G/SCM/N/315/KAZ  
14 June 2017 
(17-3162) Page: 1/22 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF  
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
KAZAKHSTAN  
The following communication, dated 12 June 2017, is being circulated at the request of the 
delegation of Kazakhstan.  
 
_______________  
 
 
In accordance with Article 25.1 of the Agreement on Subsidies and Countervailing Measures and 
Article XVI:1 of the GATT 1994, the Government of the Republic of Kazakhstan  submits new and 
full notification of the R epublic of Kazakhstan. In accordance 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.  
 
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  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 ACTI VITY  ...........  6 
5 INTEGRATED BUSINESS SUPPORT AND DEVELOPM ENT PROGRAM "BUSINES S 
ROAD MAP 2020"  ................................ ................................ ................................ .............  7 
6 ENTREPRENEURSHIP SUP PORT IN ZHANAOZEN CI TY ................................ .................  10 
7 PROMOTION OF KAZAKHS TANI PRODUCTS  ................................ ................................ . 11 
8 IMPROVEMENT OF QUALI TY OF KAZAKHSTANI PR ODUCTS  ................................ .........  12 
9 THE PROGRAM OF FINAN CING OF THE REGIONAL  BUSINESS PROJECTS 
COVERED BY THE FUNDS  OF LOCAL EXECUTIVE B ODIES AND THE "FUND OF THE 
ENTREPRENEURSHIP DEV ELOPMENT "DAMU" (HER EINAFTER REFERRED AS  – 
FUND DAMU)  ................................ ................................ ................................ ..................  13 
10 THE PROGRAM OF SUPPO RT OF PRIVATE ENTREP RENEURS INVOLVED IN THE 
PROCESSING INDUSTRY "DAMU -ONDIRIS"  ................................ ................................ ... 14 
11 THE PROGRAM OF INTER -BANK LENDING  ................................ ................................ . 14 
12 FUNDING OF INVESTMEN T PROJECTS  ................................ ................................ ....... 15 
13 THE PROGRAM ON ALLOC ATION OF FUNDS TO SE COND -TIER BANKS FOR 
FURTHER MICRO -LENDING OF WOMAN ENT REPRENEURSHIP  ................................ ........  16 
14 THE PROGRAM "EMPLOYM ENT ROAD MAP 2020"  ................................ ......................  17 
15 THE PROGRAM OF POST -CRISIS RECOVERY  ................................ ..............................  18 
16 THE PROGRAM OF DEVEL OPMENT OF THE AGROIN DUSTRIAL SECTOR IN T HE 
REPUBLIC OF KAZAKHST AN FOR 2013 -2020 "AGROBUSINESS 2 020" ( from 
7 November 2016 the program has been renamed as "Programs of Development 
of the agricultural sector in the Republ ic of Kazakhstan  "Agrobusiness  2017") .............  19 
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  1  INVESTMENT PREFERENC ES 
Title of the subsidy program  
 
Investment preferences  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
The State inve stment support is aimed at creation of favorable conditions for investors investing 
into new technologies, expansion and renovation of existing production facilities, training of 
Kazakhstan staff and protection of the environment.  
 
Background and authority  for the subsidy  
 
One of the main tasks of Government of Kazakhstan is to diversify the national economy by 
creating favorable investment climate for attracting foreign investments into processing industries 
and production of high value -added goods and ser vices. 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 for 
Investments and Development  of the R epublic of Kazakhstan.  
 
Legislation under which it is granted  
 
1) Code of the Republic of Kazakhstan No. 375 -V "The Entrepreneurial Code of the Republic of 
Kazakhstan" of 29 October 2015;  
 
2) Code of the Republic of Kazakhstan No. 99 -IV "On Taxes and Other  Obligatory Payments in 
the Budget " of 10 December 2008.  
 
Form of the subsidy  
 
Within the investment project: customs duty exemption for imported goods; exemption from the 
VAT payment on imported goods exemption; in -kind state grants;  
 
Within the investmen t priority project: customs duty exemption; exemption from the VAT payment 
on imported goods exemption; in -kind state grants, tax preferences, investment subsidy.  
 
To whom and how the subsidy is provided  
 
Investment preferences are granted based on an inve stment contract concluded between 
authorized body and juridical person of the Republic of Kazakhstan implementing an investment 
project in accordance with the list of priority activities, approved by the Government of the 
Republic of Kazakhstan.  
 
Investmen t 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  
 
1) Сustoms duties – 4.926  million tenge;  
 
2) Tax preferences – data has been processed;  
 
3) In-kind grants – data has been processed;  
 
4) VAT exemption – data has been processed;  G/SCM/N/315/KAZ  
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  5) Investment subsidy – 0 tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Investment p references are granted for the duration of the investment contract, but not more than 
five years from the date of registration of the investment contract.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to e stimate what, if any, trade effects may result from the use of this program.  
 
2  PREFERENCES WITHIN S PECIAL ECONOMIC ZONE S 
Title of the subsidy program  
 
Preferences within Special Economic Zones (hereinafter - SEZs)  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
Preferences granted within SEZs are aimed at attracting investments with the purpose to develop 
competitive industries.  
 
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 Finan ce of the Republic of Kazakhstan 
and Ministry for Investments and Development of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
Agreement on Free (Special) Economic Zones on the Territory of the Customs Union and Customs 
Procedure of F ree Economic Zone of 18 June 2010;  
 
Law of the Republic of Kazakhstan No. 469 -IV "On Special Economic Zones of the Republic of 
Kazakhstan " of 21 July 2011;  
 
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; tax preferences  
 
To whom and how the subsidy is provided  
 
Subsidy is provided to juridical persons registered as SEZ participants.  
 
Goods produced (processed) in the SEZs by residents regi stered prior to 1 January 2012, 
containing imported components and recognized as EAEU products based on sufficient processing, 
i.e. substantial transformation, are not subject to import customs duties when exported from SEZs 
into the rest of the EAEU custo ms territory. These latter provisions expired on 1 January 2017.  
 
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  This transition period is set and stipulated 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.  
 
The Tax Code provides exemption from payment of the following taxes:  
 
- corporate income tax;  
- land tax;  
- property tax;  
- VAT for goods sold on the territory of the SEZ and completely consumed in the product ion 
 process.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1) Customs duties: 478.461 million tenge;  
 
2) VAT exemption: 27.346 billion tenge;   
 
3) Tax preferences: 19.406 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
1) Customs  duty exemption expired on 1 January 2017;  
 
2) Duration  of tax exemptions - up to date of SEZ expiry.   
 
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  PREFERENCES WITHIN T HE FRAMEWORK OF THE "FREE WAREHOUSE" CUS TOMS 
REGIME  
Title of the subsidy program  
 
Preferences within the framework of the "Free Warehou se" customs regime  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
The "Free Warehouse" customs regime is aimed at creating favorable conditions for development 
of entities, which are operating within this customs  regime.  
 
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 
provides pack age of preferences for entities, which are operating within the free warehouse 
regime.   
 
The preferences provided within the free warehouse customs regime are administered by the 
Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which i t is granted  
 
The Custom Union Agreement "On Free Warehouses and Free Warehouse Customs Procedure " 
of 18 June 2010;  G/SCM/N/315/KAZ  
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  Law of the Republic of Kazakhstan No. 100 -IV "On Entering Into Force of the Code of the Republic 
of Kazakhstan "On Taxes and Other Mandator y Payments to the Budget" of 10 December 2008.  
 
Form of the subsidy  
 
Customs  duty exemptions ; 
 
Exemption from the VAT.  
 
To whom and how the subsidy is provided  
 
Goods produced in free warehouses by free warehouse owners, which were included into the 
Regis ter of Free warehouse users prior to 1 January 2012, 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.  
 
Goods produced (processed) in free warehouses by free warehouse owners, which 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 EAEU provided that they meet the sufficient 
processing criteria adopted by the Eurasian Economic Commission.  
 
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 : 59.590 million tenge;  
 
2) VAT exemption : 40.722 million 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 expired 
on 1 January 2017.  
 
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.  
 
4  INDUSTRIAL SUPPORT R ELATED TO DEVELOPMEN T OF INNOVATIVE ACTIVITY  
Title of the subsidy program  
 
Support of innovative activity  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
Creation of favorable conditions for development of innovations, facilitation of innovative activity  
 
Background and authority for the subsi dy 
The Program is aimed at development of innovative infrastructure. The Government support is 
provided in the form of servicing support to the entities performing industrial and innovative 
activities in the form of (i) providing infrastructure on preferen tial terms, (ii) rendering 
consultat ive and engineering services.  
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  The subsidies are administered by the Ministry for Investments and Development of the Republic 
of Kazakhstan.  
 
Legislation under which it is granted  
 
Code of the Republic of Kazakhstan No. 375-V "The Entrepreneurial Cod e of the Republic 
of Kazakhstan " of 29 October 2015;  
 
Order of the Minister of the Investments and Development of the Republic of Kazakhstan No. 1192 
"On Approval of Rules on Providing Innovative Grants for Commercialization o f Technologies " 
of 9 December 2015;  
 
Order of the Minister of the Investments and Development of the Republic of Kazakhstan No. 1211 
"On Approval of Rules on Providing Innovative Grants for Technological Development of Operating 
Enterprises " of 18 December  2015;  
 
Order of the Minister of the Investments and Development of the Republic of Kazakhstan No. 1225 
"On Approval of Rules on Providing Innovative Grants for Technological Development of Sectors of 
Economy " of 23 December 2015.  
 
Form of the subsidy  
 
Grants 
 
To whom and how the subsidy is provided  
 
Budget funds 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 technolog ical development of sectors of economy, operating enterprises and 
commercialization of technologies.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1.996 billion tenge  
 
Duration o f 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  INTE GRATED BUSINESS SUPP ORT AND DEVELOPMENT PROGRAM "BUSINESS ROAD 
MAP 2020 " 
Title of the subsidy program  
 
Integrated Business Support and Development Program "Business Road Map 2020 "  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
To facilitate balanced growth of entrepreneurship, and to create new permanent jobs  
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  Background and authority for the subsidy  
 
The Program "Business Road Map 2020" had been launched since 2010. The Program provided 
state support in the for m of interest rate subsidies, guarantees, grants for new business ideas, 
micro -lending an infrastructure, servicing support. Taking into account the successful experience of 
implementing the "Business Road Map 2020 " new Integrated Business Support and Deve lopment 
Program "Business Road Map 2020 " has been adopted.  
 
The Program is administered by the Ministry of National Economy of the Republic of Kazakhstan.   
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan N o. 168 "On Approval of Integrated 
Business Support and Development Program "Business Road Map 2020 ", Amendments to 
Regulation of the Government of the Republic of Kazakhstan of 10 June 2010 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 31 March 2015.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program operates until 2020.  
 
Statistical data permitting a n 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 BUSINE SS INITIATIVES OF 
ENTREPRENEURS  IN MONO -INDUSTRY TOWNS, SMALL TOWNS AND RURAL AREAS  
 
Form of the subsidy  
 
1) interest rate subsidies for loans/contracts on financing leasing;  
 
2) partial guarantees on loans;  
 
3) state grants;  
 
4) micro -loans for small enterprises;  
 
5) interest rate subsidies 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 towns without sectoral 
limitation.  
 
Interest rate subsidy is provided for loans with nominal interest rate not exceeding 1 9%, 
where  10% is compensated by the Government and 9% is paid by the Entreprene ur.  
 
The maximum value of the grant for one entrepreneur may not exceed 3 million tenge.  
 
Interest rate subsidies for micro -loans is made only to micro -loans with nominal interest rate not 
exceeding 2 0%, where 1 0% is compensated by the Government, and res t is to be paid by small 
enterprise.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual a mount 
budgeted for that subsidy  
 
12.745 billion tenge  G/SCM/N/315/KAZ  
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  THE SECOND COMPONENT: INDUSTRIAL SUPPORT OF ENTR EPRENEURS PERFORMING 
ACTIV ITIES  IN PRIORITY SECTORS OF ECONOMY AND PROCESSING INDUSTRY  
 
Form of the subsidy  
 
1) interest rate subsidies for financing leasing;  
 
2) partial guarantees on bank/Development Bank loans;  
 
3) development of production (industrial) infrastructure;  
 
4) establishme nt of industrial zones.   
 
To whom and how the subsidy is provided  
 
Subsidies are available for entrepreneurs implementing and (or) planning to implement own 
projects in the priority sectors of economy and priority  sectors of the processing industry in 
accordance with priority sectors of processing industry.  
 
Interest rate subsidies are provided  only for loans/contracts on financing leasing with nominal 
interest rate not higher than 19% , where the Government compensates 7% and 12% is paid by 
the Entrepreneu r.  
 
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 possible, the total amount or the annual amou nt 
budgeted for that subsidy:  
 
7.669 billion tenge  
 
THE THIRD COMPONENT: REDUCTION OF CURRENCY RISKS OF ENTREPRENEURS  
 
Form of the subsidy  
 
Interest rate subsidies for existing loans/contracts on financing leasing for entrepreneurs involved 
in priority sec tors of economy  
 
To whom and how the subsidy is provided  
 
Subsidies are available for entrepreneurs involved in priority sectors of economy and in processing 
sectors, which have currency earnings in the amount of at least 1 0% of the total cash receipts fo r 
the last six months prior to submission of the application to the Regional Coordinator of the 
Program.  
 
The value of the loan/contract on financing leasing eligible for the program may not exceed 
4.5 billion tenge per one entrepreneur.  
 
Subsidies are av ailable for loans with nominal interest rate not exceeding 19%, 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 a mount 
budgeted for that subsidy  
 
303,9 million  tenge 
 
RECOVERING OF ENTREPRENEURIAL SECTOR  
 
Form of the subsidy  
 
Interest rate subsidies for loans/contracts of the Development Bank  
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  To whom and how the subsidy is provided   
 
Subsidies are available for loans with i nterest rate not exceeding 12%, where 7% is paid by the 
entrepreneur, and the rest is covered by the Government.  
 
Subsidies are available for foreign currency loans with interest rate not exceeding 10%, 
where  5% is paid by the entrepreneur, and the rest is  covered by the Government.  
 
Subsidies are available for loans of the Development Bank with interest rate not exceeding 11.5%, 
where 6.5% is paid by the entrepreneur, and the rest is covered by the Government.  
 
Subsidies are available for foreign currency loans of the Development Bank with interest rate not 
exceeding 9.5%, where 4.5% is paid by the entrepreneur, and the rest is covered by the 
Government.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgete d for that subsidy.  
 
32.996 million tenge  
 
TECHNOLOGICAL DEVELOPMENT OF ENTERPRISES  
 
Form of the subsidy  
 
Reimbursement of expenses on the following directions:  
 
1) development and/or examination of complex plan for industrial and innovative project;  
 
2) improv ement of technological processes;  
 
3) upgrading production efficiency;  
 
4) certification of products and quality management systems in accordance with international 
standards (ISO, API, ASTM, GMP, EN and others).   
 
Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for that subsidy.  
 
379.9 million tenge  
 
6  ENTREPRENEURSHIP SUP PORT IN ZHANAOZEN CI TY 
Title of the subsidy program  
 
Entrepreneurship Support in Zhanaozen City  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
Financial support to entrepreneurs who find themselves in economically unfavorable conditions  
 
Background and authority for the subsidy  
 
The subsidy is administered by the Ministry of National Economy of th e Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 15 "On Certain Issues on 
Entrepreneurship Development in Zhanaozen city" of 10 January 2012.  G/SCM/N/315/KAZ  
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  Form of the subsidy  
 
Interest rate  subsidies for loans/leasing contracts of banks and other financial organizations.  
 
To whom and how the subsidy is provided  
 
Value of loan may not exceed 3 million tenge.  
 
Subsidies are available for loans of with interest rate not exceeding 14%, where 7% is paid by the 
entrepreneur, and the rest is to be covered by the Government.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1.8 million tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Term of loan – up to 10 years  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
7  PROMOTION OF KAZAKHSTAN I PRODUCTS  
Title of the subsidy program  
  
Partial Reimbursement of Expenses borne by Entities Performing Industrial and Innovative Activity 
for Promoting their Processed Goods and Services  
 
Period covered by the notification  
 
2016 
 
Policy object ive and/or purpose of the subsidy  
  
Promotion of Kazakhstani goods and services  
 
Background and authority for the subsidy  
 
The subsidy is administered by the Ministry for Investments and Development of the Republic of 
Kazakhstan.  
 
Legislation under which i t is granted  
 
Order of the Minister of Investments and Development of the Republic of Kazakhstan No. 1128 
"On Approval of the Rules of Partial Reimbursement of Expenses of Entities Performing Industrial 
and Innovative Activity for Promoting their Processed  Domestic Goods, Services" of 
30 November  2015.  
 
Form of the subsidy  
 
Partial reimbursement of expenses  
 
To whom and how the subsidy is provided  
 
The subsidy is provided to entities performing industrial and innovative activity in order to promote 
their p rocessed goods and services.  The Rules provide for the list of processed goods and services 
of domestic production eligible for partial reimbursement for the purpose of marketing promotion.  
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  Subsidy per unit, or in cases where this is not possible, the to tal amount or the annual amount 
budgeted for that subsidy  
 
280 million tenge   
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Not specified  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possib le to estimate what, if any, trade effects may result from the use of this program.  
 
8  IMPROVEMENT OF QUALI TY OF KAZAKHSTANI PR ODUCTS  
Title of the subsidy  program   
 
Partial Reimbursement of Costs Borne by Entities of Industrial and Innovative Activity for 
Promotion of Their Processed Domestic Goods, Services in Domestic Markets.  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
Promotion of Kazakhstani goods and services in domestic markets  
 
Background and authority  for the subsidy  
 
The subsidy is administered by the Ministry for Investments and Development of the Republic of 
Kazakhstan.  
 
Legislation under which it is granted  
 
Order of the Acting Minister of Investments and Development of the Republic of Kazakhstan 
No. 1164 "On Approval of Rules on Partial Reimbursement of Costs of Entities of Industrial and 
Innovative Activity for Promoting Domestic Processed Goods, Services in Domestic Markets" 
of 4 December 2015.  
  
Form of the subsidy  
 
Partial reimbursement of cos ts  
 
To whom and how the subsidy is provided  
 
Entity of industrial and innovative activity is compensated 5 0% of the costs but no more than 
three thousand monthly calculation indices  (1 MCI for 2016 = 2121 tenge).  
 
The partial reimbursement covers: (i) cos ts of certification of goods, works 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 inclu ded in the register of state system of technical regulation.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual a mount 
budgeted for that subsidy  
 
92.022 million tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Not specified.  G/SCM/N/315/KAZ  
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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.  
 
9  THE PROGRAM OF FINAN CING OF THE REGIONAL  BUSINESS PROJECTS COV ERED BY 
THE FUNDS OF LOCAL E XECUTIVE BODIES AND THE "FUND OF THE ENTREPRE NEURSHIP 
DEVELOPMENT "DAMU " (HEREINAFTER REFERRE D AS – FUND DAMU)  
Title of the subsidy program  
 
The Program for Financing Regional Business Projects Using the Fund s of Local Executive Bodies 
and the Fund "DAMU '. 
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
To support small and medium enterprises (hereinafter – SMEs) in the priority economy sectors  
 
Background and authori ty for the subsidy  
 
Administrators of Program: Fund "DAMU ", local executive authorities.  
 
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 the second -tier ba nks for further 
lending to SMEs.  
 
Nominal interest rate shall not exceed 12.5% per year. Value of loan may not exceed 500 million 
tenge.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subs idy 
 
1.337 billion tenge  
 
Duration of the subsidy and/or any other 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 of this program.  
 G/SCM/N/315/KAZ  
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  10  THE PROGRAM OF SUPPO RT OF PRIVATE ENTREP RENEURS INVOLVED IN THE 
PROCESSING INDUSTRY "DAMU -ONDIRIS " 
Title of the subsidy program  
 
The Program of Support of Private Entrepreneu rs involved in the Processing Industry 
"Damu -Ondiris " 
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
Funding of projects of private entrepreneurs involved in the processing sectors  
 
Background and authority for  the subsidy  
 
The Program was developed to stimulate an 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 Processing Industry and Solving Property Market 
Problems " of 9 October 2009  
  
Form of the subsidy  
 
Soft loans  
 
To whom and how the subsidy is provided  
 
Maximum funding 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 su bsidy 
 
8.601 billion tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The Program was operational until 2017.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if a ny, trade effects may result from the use of this program.  
 
11  THE PROGRAM OF INTER -BANK LENDING  
Title of the subsidy program  
 
The Program of Inter -bank Lending  
 
Period covered by the notification  
 
2016 
 G/SCM/N/315/KAZ  
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  Policy objective and/or purpose of the subsidy  
 
Fundin g of projects of up to USD 30 million in priority economy sectors of economy, and 
stimulating of funding by second -tier banks into the priority economy sectors.  
 
Background and authority for the subsidy  
 
Funding to (i) second -tier banks for further financi ng of SMEs involved in processing and services 
sector, (ii) current assets of SMEs, and (iii) large enterprises of processing industry.  
 
The Program is administered by the National Bank of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic 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 
Funding of Entities in the Processing Industry " of 5 December 20 14. 
 
Resolution of the Government of the Republic of Kazakhstan No. 354 "On Approval of Joint Action 
Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic on 
Funding of SMEs Projects in Processing Industry " of 14 April 2014.  
 
Resolution of the Government of the Republic of Kazakhstan No. 124 "On Approval of Joint Action 
Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic on 
Funding of  SMEs in the Processing Industry " of 11 March 201 5. 
 
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 large enterprises of 
manufacturing sector. A nominal interest rate in tenge – 6%, term of the loan – up to 10 y ears, a 
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  
 
233.4 billion tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Not sp ecified.  
 
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  FUNDING OF INVESTMEN T PROJECTS  
Title of the subsidy program  
 
Funding  Investment Projects  
 
Period covered by the notification  
 
2016 
Policy objective and/or purpose of the subsidy  
 
Funding Investment Projects with Socio -economic Effect.  G/SCM/N/315/KAZ  
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  Background and authority for the subsidy  
 
Administrator of the Program: Development Bank  of Kazakhstan.  
 
Form of the subsidy  
 
Soft loans  
 
To whom and how the subsidy is provided  
 
Value of loan may not exceed 7 billion tenge.  
 
The size of the company's own participation is not less than 20% of the amount of the investment 
project estimate.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
16.5 million tenge  
  
Duration of the subsidy and/or any other time -limits attached to it  
 
Term of lending – 5 years.   
 
Statistical da ta 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.  
 
13  THE PROGRAM ON ALLOC ATION OF FUNDS TO SE COND -TIER BANKS FOR FURTH ER 
MICRO -LENDING OF WOMAN E NTREPRENEURSHIP  
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  
 
2016 
 
Policy objective and/or purpose of the subsidy  
  
Stimulati ng of economic activity of women -entrepreneurs through lending of existing and start -up 
woman entrepreneurs.  
 
Background and authority for the subsidy  
 
The Program is administered by the Fund "Damu ". 
 
Form of the subsidy  
 
Soft loans  
 
To whom and how the s ubsidy is provided  
 
Subsidy is available for women involved in entrepreneurial activity in the juridical form of private 
entrepreneur and juridical persons. Participation of women in charter capital of the juridical person 
shall not be less than 5 0% and 3 0% of all employees shall be women.  
Annual effective interest ra te shall not exceed 14 %.  G/SCM/N/315/KAZ  
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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  
 
85.6 million tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Term of loan for acquisition and modernization of main 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 ef fects may result from the use of this program.  
 
14  THE PROGRAM "EMPLOYMENT ROAD MAP 2020 "  
Title of the subsidy program  
 
The Program "Employment Road Map 2020 " 
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy   
 
Increas ing the level of employment, promoting of welfare, and reducing of unemployment  
 
Background and authority for the subsidy  
 
Administrator of the Program – the Ministry of Labor and Social Defense of the Republic of 
Kazakhstan  
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 162 "On Approval of the Program 
"Employment Road Map 2020 " of 31 March 2015  
 
Form of the subsidy  
 
Reimbursement of costs, grants, micro -lending  
 
To whom and how the subsidy is provide d 
 
Grants are provided in the amount of 80% of the employer's costs which are set for advanced 
training and retraining courses established by education local executive bodies.  
 
Temporary subsidization of two -thirds of the lost income of skilled workers for  reduced working 
hours of enterprises of the national level is made only for employees of enterprises belonging to 
the industry with a number of employees of at least 250 persons on terms of reduction in 
production or product prices.  
 
Micro -lending for exp anding own business is provided on the terms of creation of new jobs and 
compulsory employment through employment centers. The amount of micro -loan for organizing 
and expanding one's own business shall not exceed 3 million tenge, for persons with the statu s 
"oralman " (repatriates) and settlers - 5 million tenge, for organization of small -scale productions 
on the basis of a personal part -time farm - 6 million tenge.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amo unt 
budgeted for that subsidy  
 
20.3 billion tenge  
 G/SCM/N/315/KAZ  
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  Duration of the subsidy and/or any other time -limits attached to it  
 
Program operates till 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.  
 
15   THE PROGRAM OF POST -CRISIS RECOVERY  
Title of the subsidy program  
 
The Program of Post -crisis Recovery (Recovery of Competitive Enterprises)  
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy   
 
Recovery of solvency of enterprises  
 
Background and authority for the subsidy  
 
The Program is administered by the Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 225 "On Approval of the Program 
on Post -Crisis Recovery (Recovery of Competitive Enterprises) " of 4 March 2011 . 
 
Form of the subsidy  
 
Interest rate subsidies  
 
To whom and how the subsidy is prov ided 
 
Participants of the Program are SMEs operating in strategic sectors of the economy, excluding 
those operating in mining sector and alcohol and tobacco producers.  
  
Interest rate subsidies are available for loans and leasing operations.  
 
Financial lea sing 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. Amount of 
subsidy – up to 7% 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  
 
1.189 billion tenge  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
The term of subsidizing is up to 5 years.  
 
Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  G/SCM/N/315/KAZ  
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  16  THE PROGRAM OF DEVEL OPMENT OF THE AGROIN DUSTRIAL SECTOR IN T HE 
REPUBLIC OF KAZAKHST AN FOR 2013 -2020 "AGROBUSINESS 2020 " (from 7 November 
2016 the P rogram has been renamed as " Programs  of Development of the Agricultural 
Sector  in the Republic of Kazakhstan "A grobusiness 2017 ") 
Title of the subsidy program  
 
The Program on Development of Agro -industrial Sector of the Republic  of Kazakhstan for 
2013-2020 "Agrobusiness 2020 " 
 
Period covered by the notification  
 
2016 
 
Policy objective and/or purpose of the subsidy  
 
Creation of conditions for increasing the competitiveness of the agro -industrial sector of the 
Republic of Kazakhsta n. 
 
Background and authority for the subsidy  
 
 
In the changed conditions of the external and internal environment, it is necessary to adopt new 
instruments of state regulation and modernization of the agroindustrial complex.  
 
The Program is administered by  the Ministry of Agriculture of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 151 "On Approval of the Program 
on Agroindustrial Complex Development in the Republic of Kaza khstan for 2013 -2020 
"Agrobusiness 2020 " of 18 February 2013.  
 
Form of the subsidy  
 
1) Subsidies to compensate processing enterprises the cost of agricultural products purchased 
 for production of food products of deep processing;  
2) Interest rate subsidi es on loans and leasing obligations within the framework of direction on 
 financial recovery of agricultural producers;  
3) Partial reimbursement of expenses borne by agricultural producers during investing;  
4) Subsidies for guarantees and insurance of loan s of agricultural producers;  
5) Compensation of amount of value added tax paid to the budget to companies purchasing  
 agricultural products from domestic producers;  
6) Subsidies to compensate interest rate on loans and leasing for purchase of farm animals,  
 machinery and technological equipment;  
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 effe cts may result from the use of this program.  G/SCM/N/315/KAZ  
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  1. Subsidies to compensate processing enterprises the cost of agricultural products 
purchased for production of food products of deep processing  
 
Legislation under which it is granted  
 
Order of the Minister of Agri culture of the Republic of Kazakhstan No. 3 -2/615 "On Approval of 
Rules on Subsidized Costs of Processing Enterprises for the Purchase of Agricultural Products for 
the Production of its Deep Processing Products " of 26 November 2014.  
 
To whom and how the su bsidy is provided  
 
Subsidies are granted to processing enterprises to compensate purchase of certain agricultural 
products for further production of food products. The Government has  approved the following 
agricultural and processed products:  
 
1) Sugar bee t – for production of sugar;  
2) Milk – for production of dry milk;  
3) Corn – for production of glucose starch.  
The Government compensates the difference between guaranteed price and actual price of 
agricultural products purchased by the processors.  
Subsidy  per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
3.780  billion tenge  
2. Interest rate subsidies on loans and leasing obligations within the framework of 
direction on financial recovery of agric ultural producers  
Legislation under which it is granted  
Order of the Minister of Agriculture of the Republic of Kazakhstan No. 9 -1/320 "On Approval of 
Rules on Interest Rate Subsidized Loan and Leasing Obligations within the Framework of the 
Direction on F inancial Recovery  of the Agro -industrial Sector"  of 9 April 2015.  
To whom and how the subsidy is provided  
Subsidies are available for agro -industrial producers involved in processing and marketing of 
agricultural products which having loan and leasing lia bility.  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
2016 – data has been processed  
3. Partial reimbursement of expenses borne by agricultural producers during 
investing  
Legislation under which it is granted  
Order of the Minister of the Agriculture of the Republic of Kazakhstan No. 9 -3/726 "On Approval of 
Rules on Partial Reimbursement of Expenses Borne by the Agro -industrial Producers During 
Investing " of 7 August 2015.  
To whom and how the subsidy is provided  
Investment subsidies are granted to investors in accordance with the list of directions, objects, 
equipment and technology acquired and implemented within the investment project.   G/SCM/N/315/KAZ  
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  Subsidies are available for investment projects implemented starting from 1 January 2014 and 
investing into new technologies, expansion and renovation of existing production facilities.   
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that sub sidy 
25. 487 billion tenge  
4. Subsidies for guarantees and insurance of loans of agricultural producers  
Legislation under which it is granted  
Order of the Minister of the Agriculture of the Republic of Kazakhstan No.  9-1/71 "On Approval of 
Rules on Subsidizin g in the Framework of Guaranteeing and Insurance of Loans of the 
Agro-industrial Producers " of 30 January 2015.  
To whom and how the subsidy is provided  
Subsidies are available for guaranteeing loans with interest rate not higher than 1 9% in tenge.  
Subsidi es are granted to producers involved in priority sectors of the processing agricultural 
sphere.  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
156. 321 million tenge  
5. Compensation of  amount of value added tax paid to the budget to companies 
purchasing agricultural products from domestic producers  
Legislation under which it is granted  
Order of the Minister of Agriculture of the Republic of Kazakhstan No. 9 -3/271 "On Approval of 
Rules f or Subsidizing the Amount of Value Added Tax Paid to the Budget, within the Estimated 
Value Added Tax to Purchasing Organizations in Agroindustrial Sector " of 30 March 2015.   
To whom and how the subsidy is provided  
Subsidies are granted for procuring organ izations, certified by local executive bodies (akimats) in 
accordance with rules on certification of procuring organizations in the agricultural sector.  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgete d for that subsidy  
137. 766 million tenge  
6. Subsidies to compensate interest rate on loans and leasing for purchase of farm 
animals, machinery and technological equipment  
Legislation under which it is granted  
Order of the Minister of Agriculture of the Repub lic of Kazakhstan "On Approval of Interest Rate 
Subsidizing on Loans and Leasing for the Purchase of Farm Animals, Machinery and Technological 
Equipment " of 23 May 2016 . 
To whom and how the subsidy is provided  
Subsidies are granted for individuals and enti ties, including peasant farm enterprises, involved in 
production and processing of agricultural products as well as individuals and entities rendering G/SCM/N/315/KAZ  
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  services on purchase, storage, transportation and selling of agricultural products which concluded 
loan c ontract with financial institutes.  
Subsidies are available for loans of with interest rate decreased by 7%, and 5% in foreign 
currency.  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subs idy 
7. 512 billion tenge  
__________