Dear Readers,

Draft tax amendments published on the Mazhilis website propose to differentiate the tax relief timelines for Special Economic Zone (SEZ) participants based on the magnitude of their investments.

The draft legislation aims to classify SEZ participants into three categories contingent upon the project's financial scale:

  1. Category A – project cost up to 3 000 000 times the Monthly Index factor (MIF);
  2. Category B – project cost ranging from 3 000 000 to 14 500 000 times the MIF;
  3. Category C – project cost exceeding 14 500 000 times the MIF.

Additionally, Category B incorporates SEZ participants with project costs ranging from 1 000 000 to 14 500 000 times the MIF, provided they are engaged in the production of certain goods (food products, textile and leather items, computers, electronic devices, and optical equipment).

The proposed legislation establishes the following durations for the application of the tax exemptions for SEZ participants in accordance with their respective categories:

  • Category A - for a period of 7 years;
  • Category B - for a period of 15 years;
  • Category C - for a period of 25 years.

The stipulated tax relief durations should not exceed the term of the activity agreement or the operational lifespan of the SEZ.

If approved, the novel provisions will be applicable to taxpayers who enter into activity agreements after 1 January 2024.