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Tax benefits available in the AIFC​

Tax benefits available in the AIFC

11 March 2022 | Category : Blogs

The Astana International Financial Centre (AIFC) understands that tax incentives are a great tool to facilitate business profitability. To this end, the AIFC has a special tax regime (enshrined in Constitutional Statute for the benefit of companies which are AIFC participants which provides tax benefits for those AIFC participants that are on the relevant list of financial and support services as well as tax benefits in relation to transactions in the AIFC.

 Those AIFC participants who provide financial services (within the territory of the AIFC) are exempt from paying both Corporate Income Tax (CIT) and Value-Added Tax (VAT), if there the company has a license obtained from the Astana Financial Services Authority (AFSA). While those participants who provide are exempt from CIT, but will still be required to pay VAT. For further details on the specific financial- and support service providers covered by the exemption, see the lists below. These specific benefits will remain in place until 1 January 2066. In addition to these benefits, foreign employees of such AIFC participants will be exempt from paying Personal Income Tax (PIT), while facilities of participants that provide ancillary services which are located within the (See map below or click here), are exempt from both property and land tax

The AIFC participants providing financial services refers to the following:

  • Islamic banking services
  • Reinsurance and insurance brokerage services
  • Investment management services for the assets of investment funds
  • Other financial services determined by a joint act of the AIFC and the Ministry of National Economy and the Ministry of Finance.

The AIFC participants providing support services which are exempt from paying CIT are as follows:

  • Legal services
  • Audit services
  • Accounting services
  • provided to the AIFC, as well as to participants of the AIFC, as well as to AIFC participants that provide financial services.

In addition to the benefits listed above, individuals and legal entities receive further tax benefits in relation to investment income. These individuals and legal entities are exempt from income tax on income received from the following sources:

  • Profits from the sale of securities listed on the official list of the stock exchange;
  • profits from the sale of shares or stakes in the capital AIFC participants under the law of the AIFC;
  • dividends and interest earned from securities listed on the official list of the stock exchange; and
  • dividends and interest earned from shares or stakes in the capital of an AIFC participant under the AIFC law.

For more information about registering a company or to learn more about working within the AIFC, please contact us at: clients@sevenpillars.law




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