NEWS

Edward’s East Strategies has prepared monitoring papers of the most notable regulatory initiatives and personnel changes in republics of Kazakhstan and Uzbekistan within the period June 15, 2023 – July 15, 2024.

The draft of the new Tax Code has been published in Kazakhstan for public discussion. The changes provide for:

• reduction of subsidies for businesses;
• setting different corporate income tax rates depending on the industry (the base remained 20%);
• it is proposed to increase the threshold for registration for VAT to 500 million tenge;
• the formation of a list of taxpayers subject to inspections (scheduled inspections) is excluded, a risk–based approach will be applied in control and supervisory activities.

The President of the Republic of Kazakhstan signed the Law “On Public Procurement“. To improve the quality of the work, goods and services provided, a register of potential suppliers is being introduced, containing data from the information systems of government agencies. The law also established the possibility of concluding EPC contracts involving the presence of a single responsible contractor and transferring risks to such contractors. In addition, subjects of public control, in accordance with the procedure established by law, will be able to monitor public procurement using a web portal. In order to strengthen the responsibility of potential suppliers, a ban was also imposed on the participation of companies whose managers and founders had previously committed corruption offenses.

It is also possible to note the progress in Kazakhstan‘s ratification of the Agreement with the Republic of Singapore on Trade in Services and Investments. The document has been sent to the President for signature. The agreement is aimed at developing trade turnover between the countries, opening access for Kazakhstani producers to the Singapore market, as well as creating conditions for attracting mutual investments. The document establishes provisions on the promotion and protection of investments, compensation for losses, dispute resolution procedures, as well as general approaches and principles of trade and economic cooperation.

The presidential decree has come into force in Uzbekistan aimed at developing the institution of public control and providing additional opportunities for small business representatives to promote the principles of social and gender equality. Since the 1st of September, 2024, small business entities providing employment for persons with disabilities, women and youth, with equal prices, will receive priority when participating in public procurement. In addition, from the 1st of October, 2024, government customers will hold a public discussion of contracts before their conclusion and protocols based on the results of tenders on the public procurement portal.

The Tax Committee of Uzbekistan clarified the criteria for classifying taxpayers as the largest. The list will include legal entities with income above 250 million soums. Also, manufacturers of excisable goods and enterprises providing services subject to excise tax (except manufacturers of alcoholic beverages, beer products and insurance organizations) and other organizations fall under this category of taxpayers.

The Legislative Chamber of the Oliy Majlis adopted in the second reading a law aimed at improving the seismic safety system. It is planned to tighten criminal and administrative liability for unauthorized construction in violation of master plans, violation of the rules of acceptance, commissioning, demolition of basement structures and ground floors of apartment buildings, as well as in connection with harm to life and health.

The overviews also provide other regulatory legal acts and appointments of interest to business.