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Economy Ministry proposes to introduce new concepts into Tax Code

In order to exclude the risk of corrupt impact measures on business, the Ministry of Economy proposes to introduce two new concepts into the Tax Code of Kyrgyzstan. The draft law has already been submitted for public discussion.

It is about working with the so-called self-employed population. The Ministry of Economy believes that it is necessary to divide their work into two types.

The terms «individual work activity» and «individual entrepreneurial activity» are proposed to be introduced in the Tax Code.

«People like baby-sitters, seamstresses, lecturers, experts, and many others offer their services and work for a reward as a payment for their labor, and not for profit. Therefore, the attraction of such citizens to taxation must differ from the existing types of tax payments. Adoption of the proposed norms will ensure compliance with the principle of fairness of taxation,» background statement to the bill says.

In order taxation to be more fair, the Ministry of Economy proposes to include business representatives in the process of calculating the initial amount of a tax contract.

In addition, the Ministry of Economy proposes to authorize tax inspectors to seal property objects or other items related to the economic activities of a business entity if it operates illegally. The amendments also propose to clearly define the rules for raid control, simplify the procedure for a single tax administration.