ORDER OF THE MINISTER OF AGRICULTURE OF THE REPUBLIC OF KAZAKHSTAN

of August 1, 2020 No. 243

About introduction of amendments to the order of the acting minister of agricultural industry of the Republic of Kazakhstan of July 23, 2018 No. 317 "About approval of Rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment investments"

I ORDER:

1. Bring in the order of the acting minister of agricultural industry of the Republic of Kazakhstan of July 23, 2018 No. 317 "About approval of Rules of subsidizing on compensation of part of the expenses suffered by the subject of agro-industrial complex in case of investment investments" (it is registered in the Register of state registration of regulatory legal acts No. 17320, it is published on September 6, 2018 in Reference control bank of regulatory legal acts of the Republic of Kazakhstan) the following changes:

state preamble in the following edition:

"According to the subitem 15) of Item 1 of article 6 of the Law of the Republic of Kazakhstan of July 8, 2005 "About state regulation of development of agro-industrial complex and the rural territories", the subitem 2) of Item 3 of article 16 of the Law of the Republic of Kazakhstan of March 19, 2010 "About the state statistics" and the subitem 1) of article 10 of the Law of the Republic of Kazakhstan of April 15, 2013 "About the state services" I ORDER:";

Rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex, in case of investment investments (further – Rules), approved by the specified order to be reworded as follows according to appendix to this order.

2. To provide to department of financial instruments and microcredit of the Ministry of Agriculture of the Republic of Kazakhstan in the procedure established by the legislation:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Ministry of Agriculture of the Republic of Kazakhstan after its official publication.

3. To impose control of execution of this order on the supervising vice-Minister of Agriculture of the Republic of Kazakhstan.

4. The paragraph two of Item 10 of Rules is effective till December 31, 2020. The paragraph third Item 10, Chapter 6 of Rules are effective till December 31, 2021.

5. This order becomes effective after ten calendar days after day of its first official publication.

It is approved Ministry of the industry and infrastructure development of the Republic of Kazakhstan

It is approved Ministry of Finance of the Republic of Kazakhstan

It is approved Ministry of national economy of the Republic of Kazakhstan

It is approved Ministry of digital development, innovations and aerospace industry of the Republic of Kazakhstan

 

Appendix

to the Order of the Minister of Agriculture of the Republic of Kazakhstan of August 1, 2020 No. 243

Approved by the Order of the acting minister of agricultural industry of the Republic of Kazakhstan of July 23, 2018 No. 317

Rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment investments

Chapter 1. General provisions

1. These rules of subsidizing on compensation of part of the expenses incurred by the subject of agro-industrial complex in case of investment investments (further – Rules) are developed according to the subitem 15) of Item 1 of article 6 of the Law of the Republic of Kazakhstan of July 8, 2005 "About state regulation of development of agro-industrial complex and the rural territories" (further – the Law), and also the subitem 2) of Item 3 of article 16 of the Law of the Republic of Kazakhstan of March 19, 2010 "About the state statistics", the subitem 1) of article 10 of the Law of the Republic of Kazakhstan of April 15, 2013 "About the state services" (further – the Law on the state services) and determine procedure for subsidizing by compensation of part of the expenses incurred by the subject of agro-industrial complex (further – the AIC), in case of investment investments.

2. Main objective of subsidizing on compensation of part of the expenses incurred by the subject of the AIC in case of investment investments, is increase in goods availability, works and services within implementation of investment projects in the priority directions (sectors) of the AIC by decrease in capital intensity and increase in payback of the enclosed investments.

In these rules the following terms and determinations are used:

1) The Government for Citizens State corporation (further – the State corporation) – the legal entity created according to the decision of the Government of the Republic of Kazakhstan for rendering the state services, services in issue of specifications on connection to networks of subjects of natural monopolies and services of subjects of the quasi-public sector according to the legislation of the Republic of Kazakhstan, the organization of work on reception of applications on rendering the state services, services in issue of specifications on the connection to networks of subjects of natural monopolies, services of subjects of the quasi-public sector and issue of their results to uslugopoluchatel by the principle of "one window", and also ensuring rendering the state services electronically performing state registration of the rights to real estate in the place of its stay;

2) the web portal of information system (further – the web portal) – the Internet resource placed on the Internet, providing access to system of subsidizing;

3) the investment project in the AIC (further – investment the project) – the complex of actions providing investments on creation new or expansion of the operating production capacities (including upgrade), acquisition of the equipment, machines and the equipment according to passports of projects;

4) the investor in the AIC (further – the investor (uslugopoluchatel)) – the subject of the AIC according to the legislation of the Republic of Kazakhstan performing investment investments;

5) the special account – the account of financial institution in bank of the second level on which the amount of investment subsidies in accordance with the terms of Chapter 5 of these rules is credited;

6) the free budget – the budgetary funds provided for the corresponding financial year by the budget of local executive bodies of areas, cities of republican value and the capital free from obligations at the time of application of the investor (uslugopoluchatel);

7) the administrator of the budget program (further – the administrator) – the Ministry of Agriculture of the Republic of Kazakhstan;

8) personal account – set of the records containing in the register, allowing to identify the registered person for the purpose of registration of requests for subsidizing and accounting of transactions on them;

9) the passport of the project – the list and share of compensation of investment investments on creation new or expansion of the operating production capacities (including upgrade), acquisition of the equipment, the machines, the equipment and other fixed assets, works and services which are subject to investment subsidizing, specified in appendices 1 and 2 to these rules;

10) expansion of the operating production capacities – the actions providing equipment of the operating production capacities the missing or necessary equipment (the equipment and by machines) or the increase in production capacities and other actions directed to growth in volumes of production and (or) reduction of cost of the made products and (or) improvement of quality of the made products, change of its packaging and (or) expansion of the range, and also other actions which purpose is occupation of new commodity niche in the market, expansion of the markets;

11) investment investments – the costs directed to creation new or expansion of the operating production capacities;

12) investment subsidizing - compensation of part of the expenses incurred by the subject of the AIC in case of investment investments;

13) working body for questions of investment subsidizing (further – working body (service provider)) – the local executive body of areas, cities of republican value and the capital in the field of agricultural industry authorized for consideration of requests of investors (uslugopoluchatel) and decision making about payment/refusal in provision of investment subsidies;

14) the agreement of investment subsidizing – the agreement signed between working body (service provider) and the investor (uslugopoluchatel), providing procedure and conditions of money transfer of investment subsidies, the course of monitoring, responsibility of the parties and other conditions;

15) the service provider – person providing access to information system of subsidizing and its maintenance determined by working body (service provider) according to the legislation on public procurements;

16) financial institutions – the banks of the second level, the microfinancial organizations, credit institutions having the corresponding license for the right of banking operations, leasing companies, credit partnerships;

17) industrial complex – set of the interconnected production capacities (buildings, constructions, the mounted equipment, engineering networks) directed to production, conversion, storage, packaging of agricultural products;

18) the request – the electronic/paper request for receipt of investment subsidies by investors (uslugopoluchatel) in case of investment investments in form according to appendices 3, 4, 5 to these rules;

19) information system of subsidizing – the organizational arranged set of information and communication technologies, service personnel and technical documentation intended for rendering services in accomplishment of processes of subsidizing giving opportunity of registration of the request for receipt of subsidies and also its processings by means of automatic verification of the request for compliance to subsidizing conditions;

20) the electronic register of requests for subsidizing (further – the register) – set of data on requests for subsidizing of agro-industrial complex, and also about borrowers, financial institutions, and other data reflected in information system of subsidizing;

21) the register of monitoring of requests (further – the register of monitoring) – set of data on requests for investment subsidizing, the investor (uslugopoluchatel), and also other data reflected in information system of subsidizing for determination of need for means;

22) the digital signature (further – the EDS) – set of electronic digital symbols created by means of the digital signature and confirming reliability of the electronic document, its accessory and invariance of content;

23) the standard of the state service – the list of the main requirements to rendering the state service including characteristics of process, form, content and result of rendering, and also other data taking into account features of provision of the state service;

24) the farm vehicle (further – the machine) – the self-propelled agricultural machinery, trailing and hinged tools intended for mechanization of agricultural works (in agriculture and livestock production) of which mobility of Basic and case Elements, rather bearing area, during execution of engineering procedures is characteristic;

25) the agricultural equipment (further – the equipment) – the equipment intended for mechanization, to electrification and automation of agricultural works of which owing to specifics of its operation the immovability of Basic and case Elements of design, rather bearing area, during execution of engineering procedures is characteristic;

26) agricultural machinery (further – the equipment) – wide range of the technical means intended for performance improvement of work in agricultural industry by mechanization, electrification and automation of separate transactions or processes.

3. Subsidizing of costs for installation and construction works is performed according to the investment projects providing achievement of indicators on performance and/or productivity and/or sales volumes of products and/or utilization of capacity according to the business plan of the project.

4. Annually till February 1 of the corresponding year the working body (service provider) creates and registers in information system of subsidizing group of specialists (further – group of specialists) from number of persons employed of working body (service provider), local executive bodies (including district/city) and other organizations, being representatives of the public and non-governmental industry organizations.

The group of specialists in all passports of projects, except for passports of the project No. 1 (except barrier for pastures (the generator of the electroshepherd, the lowering transformer, insulators, wire at least 2 rows), performs verification of documents, survey of object of the investor (uslugopoluchatel), the acquired equipment on compliance to the conditions provided in passports of projects with the annex of confirmatory photos and video records, also checks achievement of load of production capacities, according to Item 17 of these rules makes calculation of investment subsidies.

At least 2 (two) specialists who will be determined by working body (service provider) go to each object.

Survey is performed in the presence of the investor (uslugopoluchatel) or his authorized representative and his result is drawn up by the inspection report of object of the investor and the certificate in achievement of load of production capacities in form according to appendix 6 to these rules (further – the inspection report of object).

If the investment project supposes only acquisition of the equipment, then survey of object of the investor (uslugopoluchatel) by group of specialists is not required.

5. Subsidizing on compensation of part of the expenses incurred by the subject of the AIC in case of investment investments, is performed for the account and within the means provided in the government budget for the corresponding financial year taking into account the financing limits of each passport of the project approved with the administrator and set by working body (service provider).

6. In case of not application of funds, the projects provided for order taking according to passports, since the third quarter of the corresponding year the working body (service provider) makes the decision on funds redistribution between passports of projects proceeding from effective distribution of means in the priority directions of development of regions in the field of the AIC.

7. Requests according to which the amount of investment subsidies constitutes 500 (five hundred) million tenges and more will be approved with the administrator.

8. Investment subsidizing is combined with other measures of the state support, except for the measures providing cost recovery in case of investment investments.

The organizations are not allowed to investment subsidizing, fifty and more percent of shares (share in the authorized capital) which directly or indirectly belong to the state, national managing holding, national holding, the national company (except for social business corporation, and also subjects of entrepreneurship, founded within the agreement on public-private partnership).

9. Investment subsidies are not provided to investors (uslugopoluchatel) concerning whom liquidation procedures, rehabilitations or bankruptcies, and also activities which it is suspended according to the Law of the Republic of Kazakhstan of March 7, 2014 "About rehabilitation and bankruptcy", the rehabilitation procedure except as specified accelerated are begun.

Chapter 2. Main conditions of investment subsidizing

10. Investment subsidizing is performed according to passports of the projects specified in appendix 2 to these rules and made in the place of implementation of the investment project.

Order taking for investment subsidizing according to the passport of the project No. 34 "Creation of artificial reservoir (prudokopana) for collection of thawed snow" is performed in the place of implementation of the investment project till December 15 (inclusive) 2020.

Order taking for investment subsidizing on leasing of ready projects is performed in the place of implementation of the investment project till December 15 (inclusive) 2021.

The list of the main requirements to receipt of subsidies including characteristics of process, form, content and result of provision of subsidies and also other data taking into account features of provision of subsidies is stated in the standard of the state service "Subsidizing on Compensation of Part of the Expenses Incurred by the Subject of Agro-industrial Complex in case of Investment Investments" according to appendix 7 to these rules (further – the standard of the state service).

11. Investment subsidies are provided according to the investment projects put into operation not earlier than two years about year of submission of the electronic/paper request. New, earlier unused equipment, machines or the equipment are subject to subsidizing:

1) acquired not earlier than 24 (twenty four) months before date of input of the investment project in operation;

2) year of release not earlier than 36 (thirty six) months before date of input of the investment project in operation.

12. If according to passports of the project acquisition only of the equipment, machines and/or the equipment is supposed, then the equipment, machines and/or the equipment acquired not earlier than 3 (three) years about year of application are subject to subsidizing.

13. For passports of projects No. 1 (in the presence of the minimum standard rate), No. 4, No. 6, No. 34 needs availability at the investor (uslugopoluchatel) of the corresponding number of the conditional heads of cattle which proves to be true as a result of information exchange of information system of subsidizing and the database on identification of farm animals.

In case of application from agricultural cooperative the cumulative number of uterine livestock of the farm animals registered at members of agricultural cooperative is considered.

Coefficients of transfer of livestock of farm animals in the conditional head of cattle which are specified in passports of projects are performed according to appendix 8 to these rules.

14. Investment subsidizing is performed in case of request compliance to the passports of projects specified in appendix 2 to these rules, and also requirements of these rules.

15. Confirmation of goods purchased, works and services as electronic invoices is performed by means of information system of electronic invoices. The expenses performed till January 1, 2020 are confirmed by paper invoices.

In case of acquisition by agricultural producer (agricultural cooperative) of the equipment and/or equipment directly at the foreign producer who is not using information system of electronic invoices, purchase costs are confirmed by the customs declaration on goods (from the third countries which are not members of the Eurasian Economic Union) or the statement (statements) for commodity importation and payment of indirect taxes with mark of tax authority according to Item 2 of article 456 of the Code of the Republic of Kazakhstan of December 25, 2017 "About taxes and other obligatory payments in the budget" (Tax code) (from the territory of state members of the Eurasian Economic Union).

16. Investment subsidies are paid after commissioning new and/or expansions of the operating production capacities and/or reception-transmission on leasing of ready projects and/or acquisitions of the equipment, machines and the equipment, except as specified, of stipulated in Item 39 these rules. In case of implementation of the investment project, by introduction of queue or start-up complex, subsidizing of queue or start-up complex is performed.

17. Calculation of investment subsidies is perfromed on actually enclosed investments. The percent (further – %) cost recoveries is established according to the share of compensation provided in passports of projects. Compensation share is not subject to change, except as specified, the these rules specified in Item 18.

According to passports of projects No. 7, No. 8 (on the milk-processing plant), No. 10, No. 19, No. 25, No. 26, No. 27, No. 28, No. 29, No. 30 during creation of new production capacities, investment subsidies are paid by two tranches:

1) the first tranche in the amount of 50 (fifty) % of the total amount of investment subsidies after commissioning of the facility;

2) the second tranche in the amount of 50 (fifty) % of the total amount of investment subsidies after achievement of volumes of production at least 30 (thirty) % from general production capacity in the terms provided by the business plan.

In case of achievement by the investment project at the time of application of the volumes of production of 30 (thirty) % from general production capacity and more, investment subsidies are paid by one tranche.

18. Increase in share of compensation of investment investments is possible at the expense of the local budget according to the following passports of projects:

to 35 (thirty five) %:

according to the passport of the project No. 1 "Acquisition of agricultural machinery, machines and the equipment" - by the priority types of the equipment, machines and the equipment provided in development programs of the territories of areas with indication of reasons;

to 40 (forty) %:

according to the passport of the project No. 6 "Creation and expansion of objects for cultivation of the large horned cattle / goats of the milk direction";

to 50 (fifty) %:

according to the passport of the project No. 1 "Acquisition of agricultural machinery, machines and the equipment" on the following line items: No. 3.1, 3.2; 4. 1, 4.2; 50.2.2;

according to the passport of the project No. 1 "Acquisition of agricultural machinery, machines and the equipment" for agricultural cooperatives on the following line items: 1.1-1.3; 2.1-2.2; 13; 17.1; 17.3; 18; 25-30; 31.1; 32; 34.1; 35-37; 40-45; 48.1.1-48.1.2; 48.2.1-48.2.2; 49; 50.1.1-50.1.2; 51; 54; 55; 59;

according to the passport of the project No. 8 "Creation and expansion of milk-processing object, creation of molokopriyemny Items, acquisition of the machinery and equipment for agricultural cooperatives, procurement organizations, molokopriyemny Items and the milk-processing companies" for agricultural cooperatives.

At the same time, one agricultural cooperative can receive investment subsidies for the acquired (acquired) equipment, machines and the equipment, to:

three tractors, with the corresponding number of the trailing and hinged equipment;

two combine harvesters and corresponding number of the hinged and trailing equipment;

two cars for transportation of goods of agricultural purpose and trail car dumping.

For agricultural cooperatives the requirement for the minimum standard rate of one piece of equipment does not extend (hectare / the conditional head of cattle).

19. The size of investment subsidy is determined by the following formula:

And = B x In, where:

And – the amount of investment subsidies;

B – the amount of the actual investment investments or the most allowable cost for calculation of subsidies specified in passports of projects (if the actual investment investments exceed the maximum allowable cost for calculation of subsidies);

In – the share of compensation of investment investments in percentage expression specified in passports of projects.

According to the passports of projects providing subsidizing per unit of measurement, the size of subsidies will be determined by the following formula:

And = (B x In) x, where:

And – the amount of investment subsidies;

B – the amount of the actual investment investments or the most allowable cost for calculation of subsidies specified in passports of projects (if the actual investment investments exceed the maximum allowable cost for calculation of subsidies);

In – the share of compensation of investment investments in percentage expression specified in passports of projects;

– the unit of measure specified in passports of projects.

For subjects of the AIC staying on the registration registry on the value added tax (further – the VAT), calculation of the amounts of subsidies is made proceeding from the amount of the investment investments reduced by VAT amount, carried in offsetting on them.

20. Order taking is performed in the place of implementation of the investment project from February 1 to December 15 (inclusive) the corresponding year, in the presence of funds for investment subsidizing, free from obligations, in the corresponding year (further – the Free budget).

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