CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Tax Code In Kazakhstan Set To Benefit ENRC Substantially

New Tax Code In Kazakhstan Set To Benefit ENRC Substantially

by Tatiana Smolenskaya, Tax-News.com, Moscow

18 December 2008


The new tax code set to be introduced in Kazakhstan next year will provide Eurasian Natural Resources Corporation (ENRC), one of the world's largest mining groups, with a one-off USD100m reduction in corporate tax.

Taking effect from January 1, 2009, the new tax code will work in two different ways. Firstly, it will begin by reducing the current 30% rate of corporate income tax by half to 15% by 2011, and secondly, it will introduce a new Mineral Extraction Tax.

This levy on mineral extraction is to be implemented on various levels, staggered to suit each type of material, and has been designed to create stability within the country's tax system by removing the current royalties scheme.

Duties for exporters of oil and gas are also set to be revised and replaced with an Export Rent Tax.

In a statement on the new tax code, ENRC explained that if all of the changes were to be incorporated in the 2008 tax charge, the impact would have been in line with the Group’s previous guidance of an additional 2% to 3% on its effective tax rate. However, the company went on to add that, as a one-off impact in 2008, with the implementation of the new tax code, ENRC will benefit from a release of deferred tax liabilities which will reduce the estimated effective 2008 corporate income tax charge by approximately USD100m.

ENRC went on to state that: "in an environment of lower commodity prices, the effective tax rate should remain broadly stable under the new tax code."

The company's Chief Financial Officer, Miguel Perry commented:

"We believe that the government of Kazakhstan’s willingness to engage with the industry in the development of the new tax code provides a good balance between the interests of large extraction companies and the government’s wider objectives.”


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »