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Transfer of utility networks to state not be taxed from 2018

President of Kyrgyzstan Almazbek Atambayev approved the law, according to which the transfer of utility networks will not be taxed. Information Policy Department of the head of state reported.

The profit tax will not have to be paid when the specialized organization transfers utility networks providing the vital functions of housing objects on a gratuitous basis. This service is also a delivery, exempt from VAT, and is carried out on the basis of an act of acceptance of the object into service.

The law was adopted by the Parliament on June 7. It amends the Articles 189 (non-taxable income) and 253 (free delivery) of the Tax Code. According to them, the cost of the fixed assets received free of charge by the specialized organization that is not subject to profit tax:

— Objects of social and cultural, housing and communal services;

— Roads, water supply and sewerage;

— Electrical networks and meters, substations;

— Boiler and heating networks,

— Gas networks and gas meters.

The law is subject to official publication and comes into force on January 1, 2018.