Unified algorithm for working with state and confiscated property in the Republic of Kazakhstan

Who Can Use This Procedure

Individuals and legal entities interested in obtaining state-owned property under a property lease (rental agreement) in accordance with the legislation of the Republic of Kazakhstan.

Step 1. Review Information on State Property Available for Lease

Information on state-owned property offered for property lease (rental) is published by the lessor on the State Property Register web portal.

The notice includes:

• the name of the property;
• location;
• technical specifications;
• rental fee amount;
• lease term;
• conditions for the transfer of the property.

Result: You have selected a state-owned property that you intend to lease.

Step 2. Submit an Application

Submit an application to obtain state-owned property under a property lease (rental agreement) in accordance with the established Rules.

The application must include information about the applicant and the selected state-owned property.

Where required, supporting documents specified by the Rules must be attached.

Result: Your application has been accepted for review.

Step 3. Wait for the Application Review

The lessor reviews the submitted application and verifies the applicant’s compliance with the requirements of the legislation.

If multiple applications are received for the same property, the transfer is carried out in accordance with the procedure established by the Rules.

Result: A decision is made regarding the possibility of transferring the state-owned property under a property lease (rental agreement).

Step 4. Conclude a Property Lease (Rental) Agreement

If a positive decision is made, the lessor and the lessee enter into a property lease (rental) agreement.

The agreement specifies:

• the leased property;
• the lease term;
• the rental fee;
• the rights and obligations of the parties;
• the procedure for the use and return of the property.

Result: The property lease (rental) agreement has been concluded.

Step 5. Accept the State-Owned Property

After the agreement is signed, the state-owned property is transferred to the lessee under an acceptance and transfer certificate.

From that moment, the lessee may use the property in accordance with the terms of the agreement and the requirements of the legislation.

Result: The state-owned property has been transferred under a property lease (rental agreement).

Process Outcome

The applicant receives state-owned property under a property lease (rental agreement) on the basis of the concluded lease agreement and the acceptance and transfer certificate, in accordance with the legislation of the Republic of Kazakhstan.

Who Can Use This Procedure

Law enforcement agencies and special state bodies that require confiscated property to perform the functions assigned to them.

Step 1. Review the Published Notice

After confiscated property is transferred into state ownership, the Territorial Department of State Property and Privatization (DSPP) or the Local Executive Body (LEB) publishes a notice on the State Property Register web portal regarding confiscated property available for transfer to law enforcement and special state bodies.

The notice is published at least 15 calendar days before the opening of applications.

Result: Information about property available for transfer is published on the web portal.

Step 2. Submit an Application

If there is a need for the property, the law enforcement or special state body submits an application through the State Property Register web portal.

The application must specify:

• the name of the property;
• the required quantity;
• justification for the transfer.

An electronic (scanned) copy of the opinion issued by the authorized body of the relevant sector must be attached to the application.

The opinion must confirm:

• the need for the property within the established entitlement standards;
• the operational necessity of using the property;
• the availability of financial resources for its maintenance and operation.

Result: The application is accepted for review.

Step 3. Wait for the Application Review

After the application submission period ends, the web portal automatically opens the applications.

The DSPP or LEB Commission reviews the submitted documents and verifies compliance with the established criteria for the economic feasibility of transferring the property.

Following the review, the Commission prepares minutes of its meeting.

Result: A decision is made regarding the possibility of transferring the property.

Step 4. Determination of the Property Recipient

If several applications are submitted for the same property item, priority is given to the authority that submitted its application first, provided that it meets the established requirements.

If any property remains available, it may be allocated among subsequent applicants.

Result: The state body that will receive the property is determined.

Step 5. Decision on the Transfer of Property

If the Commission issues a positive decision, the State Property and Privatization Committee, the Territorial Department of State Property and Privatization, or the Local Executive Body adopts a decision to assign (transfer) the property to the balance sheet of the law enforcement or special state body.

Such a decision is made within 15 working days.

Result: A decision is adopted to transfer the property to the balance sheet of the state body.

Step 6. Accept the Property onto the Balance Sheet

After the decision is made, the property is transferred under an acceptance and transfer certificate.

The transfer must be completed within 10 calendar days from the date of the decision.

Once the certificate is signed, the property is recorded on the balance sheet of the respective state body.

Result: The confiscated property is accepted onto the balance sheet of the law enforcement or special state body.

If No Applications Are Submitted

If no applications are submitted within the prescribed period, or if the Commission concludes that transferring the property to state bodies is not economically justified, the property shall be sold through auction procedures in accordance with the legislation of the Republic of Kazakhstan.

Timeframes

• Publication of the notice before the opening of applications — at least 15 calendar days.
• Adoption of the decision on the transfer of property — up to 15 working days.
• Transfer of property under the acceptance and transfer certificate — up to 10 calendar days.

Service Outcome

The confiscated property is transferred and recorded on the balance sheet of a law enforcement or special state body or, if there are no grounds for such transfer, is referred for sale in accordance with the procedure established by law.

Legal Basis

The procedure is based on the Rules for the Transfer, Accounting, Storage, Valuation, Further Use and Disposal of Property Transferred (Received) into State Ownership on Certain Grounds, as well as the official guidance of the State Property and Privatization Committee, entitled “Algorithm for the Transfer of Confiscated Property to the Balance Sheets of Law Enforcement and Special State Bodies.”

Who Can Use This Procedure

Persons holding responsible public office, persons authorized to perform state functions, persons equated to them, public officials, as well as candidates for such positions (except for persons for whom specific exemptions are established by law).

Step 1. Determine Whether the Gift Must Be Surrendered

A gift must be transferred to the state if it:

• was received in connection with the performance of official (service) duties;
• was received without the recipient’s knowledge;
• was presented during an official or protocol event in connection with the recipient’s position.

Result: A decision is made on the necessity of transferring the gift to the authorized body.

Step 2. Transfer the Gift Within the Prescribed Timeframe

Within 7 calendar days from the date of receiving (or discovering) the gift, it must be transferred to:

• the Territorial Department of State Property and Privatization; or
• the Local Executive Body (Akimat).

The transfer is carried out under an inventory, valuation, and/or acceptance-and-transfer certificate.

At the same time, a written notification must be submitted indicating:

• consent to subsequently redeem (purchase) the gift; or
• refusal to redeem the gift.

Result: The gift is accepted by the authorized body or the local executive body.

Step 3. Complete the Notification

The notification must include:

• the name of the authorized body or local executive body;
• the surname, first name, patronymic (if applicable), position, place of employment, and contact details of the individual;
• the name of the gift, its quantity, and a brief description;
• information regarding the intention to redeem the gift or refusal to do so.

If the individual intends to redeem the gift, the notification must be approved by a superior official.

Result: The documents have been completed in full.

Step 4. Await the Valuation of the Gift

If the gift is transferred directly to the Territorial Department of State Property and Privatization, the valuation is conducted within 7 calendar days after receipt of the notification.

If the gift is initially transferred to a Local Executive Body, the latter must forward the gift and supporting documents to the Territorial Department of State Property and Privatization within 5 working days, after which the valuation procedure begins.

Result: The value of the gift is determined.

Step 5. Redeem the Gift, If Desired

If the notification indicates the individual’s intention to redeem the gift and approval from a superior official has been obtained, the authorized body:

• conducts the valuation;
• concludes a sale and purchase agreement.

After payment of the assessed value, the gift is transferred to the individual under an acceptance-and-transfer certificate.

Result: The gift is lawfully redeemed.

Step 6. If the Gift Is Not Redeemed

If the individual has submitted a written refusal to redeem the gift or has not exercised this right, the authorized body may dispose of the gift in accordance with the procedure established by law.

Result: The gift is transferred to the special state fund and may be sold or otherwise disposed of in accordance with the legislation of the Republic of Kazakhstan.

Timeframes

• Transfer of the gift after receipt (or discovery): up to 7 calendar days.
• Transfer of the gift and supporting documents from the Local Executive Body to the Territorial Department of State Property and Privatization: up to 5 working days.
• Valuation of the gift and conclusion of the sale and purchase agreement (if the gift is redeemed): up to 7 calendar days after receipt of the notification.

Failure to transfer a gift to the authorized body in full or within the prescribed timeframe may result in administrative liability under Article 472 of the Code of the Republic of Kazakhstan on Administrative Offences, provided that such actions do not constitute elements of a criminal offence.

The procedure for transferring state-owned property into trust management is governed by the Rules approved by Order No. 17 of the Minister of National Economy of the Republic of Kazakhstan dated 16 January 2015.

According to the Rules, the transfer of a state-owned asset into trust management is carried out through a tender procedure, except for the cases specified in paragraph 8 of the Rules.

A tender is a form of bidding for the transfer of an asset into trust management, conducted electronically through the State Property Register web portal (www.e-qazyna.kz). Under this procedure, the founder (settlor) undertakes to conclude a trust management agreement, based on the initial conditions established by the founder, with the tender participant who offers the most advantageous terms for the founder.

Up-to-date information on tenders for the trust management of state-owned property is available through the “Senimde” service on the State Property Register web portal (www.e-qazyna.kz).

Who Can Use This Procedure

Individuals and legal entities that meet the requirements of the legislation of the Republic of Kazakhstan and wish to purchase confiscated property offered for sale by the state.

Step 1. Review the Auction Notice

Information on the sale of confiscated property is published on the State Property Register web portal (hereinafter – the Web Portal).

The notice includes:

• the name of the property;
• a description of the asset;
• the starting price;
• the amount of the security deposit;
• the date and time of the electronic auction;
• the terms and conditions of sale.

Result: You have selected a property of interest for participation in the electronic auction.

Step 2. Register on the Web Portal

To participate in the electronic auction, you must register on the Web Portal.

During registration, the following information must be provided:

For individuals:

• Individual Identification Number (IIN);
• surname, first name, and patronymic (if applicable).

For legal entities:

• Business Identification Number (BIN);
• full name of the organization;
• information about the head of the organization.

In addition, applicants must provide:

• bank account details for the refund of the security deposit;
• contact information.

Result: You are registered on the Web Portal as a potential participant in the electronic auction.

Step 3. Pay the Security Deposit and Submit an Application

To participate in the electronic auction, you must:

• pay the security deposit in the amount specified in the notice;
• submit an electronic application through the Web Portal.

After the application is submitted and the receipt of the security deposit is confirmed, you will be admitted to participate in the electronic auction.

Result: Your application has been accepted, and you are admitted to participate in the electronic auction.

Step 4. Participate in the Electronic Auction

On the specified date and time, participate in the electronic auction through the Web Portal.

During the auction, participants successively place bids for the property being sold.

The winner is the participant who offers the highest price in accordance with the Rules for the Sale or Use of Property Seized Pursuant to a Court Judgment in a Criminal Case Involving Property Confiscation or Pursuant to a Decision on the Transfer of Property to the State, approved by Order No. 227 of the Minister of Finance of the Republic of Kazakhstan dated 30 March 2015.

Result: The winner of the electronic auction is determined.

Step 5. Sign the Auction Results Protocol and the Sale and Purchase Agreement

If you are declared the winner of the electronic auction, you must sign the auction results protocol using an electronic digital signature (EDS) on the day of the auction.

After signing the protocol, you must sign the sale and purchase agreement using an EDS within 10 calendar days from the date of the electronic auction.

Result: The protocol has been signed and the sale and purchase agreement has been concluded.

Step 6. Pay for the Property

If you are declared the winner, you must pay the purchase price of the property in accordance with paragraphs 53–54 of Rules No. 227 and the concluded sale and purchase agreement.

The security deposit is credited toward the purchase price of the property.

Result: Your payment obligations for the property have been fulfilled.

Step 7. Receive the Property

Within 10 working days after full payment is made, the parties execute an acceptance and transfer certificate, and the property is transferred to you as the purchaser (winner of the electronic auction).

Result: You have acquired the confiscated property in accordance with the procedure established by law.

Process Outcome

Following the electronic auction, the winner acquires ownership of the confiscated property on the basis of a sale and purchase agreement and an acceptance and transfer certificate, in accordance with the legislation of the Republic of Kazakhstan.