What is an Investment Priority Project?

An Investment Priority Project (IPP) is a category of investment project under the Entrepreneurial Code of the Republic of Kazakhstan No. 375-V dated 29 October 2015 (Articles 284–288) that qualifies for enhanced government investment incentives. IPP status is granted through an investment contract with the government — administered by the Committee on Investments under the Ministry of Foreign Affairs of Kazakhstan. IPP projects must meet minimum investment thresholds and qualify in eligible sectors defined by government resolution.

Minimum investment thresholds

To qualify as an Investment Priority Project under the Entrepreneurial Code: new production facility — minimum investment of 2 million MCI (Monthly Calculation Index — the threshold is set by annual government resolution and should be verified against the current MCI value at adilet.zan.kz); expansion or modernisation of an existing facility — higher minimum thresholds apply. Bond Stone verifies current MCI-based thresholds at the outset of every IPP advisory mandate.

Available incentives — IPP status

Investment Priority Projects qualify for the following incentives under the Entrepreneurial Code and Tax Code: corporate income tax (CIT) exemption for up to 10 years from commencement of production; land tax exemption for up to 10 years; property tax exemption for up to 8 years; VAT refund on construction and installation works; customs duty exemption on imported equipment, components, and spare parts not produced in Kazakhstan (for up to 5 years); and stability of applicable tax rates and foreign worker conditions for the duration of the investment contract.

Eligible sectors

The list of sectors eligible for Investment Priority Project status is approved by government resolution and updated periodically. The list historically includes: manufacturing (equipment, pharmaceuticals, food processing, metallurgy, construction materials, automotive, chemicals, agriculture); IT and digital infrastructure; renewable energy; logistics and transport infrastructure; and tourism. Bond Stone verifies current eligible sector lists against the applicable government resolution at adilet.zan.kz before advising on IPP eligibility.

Investment contract procedure

The investment contract is concluded between the investor (typically a Kazakhstani legal entity) and the government of Kazakhstan — represented by the Committee on Investments. Bond Stone advises on: eligibility assessment against current thresholds and sector lists; preparation of the investment contract application; negotiation of contract terms — including the duration of incentives, stability guarantee scope, and compliance milestones; and ongoing compliance with investment contract obligations throughout the incentive period.

Green Corridor — fast-track mechanism

Qualifying investment projects may access the Green Corridor — a special fast-track mechanism introduced by amendments to the investment project regulation framework in 2026. The Green Corridor provides priority and accelerated access to government services, permits, approvals, and other administrative procedures. Eligibility is determined by a scoring methodology evaluating investment volume, technological level, and economic and social significance. Bond Stone advises on Green Corridor eligibility assessment and application.

Manufacturing IPP — Chinese Investor

Investment Priority Project · Kazakhstan · Manufacturing · China

Advising a Chinese manufacturer on qualifying for Investment Priority Project status in Kazakhstan — investment threshold analysis, eligible sector confirmation, investment contract application, and negotiation of CIT and land tax exemption terms.

Pharmaceutical IPP — European Company

Investment Priority Project · Kazakhstan · Pharmaceuticals

Advising a European pharmaceutical company on IPP status for a new manufacturing facility in Kazakhstan — minimum investment threshold confirmation, eligible sector analysis, and investment contract negotiation with the Committee on Investments.

Renewable Energy IPP

Investment Priority Project · Kazakhstan · Energy

Advising a foreign renewable energy investor on IPP qualification for a solar energy project in Kazakhstan — sector eligibility confirmation, investment threshold analysis, customs duty exemption on imported equipment, and investment contract application.

IPP Compliance — Ongoing Advisory

Investment Priority Project · Kazakhstan · Corporate

Advising an existing IPP contract holder on compliance with investment contract obligations — production milestone monitoring, employment compliance, tax exemption reporting, and assessment of risk of contract termination.

Green Corridor Application

Investment Priority Project · Kazakhstan · Regulatory

Advising a foreign investor on Green Corridor eligibility for a qualifying investment project — scoring methodology assessment, application preparation, and fast-track permit and approval coordination.

IPP + SEZ — Combined Structure

Investment Priority Project · Kazakhstan · SEZ

Advising on combining Investment Priority Project status with SEZ residency — analysing the interaction between IPP tax incentives and SEZ tax exemptions to optimise the combined incentive package for a manufacturing investment.