Kazakhstan

General Information     |      Tax measures – Direct and Indirect     |     Employment-related measures     |     Economic stimulus measures     |     Other measures and sources

Return to homepage  |  Last updated: 11 May, 2020

• The government has announced its preparedness for a potential crisis caused by the virus. A total package of anti-crisis measures, excl. tax relief/deferral measures and support on a local level, is expected to reach approx. KZT4,4 tn 
• A temporary VAT reduction for agricultural and food products and zero custom duties on essentially important imports
• Price control: state regulation of prices is expected to be introduced on socially significant goods
• A ban on exports of a number of “socially significant” products until state of emergency is lifted

Social institutions

• 500,000 medical masks: the President of Kazakhstan donated masks to be distributed to orphanages, hospitals and socially vulnerable groups
• KZT14.8 bn - for construction of three quarantine modular complexes in Nur-Sultan, Shymkent and Almaty
• The state authorities stopped invoicing rental payments under state property lease agreements until 20 Jun 2020

Workers involved in combatting COVID-19

• A new package of financial support for physicians working on combatting the virus is being developed. KZT40.6 bn - on incentive measures for healthcare workers participating in quarantine activities, KZT19.5 bn - for health organizations treating coronavirus patients. It will be spent on:
  • A bonus in the amount of 20 minimum salaries (KZT850 th) for workers in a very high risk environment
  • A bonus in the amount of 10 minimum salaries (KZT425 th) for workers in a high risk environment
  • A bonus in the amount of 5 minimum salaries (KZT212.5 th) in a medium risk environment
• Additionally, one salary will be paid to doctors, police officers and other specialists who perform their duty in the fight against coronavirus – KZT8 bn
• Employment Roadmap program is expected to help find jobs to >600 th people, KZT1 tn to be allocated to support employment.KZT85 th will be paid to those who participate in the program

Business support

• Preferential loans: a total of KZT600 bn, for 1 year, at 8%. To support SMEs that suffered from coronavirus, the National Bank in cooperation with Agency for regulation and development of financial markets are initiating concessional lending to support SMEs' working capital. Combined with “Economy of Common Goods” program, the support received by local entrepreneurs from the government will reach KZT1 tn
• Agricultural sector support: farmers will get access to loans with the total amount of KZT70 bn at 5% available through National Holding Kazagro and KZT100 bn at 6% through “Economy of Common Goods” program. In addition, farmers will be able to finance their operations through forward contracts (under its future harvest). Also, diesel and other fuel types will be subsidized for the next sowing season
• Oil refineries are exempt from excise tax on exported gasoline and diesel fuel until 31 Dec 2020
• SMEs are exempt from personal income tax and social payments (social tax and insurance) for 6 months (Apr-Sep.) Sectors include but not limited to tourism, transport, IT, consulting, private education, private healthcare and other affected sectors
• Business entities may apply for low-interest loans under the rescue package. The loans for individuals are capped at KZT50 mln, for SMEs - at KZT3 bn
• Government support will be provided to some «systematically important» enterprises to avoid labor and wage cuts

• A temporary loan relief: a ban on penalties on all unsecured consumer loans with delays of more than 90 days (not only loans provided by banks, but also by all microfinance organizations, incl. pawnbrocker`s offices, credit partnerships, and any other lenders)
• Electricity and telecommunications: citizens, who were transferred to remote work, may receive compensation for the electricity and telecommunications bills
• Monthly payments: during the state of emergency one minimum monthly wage (KZT42,500) is paid to citizens who had lost their income because of the state of emergency. Approx. 3 mln citizens could expect this compensation
• All pension and benefit payments will be raised by 10%. A total of KZT200 bn is expected to be spent on the initiative
• About 800 th citizens from vulnerable groups will be provided with food packages
• Reimbursement of utilities expenses for Apr and May in amount of KZT15,000 will be provided for some socially vulnerable groups of population
• Extension of uninsured citizens’ access to healthcare under obligatory social medical insurance system from 1 Apr to 1 Jul 2020
• KZT39.1 bn - to finance measures to prevent the Covid-19 spread and purchase vital food for population, including KZT23.5 bn - for ongoing anti-epidemiological measures
• Value-added tax was reduced from 12% to 8% for socially significant food products until 1 Oct 2020

Nur-Sultan and Almaty residents

• Utilities in Almaty: the residents can defer utilities payments, incl. elevator and waste disposal, for Mar and Apr till the end of 2020 with no fines or penalties
• Parking in Nur-Sultan: during the state of emergency residents are not charged parking fees in the capital
  

Tax & Legal: Rustem Sadykov – RSadykov@kpmg.kz
M&A and Valuation: Aliya Sagandykova – AliyaSagandykova@kpmg.kz