AIFC Chief Rejects Offshore Haven Label

Renat Bekturov, head of the Astana International Financial Center (AIFC), responded to criticism that the AIFC is becoming an offshore zone, Orda.kz reports.

Speaking at a roundtable on global investment in Astana, Bekturov explained that while the AIFC offers tax incentives, they are time-limited and strictly regulated.

The Constitutional Court has provided for tax breaks at the AIFC, and they are valid for 50 years — from 2016 to 2066. Most of the privileges are aimed at licensed financial companies. Of the more than 4,500 companies registered at the AIFC, approximately 150 receive benefits; all the rest pay taxes,
 he said.

According to him, in the first nine months of this year, companies registered at the AIFC transferred more than 60 billion tenge to the budget.

Since the center’s establishment, this figure has exceeded 200 billion tenge.

It’s important to understand that most companies in the AIFC are young and haven’t yet reached the dividend payment stage. All investor companies are exempt from taxes when paying dividends. This is standard global practice,
 the AIFC head noted.

We will work to ensure that the AIFC does not become a jurisdiction where so-called ‘shell companies’ emerge. We have a rule: a registered company must have employees, real investments, and transactions. We will not allow, and the international community will not allow, the creation of offshore structures. 

Companies registered at the AIFC cannot receive investment agreements, which provide additional legal benefits. We don’t regulate free economic zones, but we are working on this issue with the government and the Ministry of National Economy and will not allow the AIFC to become a means of tax evasion.

Earlier this year, Majilis deputy Yerlan Sairov criticized the AIFC’s tax privileges, calling for a review of the center’s benefits as part of broader tax reform.

Original Author: Artyom Volkov