What is a Special Investment Project?

A Special Investment Project (SIP) is a category of investment project under the Entrepreneurial Code of the Republic of Kazakhstan No. 375-V dated 29 October 2015 (Articles 289–292). Three categories of investor qualify for SIP status: (1) Kazakhstani entities registered as residents of a Special Economic Zone (SEZ); (2) operators of free warehouses licensed under the Customs Code; and (3) entities participating in motor vehicle assembly under a government-approved assembly agreement. SIP status provides access to extended customs and VAT incentives beyond those available to ordinary or priority investment projects.

SEZ resident — SIP incentives

Entities registered as SEZ residents and qualifying for Special Investment Project status are entitled to: exemption from customs duties on imported goods placed under the free customs zone procedure within the SEZ for up to 15 years; VAT exemption on goods placed under the free customs zone procedure; and exemption from land tax and property tax for the duration of SEZ residency. These incentives are in addition to the CIT exemption available to SEZ residents under the Tax Code. Bond Stone advises on combined SEZ + SIP incentive structures for manufacturing and processing investors.

Free warehouse operator — SIP incentives

Operators of free warehouses licensed by the customs authority of Kazakhstan under the Customs Code No. 123-VI dated 26 December 2017 qualify for Special Investment Project status — providing customs duty suspension on goods stored in the free warehouse pending further customs procedures. Bond Stone advises on free warehouse licensing and the interaction between free warehouse status and SIP incentives.

Motor vehicle assembly — SIP incentives

Entities participating in government-approved motor vehicle assembly programmes under agreements with the government of Kazakhstan qualify for Special Investment Project status — providing customs and VAT exemptions on imported components and parts for the assembly programme. The automotive sector has historically been a significant user of SIP incentives in Kazakhstan — with manufacturers including Hyundai, KIA, and domestic assemblers operating under government assembly agreements.

SIP vs IPP — key differences

The key distinction between a Special Investment Project and an Investment Priority Project: SIP status is based on the investor’s registration or licensing status (SEZ resident, free warehouse, auto assembly agreement) — not minimum investment thresholds; SIP incentives focus on customs and VAT (not CIT exemption); and SIP incentives can extend for up to 15 years — longer than the IPP CIT exemption period of 10 years. Bond Stone advises on whether SIP or IPP status (or a combination) is most appropriate for a specific investment.

SEZ + SIP — Manufacturing Investor

Special Investment Project · Kazakhstan · SEZ · Manufacturing

Advising a foreign manufacturer on combining SEZ residency with Special Investment Project status — customs duty and VAT exemption analysis, SEZ application, and SIP registration for up to 15-year customs relief on imported equipment.

Free Warehouse Licensing

Special Investment Project · Kazakhstan · Logistics

Advising a logistics company on free warehouse licensing under the Customs Code — eligibility criteria, licence application, SIP status registration, and customs duty suspension on goods stored in the free warehouse.

Auto Assembly Agreement — SIP

Special Investment Project · Kazakhstan · Automotive

Advising an automotive investor on participation in a government-approved motor vehicle assembly programme — agreement negotiation, SIP status, customs and VAT exemptions on imported components, and ongoing compliance.

SIP vs IPP Analysis

Special Investment Project · Kazakhstan · Advisory

Advising a foreign investor on whether SIP or IPP status is more advantageous for a specific Kazakhstan investment — comparative incentive analysis across customs, VAT, CIT, land tax, and incentive duration.

SEZ Residency + SIP — Chinese Manufacturer

Special Investment Project · Kazakhstan · China · SEZ

Advising a Chinese manufacturer on establishing an SEZ resident entity and registering for SIP status — SEZ application, customs duty exemption schedule, and interaction with investment priority project incentives.

SIP Compliance — Annual Reporting

Special Investment Project · Kazakhstan · Compliance

Advising an existing SIP contract holder on annual compliance obligations — qualifying activity confirmation, customs exemption usage reporting, and assessment of risk of SIP status revocation.