12 134 020); 
2012 – 2 071.586 million tenge ( ≈ US$13 810 573). 
2. Not available. 
9. Duration of the subsidy and/or any other time-limits attached to it  
Applications for subsidies under the 2nd component of the Programme could only be submitted in 
2010, 2011. 
10. 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 provision. 
VII. PROGRAMME "BUSINESS ROAD MAP 2020": THIRD COMPONENT: REDUCTION OF 
MANURFACTURER'S CURRENCY RISKS 
1. Title of the subsidy programme 
Programme "Business Road Map 2020". Third component – Reduction of Producers' Currency 
Risks. 
2. Period covered by the notification 
2011, 2012. 3. Policy objective and/or purpose of the subsidy 
Aimed at reducing the dependence of the the size of  credit obligations from fluctuations of national 
currency and, accordingly, transforming currenc y risks (exchange risks) into credit risks. 
4. Background and authority for the subsidy 
The Programme is one of the instruments aimed at  the implementation of the State Programme on 
Accelerated Industrial and Innovative Development of Kazakhstan for 2010-2014.  The primary 
goal of the Programme was to address the negative impacts of the world financial and economic crisis.  The Programme stipulates measures aimed at maintaining the existing and creating new jobs, providing sustainable and balanced growth of  regional entrepreneurship in the non-primary 
sectors of economy. 
The Programme is administered by the Ministry of  Economy and Budget Planning of the Republic of 
Kazakhstan. WT/ACC/KAZ/74 
 
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  5. Legislation under which it is granted  
Government Resolution of the Republic of Kazakhstan No. 301 "On the Approval of the Programme 
"Business Road Map 2020" (13 April 2010). 
6. Form of the subsidy  
Subsidization of interest rates for commercial bank loans. 
7. To whom and how the subsidy is provided  
Subsidization of interest rates is granted to entrepreneurs that have currency earnings amounting 
to at least 10% of the total cash receipts for the financial year.  
The sum of the loan may not exceed 4.5 billio n tenge for one applicant.  The subsidies are 
available up to three years with the possibility of extension up to ten years.  In 2011 the Programme was applied to loans from commercial banks with the interest rates not higher than 
12%, of which 4% were to be paid by the partic ipant (beneficiary) and 8% – by the Government.  
In 2012, the Programme was applied to loans from commercial banks with the interest rates not higher than 14%, of which 6% were to be paid by the participant (beneficiary) and 8% – by the 
Government. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy  
2011 – 2 310.308 million tenge ( ≈ US$15 402 053); 
2012 – 2 357.226 million tenge ( ≈ US$15 715 106). 
9. Duration of the subsidy and/or any other time-limits attached to it  
The term for subsidization is from one to three years with the possibility of further prolongation. 
The programme operates until 2020. 
10. 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 provision. 
VIII.  REIMBURSEMENT OF EXPENSES BO RNE BY SUBJECTS OF  INDUSTRIAL AND 
INNOVATIVE ACTIVITY FOR PROMOTIN G THEIR PROCESSED PRODUCTS AND 
SERVICES IN FOREIGN MARKETS 
1. Title of the subsidy programme 
Reimbursement of Expenses Borne by Subjects of Industrial and Innovative Activity for Promoting 
their Processed Products and Services in Foreign Markets. 
2. Period covered by the notification 
2011, 2012. 3. Policy objective and/or purpose of the subsidy 
Promotion of Kazakhstan's goods and services in foreign markets. 
4. Background and authority for the subsidy 
The subsidy is one of the instruments aimed at implementation of the State Programme on 
Accelerated Industrial and Innovative Development of the Republic of Kazakhstan for 2010-2014.  WT/ACC/KAZ/74 
 
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  The subsidy is administered by the Ministry of In dustry and New Technologies of the Republic of 
Kazakhstan. 
5. Legislation under which it is granted 
Decree of the President of the Republic of Ka zakhstan No. 958 of 19 March 2010 "On Accelerated 
Industrial Innovative Development of the Republic of Kazakhstan for 2010-2014". 
Government Resolution No 1017 "On Approval of  the Rules of Reimbursement of Expenses of 
Subjects of Industrial and Innovative Activity on  Promotion of Processed Domestic Goods, Services 
in Foreign Markets, and of List of Processed Domestic Goods, Services for Which Expenses of their 
Promotion in the Foreign Markets are Partially Reimbursed" of 2 August 2012. 
6. Form of the subsidy 
Reimbursement of expenses. 
7. To whom and how the subsidy is provided 
The subsidy is provided to subjects of industri al and innovative activity for promoting their 
products and services in foreign markets.  The scheme provides for partial reimbursement of 
expenses only for promoting products and services included into the List of products and services 
adopted by Resolution No. 1017.  The following expenses can be partially compensated: 
- Marketing research (consultancy services); 
- Advertising costs (publishing brochures, videos, advertising and website development) 
- Participation in foreign exhibitions (entry fees, stand rental charges, etc.); - Maintenance of overseas representative;  - Training of specialists abroad or at  home by recruiting foreign experts; 
- Registration of products and trademarks abroad.  
The Government reimburses 50% of eligible export promotion expenses. 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
2011 – 100.700 million tenge ( ≈ US$671 333); 
2012 – 291.200 million tenge ( ≈ US$1 941 333). 
9. Duration of the subsidy and/or any other time-limits attached to it 
The programme operates until 2020. 
10. 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 provision. 
IX. PROGRAMME "PRODUCTIVITY - 2020" 
1. Title of the subsidy programme 
The Programme "Productivity – 2020". 
2. Period covered by the notification 
2011, 2012. WT/ACC/KAZ/74 
 
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  3. Policy objective and/or purpose of the subsidy 
To increase competitiveness of industrial enterprises in priority sectors of the economy though 
increasing labor productivity.  
4. Background and authority for the subsidy 
The Programme "Productivity 2020" (hereinafter referred as – Programme) was developed with 
the methodological assistance of the World Bank and currently as one of the instruments for implementation of the State Programme on Accele rated Industrial and Innovative Development of 
Kazakhstan for 2010-2014.  
The Ministry of Industry and New Technologies of  the Republic of Kazakhstan is the competent 
authority for implementation of this Programme. 
5. Legislation under which it is granted 
The Government Resolution of the Republic of Kazakhstan No. 254 "On Approval of the Programme 
"Productivity 2020" (14 March 2011). 
6.  Form of the subsidy 
Financing of leasing, partial compensation for expenses, grants. 7. To whom and how the subsidy is provided 
Entrepreneurs that meet the following criteria can be eligible to receive subsidies under the 
Programme: 
- implementing and (or) planning to implement in vestment projects in priority sectors of the 
economy listed in Annex 1 to the Programme; 
- producing and (or) planning to produce products listed in Annex 2 to the Programme, 
excluding entrepreneurs implementing investment projects in the sphere of rendering 
services on maintenance and installation of machines and equipment; 
- financially stable (no overdue debt on all kinds of obligations to the bank(s) or bank 
affiliates(s) and absence of tax debts, etc.);    
- having a comprehensive project implementation plan containing the following information: 
1. financial return on the investment project; 
2. increase in productivity; 
3. competitiveness of the product. 
1. Funding the development and expertise of comprehensive investment 
project plans. A producer and a consulting company (list of companies is 
approved) conclude an agreement on development and expertise of a 
comprehensive investment project plan.  After assessing the documentation the administrator of the Programme compensates 50% of 
the costs in the amount not exceeding 7.5 million tenge related to 
development and expertise of comprehensive investment project plan.   
2. Long-term Leasing. Leasing agreement is concluded between the operator 
of the programme - "BRK-Leasing" and lessee upon its approval by the 
"Kazakhstan's Industry Development Institute". The interest rate for leasing shall not be higher than 7.5%. The leasing is provided for the term of not more than 10 years.  
3. Attraction of qualified project an d engineering organizations (providing 
qualified maintenance of a project in selecting, acquiring, installing and starting the technological equipment). Project administrator partially 
compensates 30% of the expenses rela ted to use of qualified project and 
engineering organizations in the amount not exceeding 30 million tenge. 
4. Innovation grants.  Grants are allocated in accordance with the rules on 
provision of innovation grants, approved by the Resolution of the WT/ACC/KAZ/74 
 
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  Government of the Republic of Kazakhstan No. 1202 of 6 August 2009 
"On Approval of Rules on Granting Innovation Grants and Submission of Reports on Measures Adopted to Implement Objects of Intellectual Property".  Described in the next section. 
5. Introduction of modern administrative and industrial technologies.  Project 
administrator partially compensates 70% (30% - at the second stage) of the expenses related to implementation of modern administrative and 
industrial technologies in the amount not exceeding 5 mln tenge 
(10 mln tenge – at the second stage). 
6. Recruitment of highly-qualified international specialists.  Project 
administrator partlially compensates 50% of the expenses on 1 (one) 
specialist and on no more than 3 (three) specialists within one investment 
project in the amount not exceeding 9 million tenge. 
8. Subsidy per unit or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
1. Financing the development and expertise of a comprehensive investment project 
plan. 
2011– 27.6 million tenge ( ≈ US$184 000); 
2012 – 29.9 million tenge ( ≈ US$199 333). 
2. Long-term Leasing Financing. 
2011– 150.8 million tenge ( ≈ US$1 005 333); 
2012 – 5 181.9 million tenge ( ≈ US$35 546 000). 
3. Attraction of qualified project and engi neering organizations (providing qualified 
maintenance of a project in selecting, acquiring, installing and starting the 
technological equipment). 
 2011 – 10.136 million tenge ( ≈ US$67 573); 
 2012 – subsidy was not granted. 
4. Innovation grants. 
See below in the next section. 
5.  Introduction of modern administrative and industrial technologies. 
2011- 36.92 million tenge ( ≈ US$246 133); 
2012 – subsidy was not granted. 
6. Recruitment of highly-qualified international specialists. 
2011 – 7.2 million tenge ( ≈ US$48 000); 
2012 - subsidy was not granted. 
9. Duration of the subsidy and/or any other time-limits attached to it 
The Programme operates until 2020.  
10. 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 provision. WT/ACC/KAZ/74 
 
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  X. INNOVATION GRANTS 
1. Title of the subsidy programme 
Innovation grants. 2. Period covered by the notification  
2011, 2012. 
3. Policy objective and/or purpose of the subsidy 
Creation of favourable conditions for development of innovations. 
4. Background and authority for the subsidy  
The Government support is aimed at development of the innovative infrastructure and provided in 
the form of service support of innovators through provision of infrastructure on preferential conditions, rendering consulting and engineering services.  
The subsidy is administered by the Ministry of In dustry and New Technologies of the Republic of 
Kazakhstan. 
5. Legislation under which it is granted 
Law of the Republic of Kazakhstan No. 135-III "On State Support of Innovation Activity" dated 
23 March 2006. 
Government Resolution of the Republic of Kaza khstan No. 1202 dated 6 August 2009 "On Approval 
of Rules on Granting Innovation Grants and Submission of Reports on Measures Adopted to 
Implement Objects of Intellectual Property" (replace d by Government Resolution of the Republic of 
Kazakhstan No. 1036 dated 9 August 2012 "On Approval of Rules on Granting Innovation Grants for Purchase of Technologies, Conducting Industrial Research, Support of Activities on 
Manufacturing High Technology Products at the Initial Stages of Development, Patenting in Foreign 
Countries and (or) in Regional Patenting Organisations"). 
6. Form of the subsidy  
Grants. 
7. To whom and how the subsidy is provided 
Grants for development works and (or) applied-oriented risk research. 
The grants are allocated based on the results of state scientific and technical, economic and, if 
necessary, ecological expertise, and patent innovation projects for obtaining innovation grants. 
1. Grants for preparation of technical and economic assessment of innovation 
projects 
The grants are provided to natural persons that have property rights on innovation 
and who have co-financing from business partners for further implementation of innovation project. 
2. Grants for patenting objects of intellectual property in foreign countries and 
international patent organizations 
The grants are provided to natural pers ons that have a right to submit an 
application for obtaining documents on protection of intellectual property right. WT/ACC/KAZ/74 
 
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  3. Grants for purchase of innovation technologies 
 Innovation grants for purchase of innovation technologies. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
1. Grants for conducting development works and (or) applied-oriented risks research.  2011 – 1 030 437 712 tenge ( ≈ US$6 869 584); 
 2012 – no grants were provided. 
2. Grants for preparation of technical and economic assessment of innovation 
projects. 
2011 – 319 238 899 tenge ( ≈ US$2 128 259); 
2012 – no grants were provided. 
3. Grants for patenting objects of intellectual property in foreign countries and 
international patent organizations. 
2011 –2 200 000 tenge ( ≈ US$14 666); 
2012 – no grants were provided. 
4. Grants for purchase of innovation technologies 
2011 – 1 919 805 511 tenge ( ≈ US$12 798 703); 
2012 – no grants were provided. 
9. Duration of the subsidy and/or any other time-limits attached to it 
Terms for using grants:  
1. Grants for conducting development works and (or) applied-oriented risks research. 
Not longer than 24 (twenty four) months. 
 2. Grants for preparation of technical and economic assessment of innovation 
projects.  Not longer than 6 (six) months. 
 3. Grants for patenting objects of intellectual property in foreign countries and 
international patent organizations.  Not longer than 3 (three) years. 
 4. Grants for purchase of innovation technologies.  As specified in the contract. 
10. 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 provision.  
XI. PROGRAMME FOR FINANCING PROJECTS OF REGIONAL BUSINESSES FROM THE 
FUNDS OF LOCAL EXECUTIVE BODIES AND "ENTREPRENEURSHIP FUND "DAMU" 
1. Title of the subsidy programme 
The Programme for Funding the Projects of Region al Businesses from the Funds of Local Executive 
Bodies and "Entrepreneurship Fund "DAMU". 
2. Period covered by the notification 
2011, 2012. WT/ACC/KAZ/74 
 
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  3. Policy objective and/or purpose of the subsidy 
To support Small and Medium Entrepreneurship s (SME) in priority sectors of the economy 
determined for each region in Kazakhstan. 
4. Background and authority for the subsidy 
The Programme is aimed at developing small and me dium-sized enterprises in the priority sectors 
of economy.  Taking into account that commercial loans provided by the commercial banks are mainly inaccessible for small and medium-sized enterprises due to high interest rates, especially in 
the period of economic crisis, the Government a pproved the scheme of co-financing the funds of 
"Entrepreneurship Fund "DAMU" and local executive bodies for further financing of small and medium-sized enterprises on preferential terms.  
Administrators of Programme: "Entrepreneurship Fund "DAMU", local executive authorities.  
5. Legislation under which it is granted 
Government Resolution of Kazakhstan No. 1039 "On A pproval of Plan on First-Priority Actions on 
Providing Stability of Social and Economic Development of the Republic of Kazakhstan" of 
6 November 2007. 
6. Form of the subsidy 
Financing projects of SMEs through provision of loans. 
7. To whom and how the subsidy is provided 
Co-financed funds of the "Entrepreneurship Fund  "DAMU" and local budgets are allocated to 
commercial banks for further lending to SMEs.  The Programme envisages financing companies operating in priority sectors in each region. 
Rate of return for a borrower is no more than 11% per year, limit of financing for one borrower is 
no more than 300 000 000 tenge. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
Amount of funds directed to second-tier banks for financing SSME in manufacturing sector: 2011 – 2 882.5 million tenge ( ≈ US$19 216 666); 
2012 – 912.7 million tenge ( ≈ US$6 084 666). 
9. Duration of the subsidy and/or any other time-limits attached to it 
The loans are provided for the term of no more than 84 months. 10. 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 provision. 
XII. THE PROGRAMME OF SUPPORT OF SUBJECTS OF PRIVATE ENTREPRENEURSHIP 
ENGAGED IN THE MANUFACTURING INDUSTRY "DAMU-ONDIRIS" 
1. Title of the subsidy programme 
Support of Private Entrepreneurs Engaged in the Manufacturing Industry "DAMU-Ondiris". WT/ACC/KAZ/74 
 
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  2. Period covered by the notification 
2011, 2012. 
3. Policy objective and/or purpose of the subsidy 
Financing projects of private entrepreneur s engaged in the manufacturing sectors. 
4. Background and authority for the subsidy 
The Programme was developed to stimulate an econ omic activity support private entrepreneurs in 
the sphere of processing industry. 
Programme Administrator:  the Ministry of Indu stry and New Technologies of the Republic of 
Kazakhstan.  
5. Legislation under which it is granted 
Governmental Resolution of the Republic of Kaza khstan No. 1085 "On Plan of  Joint Actions of the 
Government of the Republic of Kazakhstan, the Na tional Bank and the Agen cy of the Republic of 
Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations on Stabilization of Economy and Financial Systems For 2009-2010" (25 November 2008). 
Governmental Resolution of the Republic of Kazakhstan No. 1553 "On Certain Issues on 
Supporting Subjects in the Sphere of Manufactu ring Industry and Solving Property Market 
Problems" (9 October 2009). 
6. Form of the subsidy 
Loans. 
7. To whom and how the subsidy is provided 
The maximum ceiling of financing per one SPE (the subject of private entrepreneurship) is no more 
than 750 million tenge. A grace period on repayment of the main debt is up to 24 months. 
SPE should start using the loan within 2 months from the date of the conclusion of the Contract of a bank loan/agreement about opening of the credit line. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
Sum of granted loans: 2011 – 9 333.84 million tenge ( ≈ US$62 225 600); 
2012 – 9 041.36 million tenge ( ≈ US$60 275 733). 
9. Duration of the subsidy and/or any other time-limits attached to it 
The loan is provided for the term not exceeding 84 months. The Programme is operational until 
2017. 
10. 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 provision. WT/ACC/KAZ/74 
 
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  XIII. FINANCING LEASING OPERATIONS OF SMALL AND MEDIUM ENTERPRISES 
(SMES) IN MANUFACTURING SECTOR  
1. Title of the subsidy programme 
 
Financing Leasing Operations of Small and Medium Enterprises (SMEs) in Manufacturing Sector. 
2. Period covered by the notification 
2011, 2012. 
3. Policy objective and/or purpose of the subsidy 
Financing projects of private entrepreneurs in the manufacturing industry. 
4. Background and authority for the subsidy 
The Programme was developed to support private entrepreneurs engaged in processing industry. 
Programme Administrator:  the Ministry of Indu stry and New Technologies of the Republic of 
Kazakhstan.  
5. Legislation under which it is granted 
Resolution of the Government of the Republic of Kazakhstan No. 1553 "On Certain Issues on 
Supporting Subjects in the Sphere of Manufactu ring Industry and Solving Property Market 
Problems" (9 October 2009). 
6.  Form of the subsidy 
Financing leasing operations. 
7. To whom and how the subsidy is provided 
The subsidy is granted to finance leasing operations only for new projects of SMEs in the priority 
sectors of the economy.  The term of leasing shall not exceed 84 months, the interest rate for 
leasing shall not exceed 8%. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
2011 – 839 million tenge ( ≈ US$5 593 333); 
2012 – 198 million tenge ( ≈ US$1 321 333). 
9. Duration of the subsidy and/or any other time-limits attached to it 
The term of leasing shall not exceed 84 months. 
10. 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 provision. 
 
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