On clarification on the procedure for installing and using equipment designed to accept payments using bank payment cards or electronic money
There have been significant changes in the List of separate types of activities, in the implementation of which individual entrepreneurs and legal entities are obliged to ensure the installation and use of equipment (software and hardware devices) in the places of their activities, designed to accept payments using bank payment cards or electronic money.
It is defined that individual entrepreneurs and legal entities carrying out activities according to the List shall ensure the installation and use of the said equipment, except for those located in places where there is no public telecommunication network, or carrying out activities in the sphere of wholesale and retail trade in agricultural products of their own production, or in the implementation of activities through non-stationary trade objects.
The list of separate types of activities:
– Wholesale and retail trade with retail area of 20 square meters and more (including the sale of goods and provision of services in points located in shopping centers);
– Sale of pharmaceuticals through pharmacies and pharmacy outlets;
– Retail sale of petroleum products at gasoline stations;
– Catering services;
– Provision of health services;
– Provision of hotel services;
– Providing a tourist product;
– Sale of tickets for passenger transportation and cargo transportation by rail, water, air and land transport;
– Provision of repair, maintenance and rental services for vehicles;
– Provision of insurance services;
– Trade in goods and services on the Internet;
– Provision of educational services;
– Provision of physical fitness and sports services, provision of entertainment services (bowling, cinema, various areas, etc.);
– Provision of legal and notary services;
– Provision of cosmetic and hairdressing services in stationary premises;
– Providing sauna and bath services;
– Provision of wedding salon services;
– Provision of services for celebrations and rites.
On prohibition of activities related to geological exploration for the purpose of prospecting, exploration and development of uranium and thorium deposits in the Kyrgyz Republic
The Law is aimed at protecting the health of the population, land, water bodies, flora and fauna, ensuring the rights of citizens to an environment favorable for life, work and recreation, as well as radiation and environmental safety in the Kyrgyz Republic.
According to the Law, it is prohibited in the Kyrgyz Republic:
– to carry out activities related to geological study of subsoil for the purpose of searching and exploration of uranium and thorium deposits;
– to develop uranium and thorium deposits (uranium and thorium mining);
– to develop radioactive tailings dumps, mining dumps and their transfer to private individuals for further development and maintenance.
The import of uranium and thorium-containing raw materials and waste into the territory of the Kyrgyz Republic is prohibited.
The Law becomes effective upon fifteen days expiry after its official publication. It was published in Erkin Too newspaper N 104 dated 17 December 2019.
On adoption of the Law on the national budget of the Kyrgyz Republic for 2020 and the forecast for 2021-2022
The national budget of the Kyrgyz Republic for 2020 and the forecast for the consolidated budget of the Kyrgyz Republic for 2020-2022 was approved.
The law establishes the minimum wage for 2020 at KGS 1,854.0, for 2021 at KGS 1,701 and for 2022 at KGS 2,050.0.
The Law became effective on 1 January 2020. Published in the newspaper “Erkin Too” dated December 24, 2019 N 106.
On introduction of a pilot (experimental) mode pertaining to the marking of goods by means of digital identification
In order to test the system and mechanism of marking goods by means of digital identification and to prepare producers and importers for introduction of compulsory marking of goods, the State Tax Service under the Government of the Kyrgyz Republic and the State Customs Service under the Government of the Kyrgyz Republic together with the closed joint-stock company “Alpha Telecom” (by agreement) were instructed to conduct preparatory work for introduction of a pilot (experimental) project on marking of goods by December 31, 2019.
From 1 January to 30 June 2020, the marking of goods by means of digital identification will be introduced in a experimental (pilot) mode.
The Resolution shall enter into force after fifteen days from the date of official publication and shall be valid until June 30, 2020. It was published in the Erkin Too newspaper No. 1 of January 7, 2020.
On clarification and settlement of the bankruptcy procedures
In order to regulate the bankruptcy procedure and strengthen the protection of creditors’ rights, The Law of the Kyrgyz Republic on Amendments to Certain Legislative Acts of the Kyrgyz Republic (to the Labor Code of the Kyrgyz Republic, the Laws of the Kyrgyz Republic on the Licensing and Permissive System in the Kyrgyz Republic, on Bankruptcy (Insolvency)) introduced the following amendments:
– it is prohibited to appoint inefficient managers who have brought economic entities to bankruptcy as an administrator;
– certain provisions of the Law of the Kyrgyz Republic “On Bankruptcy (Insolvency)” have been brought in line with the Civil Procedural Code of the Kyrgyz Republic;
– Provision has been made for the creditors to participate in approval of the conditions for realization of the debtor’s assets in the course of bankruptcy proceedings. At present, in practice, this norm takes place in the work of administrators, but is not fixed by law;
– the possibility is provided to transfer the debtor’s licenses, trademarks and copyrights to a newly established legal entity on the same terms and conditions as those issued to the debtor;
– provision has been made for the possibility of continuing the execution of contracts aimed at the rehabilitation of the debtor. This would avoid cases where enterprises with a chance of rehabilitation were forced to cease to operate after the commencement of bankruptcy proceedings because of the interruption of services necessary for the debtor’s operation;
– provision is made for creditors to attend meetings of creditors when the rehabilitation plan is approved or modified at any stage of rehabilitation;
– Provision is made for creditors to listen once a quarter to the administrator’s work and to approve the costs of the bankruptcy proceedings. This will increase the transparency of the administrator’s activities, as well as reduce the administrator’s costs in bankruptcy proceedings;
– in case of bankruptcy proceedings of the absent debtor, it is possible for the court to recover the costs of the special administration procedure if the debtor is found;
– the gaps in the Law of the Kyrgyz Republic “On Bankruptcy (Insolvency)” have been eliminated.
The Law shall enter into force upon expiry of ten days from the date of its official publication. Published in the newspaper “Erkin Too” dated January 10, 2020 N 2.
On ratification of the Agreement between Kyrgyzstan and Turkey on mutual promotion and protection of investments
The President of the Kyrgyz Republic Sooronbai Zheenbekov signed the Law of the Kyrgyz Republic “On Ratification of the Agreement between the Kyrgyz Republic and Turkey on Mutual Promotion and Protection of Investments, signed on April 9, 2018 in Ankara”.
The Law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on December 12, 2019.
According to the Law, the Ministry of Foreign Affairs of the Kyrgyz Republic is required to notify the Turkish side in due course on the completion by the Kyrgyz Republic of the domestic procedures necessary for the entry into force of the said Agreement.
The Law will enter into force 10 days after its official publication.
For reference:
The Agreement establishes obligations between the Kyrgyz Republic and the Turkish Republic (the Contracting Parties) on promotion and protection of investments in the territory of the Contracting Parties.
The Agreement provides for mechanisms to promote and protect investments by each Contracting Party in accordance with the standards of international law, as well as to ensure fair equitable treatment, full protection and security in the territory of the other Contracting Party.
The Agreement establishes the investment regime under which each Contracting Party shall apply in its territory not less favourable treatment than that accorded to investors of any third party under its laws and regulations.
In addition, the Agreement contains rules stipulating that investments shall not be expropriated, nationalized or directly or indirectly subject to measures having similar results.
At the same time, it is stipulated that each Contracting Party shall permit, in good faith, the transfer of all transfers related to an investment freely and without delay, both to and from its territory, based on the non-discriminatory application of its laws.
The Agreement establishes rules for the settlement of disputes between one Contracting Party and the investors of the other Contracting Party, as well as for the settlement of disputes between Contracting Parties, where in the event of a dispute the terms and conditions for dispute settlement, such as direct and constructive negotiations, are determined, or the Contracting Parties may apply to an arbitration tribunal.
On ratification of the Agreement on harmonization of the legislation of the EAEU member states in the area of financial market
President Sooronbai Zheenbekov signed the Law of the Kyrgyz Republic “On Ratification of the Agreement on Harmonization of Legislation of Member States of the Eurasian Economic Union in the Financial Market, signed on November 6, 2018 in Moscow”.
The Law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on December 12, 2019.
The Law requires the Ministry of Foreign Affairs of the Kyrgyz Republic to notify the Eurasian Economic Commission of the Kyrgyz Republic’s compliance with the domestic procedures required for the entry into force of the said Agreement.
The Law shall enter into force 10 days after its official publication.
For reference:
This Agreement has been developed for the purpose of establishing a common financial market within the Eurasian Economic Union (EEU), ensuring mutual recognition of licenses for activities in the financial services sectors (banking, insurance, securities market services) and non-discriminatory access to the financial markets of EEU Member States.
The Agreement defines the directions and procedures for harmonizing the legislation of the EEU Member States in the banking, insurance and securities market services sectors on the basis of international principles and standards in the financial market.
On maintaining the discount rate of the National Bank of the Kyrgyz Republic
On 27 January 2020, the Board of the National Bank of the Kyrgyz Republic decided to keep the discount rate (key rate) at 4.25 percent. The decision became effective on 28 January 2020.
Monetary policy of the National Bank in 2020 will be aimed at keeping the inflation rate within the medium-term target – no higher than 5-7 percent.
Decisions on the key rate will be made taking into account the actual level and projected dynamics of inflation in relation to the target benchmark, as well as economic development. In the event of risks from internal and external conditions, the National Bank may consider the possibility of adjusting the monetary policy