More than 90 billion tenge in taxes were paid by AIFC participants to the country’s budget

By the end of 2023, participants of the Astana International Financial Centre (AIFC) contributed 85.2 billion tenge in taxes to the country’s budget. Analysts of the AIFC Authority presented this data in the annual report on the centre’s participants.

At the same time, by the end of January 2024, the amount of taxes paid had already exceeded 90 billion tenge. This is nearly 60 times more than the amount paid in 2018. It’s important to note that AIFC participants are companies registered within the jurisdiction of the financial centre. Furthermore, in 2022 the regulation in the AIFC was recognized as compliant with the tax transparency standards of the Organization for Economic Co-operation and Development (OECD). This recognition marked a significant milestone in demonstrating the compliance of the AIFC and all of Kazakhstan with global transparency standards, including tax transparency. Additionally, in 2023, Kazakhstan successfully met the requirements for compliance with international FATF/EAG standards. FATF, an intergovernmental organization, sets global standards in combating money laundering and financing of terrorism (AML/CFT). The AIFC, as a special jurisdiction, played a crucial role in achieving this result and was assessed as compliant with international AML/CFT standards.

AIFC Governor Renat Bekturov remarked, “AIFC stands as a leading financial centre in the region, primarily focused on creating and developing infrastructure to facilitate capital flows. The increasing number of participants, growth in number of financial companies, investments in Kazakhstan’s economy, taxes paid by participants to the country’s budget, as well as the volume of transactions and capital raised through the AIX – all reflect the effectiveness of the Centre’s operations. By the end of 2023, $4.6 billion was raised through the AIX, while direct investments from AIFC participants amounted to $6.3 billion”.

In 2023, sectors such as transportation, logistics, agro-industrial and mining complexes, renewable energy sources (RES) and the IT sector experienced significant development. The AIFC Academy has trained over 18 000 specialists through its educational and corporate training programs, covering areas such as finance, investment management, risk management, financial technology and other related fields.

Since the centre started operations in 2018, the number of participants has consistently increased, with an average annual growth rate of +460 companies.

As of February 2024, the number of registered participants had surpassed 2 500 companies, including those with foreign capital from 78 countries. The largest number of participants is from sectors such as finance, information and communications, wholesale and retail trade, manufacturing and mining.

It should be noted that all AIFC participants are tax residents of Kazakhstan and are required to maintain records in accordance with Kazakhstan’s tax legislation, as well as submit appropriate reports, irrespective of any tax preferences. Tax benefits primarily apply to companies that have obtained a license from the AIFC regulator (AFSA) to engage in financial or market activities or to provide professional services.

You can explore a more detailed overview of AIFC participants for 2023 through the following link.

Reference:

The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy.www.aifc.kz

AIFC Media Relations

Ainur Issabayeva

Press secretary

Phone: +7 701 777 6558

E-mail: [email protected]