Doing a Business

Pursuant to the Article 127 of the Civil Code of Kazakhstan, Tenge is  the legal means of payment obligatory for acceptance at nominal value throughout the entire territory  of the Republic of Kazakhstan.

In accordance with the Article 282 of the Civil Code of the Republic of Kazakhstan (General part), monetary obligations on the territory of the Republic of Kazakhstan must be expressed in tenge, except for the cases established by laws of the Republic of Kazakhstan.

The National Bank is the main monetary authority of the Republic of Kazakhstan. Transactions between residents and non-residents can be effected in national and (or) foreign currency with no limits in accordance with the foreign currency laws of the Republic of Kazakhstan.

Non-residents may receive and transfer funds of any currency related to the transactions between them and their branches (representative offices) located in Kazakhstan in manner prescribed by the laws.

Non-residents may receive and transfer dividends, rewards and other incomes generated from deposits (deposits), securities, borrowed and other currency transactions with residents, in manner prescribed by the laws.

The terms and procedures of foreign currency transactions related to financial and professional services in the territory of the Astana International Financial Center are established by the acts of the Astana International Financial Center in coordination with the National Bank of the Republic of Kazakhstan.

Registration of foreign currency agreements on capital movement

The currency agreement triggers mandatory registration with the National Bank if it provides for one of the following:

1) receipt of property (money) to the Republic of Kazakhstan and (or) vice versa, obligations of a resident to return property (money) to a non-resident in the amount of more than $US 500,000 (five hundred thousand United States dollars_ in equivalent;

2) transfer of property (transfer of money) from the Republic of Kazakhstan and (or) vice versa, resident's right to claim to return from a non-resident the property (money) in the amount of more than $US 500,000 (five hundred thousand US dollars) in equivalent.

When a contract on the movement of capital does not contain any amount on the date of signing or on the entry date, it triggers mandatory registration.

When the currency of the amount is other than the US dollar with no exchange rate to the US dollar, the equivalent amount of the cost amount of the contract must be calculated in US dollars based on the market exchange rate on the date of signing or on the entry date of the currency agreement.

A resident-party to a foreign exchange contract on the movement of capital should apply for registration of the contract to a regional branch of the National Bank in place of his/her permanent residence (for an individual) or location (for a legal entity) prior the start date of fulfillment of obligations under such a currency agreement by any of its parties to the contract.

However, if a non-resident party to the contract starts perform contract obligations first, and this involves transfer of property (receipt of money) in favor of a resident, then a resident party in a currency agreement on the movement of capital should apply for registration before such property (money) is accepted for disposal.

Acceptance by a resident of a right to claim against a non-resident or a debt to a non-resident as a result of assignment of a claim, or transfer of a debt, gratuitous transfer, inheritance, occurrence of a guarantee event by a court decision, triggers mandatory registration of a foreign currency agreement on movement of capital, within 60 (sixty) calendar days from the date of such claim (debt), but before the beginning of performance of obligations under the arisen claim (debt) by any of its parties.

When a resident transfers ownership rights for the real estate abroad except for the resident individuals for payment of the interest share in authorized capital of a non-resident legal entity due to acquisition from a resident, gratuitous transfer, inheritance or by virtue of  a court decision, such resident should apply for the  registration number to a foreign currency agreement on the movement of capital no later than 60 (sixty) calendar days from the date of transfer of ownership, but before the alienation of such ownership.

Export and import

Pursuant to the Rules on export-import currency control in the Republic of Kazakhstan approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated March 30, 2019 No. 42, a currency agreement for export or import triggers mandatory registration if its cost amount exceeds $US 50,000 (fifty thousand United States dollars) in equivalent.

If no amount is provided in the export/import contract at the date of its signing, it triggers registration.

The exporter or importer shall file the currency agreement with the local branch of the National Bank for getting registration number before the start of the fulfillment of obligations under the currency agreement for export or import by any of its parties. In cases when a non-resident party should start first performance of the  currency agreement on export/import, and these actions with the transfer of property (receipt of money) in favor of the resident exporter or importer, then such resident applies for registration before receiving the property (money) at his disposal.

The export/import contract is registered:

1) in an authorized bank (its branch) that maintains the bank account of the exporter or importer - if all payments and (or) money transfers are made using the account of the exporter or importer in an authorized bank (its branch);

2) in an authorized bank (its branch) that maintains the bank account of the exporter or importer - if payments and (or) money transfers are carried out using accounts opened both in an authorized bank (its branch) and in a foreign bank;

3) in the territorial branch of the National Bank at the place of permanent residence or location of the exporter or importer - if all payments and (or) money transfers are made using the account of the exporter or importer in a foreign bank specified in subparagraph 1) of paragraph 3 of Article 9 of the Law on Currency Regulation and Currency Control.

Foreign bank account

A resident legal entity, except for a bank and a branch (representative office) of a foreign organization, should formally notify the National Bank of the opening of an account with a foreign bank by applying for the account number to the foreign bank account before starting any operations with such account.

A resident legal entity except for a bank and a branch (representative office) of a foreign organization should file with the National Bank of the Republic of Kazakhstan information on transactions made through a foreign bank account, indicating the registration number.

Change of requisites or closure of a foreign bank account with a registered number, should be notified to the National Bank in a set time by a resident legal entity except for bank and a branch (representative office) of a foreign organization.

Resident individuals are not required to notify the National Bank of foreign bank account, as the authorized bank that effects such money transfers, should notify the National Bank of such money transfers of individuals from local accounts to the foreign ones.

PAYMENTS AND TRANSFERS

When a payment and/or money transfer related to the foreign currency transaction of a resident or non-resident amounts to $US 50,000 (fifty thousand US dollars) in equivalent or above, the resident or non-resident should disclose details of the transaction as per the request of an authorized bank.

When a payment and (or) money transfer made by a resident amounts to $US 50,000 (fifty thousand US dollars) in equivalent or above, a resident must fill in the information note and can be asked for the constituent documents.

When a non-resident makes a payment and (or) transfers $US 50,000 (fifty thousand US dollars) in equivalent and above, such non-resident should submit to the authorized bank data on the currency transaction in the prescribed form.

A currency agreement or its copy should be given to the authorized bank, when a  resident legal entity or resident – branch or representative office of a foreign non-financial organization makes a payment and/or transfers with a corporate payment card $US 50,000 (fifty thousand US dollars) in equivalent or above  within thirty business days from the date of such payment and/or money transfer.

Currently, when making a payment and (or) transfer of money under a foreign exchange transaction, a resident or non-resident submits the following documents to the bank:

1) an identification document with an IIN in cases provided for by the laws of the Republic of Kazakhstan (for an individual);

2) a document confirming the right of permanent residence in the Republic of Kazakhstan (if any) (for an individual - a foreigner or a stateless person);

3) license of the National Bank to conduct banking and other operations (if available);

4) copies of documents confirming the fulfillment or on the basis of which it is necessary to fulfill obligations under foreign exchange contracts for export or import;

5) currency agreement or a copy thereof. A foreign exchange agreement or a copy thereof, which is subject to the requirement to obtain an accounting number, is submitted with a note on the assignment of an accounting number (for a foreign exchange contract to which an accounting number was assigned after the entry into force of the Rules of March 30, 2019 No. 40);

6) registration certificate or certificate of notification - for foreign exchange contracts for the movement of capital or accounts in foreign banks subject to accounting registration, for which, before the entry into force of the Rules, a registration certificate or certificate of notification was received and an account number was not assigned.

Submission of a currency agreement is not required in the following cases:

• if the transfer of money under a currency transaction is carried out between resident individuals or between non-resident individuals within the Republic of Kazakhstan and is free of charge;
• if the payment and (or) transfer of money under a currency transaction is carried out in an amount not exceeding the equivalent of ten thousand US dollars, and the sender or beneficiary of the payment and (or) transfer of money is an individual, a branch and (or) representative office of a foreign legal entity or a non-resident -entity;
• if the payment and (or) transfer of money under a currency transaction is carried out in an amount not exceeding the equivalent of ten thousand US dollars, and a resident legal entity (sender and (or) beneficiary of the payment and (or) money transfer) has made or confirmed a record of that that such payment and (or) transfer of money is not related to the execution of a foreign exchange agreement that requires the assignment of an account number;
• if payment and (or) transfer of money for a foreign exchange transaction is carried out by an individual to his own bank account (from his own bank account) in a foreign bank.

Payment and (or) transfer of money under a foreign exchange transaction carried out by a resident third party through an authorized bank to fulfill the obligations of a resident and (or) non-resident is permitted subject to the presentation of an agreement defining the nature of mutual obligations between the resident third party and the person for whom a payment and (or) money transfer is made, unless this follows from the currency agreement on the basis of which such payment and (or) money transfer is carried out. If any of the foreign exchange agreements is subject to the requirement to obtain an accounting number, then a copy of the foreign exchange agreement with a note on the assignment of an accounting number, or a copy of the registration certificate, or a copy of the notification certificate is submitted.

If a payment and (or) transfer of money under a foreign exchange transaction is carried out by a resident individual to fulfill the obligations of a spouse or close relative, then a document confirming that the sender of the money is a spouse or close relative of the individual is submitted as a foreign exchange agreement the person for the fulfillment of whose obligations the payment and (or) transfer of money is made.