The Foreign Investment Law guarantees investors the right to reinvest profits, abolishes restrictions on the repatriation of profits, and clarifies the legal status of foreign investment in Kazakhstan. It also simplifies the registration procedures for foreign investors. This Law, enacted in July 1997, determines the legal and economic basis for foreign investment in Kazakhstan, secures state guarantees for the protection of foreign investment, and establishes the form for its realisation as well as the procedures for dispute settlements.

(January 1997)

The Bankruptcy Law of January 1997 lays out the conditions and rules for the implementation of bankruptcy and liquidation for insolvent debtors.

Investors are entitled to five years' worth of tax holidays (with respect to income tax, land tax, and property tax when and only if investing in prioritised industries). During the following five years, investors will receive a 50% discount on tax payments (for the above mentioned taxes only). A Presidential Decree (April 1997) specified the following as ‘prioritised’ industries where foreign investors have a preferential status: industrial infrastructure, (industries with strong value added services), residential construction, tourism, agriculture, and construction in the new capital, Astana.

The laws "On the Securities Market", "On the Registration of Securities Transactions", "On Investment Funds" (which were all enacted in March 1997), and a set of Governmental Decrees regulate the issuance, circulation and registration of securities, and the activities of custodians, registrars, the Central Depository, and investment funds. A special Directive by the National Securities Commission (NSC) regulates access to securities issued by non-residents to the domestic securities market.

(1995, amended in 1997)

A new Tax Code was introduced in 1995, and the part related to the securities markets was amended in December 1997. Currently, corporations are subject to 30% Corporate Income Tax and 20% VAT. However, all financial services (except custody, incasso, and the delivery of notes, coins and other valuables) are subject to VAT exemption. December 1997’s amendment also abolished Securities Transactions and Capital Gains taxes. New issues of corporate securities are subject to 0.5% tax. Recent amendments also decreased the tax on interest paid to securities holders (dividends, bond interest) to 15%. Other compulsory payments include social security payments, pension payments, and medical insurance, which total about 30% of salaries. Plus, 2% of all salaries must be paid to the State Employment Fund.

The present Constitution of the Republic of Kazakhstan, which was adopted in August 1995, sets forth that the development of the country is based on the principles of the promotion of public consent, political stability, economic growth, and boosting living standards.

The Republic of Kazakhstan is a democratic, secular, and unitary state. The President of Kazakhstan is the head of state.