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Law review for February 24-28, 2020

IBC
February 29, 2020

Parliament Committee approves the bill on the administration of income taxation of mining enterprises

On February 24, 2020, the Committee on Budget and Finance of the Jogorku Kenesh (Parliament) of the Kyrgyz Republic approved the draft law “On Amending the Tax Code of the Kyrgyz Republic”.

The bill aims to streamline the administration of income taxation of mining enterprises and to ensure the return of processed products of ores and concentrates containing precious metals. It is proposed to increase the income tax rate for mining and processing enterprises by 3% in the case of the sale of gold-bearing ores and concentrates and to revise the tax base of royalties when selling metal-containing ores and concentrates.

In case of export and sale of gold-bearing ores and concentrates outside the territory of the Kyrgyz Republic, the rate of this tax will increase. When exporting gold-bearing ores and concentrates subject to the refund of refined metal, an increase in the tax rate will not affect subsoil users, and the rate will remain the same.

Link: http://www.kenesh.kg/ru/news/show/9680/profilyniy-komitet-odobril-zakonoproekt-ob-administrirovanii-nalogooblozheniya-dohodov-predpriyatiy-gornodobivayushtey-otrasli

Parliament Committee approves the second reading of the draft law “On Biofuel”

On February 24, the Parliament Committee on Agrarian Policy, Water, Ecology and Regional Development approved the second reading of the draft law “On Biofuel”.

The bill has been developed to improve the environmental and economic situation, as well as reduce import fuel dependence.

Molasses is a more profitable raw material for the production of bioethanol. According to the Ministry of Agriculture and Land Reclamation of the Kyrgyz Republic, the cultivated area for sugar beets in the amount of 25 thousand hectares will fully ensure the country's annual demand for sugar. This in turn will make it possible to produce 1.3 million decalitres of bioethanol.

Link: http://www.kenesh.kg/ru/news/show/9681/komitet-zhogorku-kenesha-odobril-zakonoproekt-o-biotoplive-vo-vtorom-chtenii

Protocol of 2014 to the Forced Labor Convention, 1930 ratified

On February 24, 2020, President of the Kyrgyz Republic Sooronbai Jeenbekov signed the Law of the Kyrgyz Republic “On ratification of the Protocol of 2014 to the Forced Labor Convention, 1930.”

The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on January 16, 2020.

The law shall enter into force 10 days after the date of its official publication.

About the Protocol:

The Protocol to the Forced Labor Convention, 1930 was adopted at the 103rd session of the General Conference of the International Labor Organization on June 11, 2014 in Geneva (Switzerland).

The Kyrgyz Republic, upon joining the ILO on March 31, 1992, confirmed legal continuity with respect to ILO conventions ratified earlier by the USSR.

In accordance with part 3 of article 23 of the Constitution of the Kyrgyz Republic, forced labor is prohibited in the Kyrgyz Republic. Kyrgyzstan has ratified a number of international acts that contain rules on the prevention of forced labor.

The main objective of the Protocol of 2014 is to put an end to forced labor, to take effective measures to prevent and stop its use, to provide its victims with protection and access to appropriate and effective remedies, such as damages and sanctions against offenders resorting to forced labor.

After ratification of the Protocol of 2014, the Government of the Kyrgyz Republic, with the participation of the confederation of employers, public and other interested organizations, will develop an appropriate action plan for its implementation.

Link: http://www.president.kg/ru/sobytiya/16218_ratificirovan_protokol_2014_goda_k_konvencii_1930_goda_o_prinuditelnom_trudeThe draft law “On state registration of legal entities, branches (representative offices)” submitted for public discussion

On February 24, 2020, the draft Law of the Kyrgyz Republic “On state registration of legal entities, branches (representative offices)” was submitted for public discussion

The bill was developed in order to create a favorable and comfortable business environment for entrepreneurs, and to increase investment attractiveness.

According to the legislation, State registration (re-registration) of a legal entity, branch (representative office) is carried out within 3 business days from the date of submission of the required list of documents to the registration authority.

When the proposed amendment is adopted, the period of state registration of legal entities and individual entrepreneurs will be reduced from 3 to one business day, which will reduce the costs of founders related to the registration of a legal entity, optimize the interaction of authorized state bodies involved in the process of state registration (re-registration) of legal entities and will contribute to improving the investment climate in Kyrgyzstan.

State registration of legal entities in neighboring Kazakhstan is carried out within one hour, and in Uzbekistan within 30 minutes.

Reducing the period of state registration will also improve the country’s position in the Doing Business ranking.

Link: http://www.kenesh.kg/ru/article/show/6523/na-obshtestvennoe-obsuzhdenie-s-24-fevralya-2020-goda-vinositsya-proekt-zakona-kirgizskoy-respubliki-o-gosudarstvennoy-registratsii-yuridicheskih-lits-filialov-predstavitelystv

Parliament Committee supports the introducing of phased design and construction of residential buildings and industrial facilities

On February 25, deputies of the Jogorku Kenesh Committee on Transport, Communications, Architecture and Construction approved the second reading of the draft Law “On Amending Certain Legislative Acts of the Kyrgyz Republic in the Field of Construction (the Law of the Kyrgyz Republic “On Urban Planning and Architecture of the Kyrgyz Republic”, the Housing Code of the Kyrgyz Republic, and the Land Code)”.

The draft law was developed in order to solve problematic issues in the construction industry, in particular, the lengthy time for consideration of the submitted documents in government agencies, which inevitably leads to an increase in the construction cost.

The temporary provision on parallel design and construction was valid until the end of 2016, but after that the government did not extend it. In the conditions of the financial crisis, a quick payback on investment in construction and minimization of costs are required, for which it is necessary to reduce the project implementation time and its cost.

In this regard, Article 39 of the Law “On Urban Planning and Architecture of the Kyrgyz Republic” is proposed to be supplemented with part 1.1 as follows: “Design and construction of multi-story residential buildings, public facilities, as well as industrial, linear and water construction facilities can be phased, in the order established by the Government ... ".

In 2017, a group of MPs initiated a similar bill. However, the President of the Kyrgyz Republic objected to it on February 26, 2018. It was noted that the lack of the concept of “phased design and construction” and the uncertainty of cases of its application would create opportunities for abuse by both civil servants and unscrupulous construction organizations. Clarifications and additions have been made to the new bill.

Link: http://www.kenesh.kg/ru/news/show/9690/profilyniy-komitet-podderzhal-vnedrenie-proektirovaniya-i-stroitelystva-zhilih-domov-i-promobaektov-putem-sovmeshteniya-etih-protsessov

The Parliament approves the draft State Program “Development of the Judicial System of the Kyrgyz Republic for 2019 - 2022”

On February 26, the MPs approved the draft State Program “Development of the Judicial System of the Kyrgyz Republic for 2019–2022”.

The Committee decided to conduct annual monitoring on the implementation of the Program.

Link: http://www.kenesh.kg/en/news/show/9701/zhogorku-kenesh-utverdil-proekt-gosudarstvennoy-tselevoy-programmi-razvitie-sudebnoy-sistemi-kr-na-2019-2022-godi