Astana Hub participant is a legal entity - a resident of the Republic of Kazakhstan, deriving income exclusively from the implementation of priority activities and registered as a participant in Astana Hub, having received the appropriate certificate, having the right to use the services of Astana Hub, the right to receive tax benefits, a simplified visa regime and other advantages, provided for by the legislation of the Republic of Kazakhstan.

Participants in Astana Hub can be companies that carry out activities exclusively within the List of priority activities approved by Order of the Minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan dated April 11, 2019 № 37/НҚ.

Legal entity:
- not related to organizations implementing an investment priority project in accordance with Article 284 of the Entrepreneurial Code of the Republic of Kazakhstan dated October 29, 2015, as well as an investment strategic project under investment contracts concluded before January 1, 2015;
- fifty or more percent of shares (shares in the authorized capital) of which are not directly or indirectly owned by the state, national management holdings, national holdings and national companies or their subsidiaries;
- not being a subsoil user and participant in the special economic zone;
- not being a payer of excisable goods in accordance with Article 461 of the Tax Code;
- deriving income exclusively from the implementation of activities corresponding to one or more types of activities specified in the List of priority types of activities approved by the Acting Order of Minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan dated April 11, 2019 № 37/НҚ;
- which does not have branches at the time of submitting the application for registration..

Yes. Registration as participants in Astana Hub is carried out on the principle of extraterritoriality, that is, participants can be located in any city in Kazakhstan.

List of documents, required to register as a participant of Astana Hub, is presented in the “Documents” section.

Yes. The application and the documents attached to it are generated and attached at the applicant’s choice in Kazakh, Russian or English. When providing documents in English, Astana Hub provides their translation into Kazakh or Russian.

Yes.

Yes.

You must create a personal account on the Astana Hub portal and submit an electronic application with the necessary documents attached.

- Submitting an electronic application with the mandatory attachment of the necessary documentation on the Astana Hub portal.
- Preliminary consideration of the Astana Hub application.
- Review of the application by the commission.
- Notification of the commission’s decision based on the results of consideration of the application.
- Concluding an agreement on the conditions of participation in Astana Hub.
- Issuance of a certificate confirming the company’s registration as a participant in Astana Hub.
- Inclusion in the List of registered participants of Astana Hub.

All messages and notifications regarding the application are sent through the Astana Hub portal to the applicant’s personal account. It is necessary to monitor messages in personal account.

- Application review period: 15 working days.
-checking for completeness of information by Technopark employees (5 working days);
- consideration and decision on registration by the Participants Selection Commission (10 working days).

The company becomes a participant of Astana Hub from the date specified in the certificate issued by Astana Hub.

No, Technopark participants who provide exclusively services (for example, custom development services or training services (IT school) and do not have their own intellectual property object (hereinafter - the IP object) reduce the CIT by 100%.

The CIT rules apply if a company has an IP object on its balance sheet and receives income from the sale of this IP object and/or the provision of services within the framework of this IP object.

No, the CIT Rules apply only to the extent of CIT benefits.

Yes.
If a Technopark participant receives income from an IP object,
income to which a 100 percent reduction in the amount of calculated CIT is applied is determined as the product of the amount of income and the relationship coefficient, which is calculated using the following formula:
n=(a+b)*1, 3/a+b+c+d
a – expenses incurred related to the intellectual property, with the exception of the expenses specified in d;
b – costs of outsourcing to persons who are not related parties;
c – costs of outsourcing to related parties located outside the Republic of Kazakhstan;
d – expenses for the acquisition of an intellectual property item.

Yes, the correlation coefficient is determined according to the formula:
n=(a+b)*1,3/a+b+c+d
a – expenses incurred related to the intellectual property, with the exception of the expenses specified in d;
b – costs of outsourcing to persons who are not related parties;
c – costs of outsourcing to related parties located outside the Republic of Kazakhstan;
d – expenses for the acquisition of an intellectual property item.
In the case when the total amount of expenses for c and d is greater than expenses a and b by more than 30%, then the coefficient n will be below 1, which in turn reduces the amount of income to which a reduction in the amount of calculated CIT by 100% is applied.

Part of the Technopark participant’s income, to which the CIT reduction is not applied, must be taxed at 20% CIT.
In the CIT declaration, the amount of the reduced CIT must be indicated in the line “Reduction of CIT in accordance with tax legislation,” and the amount of CIT payable must be indicated in the line “Calculated amount of CIT taking into account the reduction.

Documents confirming the existence of exclusive property rights to an IP object include, but are not limited to:
- agreement on the assignment of exclusive property rights;
- license agreement on the transfer of exclusive property rights;
- copyright agreement on the transfer of exclusive rights;
- utility model patent.
Such documents must indicate that the Technopark participant has exclusive property rights to the IP object.

No, the rights must be transferred to a legal entity participating in the Technopark, because the reduction in CIT applies to a legal entity that has exclusive property rights to an IP object.

The tax period for CIT is a calendar year; therefore, the CIT benefit will be applied for the entire year, including in the case of obtaining exclusive property rights during the year.

Yes, in accordance with the CIT Rules, Technopark participants must maintain separate tax records for each IP object.
At the same time, Technopark participants must receive income exclusively from the implementation of priority activities in the field of ICT.

Yes, a Technopark participant who has an IP object, who also receives income from services related to their IP object, such as:
1) services for research, analysis, design, adaptation and configuration of software;
2) technical support services;
3) services for data transformation and migration;
4) software update services;
5) software testing services;
6) software correction services;
7) services for training software users.
can reduce the CIT by 100% if:
1) all agreements of the Technopark participant are concluded in accordance with the legislation of the Republic of Kazakhstan (including employment contracts);
2) if the participant receives confirmation from the Technopark of compliance with the following conditions:
• carrying out activities with the number of full-time employees necessary for the actual implementation of activities;
• employees of the Technopark participant have the necessary qualifications and (or) seniority, and (or) experience for the actual implementation of activities;
• correspondence of the volume of expenses incurred by a Technopark participant to the actual volume of expenses required to carry out the activity.
3) there are exclusive property rights to the IP object.

Confirmation of compliance of the Technopark participant with the following conditions:
• carrying out activities with the number of full-time employees necessary for the actual implementation of activities;
• employees of the Technopark participant have the necessary qualifications and (or) seniority, and (or) experience for the actual implementation of activities;
• correspondence of the volume of expenses incurred by a Technopark participant to the actual volume of expenses required to carry out the activity. Will be issued by Technopark until March 20 of the following reporting year. The planned data for comparison will be the indicators specified in the business plan of the Technopark participant, which was submitted when submitting an application for participation.
The process of obtaining confirmation will be posted on the Technopark platform, and Technopark participants will be notified about it.
Until confirmation is received, Technopark participants will be given the opportunity to make adjustments to the current business plan once a year, of which will also notify Technopark participants.

The tax period for CIT is a calendar year; therefore, the CIT benefit will be applied for the entire year, including in the case of obtaining exclusive property rights during the year.