Asian Financial Services Association

Republic Of Kazakhstan

1

Bus.Permit Issued By

:

Leasing companies activities are not licensed in Kazakhstan. Thus they do not need any permit for it's activities

2

Business Requirement

*

Bus.Requirement Percentage (%) of Foreign Ownership Allowed

:

There is no restriction on percentage of foreign ownership allowed in Kazakhstan

*

Bus. Requirement Minimum Capital Requirements

:

50 000 monthly reference indicators (MRI = KZT 1 030 approx. USD 8.5)

*

Bus. Requirement Number Of Active Companies in Operation

:

25

*

Bus. Requirement New Business Permit

:

Closed

3

Bus. Activities Include

:

Leasing, Factoring

4

Products Financed

:

Automotives (4 wheelers, 2 wheelers, Trucks, Transportation Vehicle (buses), Heavy Equipment, Machineries, Electronic Devices (computer, AC), Others (Agricultural, building construction, road construction equipment)

5

Source Of Funds

:

Banks (on-shore & off-shore), Capital Market / Share Issuance, Capital Market / Bonds

6

Loans

:

Source Of Loans : Domestic (Private Sector), Off Shore, Regulation in relation to Gearing Ratio, there is no any restriction but funding agencies can impose their own limits.

7

Accounting Treatment

*

Allowance for Bad-Debt & Write-Offs(%)

:

There is no regulation

*

Tax Deductible

:

Leasing companies have exemption from Corporate Tax if minimum tenor of lease is 3 years

8

Taxes

*

Corporate Tax rate Regulation (%)

:

30%, but not imposed to leasing companies as mentioned above

*

Withholding Tax Regulation (%)

:

Up to 20 % depending on type of income

*

VAT Regulation (%)

:

15%, in case of import transaction VAT is not imposed

*

Sales & Leaseback Regulation / Vat Implemented or not

:

VAT implemented

9

Legal Aspects

:

-

10

Reporting Mechanism-Supervision

:

Others (Association of Financials of the R. o K., Kazakhstan Stock Exchange, Tax Committee of the R. o K., Governmental Statistic of the R. o K.)

11

Constraints In Operation

:

Undocumented economy, lack of credit bureau, high cost of funding

12

Opportunites in Business

:

Growing market, business potential in construction, transport & agriculture sectors, auto lease for corporate customers, consumer financing.

13

Miscellaneous

:

-