EXPO-2017 facilities to be exempt from taxes

EXPO-2017 facilities will be exempt from taxes, Minister of Economy and Budget Planning of Kazakhstan Yerbolat Dosayev told Tengrinews. "The Tax Code is being amended to exempt the national companies from the corporate income tax, land tax and property tax. The changes are necessary to make sure they fulfill the obligations undertaken by Kazakhstan when bidding to hold the EXPO-2017. Besides, the technical profile provides for exemption of those involved in construction of the EXPO-2017 facilities from the corporate income, land and property taxes," Dosayev said at the presentation of the draft law called to introduce amendments into the country's legislation in relation to the EXPO-2017 to be held in Astana in the Majilis (Lower Chamber of the Parliament) earlier this week. According to him, the proposed amendments also provide for exemption of the organizations involved in designing and construction of the exhibition facilities from the corporate income tax. "The list of the companies covered by the exemption is going to be put together by the government. Our analysis of the foreign experience has revealed that all the hosting countries applied similar stimulating tax measures for organizations involved in the events," the minister pointed out. He added that amendments would be introduced into the Budget Code to enable the state budget to provide funding for the national companies in the form of dedicated contributions, similar to those used for Nazarbayev University. "The amendment allows to transfer dedicated contributions from the budget to a specially created noncommercial organization, like a fund, to subsequently channel 100% of the fund into a national company's project," Yerbolat Dosayev said. The Minister said that the Special Economic Zones Law would also be amended to make sure the obligations undertaken under the technical profile as fulfilled timely, and for unhindered construction of the EXPO facilities. "We are proposing simplify the procedure of obtaining the Astana New City free economic zone member status, and to speed up signing of contracts with Astana New City participants, provided that the participants are involved in the priority activities of the free economic zone," Dosayev said. Besides, he offered to vest Astana EXPO-2017 National Company with a right to independently issue architectural and designing requirement specification for the exhibition's facilities. By Baubek Konyrov