French Development Agency Group Officially Launches Operations In Kazakhstan


(MENAFN- Trend News Agency) ASTANA, Kazakhstan, October 23. The lower house of the Kazakh Parliament has ratified an agreement with France, marking the official launch of the French Development Agency Group (AFD) in Kazakhstan, Trend reports.

The agreement was signed on November 1, 2023, in Astana and establishes the operational framework for AFD within the country.

The agreement outlines the legal, tax, and financial conditions applicable to agency's status and activities in Kazakhstan. As stipulated, the group is authorized to provide funding in euros, US dollars, or other currencies, alongside various forms of financial or technical assistance. This includes consultancy services, technical support, and training for both governmental and private entities.

The agency has been granted the necessary legal capacity to operate in Kazakhstan, enabling it to acquire and manage movable and immovable property, excluding land that is prohibited for private ownership by foreign legal entities. The group is also entitled to pursue legal action as needed.

Notably, the agreement exempts AFD from paying corporate income tax, including withholding taxes, in relation to its activities in Kazakhstan. Furthermore, the group is allowed to establish a representative office within the country to facilitate its operations.

As the parliament noted, AFD and its representative office will not have the status of a bank or any other financial institution, meaning local banking regulations will not apply to them.

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Trend News Agency

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