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IMPACT – MEDIUM
What is the change? Authorities have instituted new penalties for companies that fail to report a foreign national’s arrival in Kazakhstan in a timely manner.
What does the change mean? Effective immediately, companies that host foreign nationals and fail to provide notice to the Migration Police within three business days of the foreign national’s arrival will face fines ranging from 24,050 Kazakhstani tenge (about US$75) to 48,100 tenge, depending on the size of the company.
Background: The changes took effect Jan. 9 and mark a departure from previous policy, where the fines were applicable only when foreign nationals failed to register upon arrival (a separate process from notification), failed to obtain proper documentation allowing them to stay in Kazakhstan or failed to ensure the they left Kazakhstan on time.
Kazakhstan uses a metric called the “monthly calculated index,” or MCI, as the basis for levying fines. Currently, the MCI is set at 2,405 tenge. Under the new penalty scheme, small companies or individuals that fail to provide notice as required will be fined 10 times the MCI (24,050 tenge). Medium companies will be fined 15 times the MCI (36,075 tenge) and large companies will be fined 20 times the MCI (48,100 tenge).
BAL Analysis: Companies that host foreign nationals in Kazakhstan are encouraged to review internal procedures to make sure they regularly report the arrival of foreign nationals within three business days.
This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Companies in need of work permits for foreign workers in quota-subject job categories in 2018 should file their quota applications before Aug. 1.
What does the change mean? Companies should begin preparing their quota applications in order to meet the deadline.
Background: Filing a quota application is an annual requirement for companies that rely on foreign workers in job categories where quotas apply. Companies that do not file the applications cannot apply for work permits if quotas expire.
BAL Analysis: In addition to the mandatory quota application, employers are encouraged to file voluntary projections of their foreign labor needs for 2018 with the Department of Labor. This may allow them to receive priority consideration when additional quota numbers become available.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Kazakhstan has announced several amendments to changes in work permit procedures that took effect Jan. 1.
What does the change mean? The amendments affect companies applying for general work permits and intracompany transfer permits. Under the amendments, several of the changes introduced in January have been relaxed or canceled. Foreign nationals heading company branches and representative offices will remain exempt from having to obtain work permits.
Background: In December, Kazakhstan announced several changes to work permit procedures, which took effect Jan. 1. Authorities have now made the following amendments to the changes:
Work permits
Intra-corporate transfers (ICTs):
Other changes
BAL Analysis: The amendments provide additional flexibility for employers and foreign nationals applying for work permits and ICT work permits.
What is the change? Kazakhstan has implemented 30-day visa-free travel for nationals of 45 countries.
What does the change mean? The 45 designated countries represent an expanded list of nationals from the list reported in December following the government resolution.
Background: Nationals of the following 45 countries are eligible for visa-free travel:
BAL Analysis: The expansion of the visa free regime to 45 countries and for 30-day stays (up from 15 days) will eliminate visa processing for travelers making short trips, including those for business purposes. Business travelers staying longer than 30 days may, upon expiration of the visa-free period, apply in-country for a 30-day business visa (for a total stay of 60 days).
What is the change? Kazakhstan has announced several changes to procedures for engaging foreign employees and assignees beginning Jan. 1.
What does the change mean? The changes affect work permits and intracompany transfers. In addition, the list of foreign nationals who are exempt from work permits is expected to be introduced by the end of the year. Foreign nationals heading company branches and representative offices are expected to remain exempt from having to obtain work permits.
Key changes:
General work permits
Intracompany Transfer (ICT) permits
Processing changes
BAL Analysis: The changes ease rules and provide for faster processing and greater flexibility for employers and foreign nationals applying for work permits and ICT work permits.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Beginning Jan. 1, Kazakhstan will allow nationals of 39 countries to travel visa-free for up to 30 days for business or tourism.
What does the change mean? Business and tourist travelers who are nationals of the 39 countries will not need to obtain a visa if conducting permitted business activities. Work activities are not permitted on a visa waiver.
Background: The extension of the visa waiver is intended to promote investment, reduce red tape for short-term visitors and attract tourists during major conferences in Kazakhstan, such as Expo 2017, in the coming year.
Under the current policy, nationals of 19 countries are allowed visa-free stays of up to 15 days.
The list of 39 countries includes:
BAL Analysis: The change significantly expands the current visa-free regime and eliminates processing for stays of up to 30 days. Travelers are reminded that work is not allowed while on a visa waiver and that those intending to perform work activities must obtain a visa and work authorization.
What is the change? Kazakhstan will introduce new government fees for employers seeking permission to hire foreign workers.
What does the change mean? The fees take effect Jan. 1 and vary depending on the industry and category of foreign worker.
Background: Employers seeking to recruit foreign workers will be subject to the following government fees based on the business sector and category of foreign worker.
(about US$922)
(about US $1,064)
(about US $1,205)
(about US $1,347)
349, 426 KZT
(about US $ 1,037)
403,882 KZT
(about US $1,198)
458,338 KZT
(about US$ 1,360)
510,525 KZT
(about US$ 1,515)
387,999 KZT
(about US $1,151)
449,262 KZT
(about US $ 1,333)
508,256 KZT
(about US$1,508)
567,250 KZT
(about US$ 1,683)
(about US$ 162)
BAL Analysis: Companies that employ foreign workers and that plan to seek permission to recruit foreign labor should budget for the new government fees.
What is the change? Kazakhstan will impose new work permit fees beginning Jan. 1.
What does the change mean? Employers filing new and renewal work permit applications on behalf of foreign nationals will be subject to new fees based on the country’s monthly calculation index. Depending on the category of worker and the industry, fees may range from 310,853 to 567,250 tenges (between about US$916 and US$1,671).
Background: Work permits fees will vary depending on the category of worker and the industry.
Foreign nationals eligible for work permits are divided into four categories: first category employees (chief executives and deputy chief executives), second category employees (managers and department heads), third category employees (specialists who do not qualify as second category employees) and fourth category employees (all other qualified workers). Kazakhstan recently released the Jan. 1 work permit fees for workers across all four categories in more than 20 industries. In key industries, work permit fees will be determined as follows:
The fees will be calculated by multiplying the Monthly Calculation Index, which will be 2,269 tenges in 2017, by the relevant multiplier in the chart above. Fees will apply to both new and renewal work permit applications, but not to intracompany transfers.
BAL Analysis: Businesses should prepare for new work permit fees beginning Jan. 1. Those with questions about how the fee structure works or what categories foreign workers should be placed in should contact their BAL professional.
What is the change? Companies in need of work permits for foreign workers in job categories subject to quotas in 2017 should file their quota applications no later than Aug. 26.
What does the change mean? Companies should prepare their quota applications as soon as possible in order to meet the deadline.
BAL Analysis: In addition to the mandatory quota application, employers are encouraged to file voluntary projections of their foreign labor needs for 2017 with the Department of Labor. This may allow them to receive priority consideration when additional quota numbers become available.
IMPACT – LOW
What is the change? Kazakhstan no longer permits visa-free nationals to extend their stays past the permitted length of stay without leaving the country.
What does the change mean? Visa-free nationals intending to stay in Kazakhstan beyond the time period permitted for a visa-free stay must leave the country and enter again. The allowable duration of visa-free stays varies depending on nationality.
Background: Kazakhstan has visa-free travel arrangements with dozens of countries, including the United States, most European countries and most of the former Soviet republics. Prior to the recent change, visa-free nationals staying in Kazakhstan beyond the permitted length of stay could do so by requesting extensions in-country. Now, however, foreign nationals must leave and re-enter the country.
BAL Analysis: Though those affected by the change can leave Kazakhstan and re-enter on the same day and can do so without applying for a visa, the new rules nevertheless prolongs the process for remaining in Kazakhstan beyond the allowable duration of stay. Duration of stay provisions vary by nationality, and those with questions should contact their BAL attorney.