New Investment Climate of Kazakhstan June 2014 The Embassy of the Republic of Kazakhstan in the Republic of Korea

2 NEW PACK OF INCENTIVES FOR INVESTORS 1. Providing further state support measures: - exemption from corporate income tax (20 %) for up to 10 years; - exemption from land tax for up to 10 years; - exemption from property tax for up to 8 years from the date when fixed assets (e.g., a plant) are commissioned (only for those assets which were commissioned for the first time); - reimbursement of up to 30 percent of actual expenses on construction works and purchase of equipment (so-called “investment subsidy”) on the basis of documentary evidence after full commissioning. To apply for an investment subsidy, an applicant must also provide a feasibility study approved by the state expertise. The Government will approve the rules on granting investment subsidies; Revision of the mechanisms and conditions of investment contracts

3 2. "Stability" of tax rates, charges and fees (excluding VAT and excise taxes) for 10 years from the date of contract award. 3. Attracting foreign labor for the entire period of construction of investment project and one year after putting the object in operation, out of quota and without permission. 4. Implementation of the principle of "one window" for investors 5. Vesting of the Investment Committee of MINT function to assist investors in providing of guaranteed reservation NEW PACK OF INCENTIVES FOR INVESTORS Revision of the mechanisms and conditions of investment contracts Package of incentives concluded within the investment contracts is provided for investment projects in priority sectors of the economy in accordance with GPIIR, worth at least U.S. $20 million

4 NEW PACK OF INCENTIVES FOR INVESTORS Additional measures to improve the investment climate 1. Approval of maximum level of tariffs for all subjects of natural monopolies for the long term (5 years and more) by providing a predictability of tariffs for the real economy sector 2. A legislative introduction of the institute of "investment ombudsman" to ensure protection of rights and interests of investors

5 NEW PACK OF INCENTIVES FOR INVESTORS The bill makes changes and additions to : 1. The Tax Code of the Republic of Kazakhstan 2. Law "On Investments" 3. Law "On natural monopolies and regulated markets“ 4. Law "On Employment" 5. Law "On Migration" 6. Law "On Concessions"