Doing a Business

According to Article 127 of the Civil Code of Kazakhstan, the monetary unit in the Republic of Kazakhstan is the tenge. Tenge is legal tender, obligatory for acceptance at face value throughout the territory of the Republic of Kazakhstan.

In accordance with 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 cases established by legislative acts of the Republic of Kazakhstan.

The main body of currency regulation in the Republic of Kazakhstan is the National Bank. Exchange control agents are authorized banks and authorized organizations.

Foreign exchange transactions between residents and non-residents are carried out in national and (or) foreign currency without restrictions in accordance with the currency legislation of the Republic of Kazakhstan.

Non-residents have the right to freely receive and transfer money for any currency transactions with their branches (representative offices) located in the Republic of Kazakhstan in accordance with the currency legislation of the Republic of Kazakhstan.

Non-residents have the right to freely receive and transfer dividends, remuneration and other income received from deposits, securities, borrowing and other currency transactions with residents, in accordance with the currency legislation of the Republic of Kazakhstan.

The conditions and procedure for conducting currency transactions related to the provision of financial and professional services on the territory of the Astana International Financial Center are determined by the acts of the Astana International Financial Center in agreement with the National Bank of the Republic of Kazakhstan.

Registration of foreign exchange agreements on capital movements

A currency contract for the movement of capital is subject to accounting registration, within the framework of which the following is provided:

1) the receipt of property (money) in the Republic of Kazakhstan and (or) on the contrary, the emergence of obligations on the part of the resident to return property (money) to a non-resident in an amount exceeding 500,000 (five hundred thousand) United States dollars in equivalent;

2) transfer of property (transfer of money) from the Republic of Kazakhstan and (or) on the contrary, the emergence of a resident’s demands for the return of property (money) by a non-resident in an amount exceeding 500,000 (five hundred thousand) US dollars in equivalent.

At the same time, if the foreign exchange contract for the movement of capital does not indicate the amount of the contract on the date of its signing (in its absence, on the date of entry into force), then the foreign exchange contract for the movement of capital is considered as an agreement subject to accounting registration.

If the amount of the agreement is expressed in a currency other than the US dollar, and there is no indication of the exchange rate to the US dollar, the calculation of the equivalent amount of the foreign exchange agreement in US dollars is carried out using the market exchange rate on the date of signing the foreign exchange agreement (in its absence - on the date of entry currency agreement into force).

A resident participant in a foreign exchange agreement for the movement of capital applies for assignment of an account number to the foreign exchange agreement for the movement of capital at the territorial branch of the National Bank located at the place of his permanent residence (for an individual) or location (for a legal entity) before the start of fulfillment of obligations under such a foreign exchange agreement any of its sides.

However, if the non-resident participant first begins to fulfill obligations under a foreign exchange agreement, and this execution is associated with the transfer of property (receipt of money) in favor of a resident, then the resident participant in the foreign exchange agreement for the movement of capital applies for assignment of an accounting number to such a foreign exchange agreement before receiving the property (money) at your disposal.

A resident who has accepted the right of claim against a non-resident or has accepted a debt to a non-resident as a result of an assignment of claim or transfer of debt, gratuitous transfer, inheritance, or the occurrence of a guarantee event, by a court decision, applies for assignment of an accounting number to a foreign exchange contract for the movement of capital no later than 60 (sixty) calendar days days from the date such a claim (debt) arises, but before the commencement of fulfillment of obligations under the arisen claim (debt) by any of its parties.

A resident to whom the right of ownership of real estate abroad (with the exception of resident individuals) is transferred to a share in the capital of a non-resident legal entity as a result of acquisition from a resident, gratuitous transfer, inheritance, by a court decision, applies for assignment of an accounting number to a foreign exchange agreement under 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

In accordance with the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated March 30, 2019 No. 42 “On approval of the Rules for the implementation of export-import currency control in the Republic of Kazakhstan”, a foreign exchange agreement for export or import is subject to accounting registration if the amount of such agreement exceeds 50,000 (fifty thousand) United States dollars equivalent.

If the foreign exchange agreement for export or import does not indicate the amount of the agreement on the date of its conclusion, then such an agreement is considered as an agreement subject to accounting registration.

An exporter or importer applies for an account number before any of its parties begin to fulfill obligations under a foreign exchange contract for export or import. If the non-resident participant is the first to fulfill obligations under a foreign exchange agreement for export or import, and such fulfillment is associated with the transfer of property (receipt of money) in favor of a resident exporter or importer, then such a resident applies for accounting registration before receiving the property (money) in your order.

Account registration is carried out:

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

2) in an authorized bank (its branch) that services the bank account of the exporter or importer - if payments and (or) money transfers are made using accounts opened both in the 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) notifies the National Bank of the Republic of Kazakhstan about opening an account in a foreign bank by applying for assignment of an account number to such an account before carrying out transactions using such an account.

A resident legal entity (except for a bank and a branch (representative office) of a foreign organization) submits to the National Bank of the Republic of Kazakhstan information on transactions using an account opened with a foreign bank, indicating the account number.

To assign an account number to an account in a foreign bank, a resident legal entity (with the exception of a bank and a branch (representative office) of a foreign organization) submits an application indicating the business identification number and a copy of the document of the foreign bank with the specified account details.

In cases of changing details or closing an account in a foreign bank to which an account number has been assigned, a resident legal entity (with the exception of a bank and a branch (representative office) of a foreign organization) notifies the National Bank of the Republic of Kazakhstan about this within the established time frame.

Resident individuals do not notify the National Bank of the Republic of Kazakhstan about accounts in foreign banks. The authorized bank that carries out such money transfers notifies about transfers of money from individuals from their own accounts (to their own accounts) in foreign banks.

PAYMENTS AND TRANSFERS

If a payment and (or) transfer of money under a foreign exchange transaction of a resident or non-resident using a transaction payment card is made for an amount equal to fifty thousand US dollars in equivalent or more, then the resident or non-resident provides information at the request of the authorized bank.

When making a payment and (or) transfer of money in an amount equal to fifty thousand US dollars in equivalent or more, a resident provides information about the currency transaction in the prescribed form, including indicating:

1) the country of registration of the sender of money and the beneficiary of the payment document, if these data do not coincide with those specified in the payment document;

2) indicator of intra-corporate money transfer;

3) code of the currency transaction for which the payment and (or) transfer of money is carried out;

4) information about the sender and (or) recipient of the money under the currency agreement, in case of discrepancy with the sender of the money and the beneficiary of the payment document;

5) the country of registration of the sender of the money and the recipient of the money under the currency agreement, in case of a discrepancy with the sender of the money and the beneficiary of the payment document;

6) details of the currency agreement and the account number of the currency agreement (if available).

For the purpose of indicating the currency transaction code and other information provided for in this paragraph, at the request of the authorized bank, the resident legal entity submits constituent documents.

A non-resident, when making a payment and (or) transfer of money in an amount equal to fifty thousand US dollars in equivalent or more, provides the authorized bank with the following information about the currency transaction in the prescribed form:

1) country of registration of the sender of money and the beneficiary of the payment document, if these data do not coincide with those specified in the payment document;

2) code of the currency transaction for which the payment and (or) money transfer is carried out;

3) a sign of intra-corporate money transfer.

If a payment and (or) transfer of money is made using a corporate payment card by a resident legal entity or a resident branch (representative office) of a foreign non-financial organization for an amount equal to fifty thousand US dollars in equivalent or more, then such resident within thirty working days from on the day of such payment and (or) transfer of money, submits a currency agreement or a copy thereof to the authorized bank.

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.