Branches of foreign companies will be recognised as residents of Kazakhstan in terms of settlements in national currency with residents. According to Kazinform, the chairman of the National Bank of Kazakhstan Daniyar Akishev announced that at the plenary meeting of the lower chamber of the country's parliament during the first reading of the draft law On Currency Regulation and Currency Control.
"Branches of foreign companies can work in Kazakhstan, and already have certain advantages over local companies. In fact, such a regime was probably objective during the formation of Kazakhstan's economy, when the investment climate and the legislative base were not sufficiently stable for the confidence of foreign investors who work in the country.
After 25 years of independence, we believe it is right that such investors work on a par with companies that operate within the country. We have discussed this issue a lot and understand that foreign investors working through branches want certain exemptions and privileges. We understand their concerns, and discussed a lot with them and agreed on the following. The mode that is present will be changed. The branches will be recognised as residents of Kazakhstan, which, firstly, corresponds to the majority of developed countries, and secondly, there are many examples in the CIS area that show that these companies work as residents," Akishev explained.
As the head of the National Bank said, at first it was proposed to fully recognise the branches of foreign companies as residents of Kazakhstan. But foreign companies asked to take into account the existing features of their work. Now for them the concept of residence will extend to the fact that settlements within Kazakhstan with residents will be carried out according to national legislation, in national currency. All other claims that are made to residents with respect to foreign companies will not apply. This concerns issues of repatriation, and the registration of contracts.
However, the changes will not affect companies whose work is regulated by separate agreements between these companies and state bodies of Kazakhstan. Basically, these are companies operating in the oil and gas sector.
According to Akishev, the decision taken will not entail negative consequences and will not affect the inflow of foreign investments.
At the same meeting, the head of the National Bank of Kazakhstan announced its intention to strengthen the opposition to withdrawing money from the country.
Reported by Regnum (Russia).
