DRAFT
OF THE
(TAX CODE)
TABLE
OF CONTENTS
Article 1. Legislation of the Kyrgyz Republic on taxes
and fees.
Article 2. Relations regulated by the legislation on
taxes and fees
Article 3. Basic principles of the legislation on taxes
and fees
Article 4. Principle of obligatory nature of taxation
Article 5. Principle of clear definition of taxation
Article 6. Principle of fair taxation
Article 7. Principle of a single tax system
Article 8. Principle of publicity of the legislation on
taxes and fees
Article 9. Principle of presumption of taxpayer’s good
faith
Article 10. Making amendments and additions to
legislation on taxes and fees
Article 11. Clarifications on application of the norms of
the legislation on taxes and fees
Article 13. Validity of legislative acts on taxes and
fees
Article 14.
Inconsistency between the legal normative acts on taxes and fees and
this Code
Article 15. Procedure for reckoning time limits
established by the legislation on taxes and fees
Article 16. Effect of international treaties and/or other
acts of the Kyrgyz Republic
Article 18. Concept of a tax and fee
Article 19. Institutions, terms and concepts used in this
Code
Chapter 2. System
of taxes and fees in the Kyrgyz Republic
Article 20. Types of taxes and fees in the Kyrgyz
Republic
Article 21. National taxes and fees
Article 22. Local taxes and fees
Article 23. Information on local taxes and fees
Article 24. General conditions of imposing taxes and fees
Article 25. Special tax regimes
SECTION
II. TAXPAYERS AND PAYERS OF FEES. TAX AGENTS. REPRESENTATION IN TAX RELATIONS
Chapter 3. Taxpayers and payers of fees. Tax agents.
Article 26. Taxpayers and payers of fees
Article 29. Rights of the taxpayers
Article 30. Guarantee and Protection of the Taxpayers'
Rights
Article 31. Taxpayers’ obligations
Article 32. Rights
and obligations of the tax agents
Chapter 4.
Representation in tax relations.
Article 33. Representation in tax legal relations
Article 34. Tasks
and structure of the tax service agencies
Article 35. Bodies collecting taxes
Article 36. Rights of the tax service bodies
Article 37. Duties
of the tax service bodies
Article 38.
Financing and logistical provision for the tax service bodies
Article 39. Officials of the tax service bodies
Article 40. Conflict of interests
Article 42. Powers of the customs bodies to collect taxes
Article 45. Legal and social protection of tax service
officials
GENERAL
TAX PAYMENT PROCEDURES
Article 47. Emergence, alteration and termination of a
tax obligation
Chapter 7. Fulfillment of the tax obligation and the
grounds for its termination.
Article 48.
Fulfillment of a tax obligation.
Article 49. Procedure and deadlines for the fulfillment
of a tax obligation
Article 50.
Discharge of a tax obligation
Article 51. Fulfillment of a tax obligation by a legal
entity undergoing liquidation
Article 52. Fulfillment of a tax obligation in the event
of reorganization of an organization
Article 56.
Statute of limitations
Article 57. Write off of the bad debts on taxes and fees
Chapter 8. Elements of taxation and imposing fees
Article 58. Objects of taxation and imposing fees
Article 59. Tax
base and base for imposing fees
Article 60. Rate of a tax and a fee
Article 61. Tax
and fee period
Article 62. Procedure of computation of the tax and the
fee
Article 63.
Deadlines for paying taxes and fees
Article 64. Procedure for payment of taxes and fees
Article 65.
Procedure for discharging the tax debt by the taxpayer
Chapter 9. Changes in deadlines for the fulfillment of a
tax obligation
Article 66. General conditions for changing deadlines for
payment of a tax and a fee, and fines.
Article 67. Circumstances ruling out changes in the
deadline for the payment of tax arrears
Article 70. Termination of Operation of Deferment and
Payment by Installments
Article 71. Procedure for enforcement and realization of
the pledged property of the taxpayer
Chapter 10. Notice of the tax service bodies
Article 72. Notice of the tax service bodies , its
content.
Article 73. Types of the notices and grounds for their
dispatch
Chapter 11. Tax enforcement methods
Article 74. Tax enforcement measures
Chapter 12.Measures of compulsory collection of the tax
debt
Article 79. Measures of compulsory collection of the tax
debt
Article 81. Refund
of the overpaid taxes and fees
Article 82. Concept and the forms of the tax control
Chapter 15. Registration of taxpayers
Article 83. General provisions.
Article 85. Deadlines for taxpayers’ registration
Article 86.
Taxpayer’s identification number
Article 87.
Recording of taxpayers’ registration
Article 88. Removal from the Taxpayers’ State Register
Article 90. Recording of the VAT payers and the persons
applying special tax regimes.
Article 91.
Cooperation between authorized agencies in the registration of taxpayers
Article 92. Obligations of banks or institutions performing
certain types of banking operations
Chapter 16. Tax
accounting and tax reporting
Article 93. Regulations and method of tax accounting
Article 94. Simplified method of tax accounting by small
businesses
Article 95. Preparation and storage of accounting records
Article 96. Separate accounting and rules for keeping
separate accounting
Article 98.
Procedure for preparation and filing of tax reports
Article 99. Extension of the deadline for filing tax reports
Article 100.
Changes and additions to tax reports
Article 101. Time
period for keeping tax reports on file.
Chapter 17. The procedure for determining the objects of
taxation in certain cases
Article 102. Procedure of identification of the objects
of taxation on the basis of indirect methods
Article 103. Taxation of the contested income
Article 104. Principles of determining the price of
goods, works and services for taxation purposes
Article 105. Concept and types of tax audits
Article 106.
Periodicity of documentary audits
Article 107. Time
period for the performance of documentary
audits
Article 108.
Grounds for the documentary audit
Article 109.
Beginning of a documentary audit
Article 110. Completion of a documentary audit
Article 111.
Making decision based on results of consideration of the documentary
audit materials
Article 112.
Office(paper) verification
Chapter 19. On-site audit and time study
Article 113. The on-site audit
Chapter 20. Use of cash registers with fiscal memory
Article 115. Use
of cash registers with fiscal memory
Article 116. Requirements for application of cash registers
with fiscal memory
Article 119.
Control of excisable goods
Article 120. Supervision over tax collecting bodies
Chapter 22. Access, inspection, demand of documents,
expert examination, drawing up reports.
Article 123. Demand of the documents
Article 124. Expert examination
Article 125.
General requirements to the report on undertaken tax actions
SECTION
VI. Tax Offenses and Liability for Committing Them
Chapter 23.
General Provisions on Liability for Committing Tax Offenses
Article 126.
Concept of Tax Offense
Article 127. Procedure for consideration of the tax offence cases
Article 128. Persons Liable for Committing Tax Offenses
Article 129. General Conditions of Holding [Taxpayers]
Liable for Committing Tax Offenses
Article 131. Forms of Guilt of Committing a Tax Offense
Article 132.
Circumstances Ruling Out the Guilt of a Person in Committing a Tax
Offense
Article 133. Statute of Limitations for Tax Offenses
Article 135.
Statute of Limitations for Enforcement of Tax Sanctions
Chapter 24. Types of Tax Offenses and Liability for
Committing Them
Article 136.
Avoidance of Registration with a Tax Authority
Article 137.
Failure to File a Tax Report
Article 138. Understatement of the amounts of tax and
(or) a fee
Article 139.
Failure of a Tax Agent to Fulfill the Duty of Withholding and (or)
Remitting Taxes
Article 140. Unlawful Obstruction of Entry to an official
of the tax service body
Article 141.
Liability of a Bank
Chapter 25.
Procedure for Appealing the Decisions of the Tax Service Bodies
Article 143.
Procedure for filing an appeal by the taxpayer
Article 144. Form
and content of the taxpayer’s appeal
Article 145.
Review of the taxpayer’s appeal
Article 147.
Consequences of filing an appeal
Article 148. Right
to file an appeal
Article 149.
Procedure for appealing
SECTION
VIII. PERSONAL INCOME TAX
Chapter 27. General provisions
Article 152.
Payers of income tax
Article 153. Object of taxation
Chapter 28. Gross annual income
Article 156.
Composition of the gross annual income
Article 157. Non-taxable income
Chapter 29. Deductions from gross income to determine the
tax base
Article 158.
Standard tax deductions
Article 159. Tax deductions for education
Article 160. Property tax deductions
Article 163.
Prolongation of the losses incidental to entrepreneurial activity
Chapter 30. Tax rates, procedure for computation,
declaration and payment of the personal income tax
Article 164. Rates
of personal income tax
Article 165.
Calculation of personal income tax
Article 166. Filing tax return
Article 167. Payment of personal income tax
Article 168.
Elimination of double taxation.
Article 169. Income received from the source of income in
the Kyrgyz Republic
Article 170. Taxation at the source of income in the
Kyrgyz Republic
Article 171. Date
of emergence of income
Article 172.
Calculation of tax subject to withholding and payment to budget by tax
agents
Article 173. Procedure and deadline for payment of the
tax withheld at the source of income
Article 174. Filing of the personal income tax statement
by tax agents
Chapter 32. Taxation provisions specific for separate
categories of physical persons
Chapter 33. General provisions
Article 178.
Payers of profit tax
Article 179.
Object of taxation
Article 182. Composition of income
Article 183.
Income Adjustment
Article 184.
Compensated deductions
Article 185.
Nontaxable incomes
Article 186.
Income and deductions under long-term contracts
Chapter 35. Deductible expenses
Article 187.
Deduction of expenses incidental to deriving income
Article 188.
Deductions of expenses on business trips and representation expenses
Article 189.
Deduction of expenses on training and re-training of personnel
Article 190. Deduction of interest expenses on a debt
liability
Article 192. Value
of fixed assets, intangible assets and inventories.
Article 193.
Depreciable fixed assets
Article 194.
Classification of fixed assets and determination of the size of
depreciation sums.
Article 195. Receipt and disposal of fixed assets
for depreciation purposes
Article 196. Deductions of depreciation amounts
Article 197.
Deduction of expenses on repairs
Article 198. Deduction of expenses incidental to increase
of fixed assets
Article 199. Deduction of contributions to the Social
Fund of the Kyrgyz Republic
Article 200. Losses arising from disposal of securities
Article 201.
Transfer of losses incidental to economic activity
Article 202. Reserve funds for covering potential losses
and damages
Article 203.
Discount for sub terrain exhaustion
Article 204. Non-deductible expenses
Chapter 38. Procedure for calculation, declaration and
payment of profit tax
Article 207.
Calculation of profit tax
Article 211.
Filing report on tax withheld at the source of payment
Article 212. Payment of profit tax
Article 213.
Current tax payments
Chapter 39.Specificities of taxation of separate
categories of taxpayers and income
Article 214.
Deduction of contributions to insurance reserve funds formed by
insurance organizations
Article 216. Elimination of double taxation
Article 217. Tax rate for interests
Chapter 40. Specificity of taxation of the income of
foreign organizations at the source
of the income in the Kyrgyz Republic
Chapter 41. General Provisions
Article 221. Payers of the VAT
Article 224. Registration requirements and registration
procedure
Article 225.
Canceling VAT registration
Chapter 43. Object of taxation
Article 226. Object of taxation
Article 227. Supplies of goods, works and services
Article 228.
Supplies by agents and employees
Article 230. Place
of supply of goods
Article 231. Place
of supply of works and/or services
Article 232. Date
of tax liability when importing goods.
Chapter 44. Exempt Supplies and Zero-Rated Supplies
Article 234
Supply of land, agricultural
products, residential buildings and premises
Article 235. Supply of fixed assets under financial lease
agreement
Article 236. Goods
and services in the sphere of medical activity
Article 237.
Financial services
Article 238.
Insurance services
Article 239.
Services on pension provision
Article 240.
Transportation services
Article 241.
Services incidental to international transportation
Article 242. Supply of goods, works, and services to the
subjects of Free Economic Zones (FEZ)
Article 244.
Supplies by charitable and religious organizations
Article 245. Supply on a gratis basis
Article 246.
Supply of ritual goods , works, or services
Article 249. VAT
exempt imports
Article 250.
Zero-rated supplies
Article 252. International transportation
Article 254.
Taxable value of supplies
Article 255.
Adjustment of taxable supply amount
and the VAT subject to credit
Article 256.
Taxable value of imports
Chapter 46. Tax period. Procedure for computation,
payment and refund of the value added tax
Article 258. VAT
calculation procedure.
Article 259. VAT
crediting procedure
Article 260. VAT
on inputs not subject to crediting
Article 261.
Apportionment of VAT on inputs.
Article 262. Specific features of VAT computation on
lottery activity.
Article 263. Tax
reporting and VAT payment
Article 264. Procedure of crediting the overpaid VAT
Article 265. VAT
invoice and records
Article 266. VAT exemption for fixed assets imported to
the customs territory of the Kyrgyz Republic
Article 267. VAT
refund from the budget
Article 268. VAT refund to diplomatic missions and representative
offices of similar status
Chapter 47. General Provisions
Article 269.
Payers of Excise Tax
Article 270.
Object of Excise Taxation
Article 271. List of excisable goods
Article 273. Basic
rates of excise tax.
Article 275.
Procedure for calculation of excise tax
Article 276.
Deadlines for the tax payment and filing reports
Chapter 48. Specific features of taxation
Article 278.
Damage, loss of excisable goods and excise tax stamps
Article 279.
Exemption from excise tax
Chapter 49. General provisions
Article 280. Payers of the land tax
Article 281.
Object of taxation
Chapter 50. Rates of the land tax
Article 283. Basic tax rates for the use of agricultural
lands
Article 284. Rates
of the land tax for the use of homestead and suburban land plots
Chapter 51. Procedure of calculation and payment of the
tax. Tax reporting
Article 287. Calculation of the land tax
Article 288.
Payment of the land tax and filing a tax
report
Article 289. Land tax collections
Article 290. Exemption from taxation
Article 291. Land tax preferences
SECTION
XIII. TAXES ON SUBTERRAIN USE
Chapter 53. General provisions
Article 292.
Stabilization of the taxation regime
Article 294.
Payers of the taxes for subsurface use
Chapter 54. Objects, base and rates of taxation, tax
period
Article 295.
Objects of taxation
Article 299. Deadline for payment of bonuses
Chapter 55. Procedure of calculation and payment of the
tax, tax reporting. Tax preferences
Article 300. Calculation, payment and report on
subsurface use tax
Article 301.
Exemption from tax on subsurface use
Chapter 56. Taxes under implementation of Product Sharing
Agreements for subterrain use
Article 302.
General provisions
Article 303. Taxes
payable under implementation of the agreement
Chapter 57. Taxation of concession for subterrain use
Article 304.
General provisions
Article 305.
Taxation of concession
SECTION
XIV. TAX FOR THE USE OF THE ROADS (ROAD
TAX)
Chapter 58.
General provisions
Article 306.
Payers of the road tax
Article 307. Road
tax preferences.
Chapter 59. Calculation of the tax
Article 308.
Object of taxation.
Article 312. Procedure for the tax calculation
Chapter 60. Tax payment and tax reporting
Article 313.
Deadlines and procedure of tax
payment
Chapter 61. General provisions
Article 315.
Payers of emergency tax
Chapter 62. Calculation of the tax.
Article 317.
Object of taxation
Article 321.
Procedure for tax calculation
Chapter 63. Tax payment and tax reporting.
Article 322.
Deadlines and procedure of tax payment
SECTION
XVI. TAX PAYABLE BY THE OWNERS OF VEHICLES
Chapter 64. General provisions
Article 324.
Payers of the tax payable by the owners of vehicles
Article 325. Objects of taxation
Article 330. Procedure of tax calculation
Article 331.
Procedure and deadlines for tax payment
Article 332. Responsibilities of the agencies responsible
for registration of vehicles
SECTION
XVII. REAL PROPERTY TAX
Chapter 67. General provisions
Article 333. Payers of the tax
Chapter 68. Calculation of Real Property Tax
Article 334.
Object of taxation
Article 340.
Tax calculation procedure
Article 341.
Procedure for payment of tax and filing report by organizations
Article 342. Procedure for tax payment and filing report by individuals
SECTION
XVIII. TAX ON SALES AND RENDERING SERVICES TO INDIVIDUALS
Chapter 70. General provisions.
Article 343.
Payers of the tax on sales and rendering services to individuals
Chapter 71. Computation of the tax
Article 344.
Object of taxation
Article 348.
Procedure for calculation of the tax
Article 349.
Procedure for payment and filing reports
Article 350.
Provisions specific on calculation and payment of tax in specific cases
SECTION
XIX. LOCAL TAXES AND FEES
Chapter 73. Tax on Advertising
Article 351.
General provisions
Article 352.
Payers of the tax on advertising
Article 353. Object of taxation
Article 357. Tax calculation procedure
Article 358.
Procedure for tax payment and filing tax report
Chapter 74. Tax for garbage removal
Article 359.
Payers of the tax for garbage removal
Article 360.
Object of taxation
Article 364.
Procedure for tax calculation
Article 365.
Procedure for payment and filing reports
Article 366.
General Provisions
Article 367.
Payers of the hotel tax
Article 368.
Object of taxation
Article 372.
Procedure for tax calculation
Article 373.
Procedures for tax calculation and filing reports
Chapter 76. Fee for vehicle parking
Article 375. General provisions
Article 376.
Payers of the fee for vehicle parking
Article 377.
Object of taxation
Article 380. Period for imposing the fee
Article 381. Procedure for the calculation of fee
Article 382.
Procedure for payment and
filing reports.
SECTION
XX. SPECIAL TAX REGIMES
Chapter 77. Tax on imputed income
Article 383.
General provisions on application of the
tax on imputed income
Article 384. Object of taxation and the tax base
Article 387.
Procedure for tax calculation
Article 388. Procedure and deadlines for the payment of the tax and filing tax reports
Chapter 78.
Simplified system of the taxation of the subjects of small businesses
Article 389.
General provisions
Article 390.
Registration of small businesses
Article 391.
Removal from registration records
as a payer of the tax
Article 392.
Payers of the tax
Article 393.
Object of taxation
Article 397.
Procedure for tax computation
Article 398. Specific features of taxation of certain
taxpayers
Article 399.
Filing tax reports. Procedure and deadlines for tax payment
Article 400. Application of tax contracts
Chapter 80. Free economic zones (FEZ)
Article 401.
General provisions
Article 404. Importation of goods from the territory of FEZ to the territory of
the Kyrgyz Republic
Article 405. Specific features of taxation of the FEZ
subjects
Article 1. Legislation of
the
1. Legislation of the Kyrgyz Republic on taxes and fees shall consist of
this Code, normative legal acts of the
Jogorku Kenesh of the Kyrgyz Republic adopted in accordance therewith (hereinafter in this
Code referred to as legislative acts on
taxes and fees), and normative legal acts on taxes and fees adopted by the
Local Keneshs in accordance with this Code (hereinafter referred to as legislation on taxes and fees).
2. This Code shall establish the system of taxes and fees collected to
the budget, and general principles of taxation and imposition of fees in the Kyrgyz Republic, including:
1) types of taxes and fees collected in the
2) the grounds for emergence, alteration, termination and the procedure
for fulfillment of obligations to pay taxes and fees;
3) establishment, introduction,
and invalidation of the local taxes and fees;
4) rights and duties of the
taxpayers, tax authorities and other parties to the relations regulated by tax
and fee legislation;
5) forms and methods of tax control;
6) responsibility for committing tax violations;
7) the procedure for appeals against decisions and acts of the tax
bodies and actions and(or) inaction of their officials.
Article 2. Relations regulated by the legislation on taxes and fees
1. Legislation on taxes and fees shall regulate relations involving
establishment, introduction and collection of taxes and fees in the Kyrgyz
Republic, as well as relations arising during the exercise of the tax control,
the appeal against decisions and acts of the tax bodies, the action and(or) inaction of their officials, bringing to responsibility for violation of
the tax legislation unless otherwise provided by this Code. Relations regulated
by the legislation on taxes and fees shall hereinafter in this Code be referred
to as tax relations.
Legislation on taxes and fees shall not apply to relations involving
establishment, introduction and collection of customs payments and to relations
arising during exercise of control over customs payments, the appeal against
the acts of customs bodies, actions and(or) inaction of their officials and
bringing to responsibility guilty
persons unless otherwise provided by this Code.
2. This Code shall apply to relations involving establishment,
introduction and collection of fees in the cases specified in the legislation
on taxes and fees.
Article 3. Basic principles of the legislation on taxes and fees
1. Basic principles of the legislation on taxes and fees shall be
determined by this Code.
2. Legislation on taxes and fees shall be based on the principles of
obligation to pay taxes and fees, unambiguity, fair taxation, unity of the tax
system, stability and openness of the legislation on taxes and fees.
3. The provisions of the legislation on taxes and fees may not
contradict the principles established by this Code.
4. Each person must pay taxes and fees established by the legislation on
taxes and fees.
5. Taxes and fees must have an economic ground and may not be arbitrary.
6. Nation-wide taxes and fees
shall be imposed, amended or revoked by this Code.
7. Local taxes and fees, within the authorities of the Local Keneshs contemplated
by this Code, shall be imposed, amended, introduced or revoked by the normative
legal acts of the Local Keneshs on taxes
and fees, in accordance with this Code.
8. No local taxes and(or) fees may be imposed
which are not provided for by this Code
9. No one may be charged with an obligation to make contributions and
payments having characteristics of taxes and fees as defined by this Code,
which are not provided by this Code or are imposed in a way different from the
one contemplated by this Code.
10. When introducing taxes and fees, other than taxes
collected by the customs bodies, all the elements of taxation and imposition of
fees must be defined, unless otherwise provided in this Code.
11. It is prohibited to include in the legislation
other than the legislation on taxes and fees the norms regulating tax relations,
except for the cases contemplated by this Code.
12. In the event of contradiction between this Code
and other legislative acts of the
13. Where contradictions are present in the legislation on taxes and
fees, these contradictions shall be interpreted by the tax service bodies
and(or) judicial bodies in favor of the taxpayer. For purposes of this Part,
contradictions of the legislation on taxes and fees shall mean two or more
provisions conflicting with one another, and preventing the taxpayer from
unambiguous determination and(or) fulfillment of the obligations contemplated
by the legislation on taxes and fees.
Article 4. Principle of obligatory nature of taxation
The taxpayer shall be required to fulfill tax obligations, pursuant to
the legislation on tax and fees, in full and by the due date.
Article 5. Principle of clear definition of taxation
Taxes and (or) fees must be
definite. A clear definition of taxation and (or) imposition of fees means the possibility of identifying in the legislation on taxes and
fees of all the grounds and the procedure by which the taxpayer’s tax
obligations arise, are fulfilled, and are discharged.
Article 6. Principle of fair taxation
1. Taxation in the
2. Granting tax concessions of an individual nature shall be prohibited.
3. Taxes and fees may not be discriminatory and may not apply
differently depending on social, racial, national, religious and other similar
criteria.
Article 7. Principle of a single tax system
The tax system of the
Herewith, no taxes and fees may be established that restrict free
movement of the goods, works, services, or financial resources within the
customs territory of the
Article 8. Principle of publicity of the legislation on taxes and fees
The normative legal acts regulating tax relations shall be subject to
mandatory publication in the manner prescribed by the legislation of the
Article 9. Principle of presumption of taxpayer’s good faith
When performing tax control
by tax authorities or other authorized state bodies, the principle of
presumption of the taxpayer’s compliance with the tax laws shall apply, which
means that a business entity is considered to be operating in good faith, until
this fact is disproved by the tax authorities based on the documented evidence pursuant
to the procedure contemplated by the legislation on taxes and fees.
Article 10. Making amendments and additions to legislation on taxes and fees
2. Proposed legislative acts on taxes and fees,
imposing or canceling taxes and (or) fees, granting tax
exemptions, and (or) contemplating reduction of the budget revenues may only
be submitted to the Jogorku Kenesh of the Kyrgyz Republic and passed with the consent of the Government of the
Kyrgyz Republic.
Article 11. Clarifications on application of the norms of the legislation on taxes and fees
1. Ministry
of Economy and Finance of the
2.
Responses given by the Ministry of Economy and Finance pursuant to Part 1 of
this Article shall be mandatory for the authorized and other government bodies.
Article 12. Normative legal acts of the government bodies and administrative-executive bodies of the local self-governments
1. In the cases contemplated by
legislation on taxes and fees, government bodies and administrative-executive
bodies of the local self-governments shall issue normative legal acts on the
issues related to taxation and fees.
2. Ministry of Economy and Finance
of the
3.
Instructions shall be approved by the Government of the
Article 13. Validity of legislative acts on taxes and fees
1.
Legislative acts on taxes and fees shall take effect on the date indicated in such
act or in the normative legal act on its enactment. In the absence of such specification,
legislative acts on taxes and fees shall take effect upon expiration of
15 calendar days from the date of their official publication, unless otherwise provided
in this Code.
2. Legislative acts making amendments to this Code with regard
to establishing new taxes and (or) fees, increasing rates of taxes and (or)
fees, and normative legal acts of the Local Keneshs introducing taxes and (or)
fees and increasing their rates, shall come into force from the first day of
the subsequent tax period, but not earlier than after 2 months of their
official publication.
3. Normative legal acts establishing
new taxes and(or) fees, increasing the rates of taxes and(or) fees,
establishing or increasing taxpayers' responsibility, or worsening their
position otherwise, shall have no retroactive power.
Article 14. Inconsistency between the legal normative acts on taxes and fees and this Code
1.
Provisions of the normative legal acts, adopted on the basis and in accordance
therewith, or their specific provisions may not conflict with the provisions of
this Code. Where such contradiction and (or) inconsistency exists, provisions of this Code shall apply.
2. A normative legal act on taxes and fees or its
specific provisions shall be considered at variance with this Code if such an
act:
1)
is issued by the body not authorized
under this Code to issue acts of such
type or is issued in violation of the procedure established by the
legislation .
2)
revokes or restricts the rights of the taxpayers, tax agents, their
representatives or the powers of the tax authorities, customs bodies
established by this Code;
3)
changes the content of obligations, grounds, conditions, order or procedure of
actions of the parties to tax legal relations as determined by this Code;
4)
prohibits actions of the taxpayers, tax
agents, and their representatives allowed by this Code;
5)
prohibits actions of the tax authorities, customs authorities, their officials allowed or prescribed by this
Code;
6)
allows or admits actions prohibited by this Code;
7) changes the content of the concepts and terms
defined in this Code, or uses these concepts and terms in the meaning different
from that used in this Code;
3. A normative legal act on taxes and fees or some
of its provisions shall be considered inconsistent with this Code in the
presence of at least one of the circumstances specified in Item 2 of this Article.
4. Recognition of a normative legal act or some of its provisions as
inconsistent with the present Code shall be effected through legal proceedings,
unless otherwise provided in this Code.
The government bodies or executive-administrative bodies of the local
self-government which have adopted the said act or their higher bodies shall
have the right to repeal this act or introduce necessary amendments prior to
its juridical examination.
Article 15. Procedure for reckoning time limits established by the legislation on taxes and fees
1. The running of a deadline
reckoned in terms of years, months, or days begins on the next day after a
calendar date or the commencement of the event, which determines its beginning.
2. A time limit reckoned in terms of years expires
in the corresponding month and on the day of the last year of the period. The
period consisting of 12 calendar months succeeding in a row shall be recognized
as a year.
3. A time limit reckoned in terms of months
expires in the corresponding month and on the day of the last month of the
period. A calendar month shall be deemed to be a month.
4. In case of time limits reckoned in years or
months, if the deadline falls on the month in which there is no corresponding
day, the deadline expires on the last day of this month.
5. When the last day of the period
falls on a day off, the next following working day shall be deemed to be the deadline.
6. An action for which a time-limit is established
may be performed by the close of business on the last day of the time-limit.
Article 16. Effect of
international treaties and/or other acts of the
If an international treaty or other act to which the Kyrgyz Republic is a party,
ratified by the President of the Kyrgyz Republic or the Jogorku Kenesh of the
Kyrgyz Republic and adopted in the manner prescribed by the laws of the Kyrgyz
Republic, establishes rules and norms different from those provided by this
Code and other normative legal acts on
taxes and(or) fees adopted herewith, the rules and norms of that international
treaty or an act shall apply.
Article 17. Parties to tax legal relations regulated by the legislation on taxes and fees and Financial Police Services
1. Parties
to tax legal relations shall be:
1)
organizations and individuals recognized as taxpayers under this Code;
2)
organizations and individuals recognized as tax agents under this Code;
3) Ministry of Economy and Finance of the
4)
authorized government agency, tax and customs services;
5)
Central Treasury of the Ministry of Economy and Finance of
the Kyrgyz Republic and its agencies - dealing with the issues of transfer of taxes
and fees to the budget, credit and
refund of the overpaid taxes and fees;
6)
government agencies and administrative-executive units of the local
self-government, other agencies and officials authorized by them, receiving and
collecting taxes and(or) fees and also controlling their payments, other than tax and customs services, in accordance with
the established procedure(hereinafter referred to as the bodies collecting
taxes);
7)
State Agency for Mineral Use
2.
Financial Police Agency under the Ministry of Economy and Finance of the
Article 18. Concept of a tax and fee
1. Tax means an obligatory, individual
non-refundable money payment collected from organizations and individuals
to the budget under the legislation on taxes and fees.
2. Fee means an obligatory money
contribution collected from organizations and individuals under the legislation
on taxes and fees, whose payment is one
of the conditions of the legally significant actions taken in respect of the
payers of fees by government authorities, local self-government bodies or other
bodies and officials authorized by them, including granting of specific rights
or issuance of permits and (or)licenses.
Article 19. Institutions, terms and concepts used in this Code
1. Institutions, concepts and terms of the civil law, family law,
customs law and other fields of legislation of the
2. The following concepts shall be used in this Code:
1) "Agent" means an
organization or an individual, carrying out the activity under the contracts of
agency, commission, transport expedition, or an agent contract,
and receiving remuneration from a subject for the rendered service, except
for an employee working under the
contract concluded in accordance with the
Labor Code of the
2) “Assets” mean an accounting
category determined in accordance with the
legislation of the
3) “Bad debt” means an amount due to a taxable
person, which can not be received by this person in full due to termination of
liability based on court decision, bankruptcy, liquidation or death of a
debtor, or when the limitation term contemplated by the civil legislation of
the
4) "Budget" means the republican
budget and the local budgets of the
5) "Bank" means a
commercial bank, a specialized financial - credit or credit institution or organization having a license or a certificate of the
National Bank of the
6) “Charitable organization" means a
not-for-profit organization:
(1) created and engaged in
charitable activity in accordance with the legislation on not-for-profit
organizations and charitable activity;
(2) not engaged in the production
and (or) sale of excisable goods or gambling business;
(3) not engaged in the support of political
parties or candidates for elected office;
(4) received in the established
manner the document issued by the tax bodies, and confirming its entitlement to tax benefits under this Code.
7) “Close relatives” mean the persons engaged in matrimonial relations
in accordance with the family legislation of the Kyrgyz Republic, guardians and
trustees, and parents, children, brothers, sisters and cousins, a grandfather,
a grandmother, grandchildren.
8) “Winnings” mean any kinds of payments, prizes, and other incomes in
cash or in kind received by taxpayers in lotteries, contests, competitions,
Olympiads, festivals, and other similar events.
9) "Gross income" means the total
amount of income determined in accordance with Chapters 28 and 34 of this Code;
10) "Membership fees" mean assets contributed by the persons
entering a membership-based non-profit organization, in the amount and
following the procedure contemplated by the constituent documents of this
organization provided that such transfer will not be conditioned by the
cross-provision of , works, services to a member of this organization for free
or at the price lower than the cost price.
11)
“Grant” means assets transferred gratis by the states, international, foreign
and domestic organizations to the Government of the
12) “Humanitarian aid” means assets transferred
on a gratis basis by the states, international, foreign and domestic
organizations to the Government of the Kyrgyz Republic, local self-governance
bodies, state organizations, and
non-profit organizations, as well as to needy individuals, in the form of
foods, technology, equipment, outfit, medical supplies and drugs, other
property to improve livelihoods of the population, as well as to prevent and
liquidate emergency situations of military, environmental and man-caused
character, under the condition of their further consumption and (or) gratuitous
distribution.
13) "State Register of Taxpayers of the
14)
"Geologic preparation of a deposit" means a set of searching and
assessing and exploring works, including computation and geologic and economic
assessment of the deposit stocks by industrial categories;
15)
"Permanent mining works" means a set of mining and construction works
ensuring the opening and
preparation for the field
development or the part of it.
(1)
Should it be the quarry operation,
the mining and capital works shall include:
a) holding and equipping of the opened (permanent
trenches) and split (working trenches) excavations;
b) removal of rocks (permanent stripping), covering
and bearing mineral deposits to the waste mounds at the moment the mine is put
into commission;
c) works on drilling and equipping the unwatering bore
holes, construction of the underground drainage drifts and others.
During
the permanent mining works, the stocks of mineral deposits that guarantee achievement
of the planned capacity within 4-6
months of the mine working shall be opened and prepared for the
development. Should the deposits be at a
greater depth, the permanent mining works shall include the works that are
necessary to be performed for achieving at least 15% of the planned production
capacity of the mine.
Should it be the underground development,
permanent mining works shall include: construction and equipping of the bore
holes, galleries and the adjacent bords, deepening of the holes, construction
and equipping of the bords and
excavation of the shaft bottom; holding and equipping of the main permanent
mines (crosscuts, intake entries and air drifts, slopes, inclines, ore passes
and others). When constructing a new mining enterprise, the volume of the
permanent mining works shall be predetermined by providing its full planned
production capacity or the capacity of its certain stage (should a new mining
enterprise be put into commission stepwise).
16) "Preparatory mining works" means a
set of the mining and construction works on modern reproduction of mineral
extraction at the mines and quarries,
protection from gas-dynamic
developments, including coal bursts, rock outbursts and gas kicks, rock
bumps, and supplementary exploration of the developing stocks. The main content of the preparatory mining
works is holding preparatory mine works, delimitating the excavation grounds of
the mining enterprise.
17) “A mining enterprise” is an enterprise exploring a mineral deposit.
18)
“Dividend” means a part of the profit of an organization, including increment
of value during its liquidation, received by a person in the form of income
from the owned shares , or any other payment made in accordance with the
person’s share in the capital.
19)
“Documented expenses” mean expenses supported by the documents containing the
requisites, whose list is established by the KR Ministry of Economy and
Finance, allowing to determine the size
of a deal, nature of a deal and identify its participants.
20)
"An official of the Tax Service body" is a tax service official authorized to perform his functions in
accordance with this Code.
21)
"Taxpayer's identification tax number" means a number
assigned to the taxpayer upon his tax registration as the taxpayer.
22) "Individual entrepreneur" means:
(1) a resident physical person registered following the established
procedure and engaged in entrepreneurial activity without establishing an
organization, including private notary, attorney, private guardsman, private detective, and a physical person engaged in entrepreneurial
activity without establishing an organization, not registered as an individual
entrepreneur, but required to fulfill liabilities established by this Code;
(2) a non-resident physical person carrying out its activity through a
permanent establishment in the
23) «Property» means all objects of civil rights, related to property in
accordance with the Civil Code of the
24) “Dependent”
is a the taxpayer’s close relative
living on his (taxpayer’s) earnings, having no income or earning income which is less than 650 soms per month.
25) "Indirect taxes" mean taxes on goods, works and services,
imposed as an extra charge added to the price or tariff, not connected directly
with the taxpayer's income or property, such as the value-added tax
(hereinafter referred to as the VAT),
excise tax, tax on sales and services rendered to physical persons, and
other taxes contemplated by this Code as indirect taxes.
26) “Lottery activity” means the activity of the subjects on
organization of the group or mass game, during which a lottery organizer holds
a drawing of the prize fund amongst the lottery participants – holders of
lottery tickets, in accordance with the legislation of the Kyrgyz Republic. The
winning shall not depend on the will and actions of the subjects of lottery
activity. The lottery activity shall also include organization of pari mutuel
and system games.
27) "Taxpayer's Personal
Account" means an account opened by the tax body in respect of an
organization and an individual who is the taxpayer, on which the accounting of
accrued and paid tax amounts,
interests, penalties and tax
sanctions of the taxpayer is kept.
28) "A person"
means an organization and (or) a physical person.
29) “License for
subsurface use” is a document entitling to the usage of subsurface site issued by the
governmental body on subsurface use in accordance with the legislation on subsurface.
30) “License agreement on subsurface use” is an agreement between the governmental body on
subsurface use and the licensee about conditions of subsurface use,
including the information about the quantity and quality of the accounted
stocks of minerals at the subsurface site, the volumes of quoted mineral
extraction, issues of distribution of produce and measures of technical and
ecological safety when using subsurface. The license agreement authorizing subsurface use shall be an integral part of
the license for the right to subsurface use.
31) “International organization” is a subject of
international law, established under an agreement between the states or the
governments of the states.
32) "Place of location of a domestic
organization" means the legal
address of a domestic organization.
33) "Place of residence
of a physical person" means the
place of the residence registration of a physical person.
34) "Excise tax stamp" means a stamp
of the approved format which is attached on a pack, bottle or on other container,
in which the excisable produce is sold, thus showing that the excise tax has
been paid.
35) "Tax sanction" means a measure of responsibility
established by this Code for committing
tax offence.
36) "Tax debt" means the amount of arrears, as
well as unpaid amounts of interests, penalties and tax sanctions.
37) "Arrears" mean
the amount of tax or the amount of fee
not paid by the deadline established by the legislation on taxes and fees.
38) "Force
majoure" means the emergence of extraordinary and inevitable circumstances
resulted from natural disasters, such as earthquakes, floods or any other
circumstances which are impossible to predict or prevent, or it is possible to
predict them, but impossible to prevent.
39) “Tax debt recognized by the taxpayer” means the due tax debt
indicated by the taxpayer in tax reports and reflected in personal accounts, as
well as the amount of tax accrued based on the tax audit report, which is not contested
by the taxpayer under Article 141 of this Code, or if an effective court
decision on its payment is available.
40) “Employer” means an organization, including a foreign
organization or an individual
entrepreneur engaged with a worker
in relationships regulated by the labor
legislation of the
41) “Intangible assets” mean the objects of immaterial property, such as
patent, license, trade mark, ability to generate profit, copyright or agreement
on the use of the name and the trade mark of a company, computer software, etc.
that can be used in the economic activity for at least one year. The cost of an intangible asset is
determined in accordance with the legislation of the
42)
“Non-profit organization” means an organization which meets the following
requirements:
(1) this organization is registered in an
organizational and legal form established by the legislation of the
2) this organization does not
consider deriving income as the principal goal of its activity and
distributes no derived income amongst its members, founders and its officials.
43)
"Tax registration of the taxpayer" means entering data about the
taxpayer into the State Register of
Taxpayers of the
44) "Organization"
means:
(1) a legal person created in accordance with the
civil legislation of the
(2) a corporation, a company, a firm, a fund, an institution, or another establishment created
under the legislation of a foreign
country, or an international organization (hereinafter referred to as a foreign
organization);
45) "A separate subdivision
of an organization" means any
subdivision territorially separated from the organization, whose characteristic
feature is a separate property and (or) in the place of whose location
permanent places of employment are equipped. A separate subdivision of the
organization is recognized as such, regardless of the fact whether its creation
is reflected or not reflected in the organization's constituent or their
organizational-administrative documents, and regardless of the powers vested in
the said subdivision.
46) "a fixed asset" means the asset used or meant for the use
in the economic activity, and which gradually transfers its value onto the produced
goods, works, and services; period of
use or exploitation of that asset is
more than one year and its value exceeds
10000 soms, or for purposes of Article 264 of this Code, its customs value
should be no less than 100000 soms, including the land, unless otherwise
provided in this Code.
47)
“Principal workplace” means the place of work on which an employer keeps or
must keep a work-book registered in accordance with the labor legislation of the
48) “Taxable supplies” mean supplies of goods in the territory of the
Kyrgyz Republic, supplies of works and services in the Kyrgyz Republic made for
payment; exports of goods, works and services made by a taxable subject, other
than supplies exempt from the VAT under
Article 232 of this Code.
49) “Taxable import” means importation of goods
to the customs territory of the
50) "Payment” includes all types of payments to a supplier
made directly or indirectly by a consumer or by another person for supplies
paid or payable in full or partially, in
kind or in a monetary form.
51)
"Fixed assets of the mining and (or) mining-processing enterprises"
mean produced and (or) purchased property contemplated by the technical project and (or) feasibility report of these
enterprises, including:
(1) held and equipped permanent and preparatory mining
works (mine bore holes, galleries, cross-cuts, main intake entries and air
drifts, slopes and inclines, underground bords of central and district
dewatering, energy supply and ventilation, technological mainline roads of the
mines, permanent stripping, opened and split trenches and other permanent and
preparatory mining works providing access, opening and preparation of the
deposit stocks, mining equipment, technological equipment, motor transport,
other than light cars);
(2) mining and transport machines, technological
equipment for the field development and processing mineral raw material, and
other equipment of the main and support function;
(3) buildings and constructions of the main and
support function;
(4) transport ways
52) “Permanent establishment” means a permanent place of activity,
through which a foreign organization or a non-resident physical person (hereinafter referred to as a non-resident) carries on economic activity
fully or in part.
(1) The concept of "permanent
establishment", particularly, includes:
a) place of management;
b) branch office;
c) work office;
d) factory;
e) workshop;
f) mine, oil or gas well,
quarry or any other place of extracting natural resources;
g) agricultural, pasture or
forest property;
h) construction area or
construction, installation or assembling object or services, connected with the
controlling activity over execution of these works, if only this type of object
or area exists for 183 or more days or these services are rendered for 183 or
more days during any 12-months period.
i) installations or other
objects used for exploration of natural resources, or performing controlling
activity connected with these objects, or a drilling rig or a vessel used for
the purposes of exploration of natural resources, provided that such use lasts
for 183 or more days or such services are rendered for 183 or more days during
any of 12-months period;
j) providing services,
including consulting services by a non-resident performed through the personnel
hired by this non-resident if the personnel carries out such activity in the territory of the
(2) The concept of "permanent establishment"
does not include:
a) use of constructions
solely for the purpose of storage, display or delivery of goods owned by a non-resident;
b) maintenance of the stock
of goods owned by a non-resident solely for purposes of storage, display or delivery;
c) maintenance of the stock
of goods owned by a non-resident solely for purposes of processing by another
organization or an individual;
d) maintenance of the
permanent place of activity solely for purposes of purchase of goods, or
collection of the information for a non-resident;
e) maintenance of the
permanent place of activity solely for purposes of carrying out any other activity of preliminary or
incidental nature for a non-resident;
f) maintenance of the
permanent place of activity solely for the purpose of carrying out any
combination of activities enlisted in items a)-e), provided that the aggregate
activity of the permanent place arising from such combination is of preliminary
or incidental nature;
g) carrying out economic
activity in the
(3) The fact that a foreign organization
controls or is controlled by a domestic organization or a resident physical
person does not mean the creation of a permanent establishment.
53) “Acquired material resources” mean fixed
assets, goods, including raw materials, fuel, furnishing products, as well as
executed works and rendered services received or imported by a taxable subject
for purposes of making supplies.
54)
Interest income” means income from any kinds of debt claims including the
income from bonds, promissory notes, and other forms of lending, as well as the
income received under financial lease agreement .
55)
“ Re-insurer” means an insurer who transfers a portion of undertaken
obligations to another insurer for purposes of reducing, preventing possible
accumulation of risk, creation of
balanced insurance portfolio, and ensuring financial stability of insurance
transactions.
56)
“Re-insurer” means an insurer undertaking a certain portion of obligations of
another insurer.
57) "Mineral resources" mean
subsurface mineral resources, hydrocarbon and underground waters whose chemical
composition and physical properties allow their use in the sphere of material
production and consumption.
58) "Processing of minerals" means a
set of works aimed at production of marketable products out of minerals.
59) "Primary marketable
product" may include the following:
(1) minerals:
a) oil, natural gas and condensed gas;
b) coal and shale oils;
c) marketable ore;
d) raw material for the production of construction
materials;
e) mica;
f) asbestos;
g) non-metallic minerals for the cement and metallurgy
industries;
h) underground fresh and mineral waters;
i) precious metals, chemically pure metals in sands,
ores, concentrates;
(2)
concentrates of ferrous, non-ferrous and radioactive metals, mining minerals;
(3) precious stones, semiprecious
stones and piezooptic minerals undergone
primary processing;
(4) with regard to other minerals - minerals undergone
primary processing;
60)
“Field development” means a complex of mining works on opening-up, preparation
and extraction of mineral resources.
61)
“Royalty” means any kinds of payment received as a premium for:
(1) the use or according the right to use
copyright on any works of literature, arts,
or science, including computer software, cine-, tele-, video-films or
records for radio and television;
(2) any patent
confirming the right to the object of industrial property, trade mark,
design or model, plan, secret formula or process, or to the information
(know-how) related to industrial, commercial or scientific experience.
For
purposes of Section XIII of this Code, "royalty" means current
payments for subsurface use paid by
subsurface users during commercial field development.
62) "Sale of goods, works, services" means the transfer on a
paid basis, including exchange of goods, works, services,right of ownership of the goods, results of works
performed by one person for another person, chargeable provision of services by one person to another;
and in the cases contemplated by this Code transfer of the ownership of goods, results of works
performed by one person for another person, and provision of services by one
person to another person on a gratis basis.
63) «Work, service» means any activity which
is not a sale of goods.
64) "Registration recording" means
registration of the taxpayer resulting in fixing the taxpayer's registration
data, including taxpayer's place of stay, ownership of objects of taxation, registration of current changes
of the taxpayer's registration data; removal from the registration by the tax
body.
65) "Taxpayer's registration data" means the
data reported to the tax body by the
taxpayer upon his state registration and (or) registration recording.
66)
"Taxpayer's certificate" is a high security document on assigning an
identification tax number, issued to the taxpayer upon his registration in the
State Register of Taxpayers of the
67)
“Insurance premium(contribution)” means the amount paid by an insurant to an
insurer for undertaking obligations to pay the insurance compensation
(insurance money) when the insurance case determined in the insurance contract
arises. The amount is contributed by an insurant as a one-time payment
(insurance premium) or in installments (insurance contributions) on a monthly,
quarterly, etc., basis during the period of validity of the insurance contract.
68)
“Insurance case” means an event upon occurrence of which an insurer has to pay the
insurance amount (compensation) by virtue of the law or an agreement..
69)
“Insurance money (compensation) means a partial or full compensation of the
damage within the insurance limits on the insurance cases with the insured,
third parties, or their property , which is paid out by an insurance
organization.
70) "Insurer" means a domestic
organization, having in accordance with the
legislation of the Kyrgyz Republic a license permitting to carry out the
insurance activity of the given type, which following the concluded insurance
contract (policy of insurance) undertakes an obligation to reimburse the damage
incurred by an insurant or the third
person upon occurrence of the insurance case determined in the insurance
contract.
71) "Insurant" means an individual or an organization, having
interest in the object of insurance, concluded a contract with an insurer for
the purpose of insuring interest of his
own or the third person (beneficiary)
and paying to an insurer the premium (insurance premium) for the
commitment to reimburse the damage upon occurrence of the insurance case
determined in the insurance contract (policy of insurance).
72)
“Subsidy” means the aid provided by the Government of the
73) “Agricultural producers” mean organizations and individuals producing
agricultural products, including their own agricultural processed products,
provided the earnings from the sale of these
products , works, services shall make no less than 75% of the total volume of sale
of goods, , works, services.
74) "Agricultural commodity-service cooperatives"
mean cooperative societies in which at least 75% of the members are
agricultural producers and at least 75% of earnings come from realization of
goods, works, and services produced by the members of this cooperative society
- agricultural producers.
75) “A subject” means any person or other type
of formation, a state body carrying out
the economic activity regardless of their organizational and legal forms, types
of activities, affiliation and forms of ownership.
76) "A subject of small entrepreneurship"
means organizations and individuals registered with the tax service bodies in
accordance with the established
procedure and carrying out the entrepreneurial activity, whose gross income for
a year does not exceed the VAT registration threshold.
77) "Account"
means the settlement and another account with the bank, on which the pecuniary
funds of an organization and an individual entrepreneur are placed and from
which they may be spent.
78) “Questionable
obligation” means the amount which should have been paid by the person but was
not paid due to discharge of obligations upon court decision, as a result of bankruptcy,
liquidation or demise of a creditor, or upon expiry of the statute of
limitations contemplated by the civil
legislation of the Kyrgyz Republic.
79) «Goods» mean any
property which is the product of economic activity and an object of
realization. For purposes of regulation of relationships connected
with the transfer the goods across
the customs border, the goods
also include the assets determined by the Customs Code of the
80) “Customs Legislation of the
81) "Labor legislation of the
82) "Authorized government
body" means a government agency of the
83) "Physical
person" means a citizen of the
84) “Resident physical person” means any physical person, staying in the
85) “Non-resident physical person” means any physical person, who is not
considered a resident physical person under this Code.
86) “Financial lease” means a special type of lease relations on
transfer of the fixed assets under a financial lease contract concluded in
accordance with the procedure
established by the civil legislation of the Kyrgyz Republic and required to meet one of the following conditions:
(1) upon expiry
of a lease contract, an object of leasing shall be transferred to the ownership
of a
lessee;
(2) a lease contract contemplates the right to redeem
an object of leasing by a lessee upon expiry of
a lease contract at the price which is indicated by a
lessor in the lease contract ;
(3) period of a lease contract ishall be more than
three quarters of the period of economic service of a lease object (in this
particular case, it is not mandatory to transfer the right of ownership)
(4) amount of lease payments estimated at a market
rate should be at least 90% of the value of
a lease object;
(5) a lease object is a capital asset and is of a
special nature, therefore, only a lessee may use it with no significant
modifications.
The value of capital assets transferred and(or) received under financial
lease shall be determined as of the moment of
conclusion of a financial lease agreement.
For purposes of taxation, financial lease shall be treated as the
purchase of capital assets by a lessee. This being the case, a lessee shall be
considered the owner of capital assets, while
lease payments shall be considered
payments on a credit issued to a lessee.
87) "Members of unions and associations of the peasants' and
farmers' societies and other agricultural formations" mean the physical
persons entering these formations with the property share, including land
plots, in accordance with the legislation of the
88) "Membership fees" mean assets contributed by the persons who
belong to a membership-based non-profit organization, in the amount and
following the procedure contemplated in the constituent documents of the
organization, provided that such transfer is not
conditioned by cross-provision of goods, works, and services to a member
of this organization for free or at a price lower than the cost price.
89) "Electronic digital signature of the
taxpayer" is a succession of
electronic digital symbols, created by an electronic digital signature and
confirming authenticity of an electronic document, its affiliation with the
taxpayer and invariability of its content.
90) "Electronic document of the taxpayer"
means an electronic document submitted in an established format, and confirmed
by the taxpayer's electronic digital signature.
91) “Export
of works and services” means supply of works and services performed and
rendered by a taxable subject in the event that the place of supply of works
and services under Article 230 of this Code is outside the territory of the
92) "Economic activity" means
entrepreneurial and other type of activity aimed at deriving income, profit or
compensation regardless of the results of such activity.
"Entrepreneurial activity"
means an independent and economic activity of organizations and physical
persons carried out under their own name at the expense of their own or the borrowed
funds, at their own risk and on their
own property responsibility aimed at generation of income .
An economic activity incidental to sale, transfer or lease of assets
shall be recognized as an entrepreneurial activity, if at least one of the
following conditions is observed:
(1) activity is
carried out on a regular basis and is a usual type of activity for a person
engaged in the above-listed operations;
(2) when carrying on the activity, the goods are
supplied, works performed or services rendered;.
"Other activity" means the economic activity, and includes:
(1) activity
carried out by an individual in accordance with the labor legislation of the
(2) depositing
money resources with the banks or any other credit institutions;
(3) purchase,
sale of the shares or securities against the joint stock of an enterprise
allowed for the issuance;
(4) purchase,
sale of the bonds or other debt instruments;
(5) purchase,
sale of the shares in investment funds;
(6) other
activity which is not an entrepreneurial activity.
93) "Economic (balance) stocks" mean
stocks of subsurface minerals whose extraction and processing into marketable
products, given the current level of prices and industrial technologies, is
economically acceptable for an investor.
94. “Large taxpayer” is the taxpayer that meets
the criteria established by an authorized state agency.
3.
Concepts of a «taxpayer», «object of taxation», «tax base», «tax period» and
other specific concepts and terms of the legislation on taxes and fees shall be
used in the meanings determined in the corresponding sections of this Code.
Chapter 2. System of taxes and fees in the
Article 20. Types of taxes
and fees in the
1. The following types of taxes and fees shall be imposed in the
2. National taxes and fees shall be recognized as taxes and fees
established by this Code and payable in a compulsory way throughout the
territory of the
3. Local taxes and(or) fees shall be recognized as taxes and fees
established and introduced pursuant to this Code through the normative legal
acts passed by the Local Keneshs and subject to compulsory payment in the
territories of respective territorial and administrative units.
Article 21. National taxes and fees
National taxes and fees shall include:
1) Personal Income Tax;
2) Profit Tax;
3) Value Added Tax;
4) Excise tax;
5) Land tax;
6) Mineral tax;
7) Road tax;
8) Contributions to the Fund for Prevention and Liquidation of Emergency
Situations;
9) Tax payable by the owners of vehicles;
10) Real property tax;
11) Tax on sales and on services provided to physical persons.
Article 22. Local taxes and fees
Local taxes and fees shall include:
1) Tax on advertising;
2) Tax for garbage removal;
3) Hotel tax;
4) Fee for parking.
Article 23. Information on
local taxes and fees
Information and copies of the
adopted normative legal acts concerning introduction, change and repeal of the
local taxes and fees shall be sent by the administrative and executive units of the local self-government to respective regional
tax authorities.
Article 24. General conditions of imposing taxes and fees
1. Tax shall only be considered imposed if the taxpayers and the
elements of taxation are defined in the legislation on taxes and fees, namely:
1) object of taxation;
2) tax base;
3) tax rate;
4) tax period;
5) procedure for computation of tax;
6) procedure and deadlines for tax payment.
2. In the cases contemplated by this Code, with the
introduction of the tax, a legislative act on taxes and fees may also provide
tax preferences and grounds for using them by the taxpayer.
3. Fee shall only be considered imposed, if the payers of the fee and the elements of the fee are defined in
the legislation on taxes and fees, namely:
1) object of
imposing fee;
2) base of imposing fee;
3) rate of fee;
4) period for imposed fee ;
5) procedure
for computation of fee;
6) procedure and deadlines for payment of fee;
4. With the introduction of fee, a legislative act on taxes and fees may
also provide if necessary fee benefits and grounds for using them by the payer
of fees.
Article 25. Special tax regimes
1. Special tax regime shall be recognized as a special procedure for
calculation and payment of taxes and fees, applied in the cases and in the
order established by this Code and adopted pursuant to the legislative acts on
taxes and fees.
2. With the introduction of special tax regimes, taxpayers, elements of
taxation, elements of fees, tax benefits
and (or) specific features of taxation shall be determined in the manner established
by this Code.
3. Special tax regimes shall include:
1) tax on imputed income
2) simplified system of taxation for small businesses;
3) taxation in the Free Economic Zones (hereinafter in
this Code referred to as the
4) tax contract.
SECTION II. TAXPAYERS AND PAYERS OF FEES. TAX AGENTS. REPRESENTATION IN TAX RELATIONS
Chapter 3. Taxpayers and payers of fees. Tax agents.
Article 26. Taxpayers and payers of fees
The persons
obliged under this Code to pay taxes and/or fees, including the persons taxable
at the source under this Code, shall be recognized as taxpayers and payers of
fees (hereinafter referred to as "taxpayers").
1. For purposes of taxation, the persons whose relations
may influence the conditions or economic results of their activity or activity
of the persons they represent shall be recognized as related persons, in
particular, when:
1) a person directly and/or indirectly participates
in an organization, and the total share of such participation exceeds 20 per cent;
2) two organizations, where a third person
participates with the direct and (or) indirect share of participation exceeding
20 per cent in each organization, or if control
is performed by that person ;
3)
an individual is subordinate to another individual as to his or her superior;
4)
persons having relations regulated by the labor legislation of the
5)
close relatives;
6)
a founder and a trustee.
2. The Court may recognize the
persons as related on other grounds different from those contemplated by Part 1
of this Article, if the relations between these persons may influence the
results of transactions between them.
3. For purposes of Part 1 of this
Article, the share of indirect participation of one person in the organization
through the chain of other organizations shall be determined as the product of
the corresponding shares of participation.
The persons required under this Code to calculate,
withhold taxes from the taxpayer, and remit taxes to the budget shall be
recognized as tax agents.
Article 29. Rights of the taxpayers
1.
Taxpayers shall have the right to:
1)
receive from the tax service bodies the information about current taxes and
fees, amendments in the tax legislation;
2) represent their interests
on the issues of tax relations in person
or via their representative;
3) receive results of tax
control;
4) provide
explanations to the Tax Service bodies on the results of tax control;
5) receive a statement from
the personal account regarding the status of settlements with the budget
related to fulfillment of tax obligations;
6) appeal against normative legal acts and other acts of the Tax Service, decisions[V1] and actions and (or) inaction of the Tax
Service officials in accordance with the
established procedure;
7)
require keeping a tax secret;
8) provide no information and documents that are not
related to taxation and fees.
2. The taxpayer shall have other rights contemplated by
the legislation on taxes and fees.
Article 30. Guarantee and Protection of the Taxpayers' Rights
1. Taxpayers shall be guaranteed an administrative
and judicial protection of their rights and legitimate interests.
The procedure for protection of taxpayers’ rights
and their legitimate interests shall be established by this Code and other laws of the
2. Taxpayers’ rights shall be secured by the corresponding
duties of the tax service officials.
Failure to perform or improper performance of the
duty to ensure taxpayers’ rights shall involve liability under the laws of the
Article 31. Taxpayers’ obligations
1. The taxpayer shall be required to:
1)
timely and in full volume fulfill tax
obligation in compliance with legislation on taxes and fees;
2) comply with lawful demands of the tax authority
to eliminate revealed violations of the legislation on taxes and
fees, and also not to obstruct the lawful activity of tax officials when they
perform their official duties;
3)
based on prescription, allow the Tax Service officials to inspect the property
which is the object of taxation;
4) provide tax reports and documents
related to taxation and fees following the procedure contemplated by the
legislation on taxes and fees;
5) hold pecuniary
settlements with the consumers during retail trade transactions or when
providing services to people through
cash, payment bank cards, receipts with the compulsory application of cash registers
with fiscal memory and issuance of the control receipt to a consumer in
compliance with Chapter 20 of this Code;
6) register audits in the Audit
Register following the procedure established by an Authorized State Body.
2. The taxpayer shall fulfill other
obligations contemplated by the legislation on taxes and fees.
Article 32. Rights and obligations of the tax agents
1. The tax agent shall have the same rights and bear
the same obligations as the taxpayer unless otherwise provided in this Code.
2. The tax agent shall also
be required to:
1) accurately and
timely assess taxes withheld from the source of payment pursuant to the special
part of this Code;
2) withhold the prescribed
taxes from the taxpayer and remit them to the budget in the manner and by the
deadline specified in this Code;
3) keep records of incomes
paid out to taxpayers and of taxes withheld and remitted to the budgets,
including separate records for each taxpayer personally;
4) file with the tax service
office of the place of registration the tax reports required for the
performance of tax control, including the information concerning the incomes paid
and the persons receiving such incomes.
3. Where the tax
agent fails to perform the imposed duties or in case of their improper performance,
the tax agent shall incur liability
under the legislation of the
Chapter 4. Representation in tax relations.
Article 33. Representation in tax legal relations
1. The taxpayer shall have the
right to participate in tax legal relations via his legal or authorized
representative.
2. Taxpayer’s legal representative shall be a person
authorized to represent the taxpayer under with the
laws of the
3. An
authorized representative of the taxpayer shall exercise his authority on the
basis of the constituent documents, a power of attorney issued by the taxpayer where the list of authorities of an authorized
representative is indicated.
4. Personal participation of the taxpayer in tax
legal relations shall not deprive him of the right to have a representative;
likewise, participation of the representative shall not deprive the taxpayer of
his right to personally participate in the indicated relations.
5. Actions and(or) inaction of the taxpayer’s representatives
taken due to participation of that taxpayer in
tax legal relations shall be
recognized as the actions and(or) inaction
of the taxpayer.
Article 34. Tasks and structure of the tax service agencies
1. Tax Service (tax service bodies) shall be assigned to monitor
compliance with the legislation on taxes and fees and assist the taxpayers in
fulfillment of their tax obligations.
2. Tax service bodies shall consist of an authorized government agency
and tax bodies.
3. Tax Bodies shall include regional and functional divisions of the authorized
government agency.
4. Tax bodies shall directly report to the respective higher-level
authority and shall not report to the local state administrations and administrative and executive bodies of the local
self-government.
Interference of
the government bodies and local self-governments with the activities of the
authorized government agency, the Ministry of Economy and Finance of the
5. The authorized government agency supervise the tax
bodies.
Article 35. Bodies collecting taxes
1. In the cases contemplated by the legislation on taxes and fees,
computation of the tax and (or) fee, receipt of tax and fee payments from the
taxpayers and their remittance to the budget may be performed by the government
bodies, executive and administrative bodies of the local self-governments,
other authorized bodies and their officials – tax collecting bodies.
2. The rights, duties and responsibility of the tax collecting bodies
shall be determined by the legislation on taxes and fees and other legislative
acts of the
Article 36. Rights of the tax service bodies
1. Tax service bodies shall have the right to:
1) develop and approve the normative legal acts contemplated by the
legislation on taxes and fees in the manner established by the legislation of the
2) upon taxpayers’ application, provide clarifications and commentaries
on emergence, fulfillment and discharge of the tax obligations;
3) perform tax control in the manner established by this Code;
4) conduct inspections of the taxpayer’s monetary documents, accounting
books, reports, estimates, cash on hand, securities, statements, returns, and
other tax compliance documents, observing the requirements established by the legislation
of the Kyrgyz Republic;
5) demand from the taxpayer submission of the documents showing computation,
withholding and payment of taxes and fees to the budget in the format established
by an authorized government body, explanations on filling up these forms, as well as the documents
confirming accurate computation and
timely withholding and payment of taxes and fees to the budget;
6) during performance of tax control in the manner established by
this Code, receive copies of the
documents from the taxpayer;
7) under Articles 120 and 121 of this Code, to inspect any objects of
taxation that are used for the purpose of earning income regardless of their
location;
8) on the issues incidental to
taxation of the taxpayer under audit - an organization or an individual
entrepreneur - receive in the order established
by the legislation on taxes and fees of the Kyrgyz Republic, from banks
or institutions performing certain types of banking operations the information
about the existence of bank accounts and the numbers of these accounts, balances and movement of funds on these
accounts, observing the requirements established by the laws of the Kyrgyz
Republic on disclosure of information
that constitutes a commercial secret, bank secret, or other secret protected by
the legislation of the Kyrgyz Republic;
9) determine the taxpayer’s tax obligation based on indirect methods in
the cases and following the procedure established by
Chapter 17 of this Code;
10) to appeal to the Court under this
Code and other legislative acts of the Kyrgyz Republic, including the
cases of liquidation of an organization on the grounds contemplated by
the legislation of the Kyrgyz Republic.
11) exercise control over the bodies collecting taxes.
2. To exercise the authorities
established by this Code tax service bodies shall also have other rights
contemplated by the legislation on taxes and fees and other legislation of the
Article 37. Duties of the tax service bodies
1. Tax service bodies shall be required to:
1) observe the taxpayer’s rights;
2) protect the interests of the State;
3) perform tax compliance control, as well as timely withholding and
remittance of mandatory tax and fee
payments to the budget;
4) keep the record of the taxpayers, objects of taxation, and the record
of taxes and fees accrued and paid to the budget following the procedure
established by the authorized government agency;
5) assist taxpayers in their
fulfillment of their tax obligations;
6) provide at the budget expense the
tax reporting forms of an established format issued by the tax
service bodies;
7) explain the way the tax reporting
forms should be filled up;
8) perform tax audits in strict
compliance with the relevant orders;
9) keep confidentiality pursuant to the provisions of this Code;
10) deliver a notice to the taxpayer regarding fulfillment of the tax
obligation by the due date and in the cases specified by this Code;
11) provide a statement from the taxpayer’s personal account regarding
the status of settlements with the budget related to fulfillment of their tax
obligations, at the taxpayer’s request, within
a three day period;
12) keep on file for six years
the documents confirming fulfillment
of the tax obligation on payment of taxes and fees to the budget;
13) apply methods ensuring tax compliance and
enforce discharge of the tax debt by the taxpayer in a mandatory way pursuant
to this Code;
14) impose tax sanctions on the taxpayer following the requirements
established by this Code, and impose
sanctions pursuant to the legislation of the
2. If the amount of due taxes exceeds the threshold established by the
Criminal Code of the Kyrgyz Republic, at which point the criminal liability arises for tax evasion, tax service bodies shall forward to the appropriate
law-enforcement bodies the materials for
making a corresponding procedural decision based on the legislation of the Kyrgyz Republic in the following cases:
1) if an authorized office of the Tax Service sent the taxpayer a
written decision regarding the essence of the complaint in the manner
established by Article 145 of this Code and no appeal was filed by the taxpayer
against the indicated decision with the Conciliation Commission under an
authorized office of the Tax Service or with the Court within 30 days from the
moment of delivery of that decision;
2) in case of expiration of the
time period for filing an appeal contemplated by Article 143 of this Code, or
3) if there is a decision issued by the Conciliation Commission or by
the Court on the complaint.
3. Tax service bodies shall also perform other duties contemplated by
the legislation of the
Article 38. Financing and logistical provision for the tax service bodies
1. Expenditures of the tax service bodies shall be funded from the
republican budget and at the expense of the off-budget funds earmarked for
special purpose.
2. The procedure and the norms of logistical provision for the tax
service bodies shall be established by the Government of the
Article 39. Officials of the tax service bodies
1. The persons who meet the requirements established by the legislation of
the
2. A tax service official shall be conferred a class rank or a special
rank following the established procedure.
3. Tax service officials shall be provided with the uniform, design
and standards of the uniform being approved by the Government of the
4. Tax service officials shall be prohibited to concurrently perform any
other paid work, except for creative, scientific or teaching activity, or
engage in entrepreneurial activity.
Article 40. Conflict of interests
Tax service officials shall be prohibited to carry out their official
duties in respect of the taxpayer in case:
1) under the legislation of the Kyrgyz Republic the taxpayer is in
matrimonial relations with such official,
is a relative, or is related by bonds of guardianship or wardship; or
2) this official or his relative has a direct or indirect financial
interest.
1. Unless otherwise provided in this article, tax service bodies, tax
collecting bodies, as well as all persons who are or have been employed by
these bodies are required to keep confidential any information concerning a
specific taxpayer which was received by them during their work and may only
provide such information to:
1) officials
of the Tax Service, Customs Service and Central Office of the Ministry of Economy and Finance of the
Kyrgyz Republic in the course or for the purpose of carrying out their
functions contemplated by the Tax and Customs Codes;
2) law
enforcement bodies in the case of initiation of a criminal case against the
persons committing tax violations;
3) the Court
during the court proceeding for establishing taxpayer’s tax arrears or his responsibility
for a tax offence;
4) tax
service bodies of other states pursuant to international treaties or agreements, to which the Kyrgyz republic is a
party;
5) an authorized
government agency for bankruptcy cases, administrator (temporary administrator,
special administrator, conservator, external manager) for purposes of carrying
out their authorities contemplated by the legislation of the Kyrgyz Republic on
bankruptcy, only in respect of those subjects against whom a bankruptcy case was
initiated;
6) the KR Agency for Public Service, in respect of the persons who are required to
file a declaration on property and incomes under the established legislation of the Kyrgyz Republic;
7) the
Jogorku Kenesh, the Government of the Kyrgyz Republic, and the Chamber of Accounts of the Kyrgyz Republic
pursuant to the legislation regulating their activities.
Except
for the cases contemplated by Item 1) of this Part, the information shall be
provided only upon the written request, and the taxpayer shall be informed
simultaneously with the provision of such information.
2. A
person receiving information under Part 1 of this Article shall be required to
keep such information confidential pursuant to the provisions of this article.
3.
Disclosure of the confidential tax onformation includes, particularly,
the use or transfer to another person of the information concerning the
taxpayer which constitutes this taxpayer’s secret , which became known to a tax service official and (or) the
official of the tax collecting bodies, an involved expert, during the performance
of their duties.
4.
Information concerning the taxpayer may be disclosed to another person
upon the taxpayer’s written consent.
5. The
following information may be disclosed with no limits:
1) concerning the Taxpayer’s Tax Identification number;
2) taxpayer’s essential data (full name of an entity or last name, first
name, patronymic of the taxpayer);
3) information concerning the registration as a VAT payer;
4) information concerning the
spoiled or lost VAT invoices of the taxpayer;
5) information concerning the tax debt amounts acknowledged by the
taxpayer.
6. Confidential tax information
received by the tax service bodies and the local bodies collecting taxes has a
special regime of storage and access.
7. Disclosure of the confidential tax information, as well as the loss
of the documents with the confidential tax information shall result in
liability under the laws of the
8. Government bodies shall be prohibited
to demand confidential tax information and documents from the tax service
bodies and the local bodies collecting taxes except for the cases contemplated
by this Article.
Article 42. Powers of the customs bodies to collect taxes
Customs bodies shall collect taxes
to the budget pursuant to this Code and the customs legislation of the
Article 43. Powers of the administrative and executive bodies of the local self-governments to collect taxes and fees
1.
In the cases contemplated by this Code and other normative legal acts,
administrative and executive bodies of the local self-government may perform
collection of the local taxes and fees, as well as of the national taxes transferred
to the local budget in full volume.
2. The
executive and administrative bodies of the local self-government shall have the
right to select a body and(or) authorized persons who will be responsible for collection of taxes and fees (hereinafter
referred to as "local tax
bodies"), as prescribed by Part 1 of this Article.
3.
Local tax bodies shall perform collection of taxes and fees in the manner
established by this Code and by an authorized government agency.
4.
Tax service bodies shall control the work of the local tax bodies.
5.
Local tax bodies shall be required to:
1) issue a receipt or
another document to the taxpayer confirming
payment of taxes and fees;
2) deposit amounts with the
bank institutions in full and in a timely manner, not later than the day
following the day on which a receipt or another document is issued, confirming
payment of the fee, or in the absence of the bank institutions in the inhabited
area, to deposit the indicated amounts to the local budget within three
business days;
3) ensure that receipts and documents are filled
out properly and stored securely;
4) file reports with a tax
body on accrued and received amounts of taxes and fees, on use of receipts and
documents, as well as on deposit of tax and fee amounts with the bank or administrative
and executive bodies of the local self-governments in the manner and by the
deadline established by an authorized government agency.
6.
To perform their duties, local tax bodies shall have the right to:
1) keep records of the taxpayers’ registration;
2) keep accounting of receipts
transferred to the corresponding local budget;
3) conduct office verification;
4) conduct on-site inspections and
time studies;
5) initiate lawsuits under this Code
and other legislation of the
6) demand and receive from the
taxpayer the documents concerning the accrual and payment of taxes and fees
collected by administrative and executive bodies of the local self-governments.