On 13 July 2010 the Prime Minister of the Republic of Kazakhstan signed the Resolution on introduction of amendments and additions (further – the “Resolution”) to the Resolution of the Government of the Republic of Kazakhstan dated 15 October 2005 No. 1036 “Concerning levy of customs duties upon export of crude oil and oil products from the customs territory of the Republic of Kazakhstan”.
The Resolution was published in the “Kazakhstanskaya Pravda” newspaper on 16 July 2010 and shall come into force effective from 16 August 2010.
The key changes introduced by the Resolution are summarized as follows:
– Introduction of export customs duty (further – the “ECD”) on crude oil at the rate of USD 20 per 1 ton (currently the rate is fixed at 0);
– Increase of the ECD rates on oil products, and
– Limitation of cases when export of crude oil may be exempt from the ECD.
We would like to point out that to date the ECD did not apply to the following:
- export of crude oil extracted by the subsurface users in accordance with a production sharing agreements (contracts) (further – “PSA”) concluded with the Government of the Republic of Kazakhstan or the competent authority prior to 1 January 2009, which passed obligatory tax expertise and in accordance with the subsoil use contracts approved by the President of the Republic of Kazakhstan which specifically provide for the exemption of export of crude oil from the customs duty, and
– export of crude oil subject to the rent tax on export from 1 January 2009.
Please be aware that under the Resolution the exemption from the ECD shall apply only to the following:
 export of crude oil extracted by subsurface users in accordance with PSAs concluded with the Government of the Republic of Kazakhstan or the competent authority prior to 1 January 2009, which passed the obligatory tax expertise and which specifically provide for the exemption of export of crude oil from the customs duty, and
- export of crude oil extracted by subsurface users in accordance with subsoil use agreements (other than PSA) which provide for the exemption of export of crude oil from the customs duty, except for crude oil exported by subsurface users - payers of royalty.
In respect of the aforementioned, it should be noted that the provisions regarding the ECD on crude oil which were in force to date could have various interpretations regarding the applicability to crude oil exported in accordance with PSAs. In this respect, please note that it is now explicitly stated in the Resolution that export of crude oil under a PSA shall be exempt from the ECD if the said PSA specifically provides for exemption from the ECD.
As for subsoil use contracts other than PSAs, please note that based on the Resolution it appears that, in general, the ECD on crude oil shall also apply in respect of the crude oil exported by the rent tax-payers. Export of crude oil may be exempt from the ECD only in accordance with the subsoil use contracts specifically stipulating for such exemption.
This update is for informational purposes only.

Should you have any questions about the information contained in this issue of our Special Tax Bulletin, please do not hesitate to contact any of our team members:

Almaty
Vladimir Kononenko
Tel: +7(727) 258 13 40
Fax: +7(727) 258 13 41
Email: vkononenko@deloitte.kz

Dina Turkina
Tel: +7(727) 258 13 40
Fax: +7(727) 258 13 41
Email : dturkina@deloitte.kz

Gaukhar Iskakbayeva
Tel: +7(727) 258 13 40
Fax: +7(727) 258 13 41
Email: giskakbayeva@deloitte.kz

Michael Sturdivant
Tel: +7(727) 258 13 40
Fax: +7(727) 258 13 41
Email: msturdivant@deloitte.kz

Astana
Andrey Zakharchuk
Tel: +7(717) 258 04 80
Fax: +7(717) 258 03 90
Email: azakharchuk@deloitte.kz

Atyrau
Russell Maynard
Tel: +7(712) 258 62 40
Fax: +7(712) 258 62 41
Email: rmaynard@deloitte.kz

Aktau
Russell Maynard
Tel: +7(729) 275 00 16
fax: +7(729) 275 00 17
Email: rmaynard@deloitte.kz