Positions of the Government of Kazakhstan on specification of separate items of contracts on subsurface using were explained on a special briefing

/IRBIS, Nov 12, 01/ - Positions of the Government of Kazakhstan on specification of separate items of contracts on subsurface using were explained on a special briefing that was held in Almaty with the participation of the minister of foreign affairs Erlan Idrisov and the minister of state revenues Zeinulla Khakimzhanov. Representatives of the council of foreign investors under the president of RK, international organizations and foreign embassies accredited in the republic were present at the briefing. In particular, Khakimzhanov gave detailed explanations concerning modigying of tax administration, underlining that from the moment of making of first contracts on subsurface using the republic has been making the work on improvement of tax legislation, cutting during last six years the amount of taxes from 53 to 17. Besides, he noted that today agreements on levying of VAT on method of the country of destination were made almost with all CIS countries, the convention of avoidance of double taxation and prevention of income and capital taxes evasion exists with 33 countries. Also from January 01,2002 a decrease of a tax base on a range of financial activities aspects will take place. In particular, the mechanism of accordance of investment tax preferences is considered with the purpose of investment attraction into fixed assets. Changes in tax legislation accompanied by changes in other spheres of the legislation have led to the improvement of taxpayers' condition in Kazakhstan, said Khakimzhanov. Nevertheless, according to Kazakhstan legislation, the subsurface user cannot apply improved items of the legislations in a one-sided order, and has to work in the initial tax regime. According to the minister's words, application of different rates of VAT and also need for application existed before increased rates of other taxes and cancelled taxes destabilize tax system of the country, by doing so, undermining the interests of the national security. Kazakhstan with the purpose of the integration into world markets is interested in the creation of equal conditions for all taxpayers and following of constitutional principle of equality of all before the law, creation of unified tax legislation, corresponding admitted international standards, said Khakimzhanov. As the minister of state revenues noted, for application of modern norms of legislation improving the economy of contracts it's necessary to perform a work on specification of separate items of contracts with the purpose of keeping balance of economic interests of sides through different norms in tax regimes. With this goal on April 10,2001 the government created work group, and in May - inter-departmental commission for preparation of proposals for specification of separate items of contracts on subsurface using. According to information of Khakimzhanov, 85 applications on realization of specifications of contracts separate items, including 40 on oil and gas sector and 45 on mining, have been already received in the Ministry of finance of RK for today. Specifications have been made on 33 contracts, projects of additional agreements ton contracts were directed for approval to 52 companies. They are Kazcink OJSC, Zhairemskii GOK OJSC, Harrikein Kumkul Munai OJSC, KazakhOil-Emba OJSC, MangistauMunaiGas OJSC, AktobeMunaiGas OJSC, KazakhTurkMunai JV, Alumni of Kazakhstan OJSC, Donskoi GOK OJSC. Khakimzhanov underlined that the government of Kazakhstan confirms adherence to the principle of contracts stability, perfection of internal legislation in order to improve investment and tax climate in the country, provision of political and economic stability, protection of investor interests, following at that the balance of state and taxpayers interests.