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”.
4. Tax can be paid to the budget as a fixed amount (patent). It is compulsory, that taxes on specific types of economic activity be paid in the form of a patent. The list of types of activity, on which taxes shall be paid in the form of a patent, and the procedure of determining an amount to be paid for a patent shall be approved by the Legislative Chamber of the Jogorku Kenesh of the Kyrgyz Republic upon presentation by the Kyrgyz Republic Government.
1. A taxpayer should regularly make current tax payments to the budget not later than on the 20-th day of each month of a tax year at the rate of the appropriate tax, applied to the average monthly financial result of the economic activity for the preceding year, unless otherwise provided by the appropriate parts of this Tax Code.
2. Where a taxpayer lacks financial results for the preceding year, the amount of the current payments shall be determined by the Tax Service proceeding from the forecast data of a taxpayer.
3. Where, during a tax year, financial results of a taxpayer have changed, thetaxpayer is obliged to make appropriate changes with regards to the current payments in agreement with the Tax Service, both decreasing and increasing the amounts.
4. Financial sanctions shall be applied under Articles 63 and 64 of this Code, where a taxpayer has failed to make current payments or has failed to pay in a timely manner.
(Deleted)
1. Where losses previously deducted from the aggregate annual income are recovered, and written off debts are paid, the recovered amount shall be considered the income of the year in which it was received.
2. The recovered amount shall comprise:
1) the amount of money compensation;
2) value of goods, works performed, services provided and gains received, calculated at their market value at the taxpayer’s location.
1. Tax amount paid by the taxpayer- resident of the Kyrgyz Republic in a foreign state shall be allowed as a credit when payment of tax takes place in the Kyrgyz Republic, given there are agreements with this state on avoiding double taxation.
The credit amounts, stipulated by Item 1 of this Article, shall not exceed the tax amount, which would be paid in the Kyrgyz Republic in accordance with the current rates in the Kyrgyz Republic.
1. If the amount of the tax paid exceeds the amount of the tax assessed, the Tax Service shall:
1) apply the excess amount against a taxpayer’s liability regarding other taxes;
2) if a taxpayer agrees to it, apply any remaining amount to the taxpayer’s liability regarding advance payments;
2. refund any remaining amount to the taxpayer, including the interest calculated at the discount rate of the National Bank of the Kyrgyz Republic, within 30 days from the moment the excess amount occurred under Article 63 of this Code.
1. Upon written application by a taxpayer the Tax Service may against liquid collateral extend the time for payment of tax, except VAT on goods imported to the Kyrgyz Republic and excise tax. Such extension of payment time may refer to taxes already in arrears, assessed interest and fines. The bodies of the Tax Service may only extend the time for payment in respect of the following amounts:
1) Rayon Inspectorate, a maximum tax liability of 10,000 soms;
2) Oblast and Bishkek city Inspectorates, a maximum tax liability of 100,000 soms;
3) Republican Inspectorate, unlimited tax liability.
2. An extension may be granted under Item 1 of this Article only given evidence is provided to the Tax Service that the ultimate collection of the tax is not in danger, and the taxpayer agrees in writing that all taxes becoming due during the extended period of time will be declared and paid on time. Factors that must also be considered when evaluating a taxpayer’s application include the financial solvency of a taxpayer, any business or privatization plans of a taxpayer that include arrangements for payment of overdue taxes, and the length of time required for payment.
3. The Tax Service may require that a taxpayer furnish a written installment payment schedule or make other arrangements to ensure tax payment, as further conditions for granting an extension of payment time, stipulated by Item 1 of this Article.
4. If a taxpayer has been granted an extension under Item 1 of this Article:
1) interest is levied under the provisions of Article 63, notwithstanding the extension of time for payment;
2) duration of the period of limitations under the requirements of Item 5 of Article 52 of this Code is suspended for the period of extension; and
3) the Tax Service must not levy upon or seize the property of a taxpayer under the provisions of Article 52 or 54 of this Code, provided the requirements under Items 2 and 3 of this Article are satisfied.
5. The Tax Service may declare an extension under Item 1 of this Article null and void and proceed immediately to levy tax, if:
1) notwithstanding the provisions of Item 4 of this Article, the Director of the State Tax Inspectorate of the Ministry of Finance of the Kyrgyz Republic reveals during the period of extension that the ultimate payment of tax is in danger and informs the taxpayer of it in writing;
2) a taxpayer fails to timely file returns and pay taxes in accordance with tax declarations becoming due during the extension period;
3) a taxpayer defaults on requirements stipulated in Item 3 of this Article.
6. Upon a written application of a taxpayer the State Customs Committee of the Kyrgyz Republic has the right to extend the time for VAT payment on goods imported to the Kyrgyz Republic according to the procedure stipulated by Item from 2 to 5 of this Article.
7. Changing interest on principal payments subject to restructuring shall be suspended from the day a law on economic entity arrears restructuring comes into effect
1. Payments of a specific tax shall be applied in the following order:
1) the principal amount of tax.
2) interest on tax;
3) penalties and fines relating to tax;
2. The Tax Service is obliged to apply a tax payment to any assessed tax amount that is due, where:
1) a taxpayer fails to indicate to which specific tax or tax period the payment should be applied;
2) the payment is collected pursuant to a levy of tax or confiscation of property.
1. This Article applies where a legal person is liquidated, without having satisfied its tax liabilities.
2. Upon liquidation of a legal person the tax liability shall be paid in the manner established by the Civil Code of the Kyrgyz Republic and the Law of the Kyrgyz Republic "On Bankruptcy (Insolvency)".
(Deleted)
1. Assessment, withholding and transfer of tax to the budget at the source of income paid to other persons should be performed by all persons carrying on economic activity and paying:
1) wages to employees working under an agreement (contract, hire) of employment within the scope of their economic activity;
2) pensions, other than pensions paid under the state social security system ;
3) dividends and interest (except for physical persons);
4) Kyrgyz source income paid to a non-resident;
5) income and other one-time payments to physical persons-residents at the places other than their principal place of employment (study, service);
2. A person paying out income to another person shall be responsible for proper assessment, withholding and transfer of the full amount of income to the budget by the due date under item 1 of the present Article. Where taxes are not asssessed, withheld and fully transferred to the budget in a proper way and by the due date, a person paying income to another person shall have to pay to the budget the amount of tax due and appropriate fines and penalties.
3. A person withholding tax shall:
1) transfer tax to the budget within 10 days following the day on which the tax was withheld;
2) deleted
3) tax withheld at the source of payment to another person shall be credited to the taxpayer for the current tax year.
1. Tax that is not paid by the due date is a debt to the budget.
2. Where a person having tax liability fails to pay tax when it is due, the Tax Service is obliged to file with the court:
1) the case setting forth the amount of tax owed in order to have it enforced.
2) a petition in accordance with the provisions of the Law on Bankruptcy, requesting that the tax payer be liquidated as bankrupt.
1. If a taxpayer fails to pay tax by the time stipulated in Item 6 of Article 37 of the Tax Code, for the purpose of tax enforcement the Tax Service has the power:
1) to levy amounts of tax and other compulsory payments, that the taxpayer agrees with, to the budget, as well as amounts of financial and other sanctions, stipulated in this Code;
2) to seize a taxpayer’s property on court decision. The Tax Service has the power to bring a case on property seizure to court only if it has notified a taxpayer of its intention to do so in full compliance with the requirements of the Article of this Code, and the taxpayer failed to make his payment within 30 days following the service of this notification;
2. A person, in possession of property on which levy and seizure decision has been made by the court shall, on the written order of a designated officer, surrender the property to the Tax Service, except for such property, which has already been pledged as security to financial and crediting institutions.
3. A person who has failed to comply with Item 2 of this Article is liable to the budget at the amount of the property or security value, that does not exceed the amount received from levy and seizure.
4. A person complying with the requirements of Item 2 of this Article or Article 54 of this Code is, from the time of compliance, discharged from any obligation to the taxpayer or any other person to the extent of the value of the property surrendered to the Tax Service.
5. Levy and seizure under this Article shall be commenced within 6 years with respect to taxpayers -legal persons and within 3 years - with respect to physical persons, from the date of issuance of the notification of assessment pursuant to which the tax is collected.
6. Fixed production assets used by a taxpayer’s in commercial or economic activity shall be exempt from seizure, at the amount of -1000- minimum monthly wages. A taxpayer’s dwelling is exempt from seizure for the purpose of satisfying tax liability. Also exempt from seizure is the property which does not relate to economic activity, unless there is a court decision to this effect. (Wording of the Kyrgyz Republic Law of November 27, 2000).
1. The Tax Service is authorized to sell the property of the owner seized, confiscated by court decision. The sale of seized property shall be performed openly with the aim of avoiding abuse.
2. The sales proceeds are applied first of all against the expenses of the levy, seizure and sale, then against the tax, interest and penalty. Excess proceeds shall be returned to the taxpayer.
3. deleted
4. Seized property shall be released to the taxpayer if, prior to the sale thereof, the taxpayer pays the full amount of taxes for which levy and seizure was taken, including interest and penalty, and all expenses incurred in the levy and seizure.
1. Pursuant to the levy provision of Item 1 of Article 52 of this Code, the Tax Service has the power:
1) to issue a notification to a taxpayer - third party, including an employer or bank or another financial institution, handling its direct payments;
2) to collect these amounts directly from the bank account of a third party at the amount owed to the taxpayer by the third party and recognized by it.
2. Under this Article a notification issued to a taxpayer’s employer is specified as having a continuing legal effect until the tax is paid in full or the Tax Service revokes the notification. Wage amount of 10 minimum wages for a taxpayer and 5 minimum wages for each dependent shall be exempt from seizure under such a notification.
The State Customs Committee of the Kyrgyz Republic shall, on the basis of a notification issued by the Tax Service, seize export and import goods that are the property of a taxpayer on court decision. The value of the seized goods shall equal that of the tax arrears.
1. The provisions of Article 52 of this Code provide for the right to levy and seize foreign currency in possession of a taxpayer or being held by other persons, including a bank or another financial institution.
2. Foreign currency seized by the Tax Service shall be transferred to the National Bank of the Kyrgyz Republic to be disposed at the currency auction or at the exchange market. The amount received from the disposal of currency shall be transferred to the budget.
1. A taxpayer, who disagrees with an assessment or other decision of an official of the tax body may take an appeal from the decision made by the official to the Tax Service not later than 30 days following the decision. The appeal must be in writing and contain the necessary arguments and documents on which the taxpayer’s appeal is based.
2. The Tax Service shall consider and make a decision concerning the essence of the taxpayer’s appeal and inform the taxpayer in writing of its decision under Article 19 of this Code within 30 days, following the registration of the appeal by the Tax Service body, indicating the reasons for having taken its decision.
3. Where a tax body violates the term and procedure of notification of a taxpayer, the appeal shall be considered satisfied.
4. If a taxpayer is dissatisfied with the decision of the tax body concerning his appeal, or if the Tax Service has not made any decision on the appeal within 30 days, the taxpayer is entitled to appeal to a higher level body.
1. A taxpayer, who disagrees with the final decision made by the Tax Service under Article 57 of this Code, or with the final decision of a higher level body, may appeal to the appropriate court starting from the day of notification of such a decision having been taken.
Levy and confiscation action in court shall be suspended if an appeal from the action is under consideration under Articles 57 or 58 of this Code.
Where a taxpayer has appealed to the Tax Service or to a court, against tax assessment, the tax liability remains due and payable. The tax liability is due and comes into effect after the appropriate decision was made by the body of last resort according to the established procedure. Penalties shall not be assessed on the amount shown in the taxpayer's appeal, which was satisfied by the decision of the body of last resort, for the whole period of appeal consideration. The tax liability should be paid at the amount determined by the higher level Tax body or court with regards to the appeal after the decision was taken by them .
Taxpayers shall be responsible
for correct assessment and timely payment of taxes to the budget under the
provisions of the Tax Code.
Liability for penalties or interest under the provisions of this Code shall be calculated separately from the amount of tax.
If the amount of tax is not paid by the due date and also under the Law on economic entity arrears restructuring, the taxpayer is obligated to pay interest on the amount payable for the period from the day following the due date of tax payment up to the date the tax is actually paid.
The total amount of interest assessed for late payment of tax under item 1 of this Article may not exceed 100 % of the principle amount of tax debt.
The rate of interest on overdue tax payments shall be equal to the discount rate of the National Bank of the Kyrgyz Republic.
1. A taxpayer who fails to file a declaration by the due date thereof is liable for a penalty of 5% of the unpaid tax amount for each month that the failure continues, but not more than 10% of the unpaid tax amount in total for physical persons and not more than 20% - for legal persons.
2. If a taxpayer fails to pay an assessed amount of tax by the date specified in the notification, the taxpayer is liable for a financial sanction - a penalty of 5% of the unpaid tax for each month that it remains unpaid.
3. The total amount of combined penalty under Items 1 and 2 of this Article cannot exceed 10% of the unpaid amount in total for physical persons and not more than 25% - for legal persons;
4. The application of this Article also extends to the case of failure to pay the full amount of tax.
1. If the amount of tax required to be shown on a declaration exceeds the amount actually shown on the declaration, and the Tax Service detects that the understatement of tax has been done intentionally or through falsification of documents, the taxpayer is liable for a financial sanction - a penalty of 100% of the understated amount of tax.
2. If the amount of tax required to be shown on a declaration exceeds the amount shown on the declaration, and the Tax Service detected the fact of tax under- statement caused by negligence or untimely delivery of normative circulars, declaration forms, calculations etc., the taxpayer is liable for a financial sanction - a penalty of 50% of the understated amount of tax.
If a taxpayer carries on economic activity without getting registered with the Tax Service as an economic subject in accordance with this Code, the taxpayer is liable for a financial sanction - a penalty of 200% of the tax amount payable for the entire period of such activity.
1. If a taxpayer interferes with an investigation related to his tax liability, an administrative sanction is imposed on that person - a penalty of 5% of the unpaid amount for each month or fraction of a month during which the failure continues.
2. A person is considered to interfere with tax investigation if this person:
1) fails to comply with a lawful request by the Tax Service to examine documents or records, connected with economic activity, that are under control of that person.
1. Where an official is required to withhold, collect, account for, or pay over any tax and meet other requirements imposed by this Code and that person:
1) fails to withhold, collect, account for or pay over this tax and fails to meet other requirements stipulated by this Code;
2) attempts to evade such tax or the payment thereof, then any responsible official shall be personally liable to a fine.
2. The fine imposed by this Article on officials shall not exceed the total amount of tax not withheld, not collected, not paid over or evaded.
3. For the purposes of this Article penalties that do not exceed 20 minimum monthly wages shall be applied to an official , who is:
1) Head who had a reason to know of the acts referred to in Item 1 of this Article;
2) Chief Accountant or other principal officer who has supervisory or control functions over the acts referred to in Item 1 of this Article and who had prior knowledge of the above mentioned wrongful acts.
4. The provisions of this Article shall also be applied to physical persons responsible for withholding, collecting, accounting for and paying any tax stipulated by this Code.
1. Preliminary investigation of tax offenses shall be conducted by special divisions (tax police bodies) of the State Tax Inspectorate of the Ministry of Finance of the Kyrgyz Republic.
1. A person designated to administer tax legislation, who -
2) withholds for his own or other use not provided for in the tax law any fraction of the amount of collected tax;
3) files an incorrect report, whether orally or in writing, of the amounts of tax collected or received by him;
4) uses his position as a Tax Service officer to obtain money or any other advantage from the taxpayer or any other person;
5) accepts from a taxpayer or from any other person money, or any other advantage to facilitate the reduction of actual or potential tax arrears;
6) collects or attempts to collect taxes, without being authorized to do so;
7) does not observe commercial secret and privacy of deposits, required by the Law shall be held guilty of an administrative, disciplinary, property and criminal offense.
2. Direct losses (damage, including loss of profit) inflicted on taxpayers by reason of duties being improperly performed by tax bodies and their officers shall be subject to compensation in the order established by the current legislation.
3. Besides, for the purposes of this Article, a penalty of 20 minimum monthly wages shall be imposed on officials and authorized persons of tax bodies by the appropriate bodies of the Tax Service.
Where wrongful acts of Tax Service officers were proved, the direct losses incurred shall be appropriately recovered at the expense of the Republican and local budgets and the Tax Service funds.
The Ministry of Finance of the Kyrgyz Republic and local financial bodies shall pay compensation of losses within 3 days following the decision of the appropriate tax body or court. Where delay of payment takes place, the Ministry of Finance of the Kyrgyz Republic and local financial bodies shall pay interest for each day of delay at the discount rate of the National Bank of the Kyrgyz Republic.