Legal News

Legal news from Grata International
(January 2021)

Table of contents:

  • On changes in the procedure and timeframes for the transition to the submission of tax reporting in the form of an electronic document
  • On changing the terms of introducing a temporary ban on the export of certain agricultural products from the Kyrgyz Republic
  • On renewal of inspections of payment organizations and operators of payment systems
  • On establishing of procedures of economic amnesty
  • On amendments to some legislative acts of the Kyrgyz Republic on issues related to realization of construction intentions
  • On determining the quota for labor migration
  • On approval of safety rules for crushing, sorting and beneficiation of minerals
  • On amendments to the Tax Code of the Kyrgyz Republic in terms of taxation of FEZ subjects

On changes in the procedure and timeframes for the transition to the submission of tax reporting in the form of an electronic document

In order to support business entities in the conditions of pandemic coronavirus infection “COVID-19”, the Decree of the Government of the Kyrgyz Republic dated 31 December 2020 № 641 changed the procedure and terms of transition to submission of tax returns in the form of an electronic document.

The decree establishes the deadline for transition to submission of tax returns in the form of an electronic document signed by a simple electronic signature: for organizations – from April 1, 2021, for individual entrepreneurs – from January 1, 2022.

It is determined that organizations and individual entrepreneurs registered as taxpayers of value added tax or importing and/or exporting goods are obliged to submit tax reports in the form of an electronic document signed with a qualified electronic signature. Other organizations, with the exception of peasant or farmer households, will make the transition to mandatory submission of tax returns in the form of an electronic document signed with a qualified electronic signature from January 1, 2022.

Taxpayers and individuals, prior to the deadline for transition to the mandatory submission of tax returns in the form of an electronic document, may submit tax returns in the form of an electronic document voluntarily.

The decree enters into force from 1 January 2021.

On changing the terms of introducing a temporary ban on the export of certain agricultural products from the Kyrgyz Republic

In order to prevent a critical shortage and to ensure food security, the Decree № 638 of the Government of the Kyrgyz Republic dated 30 December 2020 set a new deadline for the temporary ban on the export of certain types of agricultural products from the KR outside the customs territory of EAEU- from January 8, 2021.

Corn is also excluded from the list of certain types of agricultural goods for which there is a temporary export ban.

The decree comes into force on the day of its signing.

* The link refers to the Resolution of the Government of the Kyrgyz Republic dated 18 November 2020 No. 569, since the Resolution of the Government of the Kyrgyz Republic dated 30 December 2020 No. 638 is not available in public domain

On renewal of inspections of payment organizations and operators of payment systems

According to the Resolution of the Board of the National Bank of the Kyrgyz Republic “On temporary measures to suspend inspections and preliminary inspections of payment organizations/operators of payment systems/applicants in connection with the spread of COVID-19 coronavirus infection” dated 20 June 2020 No. 2020-P-14/38-6-(ПС):

– Implementation of the clause 21 of the Regulation “On licensing activities of payment organizations and payment system operators” was temporarily suspended, in terms of carrying out preliminary inspections for compliance with the requirements set out in clause 19 of the above regulation, related to on-site visits as part of consideration of issues on licensing activities of payment organizations and payment system operators;

– from 1 July 2020 inspections of activities of payment organizations and operators of payment systems were temporarily suspended, except for cases requiring urgent response in the payment system.

Thus, according to the mentioned Resolution of the National Bank of the Kyrgyz Republic:

– implementation of clause 21 of the Regulation “On licensing activities of payment organizations and operators of payment systems” is resumed; and

– inspections of activities of payment organizations and operators of payment systems are resumed.

On establishing of procedures of economic amnesty

Amendments to the Criminal Code of the Kyrgyz Republic No. 13 dated 31 December 2020, established that for a number of crimes against property and economic activities, in case of voluntary compensation of the damage caused to the owner or other owner, the person shall be exempt from criminal liability and punishment. In the case of repeated commission of these acts, exemption from criminal liability and punishment does not apply.

It was also determined that amounts of voluntarily compensated damages caused to the State shall be transferred to the republican budget revenues in accordance with the budget legislation.

The Law enters into force from the moment of its official publication.

On amendments to some legislative acts of the Kyrgyz Republic on issues related to realization of construction intentions

The Law of the Kyrgyz Republic № 3 dated 6 January 2021 introduced amendments to some legislative acts of the Kyrgyz Republic on issues of implementation of construction intentions.

In particular, the provisions of the Law of “On Urban Planning and Architecture of the Kyrgyz Republic”, which provided for the beginning of construction of urban development complex only after completion of all works on engineering preparation of the territory, bringing roads and main utilities to the site, are no longer valid, and it is determined that design and construction of multistoried residential buildings, public, industrial, water management facilities, as well as linear objects may be carried out by combining the design and construction processes.

The Law also provides that if the court takes measures to secure a claim in the form of seizure of property or funds owned by the developer, such measures shall be taken within the amount of the claim without stopping construction of the facility and its commissioning until the end of the court proceedings.

The law shall come into force fifteen days after the date of its official publication.

On determining the quota for labor migration

The Decree of the Government of the Kyrgyz Republic dated 12 January 2021 No. 2-p establishes a labor migration quota, which sets a limit on the number of foreign nationals and stateless persons arriving in the Kyrgyz Republic for labor activities by sectors of the economy and regions of the Kyrgyz Republic for 2021 in the amount of 16610 people. As for the sectors of the economy:

– industry, transport, communications and construction – 7,320 people;
– Agriculture and forestry, processing industry – 410 persons
– energy industry, geological exploration and mining industry – 3,355 people;
– Trade, services, catering and other economic activities – 4,340 people;
– Health care, education, science, culture and art – 2,070 people;
– crediting, banking, insurance – 70 people.

On approval of safety rules for crushing, sorting and beneficiation of minerals

The Resolution of the Government of the Kyrgyz Republic dated 20 January 2021 No. 18 approved the Safety Rules for crushing, sorting and beneficiation of minerals, the purpose of which is to protect the life and health of citizens, property of individuals and legal entities during the implementation of production processes of processing and beneficiation of minerals.

The rules establish the safety requirements to the production processes and are obligatory for execution at designing, construction, operation, expansion, reconstruction, technical re-equipment at processing and enrichment of minerals (natural accumulations of minerals, rocks). The Resolution applies to the mining enterprises of the Kyrgyz Republic where the processes of processing and enrichment of fuel and energy minerals, metal ores, polymetallic ores and other minerals are carried out.

The decree comes into force after one month from the date of its official publication.

The document is not available in public domain.

On amendments to the Tax Code of the Kyrgyz Republic in terms of taxation of FEZ subjects

Amendments introduced by the Law of the Kyrgyz republic dated 25 January 2021 No. 15 to the Tax Code of the Kyrgyz Republic have affected the specifics of taxation of FEZ subjects. The law stipulates that the export of goods produced in the territory of FEZ for the purpose of delivery to the territory of EAEU member states, except for the territory of the Kyrgyz Republic, is exempt from VAT. In case of failure to confirm the import of goods into the territory of EAEU member states and payment of established indirect taxes, the amount of VAT shall be subject to payment.

The law shall come into force fifteen days after the date of its official publication.

The document is not available in public domain.

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