1. Issues of VAT refund at zero rate Almat Daumov GRATA Law Firm Almaty, March 27, 2009

2. Current problems occurred in practice Starting from January 1, 2007 the limitation of action is shorten to 12 months, question on VAT refund for YY 2002 - 2006 VAT for suppliers – false companies Problems with confirmation of currency earnings in case receiving it in foreign bank accounts VAT for liquidated companies VAT for partner companies on joint cooperation Failure to comply with terms of VAT refund by tax authorities

3. Status Limitation of action on applying for VAT refund in term of 12 months does not have retroactive effect, i.e. for previous periods 5 years term is applied VAT for false companies – 95% disputes is decided in favor of state In case if the account in foreign bank is opened in accordance with law, currency earnings is confirmed by the foreign bank and (or) National Bank VAT for liquidated companies subject for refund Under the joint activity every partner reckons towards VAT offset in accordance with its share

4. New rules of VAT refund VAT refund for all companies System of risk management Automatic VAT refund in case of absence violation of Kazakh law etc For subsoil users in principle the procedure of VAT refund will not be changed.

5. THANK YOU! ANY QUESTIONS? Almat Daumov Partner GRATA Law Firm Director Tax Law Department mobile: +7-701-7258769 Email: Adaumov@gratanet.com