Ministry of state revenue of Kazakhstan to grant a respite to participants of the stock market in paying VAT on transactions with securities
Today the agency IRBIS received a copy of the resolution of the government of Kazakhstan #207 �On measures of stabilizing the stock market of Kazakhstan�, dated February 11, 2000 which solves the most pressing question of the professional participants of financial market of the country.
Following is full text of the resolution.
Beginning of the quote
To support the liquidity of the securities and maintain the attractiveness of the investors� activities on the stock market of the country the Government of Kazakhstan enacts:
1. Heads of regional administrations to provide the Ministry of state revenue of Kazakhstan, in accordance with the supplement, with petitions of local executive bodies on granting a respite to the taxpayers of VAT on transactions with securities.
2. The Ministry of state revenue of Kazakhstan with coordination of the Ministry of finance of Kazakhstan in accordance with the orders set forth by applicable law to provide a respite to participants of the stock market in paying VAT on transactions with securities from January 1 through June 1 of current year as soon as it begins to receive petitions from local executive bodies.
3. This resolution comes into effect from the day it was signed.
End of the quote
The resolution was signed by the Prime-minister of Kazakhstan K.Tokaev.
Comments: The text was composed based on the copy of the Resolution by the specialists of IRBIS for specific needs and purposes of its clients. The agency IRBIS is not liable for any consequences of using the wording and regulations contained in this electronic version of the text of the Resolution, for using this version of the text of the Resolution as a grounds for or for any omissions in the text of the Resolution.
Returning to the matter on a respite in paying VAT on operations with securities in Kazakhstan � IRBIS
As it is well know, in accordance with the law of Kazakhstan �On making changes and amendments into the law of Kazakhstan �On taxes and other mandatory budgetary payments� of December 10, 1999, operations with securities were removed from the list of tax exempt financial services (clause 46 article 5). Based on new regulations, operations with securities are taxed with VAT, which, in professional participants� opinion, incurs significant losses to the investors for current level of returns.
On Monday the agency IBRIS published the resolution of the government of Kazakhstan #207 �On measures of stabilizing the stock market of Kazakhstan�, dated February 11, 2000, which gives a respite to participants of the stock market in paying VAT on operations with securities.
The agency IRBIS has the information that changes were made in the draft law �On making changes and amendments into some legislative acts of Kazakhstan concerning the banking secrets� regarding the restoration of operations with securities in the list of financial services exempt from VAT and that corrected rules of collecting VAT is introduced from January 1, 2000. This law was presented to the Parliament on February 11. Today it is believed the president of the country would declare this draft law as the law of the highest importance, that is to be adopted within a month. And this, in turn, leaves a hope for a legal settlement of the matter on VAT collection from the securities by the mid March and introduction of the new rules from January 1, 2000.
On February 18 auction for additional placement of OJSC �Komirbank� (Kazakhstan) bonds will be held at KASE
Kazakhstan stock exchange (KASE) informs, that on February 18, 2000 an auction for additional placement of coupon bonds of OJSC �Komirbank� (Ekibastuz, KZ2CCAEQCA00, KASE official list of securities, category �A�, trade code KOMBb) will be held in trade system of the Exchange.
The bonds are denominated in U.S. dollars. Face value is $10. Total issue volume calculated at face value is $2 mln. Payments for the bonds are made in tenges at the exchange rate of the National Bank of Kazakhstan, effective on the payment date.
Coupon in semiannual. Coupon rate is 12% APR. Coupon payment dates are June 26, 2000 and December 26, 2000. Coupons are paid in Kazakhstani tenges at the exchange rate of the National Bank of Kazakhstan, effective on the payment date. According to the rules of the emitter coupons are charged using 364/31 time basis.
Maturity date of the bonds is December 26, 2000. Bonds are repaid at face value in tenges at the exchange rate of the National Bank of Kazakhstan, effective on the maturity date, by transferring the funds to the accounts of the bond owners that are registered in the register by December 21, 2000.
No lotteries are planned by the issue rules. Funds, raised by issuing the bonds, will be used for general corporate goals of OJSC �Komirbank� in accordance with the Charter of the bank.
On February 18 additional placement will be held at KASE on following terms:
Additional placement volume, calculated at face value, equals 580 th. U.S. dollars. Bids are made by the investors in the trade system of KASE from 10:00AM till 11:30AM Almaty time.
Since the price will be an object of the trade, bids should contain a �dirty� price in percents of the face value including accumulated interest by the time the auction is held.
In bids the number of bonds should be indicated as a nominal cost of the debt being purchased (product of the number of bonds and face value of one bond).
At the auction the amount of the deal will be determined as the product of a �dirty� price and face value of purchased bonds, divided by 100%.
Securities purchased at the auction should be paid by 4:00PM Almaty time on February 18, 2000.
Following members of KASE of the category �P� (with the right to participate in trades in private issue securities that are entered into official list of the Exchange) are allowed to participate in the auction: OJSC �Demir Kazakhstan Bank�, OJSC �KAZKOMMERTSBANK�, OJSC �TexaKaBank�, CJSC �Affiliated bank �ABN AMRO Bank Kazakhstan�, LLP �KBS Securities�, OJSC �DB SECURITIES (KAZAKHSTAN)�, OJSC �Kazkommerts Securities�, CJSC �Company CAIFC�, OJSC �Kazakhstan financial company�, OJSC �FINANCIAL COMPANY GREENWICH CAPITAL MANAGEMENT�, LLP �ATERA capital�, LLP �INVESTMENT MANAGEMENT GROUP�, LLP �Securities house EASTBROKERS�, LLP �PETROKAZ CAPITAL�, CJSC �GLOBAL SECURITIES (KAZAKHSTAN)�, LLP �KIB ASSET MANAGEMENT Ltd.�, LLP �Company R.G. Securities�, CJSC �Fondovyi service�, CJSC �Kompanya po upravleniu pensionnymi aktivami �Ak niet�, LLP �TuranAlem Securities�, CJSC �Kompanya Halyk Banka Kazakhstana po upravleniu pensionnymi aktivami�, CJSC �Kompanya po upravleniu pensionnymi aktivami �JETYSU�, OJSC �Kazpochta�.
We draw your attention to the fact that coupon bonds of OJSC �Komirbank� can be purchased for the assets of accumulative pension funds, since the bonds are entered into KASE official list of securities under the category �A�.
ALMATY, Feb 17
�Last year did not meet our expectations. Unfortunately, in 1999 we remained at the level of 1998. Against the background of growing world oil prices, we are confident that our business will succeed soon,� Timur Ilgaz, the General Manager of The Regent Almaty The Ankara in Kazakhstan announced in his exclusive interview to THE GLOBE.
Ilgaz said that in 1999 losses of other companies working in Kazakhstan exceeded indices of the previous year. Now we expect a significant raise of the hotel�s work. This will depend greatly on the total economic situation in Kazakhstan.
Late 1996 is the year when The Regent Almaty The Ankara in Kazakhstan introduced itself to the Hospitality Business of Kazakhstan. The five-star hotel is surrounded by a large park and fountains. The hotel building consists of 11 floors, 290 rooms, including 9 Executive Suits and 2 Presidential Apartments.
In April 1999 Timur Ilgaz succeeded the former general manager of the hotel. �Most of my ideas, which I had when I began to work, have been already realized,� he said. �Results of these ideas became notable since the second half of 1999. The last big event which our clients and visitors appreciated, was the celebrations of the new Millenium held in our cozy hotel. That time attendance of our restaurants and rooms was very high. During the holiday the hotel served about 1,000 people. Our guests were mainly Kazakhstani and foreign businessmen. This again proves that we are respected and still making progress.�
The Regent Almaty Hotel as any other high-class hotel cares for its business reputation and the reputation of AYT Hotel Int. that owns the hotel. Many people were surprised by the article in one of the national newspapers that doubted in the quality of The Ankara Hotel building. �We asked the editors to refute the article,� Timur Ilgaz said. �First of all, we have official documents and permissions by officials, according to which our hotel was constructed. Besides, many experts know how steadfast our building is. We manage the hotel, we constructed it and it is our brainchild. We face the hotel and proudly and frankly declare that we have the reputation of a safety and respectable company. I know neither implications of that article nor what is behind its hidden constant.�
The Regent Almaty will continue to be the center of business in the city. Big summits (one of them will be held in April 2000) are planned to be conducted in the hotel. Thanks to the qualified personnel, the hotel renders high-quality services. The Regent Almaty administration pays great attention to training of local personnel. From the moment when the new General Manager assumed office, another 10 foreign officers were replaced by Kazakhstanis. It appeared that their services� quality is not lower the of foreigners.
Soon the hotel restaurants� menus will include new refined. Visitors of the Turkish restaurant Bosphorus will be offered dishes of the Ottoman cuisine. The Regent Sport is expected to be the most popular rest and sport place in the city. For visitors who decided to spend evening with their beloved friends, the hotel will offer the most safety and most jolliest nightclub, where interesting and unforgettable shows will be held. So, The Regent Almaty�ye hos geldiniz.
ALMATY, Feb 17
One of the results of the Kazakhstani delegation�s participation in the World Economic Forum in Davos was the decision to hold the International Economic Summit Eurasia-2000 in Almaty on April 26 to 28.
The objective of the Summit is to work out common approaches by Central Asian and Caucasian countries to integration in the world economy and to attract foreign investments.
It is expected that presidents and Prime Ministers of CIS countries, heads of biggest world companies and banks, and leading international experts on economy and management will participate in the Summit.
Possibly, the Summit will become an integral part of events held under the aegis of the World Economic Forum and will be held regularly.
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