The International Business Council (IBC) commented on the presidential decree on tax amnesty to journalists. According to its executive director Askar Sydykov, this amnesty will ease the burden of taxpayers, so the IBC supports the initiative of the head of state.
He noted that the amnesty concerns the write-off of debt for the period up to January 1, 2022, if the taxpayer acknowledged the debt. This, according to the IBC, will ease the situation of many entrepreneurs.
Askar Sydykov added that the tax amnesty is a common international practice, it helps to stimulate businesses to continue working.
«However, this does not mean complete exemption from all debts. Most likely, penalties will remain. For example, penalties can reach an amount comparable to the main debt, and the entrepreneur will have to pay them. In addition, it will be difficult to get into the register of bona fide taxpayers if there is a debt for the last three years,» he said.
According to the head of the IBC, recognized tax debt is not always a violation on the part of the entrepreneur. There are cases when taxes are accrued incorrectly, and in such situations, writing off the debt will help reduce the financial burden for entrepreneurs.
Recall, the President of Kyrgyzstan signed a decree according to which, in order to provide support to the population and business entities, a reduction in the tax burden and transition to more effective tax administration will take place.
