1. The Tax Service of the Kyrgyz Republic comprises the State Tax Inspectorate of the Ministry of Finance of the Kyrgyz Republic and its local bodies.
Tax inspectors authorized by the heads of appropriate tax inspectorates shall perform the duties of ensuring this Code requirements being implemented
The legal basis for the activities of the Tax Service is the Constitution of the Kyrgyz Republic, this Tax Code, and other laws of the Kyrgyz Republic which do not contradict this Code.
The Ministry of Finance of the Kyrgyz Republic is obliged to develop appropriate documentation forms on taxes; prepare instructions on the procedure of filing all the required documents in accordance with Article 8 of this Code.
1. The State Tax Inspectorate of the Ministry of Finance of the Kyrgyz Republic and its bodies are the only bodies authorized to carry out inspections of taxpayer for the purpose of ascertaining tax liability. When conducting an inspection they shall be governed by the Articles of this Code.
2. Tax inspection of taxpayers shall be conducted on the basis of a written order of a state tax inspectorate head, indicating the name of an enterprise, issues to be checked and dates of inspection, but not more than once a year by one of the bodies : rayon, city, oblast or republican tax inspectorate and the duration of an inspection must not exceed 30 days. If necessary, the inspection can be prolonged for another 10 days on the written permission of the management of the State tax inspectorate. It is prohibited to conduct any other inspections, except for counter inspections.
3. If the Tax Service has received documentary evidence to the effect that there are all the facts of the understatement of tax by the previously inspected taxpayer, which were not revealed during the inspection, it is entitled to conduct another inspection, lasting no more than 10 days, having first informed head of the economic entity about it, and given all the inspection requirements are met. An additional inspection shall be conducted only on the basis of this documentary evidence within the above mentioned period of time.
4. The results of each inspection shall be reflected in a act or report issued by the authorized officers of the Tax Service and signed by all the participants of an inspection. A copy of the document certifying the fact that the inspection has taken place shall be served on the official of the economic entity that has been inspected. If the subject under inspection refuses to familiarize himself with the act of the inspection and sign it, an appropriate record shall be entered in the act.Legal entities and individuals conducting economic activity on a compulsory patent basis shall not be subject to tax inspections"
The basic functions of the Tax Service are to collect taxes, ensure the implementation of tax legislation, study its effectiveness and influence on the development of the market economy, and participate in the preparation of draft treaties with other states on tax-related issues.
For the purposes of efficient implementation of the Tax Code calculations, notifications, returns, tables, and other documents must conform to the format and be developed in the manner determined by the Tax Service. These documents can be published with the permission of the Tax Service. The Tax Service shall bring the documents to the notice of each taxpayer through mass media.
1) to other employees of the Tax Service in the course, or for the purpose, of carrying out their duties under this Code;
2) to law enforcement bodies only in respect of the commenced criminal actions, for the purpose of prosecuting persons who have committed tax offenses;
3) to a court, in the course of proceedings establishing a taxpayer's tax liability or its responsibility for tax offences;
4) to the tax authorities of a foreign state in accordance with the international treaties
1. The State Tax Inspectorate of the Ministry of Finance of the Kyrgyz Republic shall assign an identification code, which is applicable with regards to all types of tax behavior and is taken from the uniform register of the Kyrgyz Republic, to each taxpayer (including persons who are not taxpayers, but who make payments, taxable to the recipients of these payments, within the limits stipulated in this Code). The Tax Service shall indicate a taxpayer's identification code in all communications sent to the taxpayer.
2. A taxpayer shall indicate its identification tax code on any return, notification, or other document used for the purposes of implementing the requirements of the Tax Code.
3. A taxpayer, having submitted the required documents to get registered at the Tax Inspectorate, must apply to the same Tax Inspectorate for a taxpayer identification code within ten days of filing the registration documents. Certain taxpayers, whose register is to be determined by the State Tax Inspectorate, shall have a specific period during which they shall apply to the Tax Service in order to get their taxpayer registration identification number.
1. Tax consultants may be :
1) physical persons, having received a qualification certificate of a tax consultant;
2) legal persons, having obtained a license to the effect that they have the right to carry on consultative activity on tax issues;
3) persons, having obtained a license to the effect that they have the right to supply auditing and legal services and having received a certificate of a tax consultant;
4) auditing and legal organizations, having obtained a license to the effect that they have the right to render auditing and legal services.
2. The objective of tax consultative activity is to assist citizens and legal persons in accurate and legal assessment and payment of taxes, meeting their tax liabilities under the Tax Code of the Kyrgyz Republic, render high quality, professional assistance and represent them in courts, law enforcement and tax bodies.
3. The goal of a tax consultant, based on the information provided to him on the instruction and (or) on behalf of a client (principal), is to render assistance when assessing and paying taxes under the Tax Code of the Kyrgyz Republic.
4. The basic principles regulating tax consulting activity are ethic and professional norms of a tax consultant and bearing responsibility where these norms are violated. To ethic and professional norms refer professionalism, independence, honesty, objectiveness, compliance with the Tax Code of the Kyrgyz Republic and other laws that do not contradict the Constitution of the Kyrgyz Republic.
5. Tax consultants are independent of the government bodies, their clients (principals), third parties.
An notification (or other official document) on tax assessment or tax arrears is served on a taxpayer by the State Tax Inspectorate of the Ministry of Finance of the Kyrgyz Republic or its local bodies.
Notification is binding only if it is authorized by this Code, is signed by an authorized official, contains the full name and title of the head of the Tax Inspectorate and the official seal, and is served upon a taxpayer in the manner stipulated by Items 3 and 4 of this Article.
Notification is considered sufficiently served upon a physical person if personally delivered to that person in the written form to the last registered business address of that person, or is delivered to the residential address of that person.
A notification or other official document issued under this Code shall not be considered valid or effective where there is a failure to comply with the requirements of Items 1 or 2 of Article 19 of this Code, even if the taxpayer had effective knowledge of the notification and its content. The burden of proving the taxpayer has such knowledge is with the Tax Service.
A notification or any other official document issued under this Code shall not be considered valid or effective by reason of defects even if it is, in substance and effect, in conformity with this Code and the person affected by the notification or document is designated in it according to common understanding.
Any time period with regards to tax behavior prescribed by this Code begins on the day after the legal act that causes the time period to begin running.
Time period with regards to tax behavior ceases at the end of the working day following the last day of the period. If the day following the last day is on Saturday, Sunday or legal holiday, the time period with regards to tax behavior ceases at the end of the next working day.
Taxes shall be assessed and paid in the national currency of the Kyrgyz Republic.
1. Taxpayers are required to keep records, books and accounts as prescribed by the appropriate instructions.
2. Taxpayers-legal persons are required to retain records, books and accounts for 6 years, taxpayers-physical persons - for 3 years for the administration of any tax to which the records relate.
3. A taxpayer who has prepared records as required under this Article in a language other than the national or Russian language shall, upon the request of the Tax Service, provide a translation of the records into the appropriate language.
1. If required by this Code, every taxpayer must, not more than once a year, file a completed tax declaration with the Tax Service.
2. A tax declaration must be signed by a taxpayer or, in the case of a taxpayer under a legal disability, by a taxpayer’s legal representative.
Under the provisions of this Code, payers of income shall provide the State Tax Inspectorate of the Ministry of finance of the Kyrgyz Republic and the person having received the income with written information to this effect.
The Tax Service may extend the period in which a tax declaration is required to be filed under this Code, if the taxpayer applies for the extension by the due date, but for a period no longer than a month.
1) furnish the information concerning business transactions of this subject with the taxpayer being inspected;
2) appear at the location of an STI office for the purpose of clarifying the issues, producing documents or other evidence in possession of that person that are described in the notification.
2. An authorized officer, supported by written powers, has the right to enter any business premises, (except dwelling) or premises open to the public during working hours of the taxpayer under inspection, without prior notification, for the purpose of checking if the taxpayer acts in compliance with the Tax Code requirements and with the subsequent official drawing up of the examination results.
3. An authorized official who for an authorized purpose legally enters the premises under Item 2 of the present Article has the right:
1) to obtain, make a copy of any document, concerning the object of taxation at the expense of the State Tax Service;
2) to obtain and seal any exhibits with the drawing up of appropriate papers;
3) to instruct installation of monitor meters and check their readings;
4) to seal records or other items.
If an authorized officer obtains a record or other item pursuant to the authority provided under this item, the Tax Service may make a copy of the record or other document and must return the original to it’s owner within 5 days unless otherwise permitted by court order.
4. This Article does not authorize access to the premises of diplomatic, consular, or other missions of foreign countries and international organizations as well as residents, who enjoy immunity from such investigations under the international law and the Law of the Kyrgyz Republic.
1. Banks and other finance and crediting establishments are required to meet the following requirements:
1) deleted)
2) assign precedence to payment orders and other instructions from taxpayer clients regarding the transfer or payment of taxes from their commercial or other accounts, providing there are funds in these accounts;
3) transfer taxes and other amounts due to the budget on the day when a transaction involving withdrawal of money from the taxpayer’s commercial or other account has been completed;
4) upon the written application of a higher level body, give a permission to authorized officials of the Tax Service to audit past or present transactions with commercial and other accounts and verify the presence of funds on the accounts of legal entities and audit the transactions and verify the availability of funds on the accounts of specific persons;
5) stop all transactions involving disbursement, transfer and withdrawal of money from commercial and other accounts of taxpayers on the instructions of the Tax Service under the provisions of Article 54 or 55 of this Code and assign precedence to instructions regarding unconditional collection of the taxes involved;
6) pursuant to Article 27 of this Code, supply the Tax Service with the following information :
a) on transactions involving commercial and other accounts within a given period of time and on availability of funds on the accounts of taxpayers;
7) Submit information reports on interest paid, pursuant to the provisions of Article 25 of this Code.
2. Commodity and stock exchanges are required to submit similar information to Tax Inspectorates.
1. A taxpayer shall determine the amount of receipts for the purposes of taxation with the following methods:
1) on the basis of invoices;
3) on a combined basis.
2. The method, which was selected for accounting purposes, must be also used for tax assessment and shall not be changed during a tax year.
3. (Deleted)
If a taxpayer is changing the accounting method in the succeeding tax year he shall notify the appropriate tax office of his intention a month before the beginning of the new tax year.
1. The Tax Inspectorate shall make an assessment of the tax due at the amount shown by the taxpayer in the tax declaration. If the Tax Service considers the assessment made by a taxpayer incorrect, it may reassess the tax and serve a notification on the taxpayer about the changes introduced in accordance with Article 37 of this Code.
2. If a taxpayer has an obligation to file a tax declaration and fails to do so, or does not show its tax liability on the declaration, the Tax Service is entitled to make an assessment on the calculation basis or the basis of the previous reporting period and shall serve a notification on the taxpayer of any assessment it has made under the provisions of Article 37 of this Code.
3. A taxpayer is required to pay the tax shown as payable by the date stated in the assessment notification.
The Tax service is obliged to apply financial sanctions stipulated in Chapter 9 of this Code from the date a taxpayer incorrectly assessed tax or failed to pay the full amount of tax or pay it in a timely manner, except for cases when it occurs through the fault of the Tax service or as a result of inopportune financing of works within the limits of state and development budget allocations. Additional assessment or refund of taxes shall be made for a period starting from the date of the last audit up to the date when excess payment or underassessment is revealed.
1. Inventory for the purposes of taxation shall be performed in accordance with the accounting standards.
2. A taxpayer is entitled to adjust the residual inventories value to the index of consumer prices (the level of inflation) from the day they were purchased up to the day of their being processed or sold. Revaluation shall be made through multiplying the above index by the value of the inventories.
3. The value increased (decreased) as a result of revaluation of inventories in accordance with item 2 of this Article shall not increase (decrease) the amount of taxable income.
1. Increment of assets value as a result of their disposal, that has to be included in the aggregate annual income of a taxpayer, shall be a positive difference between the receipts from disposal and residual balance sheet value of these assets.
2. The amount of losses arising from disposal of assets, which is subject to deduction from the aggregate annual income of a taxpayer, shall be the negative difference between the receipts from the disposal and balance sheet value of these assets.
3. (Deleted)
4. Items 1 and 2 of this Article shall not be applied to the depreciable assets or with regards to the residual inventories.
1. Cost of assets comprises expenses incurred in their purchase, production, construction, assembling and installation as well as other expenses, which increase their value, except for expenses, which a taxpayer is entitled to deduct.
2. Where only part of the assets is disposed, the value of the asset at the time of disposal shall be distributed between the residual and the disposed parts .
1. Revenue and deductions regarding long-term contracts shall be calculated during the tax year on the basis of a percentage performance of a contract (actual performance), and taxes shall be paid during the reporting year.
2. Where a taxpayer applies a method based on invoices, the performed part of the contract shall be determined through comparison of expenses incurred by the end of a tax year to the aggregate expenses regarding this contract.
3. Where a method based on payments is applied, the performed part of the contract shall be determined by the works (services) actually performed and paid for during the year.
(Deleted)
1. Declaration on aggregate annual income and deductions made shall be furnished with the local tax office, where the taxpayer is registered, on or before March 1 of the year following the reporting year.
2. Where a taxpayer terminates his economic activity in the Kyrgyz Republic, the Tax Service is entitled to require the taxpayer file a tax declaration for a period of less than 12 months by serving a notification in writing indicating the reason, the date, when and for what period a tax declaration is to be filed.
3. Where liquidation of a legal person takes place, a liquidation commission or a taxpayer shall inform the Tax Service about it in writing within three days. The taxpayer should file a declaration on aggregate annual income and deductions with the Tax Service body at the time of business termination within 30 days after the decision concerning the legal person’s liquidation was taken.
1. A notification of tax assessment must contain the following information:
1) taxpayer's name;
2) taxpayer’s identification code;
3) date of notification issuance;
4) tax issue to which the notification relates;
5) assessed amount of tax;
6) requirement for tax payment to be made within 30 days following the date of the notification issuance;
7) place where the payment shall be made and payment method;
8) summary statement of appeal procedures.
A taxpayer may request a refund or transfer of the paid amount to another tax liability within three years on the expiry of the tax period.
1. Tax is due and payable at the time specified by this Code.
2. The final tax amount is due and payable simultaneously with filing a declaration.
3. Payment of tax must be performed at the legal address of a taxpayer, except for the cases stipulated by the Law of the Kyrgyz Republic “On the State Budget”.