Tax and customs benefits for
EXPO-2017 participants

The Agreement on benefits and exemptions for official participants connected with performance of the International specialized exhibition EXPO-2017 in Astana[1], the Rules on performance of tax obligations by persons entitled to benefits and exemptions in accordance with the Agreement[2], effective 17 June 2017, as well as the Rules on application of special customs procedure[3] provide for separate tax and customs regimes for EXPO-2017 participants.

These tax and customs regimes are applicable to the following persons:

• states and international organizations participating in EXPO-2017 represented by their offices registered in Kazakhstan (the Office of section commissary);
• representatives of states or international organizations participating in EXPO-2017 authorised to sign the agreement on EXPO-2017 participation (the Section commissary);
• the Section commissary deputies, directors of showrooms and other officials of states and international organizations participating in EXPO-2017 (the Staff) except for citizens of Kazakhstan or persons holding resident permit in Kazakhstan;
• spouses and children of the Section commissaries, the Section commissary deputies and directors of showrooms (the Family members) except for citizens of Kazakhstan or persons holding resident permit in Kazakhstan.

The Offices of section commissaries shall be registered as permanent establishments of legal entities representing states or international organizations, participating in EXPO-2017, in Kazakhstan. The Section commissaries, the Staff and the Family members shall be registered as Kazakh taxpayers. The registration is performed through the service centre on EXPO-2017 territory (the Service centre) within 24 hours from submission of documents.

The Offices of section commissary are entitled to apply the following benefits:

• exemption from payment of customs duties and taxes as well as application of non-tariff and technical regulation in respect of foreign goods imported to Kazakhstan within the framework of participation in the exhibition. Such goods are placed under the special customs procedure with use of transport (carriage), commercial and (or) other documents with the list of imported goods instead of the customs declaration on goods;
• exemption from payment of corporate income tax in respect of income received within the framework of participation in the exhibition;
• exemption from payment of social tax payable in respect of income paid to the Section commissary, the Staff as well as the Family members received under the agreement with the Office of the section commissary;
• return of value added tax paid upon purchase of goods, works and services within the framework of participation in the exhibition.

Upon completion of participation in the exhibition the Office of the section commissary shall fill in and submit the tax declaration under form 032.00 not later than 31 March 2018, containing data on corporate income tax, personal income tax and social tax, to the Service centre.

The following special regime is provided by the Agreement to the Section commissary, the Staff and the Family members:

• exemption from payment of customs duties and taxes as well as application of non-tariff and technical regulation in respect of foreign goods imported to Kazakhstan within the framework of participation in the exhibition. Such goods are placed under the special customs procedure;
• use of transport (carriage), commercial and (or) other documents with the list of imported goods instead of the customs declaration;
• exemption from payment of individual income tax in respect of income received under the agreement with the Office of the section commissary;
• return of value added tax paid upon purchase of goods, works and services in within the framework of participation on the Exhibition.

The abovementioned tax benefits are effective from 1 March 2016 till 31 December 2017, while the benefits on customs duties and taxes payable upon import of goods are in effect from 1 March 2016 till 9 March 2018.

About GRATA International

GRATA International is an international law firm, founded in 1992.

Today our clients have more than 250 professionals in 18 countries at their disposal. GRATA International is a global team representing different countries and nationalities, and which has legal advising experience in all areas of law.

GRATA International provides legal services across all cities in Kazakhstan. The firm has offices in Baku (Azerbaijan), Bishkek (Kyrgyzstan), Dushanbe (Tajikistan), Moscow (Russia) and Tashkent (Uzbekistan), as well a country desk in Ashgabat (Turkmenistan), and associated offices in Istanbul (Turkey), Kyiv (Ukraine), Minsk (Belarus), Kazan, Novosibirsk and Samara (Russia), Prague (Czech Republic), Riga (Latvia), Tbilisi (Georgia), Warsaw (Poland) and Zurich (Switzerland).

In addition to its offices our firm has representatives in the cities of Beijing (China) and London (United Kingdom).

Our competitive advantages include a wide network of offices mostly covering Eurasia, optimal price and quality ratio and understanding of the local mentality of doing business.

Clients can gain access to the entire network by enquiring at one of offices or representatives of GRATA International. The opportunity to utilise resources without regional boundaries enables us to increase the cost-effectiveness and the efficiency of services provided.

GRATA International has been recognized by leading international ratings: The Legal 500, Chambers Global, Chambers Asia-Pacific, IFLR1000, Who’s Who legal, Asialaw Profiles.

 

Services

· Cоrporate Taxation

· Internationаl Taxation

· Tax Administrаtion

· Tax Audits

· Tax Plаnning and Optimisation in M&A Transactions

· Trаnsfer Pricing

· Tаx Accounting Policy and Special Forms of Tax Registers

· Tаx Due Diligence

· Tаx Litigation and Assistance During Tax Audits

· Tаxation of Subsoil Users

· VАT Refund from the State Budget

· Withhоlding Tax Refund

 

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This alert for informational purposes only and shall not be recognized as legal advice. GRATA Law Firm LLP is not responsible for any consequences arising from the use of the aforementioned information without its consent.

[1] The Agreement between the Government of the Republic of Kazakhstan and the International exhibition bureau on benefits and exemptions for official members connected with performance of the International specialized exhibition EXPO-2017 in Astana ratified by the Law of the Republic of Kazakhstan dated 1 March 2016 No. 467-V;

[2] The Rules on performance of tax obligations by persons entitled to benefits and exemptions in accordance with the Agreement between the Government of the Republic of Kazakhstan and the International exhibition bureau on benefits and exemptions for official members connected with performance of the International specialized exhibition EXPO-2017 in Astana approved by the Order of the Ministry of finance of the Republic of Kazakhstan dated 30 May 2017 No. 348;

[3] The Rules on application of special customs procedure, aspects of its application, conditions of placement of goods under special customs procedure, limitations on use and disposal of goods, methods and procedure of completion of special customs procedure as well as the list of persons authorized to place the goods imported to the Republic of Kazakhstan under this customs procedure approved by the Decree of the Government of the Republic of Kazakhstan dated 15 July 2015 No. 522.