Kazakhstan will start to reimburse expenses for the purchase of promotional equipment

Starting from mid-May, a new type of expensesrelated to the purchase of technological equipment will be launched for SMEs. The innovation will help entrepreneurs to modernize and upgrade their technological park, which will increase labor productivity, increase the range of manufactured products and ensure energy efficiency of the enterprise.

Arstanbek SAGIEV, Head of the BusinessStimulation Directorate of the Kazakhstan Industry and Export Center "QazIndustry" JSC, told about the new type of costs.

"The introduction of this type of costs wasrequested by representatives of the business community, as the lion's share of the costs of enterprises is the cost of

technological equipment. The Ministry of Industry andConstruction took this into account, and in March this year, amendments were made to the "Rules for the provision of state incentives for industry". From May 12, 2024, enterprises that produce finished products included in the list of priority goods can apply for reimbursement of part of the costs associated with the purchase of equipment.

QazIndustry will reimburse up to 40 percent of the funds spent by enterprises aimed at the purchase oftechnological equipment, but not more than 60 million tenge", - said the head of the directorate.

For example, when introducing digitaltechnologies, costs associated with the purchase ofequipment such as 3D scanners and printers, largeformat printers will be reimbursed.

There were several reasons for the need for this newtype of cost.

First, Kazakhstan's manufacturing enterprises haveat least 30% wear and tear on their existing capitalequipment. This negatively affects the overallproductivity of the industry, as well as the competitiveness of domestic manufacturers.

Secondly, many SMEs lack free cash for productiondevelopment. It is difficult to obtain a loan from credit organizations due to the high level of indebtedness of enterprises. Loans, high financial burden force companies to postpone modernization.

"Therefore, the new type of reimbursement of costs in the amount of 40 percent of the cost of purchased equipment is one of the most effective types of

state support. Definitely, such a measure will stimulateenterprises to modernize by updating the fleet of technological equipment," QazIndustry believes.

An enterprise that wishes to apply for a new type of cost must have been in business for at least onecalendar year prior to the date of receipt of theapplication, have no arrears of taxes, mandatorypension contributions, mandatory occupational pension contributions and social contributions as of the date of application.

The industry entity must provide an annual increasein tax deductions for the previous three years prior to the date of application. This requirement does not

 

apply to entities that are tax-exempt or to entities thathave less than three calendar years from the date of registration to the date of application.

If the entrepreneur has previously received support from the state for the purchase of the equipment beingclaimed (from financial development institutions), QazIndustry will not be able to reimburse these costs. This limitation is provided for in the Rules.

You can apply for reimbursement on the qazindustry.gov.kz portal. Also, Open Days are heldevery Thursday at the QazIndustry office to explain theIGU mechanisms.

Recall that in the first three months of 2024,domestic enterprises were

reimbursed almost 180 million tenge. In 2023, thecosts were reimbursed for more than 844 million tenge.