Theuniform accounting treatment to Kazakhstani local content by organizations when purchasing goods, works, and services

Decree of the Government of the Republic of Kazakhstan dated September 20, 2010 # 964

OnApprovalofUniformAccounting Treatment to Kazakhstani Local Content by Organizations when Purchasing Goods, Works, and Services

AccordingtoSub-item 55) ofArticle16of the Law of the Republic of Kazakhstan dated June 24, 2010 On Subsoil and Subsoil Use, the Government of the Republic of Kazakhstan DECREES:

1. To approve the attached Uniform Accounting Treatmentto Kazakhstani local content by organizations when purchasing goods, works, and services.

2. Tofindinvalid:

1) decreeoftheGovernmentoftheRepublicofKazakhstandatedMarch 20, 2009 # 367 OnApprovalofUniformAccountingTreatmenttoKazakhstaniLocalContentwhenPurchasingGoods, Works, andServices (a Corpora of Acts of President and Government of the Republic of Kazakhstan, 2009, #16, Article 135);

2) decreeoftheGovernmentoftheRepublicofKazakhstandatedSeptember 3, 2009 #1298 On Making Changes to Decree of the Government of the Republic of Kazakhstan dated March 20, 2009 #367 (a Corpora of Acts of President and Government of the Republic of Kazakhstan, 2009, #37, Article360).

3. The present decree is put into force upon the expiry of ten calendar days from the day of the first official publication.

Prime-minister
of the Republic of Kazakhstan / K. Masimov

Approved by

Decreeof the Government

oftheRepublic of Kazakhstan

dated September 20, 2010 # 964

The Uniform Accounting Treatment

toKazakhstaniLocalContentby Organizations

when Purchasing Goods, Works, and Services

1. The present Uniform Accounting Treatment to Kazakhstani local content when purchasing goods, works, and services (hereinafter referred to as Uniform Accounting Treatment) is developed according to the lawsof the Republic of Kazakhstan dated June 24, 2010 On Subsoil and Subsoil Use, dated July 21, 2007 On State Purchases, dated July 7, 2006 On Concessions, Edictof President of the Republic of Kazakhstan dated January 27, 2009 # 733 On Some Issues of Kazakhstani Local Content when Purchasing Goods, Works, and Services Purchased by Organizations and State Organs.

2. The uniform accounting treatment is envisaged for calculation of Kazakhstani local treatment when purchasing goods, works, and services by:

1) stateorgans, stateinstitutions, andalsostateenterprises, legalentities, fiftyandmorepercentofvoting shares (participation shares) of which belong to the state, and legal entities affiliated with them purchasing goods, works, and services according to the Lawof the Republic of Kazakhstan On State Purchases;

2) national managing holdings, national holdings, national companies, their daughter and affiliated companies, other legal entities with the participation of the state;

3) subsoil users and (or) persons authorized by subsoil users to purchase goods, works, and services according to the Lawof the Republic of Kazakhstan On Subsoil and Subsoil Use;

4) organizations, purchaseofgoods, works,and services of which are subject to monitoring of Kazakhstani local content, according to the list approved by the Government of the Republic of Kazakhstan;

5) concessionaries.

3. The calculation of Kazakhstani local content when purchasing goods, works, and services is made with the following purposes:

1) monitoring and control of observing obligations of purchases in part of Kazakhstani local content;

2) determinationofinvolvementrate of domestic enterprises into deliveries of goods, works, and services;

3) evaluation of a competitiveness level of the local industry.

4. The calculation of Kazakhstani local content (KCT)in a contract for goods delivery is made by the following formula:

n

KСт= 100% х ( СТiх Ki) / S,

i=1

where:

n – atotalnumberofgoodspurchasedbyasupplierwiththepurposestofulfillapurchasecontract, both directly and by conclusion of subcontracts;

i – a serial number of goods;

СТi – cost of i goods;

Ki – a share of Kazakhstani local content in goods indicated in СТ-KZ certificate;

Ki = 0, in case there is no СТ-KZ certificate;

S – a total cost of a contract of goods purchase.

5. ThecalculationofKazakhstani local content (КСр/у) in a contract for delivery of works (services) is made by the following formula:

n m

КСр/у = 100% х [( СТi х Ki + ) (СДj - СТj - ССДj) х Rj] / S,

i=1 j=1

where:

n – a total number of goods purchases purchased by a supplier and subcontractors with the purposes to fulfill a contract for purchase of works (services);

i – aserialnumberofpurchased goods;

СТi – cost of i goods;

Ki – a share of Kazakhstani local content in goods indicated in СТ-КZ certificate;

Ki = 0, in case there is no СТ-КZ certificate;

m – a total number of contracts concluded with the purposes to deliver works (services), including a contract between a client and a contractor, contracts between a contractor and subcontractors, etc.;

j – a serial number of a contract;

СДj – cost of a j contract;

СTj – a total cost of goods purchased by a supplier and subcontractors within the frames of a j contract;

ССДj – a total cost of subcontracts concluded within the frames of fulfillment of a j contract;

Rj – a share of salary fund of Kazakhstani personnel in a total salary fund of supplier’s or subcontractor’s employees fulfilling a j contract;

S – a total cost of a contract on purchase of works (services).

6. Thecalculation of Kazakhstani local content (КС) in purchases of a client for a reporting period is made by the following formula:

n

КС = ( КСi х СДi) / S,

i=1

where:

n – a total number of contracts concluded with suppliers of goods, works and services;

i – a serial number of a contract;

СДi – acostofan i contract on purchases concluded with a supplier of goods, works and services;

КСi – Kazakhstani local content of a supplier of goods, works, and services by ani contract on purchases;

S – a total cost of goods, works, and services purchased by a client for a reporting period.