Amendments to the Tax Code have been approved to encourage shareholders of commercial banks to increase their authorized capital

August 14, 2020: President of the Kyrgyz Republic Sooronbai Jeenbekov signed the Law "On Amendments to the Tax Code of the Kyrgyz Republic."

The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on June 17, 2020.

The purpose of the Law is to stimulate shareholders of commercial banks to increase the authorized capital of banks, create additional opportunities to attract foreign investors and ensure equal rights for investors, both residents and non-residents of the Kyrgyz Republic.

The law provides that:

- The retained earnings of the bank aimed at increasing the authorized capital, without paying dividends, is not a payment of income and does not entail a tax liability (Article 165 (Composition of the total annual income) of the Tax Code is supplemented by part 4);

- Retained earnings of the bank, directed by the taxpayer to increase the authorized capital, without paying dividends, as well as the transfer of shares to this taxpayer related to such an increase in the authorized capital, are not income payment and do not entail a tax liability. The corresponding addition is made to Article 223 (Procedure for withholding and tax rate on income of a foreign organization received from a source in the Kyrgyz Republic not related to a permanent establishment in the Kyrgyz Republic) of the Tax Code.

Link: http://www.president.kg/ru/sobytiya/17415_vneseni_izmeneniya_vnalogoviy_kodeks_kirgizskoy_respubliki

President approves amendments to the Tax Code providing for the introduction of the concept of a bonus taxpayer

August 14, 2020: President of the Kyrgyz Republic Sooronbai Jeenbekov signed the Law “On Amendments to the Tax Code of the Kyrgyz Republic”.

The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on June 25, 2020.

The law provides for a new version of Article 301 (Taxpayer of the bonus) of the Tax Code of the Kyrgyz Republic, according to which taxpayers of the bonus are domestic organizations, foreign organizations operating in the Kyrgyz Republic through a permanent establishment, as well as individual entrepreneurs entitled to use subsoil, with the exception of specialized water supply organizations for the selection and use of groundwater and organizations for the selection of groundwater for drinking water supply to settlements, as well as for rural producers in the field of animal husbandry, plant growing and fish farming.

The law comes into force upon the expiration of 6 months from the date of its official publication.

Link: http://www.president.kg/ru/sobytiya/17423_vneseni_izmeneniya_vnalogoviy_kodeks_kirgizskoy_respubliki

Amendments have been made to the Government Resolution "On issues of licensing the right to use subsoil"

On August 10, the Resolution of the Government of the Kyrgyz Republic of August 7, 2020 No. 414 on amendments to the Resolution of the Government of the Kyrgyz Republic "On issues of licensing the right to use subsoil" dated November 29, 2018 No. 561 was published.

The changes were made in order to improve the system of legal regulation in the field of subsoil use, in accordance with Articles 10 and 17 of the Constitutional Law of the Kyrgyz Republic "On the Government of the Kyrgyz Republic" Government of the Kyrgyz Republic.

Link: https://www.gov.kg/ru/npa/s/2611

Changes have been made to some legislative acts of the Kyrgyz Republic on the legal status of compatriots with foreign citizenship

August 10, 2020: President of the Kyrgyz Republic Sooronbai Jeenbekov signed the Law of the Kyrgyz Republic "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on the Legal Status of Compatriots with Foreign Citizenship."

The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on June 11, 2020.

The law aims to grant special rights and privileges to foreign citizens who previously held citizenship of the Kyrgyz Republic, regarding their legal status in the country, the order of stay, labor rights, crossing the state border, education and treatment.

Link: http://www.president.kg/ru/sobytiya/17345_vneseni_izmeneniya_vnekotorie_zakonodatelnie_akti_kirgizskoy_respubliki_povoprosam_pravovogo_pologheniya_sootechestvennikov_sinostrannim_graghdanstvom