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Economy Ministry: Tax arrears of entrepreneurs could be written off

Tax and insurance payments arrears of entrepreneurs could be restructured. The Ministry of Economy and Finance of Kyrgyzstan reports.

The ministry noted that a law was signed in August 2020 on restructuring of arrears on accrued interest, penalties, tax sanctions, and fines on insurance payments. It was adopted to support citizens, business and the financial sector amid the COVID-19 infection pandemic.

«Since the activities of almost all business entities were suspended amid coronavirus during the period of the state of emergency, the payer who paid off the debt on the principal amounts of taxes and insurance payments established as of March 1, 2020, as well as to stimulate fulfillment of the obligation to pay the principal amount of the debt to replenish the state budget, it is proposed to write off interest, penalties, tax sanctions (including VAT on imports and excise tax) available as of March 1, 2020,» the Ministry of Economy said.

Taxpayers are exempt from the obligation to pay penalties and tax sanctions charged for late and (or) incomplete payment of taxes formed as of July 1, 2020 by writing them off in the following amounts and cases:

  • 100 percent — upon full repayment of the principal tax liabilities by July 1, 2021;
  • 50 percent — upon full repayment of the principal tax liabilities by 31 December 2021.

Payers of insurance payments for state social insurance are released from payment of penalties and fines accrued for late and (or) incomplete payment of insurance payments, formed as of July 1, 2020, by writing them off in the following volumes and cases:

  • 100 percent — upon full repayment of the principal debt on insurance payments by July 1, 2021;
  • 50 percent — upon full repayment of the principal debt on insurance payments by December 31, 2021.

«We recommend using the opportunity to pay off arrears on accrued interest, penalties, tax sanctions, penalties on insurance payments,» the ministry concluded.

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