Kazakh businesses unrelated to Cyprus companies - B.Zhamishev, Minister of Finance
"The state has purposefully through appropriate amendments to the legislation, discouraged Kazakhstani companies’ participation and relationships with offshore zones. What am I saying about? Previously, our raw materials, i.e. oil, mining industry products have been sold through offshore companies.
Our importers were some offshore areas known only from press and that no one could show on a map. But in the Law titled "On Transfer Pricing" a standard set says that if someone trades with an offshore company, he does not use the so-called differential, i.e. deductions. In other words, it is not profitable. If you want to trade, do it but it is not profitable", said the Minister.
In addition, as explained by the Minister, under the Kazakh law if a company has a subsidiary in an offshore zone, the profits of the organization would be surcharged according to Kazakhstan rates along with its parent company,. Currently in Kazakhstan, only a few companies have "offshoots" in offshore areas. Currently there are no such companies in Cyprus.
B.Zhamishev also reported that according to information available in the Ministry the Kazakh companies do not have any relationships with companies located in Cyprus. There are also no accounts of Kazakh companies in Cyprus banks. At the same time the citizens of Kazakhstan have the opportunity to transfer their money from Russian banks accounts to the banks in Cyprus, but the Ministry of Finance does not have information related to this point.