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New tax regime for small businesses will take effect on January 1, 2021

IBC
September 1, 2020

On January 1, 2021, a new tax regime will come into force for small businesses: if the volume of trade is up to 8 million soms, the entrepreneur will not submit a tax report and for the first year the tax rate will be 0%, Kyrgyz Prime Minister Kubatbek Boronov said.

“We think this is a good support for business,” he said at a weekly briefing.

The Prime Minister spoke about the Government Action Plan for the current year, the Government Press Office reported.

Since July 1, 2020, as part of the project on the fiscalization of tax procedures, the processes of introducing digital platforms of tax management have begun. Electronic invoices, an automated gas station management system, an electronic consignment note, and virtual cash registers were introduced.

“The fiscalization of tax procedures is yielding results,” said the Prime Minister. “For example, the State Tax Service under the Government of the Kyrgyz Republic collected 6 billion 859.1 million soms in July, fulfilling the plan by 109.9%, which is more by 616.1 million soms in monetary terms. Compared to 2019, the State Tax Service collected taxes by 548.9 million soms more.”

Since August 2020, a patent for economic activity and an insurance policy have been combined into one document and transferred to electronic format. For all entrepreneurs, the system for filling out a single tax return will be simplified, and electronic declaration mechanisms will be introduced to simplify the procedure for importing goods.