The President of Kyrgyzstan signed the Law «On Amendments to Certain Legislative Acts in the Sphere of Taxation», adopted by the Parliament on December 26, 2024.
The document was developed in order to improve tax legislation, simplify tax administration procedures, as well as create conditions for fair competition and reduce the shadow component of the economy.
It provides for amendments to the Civil, Civil Procedure, Criminal, Criminal Procedure, Tax Codes, the Code on Non-Tax Revenues and the Code of Offenses, the laws «On the Protection of Consumer Rights», «On Tariffs of Insurance Payments for State Social Insurance», «On the Procedure for Considering Citizens’ Appeals», «On the Fundamentals of Administrative Activity and Administrative Procedures», «On the Status of Bailiffs and Enforcement Proceedings», «On Service in Law Enforcement Agencies», «On the Entry into Force of the Tax Code» in terms of regulating tax issues.
The main amendments to the Tax Code:
- Cancellation of the Unified Tax Declaration for certain categories of individuals who are not individual entrepreneurs;
- Improvement of the procedure for partial application of the preferential regime for fulfilling tax obligations, namely the ability of the taxpayer to partially pay additional charges based on the results of a tax audit or reporting in order to support business entities in terms of fulfilling tax obligations;
- Issuance of a tax payment demand to all banks registered in accordance with banking legislation in order to streamline the procedure for issuing a tax payment demand, as well as to speed up the process of collecting debts from taxpayers for recognized tax arrears;
- A new procedure for the forced collection of tax arrears, which will reduce the burden on the judiciary;
- Exemption from income tax on special goods and parts purchased from abroad in order to support people with disabilities;
- Bringing the right to the social contribution for preschool education into line with the Law «On Education»;
- Classifying employers’ associations as non-profit organizations, whose supplies are exempt from VAT and sales tax;
- Introduction of a rule that the reimbursement and return of the excess VAT amount is carried out at the expense of the expenditure side of the republican budget, including digital treasury obligations, which will allow the use of new mechanisms for fulfilling state obligations in modern conditions;
- Expansion of the circle of royalty payers by organizations or individual entrepreneurs selling the remains of minerals extracted during the period of possession of the right to use the subsoil;
- Establishing the validity period of the tax benefit until January 1, 2030 for certain tax benefits.
The law provides for amendments to the Code of Offenses in terms of:
- Application of liability measures for the use of payment systems registered to another person;
- Increase in fines for the circulation of excisable products without or with counterfeit excise stamps and / or identification means;
- Application of liability measures to the National Operator of the System for Tracking the Transportation of Goods Using Navigation Seals and economic entities, participants in foreign economic activity for violations of tax legislation in terms of the use of navigation seals in the transportation of goods.
The document also provides for such rules as the transition from a single tax to a general regime or from a general regime to a single tax for construction companies until July 1, 2025.
Entities operating in the field of construction of residential and non-residential buildings, as well as performing special construction work, intending to apply a simplified taxation system based on a single tax or to withdraw from this taxation system, have the right to submit an application for the transition to another taxation regime before July 1 of this year to the tax authority at the place of current tax registration.
The law also provides for the exemption of taxpayers from liability and the obligation of a tax agent for goods for which there are no primary accounting documents, provided that information about such goods is entered into the information system of the authorized tax authority before April 1, 2025, with the exception of:
1) alcoholic beverages, tobacco products, medicines, medical products, jewelry made of precious metals;
2) oil and oil products, with the exception of lubricating oils and other oils under the Foreign Economic Activity Commodity Nomenclature codes 2710197100-2710199800;
3) goods for which there are decisions of the tax authority on the results of a tax audit, in relation to which there are court decisions that have entered into legal force.
The document is subject to official publication and enters into force on January 1 of the current year, with the exception of certain provisions for which a different date of entry into force is provided.
