President of the Kyrgyz Republic Sadyr Japarov signed the new Tax Code (TC) of the republic. An important document for the economy, despite its entry into force, still causes controversy in the business communities of Kyrgyzstan. In the meantime, the government continues to explain - including through the media - the articles of the code.

According to official information, the goals of the new edition of the Tax Code are, in particular, "creating equal conditions for doing business and reducing the shadow component of the economy."

The Code provides for two main tax payment regimes - general and simplified. In the first one, large business entities with a turnover of more than 30 million soms per year will operate, in the second - small and medium-sized businesses, whose representatives will be able to pay only one tax and draw up and submit a report once a quarter.

According to the code, tax incentives are established for industries such as clothing (the size of the single payment rate is 0.25 percent of revenue for a period of five years); jewelry (VAT relief for five years); aviation (VAT exemption for the temporary import of aircraft); exemption from value added tax for importers and local manufacturers of electric buses (in order to reduce harmful emissions into the atmosphere).

In the new edition of the Tax Code, a separate article is devoted to the provision of services in electronic form. Now it is "an entrepreneurial activity carried out automatically, to provide technical, organizational, informational, entertainment and other opportunities through the Internet through information and communication technologies." Large Internet companies will now have to pay VAT, the rate of which is 12 percent.

- A rule has been introduced that an entity that leases space for economic activities, including places in markets (mini-markets) and in shopping centers and houses, is obliged to include in the lease agreement the requirement that the tenant has cash registers (KKM) and the obligation to apply them. At the same time, the code contains a clause on the return to the buyer's accounts in domestic banks of a part of the amount spent on the purchase of goods and services and indicated on cash receipts. This will strengthen control over the use of cash registers by civil society, which will positively affect the creation of equal conditions for competition and increase business transparency, the Cabinet of the Kyrgyz Republic noted.

- The country will apply a simplified VAT refund mechanism for exporting enterprises that export at least 50 percent of their products over a six-month period. The code also included a rule on conducting a scheduled tax audit remotely to save time, reduce the number of documents being checked and exchange information in real time, the government stressed.

In the meantime, the Cabinet of Ministers understands that it will be difficult for entrepreneurs to figure out the intricacies of the document themselves. Therefore, anyone can call the Tax Service of Kyrgyzstan and get a free consultation. In addition, experts explain the most controversial issues of NDT in the media and at seminars.

Meanwhile, in the country's business communities, the new version of the Tax Code still causes heated discussions. The main claim is that the document was submitted late for review and the entrepreneurs did not have time to do this and calculate all the risks in advance.

- We asked to return the code for revision. For at least six months. The Code was supposed to be a reform that simplifies administration, reduces bureaucracy and interference from government agencies, but so far we do not see this, - said Askar Sydykov, Executive Director of the International Business Council.

By the way

Another campaign to file a unified tax return (UND) has begun in Kyrgyzstan. According to the State Tax Service of the Kyrgyz Republic, it will take place in two stages. Legal entities and individuals must report on income received in 2021, as well as provide information on economic activities and objects such as property and land. The first - until March 1, the second - until April 1, 2022.

- Until March 1, the UNM is required to submit domestic organizations, including peasant and farm enterprises, as well as foreign companies operating in the territory of the Kyrgyz Republic with the formation of a permanent establishment. Before April 1, state and municipal employees, individual entrepreneurs, individuals who own taxable movable and immovable property, land plots (with the exception of household plots), as well as peasant and farm enterprises operating without forming a legal entity, must submit a declaration. in the tax office.

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