Bracewell & Giuliani: Kazakhstani Government Sets Tax Incentives inside Special Economic Zone.ALMATY, Kazakhstan -- In a bold move to secure a financial hub inside Kazakhstan's Caspian region, authorities have established the Regional Financial Center of Almaty (RFCA RFCA Radiofrequency Catheter Ablation RFCA Reserve Forces and Cadets Association (UK) RFCA Rocky Flats Cleanup Agreement RFCA Regional Financial Center of Almaty (Kazakhstan) ), a special economic zone with a dedicated regulatory framework and single multifunctional regulatory authority. Additionally -- as of January 1, 2007 -- amendments to the Kazakhstan Tax Code establish tax incentives for RFCA members and the dividends and capital gains of their RFCA securities transactions. "Under the amended Tax Code, RFCA members will receive income tax preferences with regard to dividends, withholding tax The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. , and capital gains from securities purchased or sold on the RFCA trading floor," said Gregory Vojack, Managing Partner of the law firm Bracewell & Giuliani's Kazakhstan practice. "The amendments also exempt a number of activities from income tax, including broker services, underwriting, research & analysis, and market making activities." In the 1990s Kazakhstan was the first country in the Commonwealth of Independent States Commonwealth of Independent States (CIS), community of independent nations established by a treaty signed at Minsk, Belarus, on Dec. 8, 1991, by the heads of state of Russia, Belarus, and Ukraine. Between Dec. 8 and Dec. to undergo a massive privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned and a major restructuring of its financial system. The new RFCA continues this trend: encompassing an International Council to guide the Center's strategic development, and a specialized financial court to serve as a dedicated dispute resolution forum. "The RFCA follows the pattern of other world financial centers that promote the host country as an investment destination," said Mr. Vojack. "Kazakhstan is seeding the ground for a prosperous future: creating a regional financial hub with a first class financial services marketplace, and allowing domestic investors to access foreign capital markets." Members of the RFCA may include both domestic and foreign broker-dealer firms registered and licensed under the RFCA authority. These firms will only be allowed to operate on the special floor of a stock exchange located in Almaty and regulated by the RFCA Authority. Financial offerings will include government securities, equity and debt securities, credit linked notes, and derivatives. "Bracewell & Giuliani established our Almaty office in 1994, and several of our firm's partners helped craft the country's economic infrastructure of corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and banking and securities regulation," said Mr. Vojack. "The Kazakhstani government's support of tax preferences, when combined with the RFCA's dedicated organizational structure and wide range of financial instruments, clearly demonstrate the Center's potential to become a dynamic financial hub for the Caspian region." Bracewell & Giuliani LLP LLP - Lower Layer Protocol is among the nation's most prominent law firms. With 400 lawyers in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Connecticut, Texas, Washington, D.C., Dubai, Kazakhstan and London, we are distinctively positioned to serve clients concentrated in the energy and financial services sectors worldwide. In 2005, former New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. mayor Rudolph W. Giuliani joined the firm as a senior partner. His international reputation for leadership and problem solving problem solving Process involved in finding a solution to a problem. Many animals routinely solve problems of locomotion, food finding, and shelter through trial and error. is a unique asset for our clients, which include Fortune 500 companies, major financial institutions, leading private investment funds, governmental entities and individuals. For more information about Bracewell & Giuliani, visit www.bgllp.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion