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Legalization of property: Law on voluntary disclosure of income signed

Acting President of Kyrgyzstan Talant Mamytov signed a law on the voluntary disclosure of property and income by individuals. Press service of the Parliament of the country reported.

The approved version of the law was adopted by the Parliament on November 5, 2020. Its main goal is to return shadow property and income into legal economic circulation, to establish guarantees of the inviolability of the disclosed property and income and persons involved in the process of voluntary disclosure of property and income, as well as to maintain confidentiality of the process.

A period of one year is given for voluntary disclosure — from January 1 to December 31, 2021 inclusive.

«Voluntary disclosure will allow to bring part of the shadow property and income into legal circulation, which, as a result, will lead to an increase in economic activity. Voluntary disclosure of income and property is part of the preparatory stage before switch to universal declaring,» the statement says.

The law establishes obligations for voluntary disclosure:

  • Payment of the cost of the declaration form;
  • State fees for performing notarial acts;
  • If the sum of value of the objects of voluntary disclosure exceeds the declaration threshold of 70 million soms, then you need to pay one percent of the value of the object of declaration or deposit money for the purchase of government securities with a maturity of 7 years in the amount of 10 percent of the value of the object of declaration with an annual 5 % yield to the declarant.