2019 is declared as the Year of Regional Development and Digitalization of the Country

The President of the Kyrgyz Republic, Sooronbay Jeenbekov, declared 2019 as the Year of Regional Development and Digitalization of the Country by Decree No. 1 dated January 11, 2019.

According to the decree, the main focus in 2019 will be the promotion of the digital fundamentals of the country’s development. First of all, it is planned to provide universal broadband Internet throughout the Kyrgyz Republic, thanks to which it will be possible to get the most efficient, reliable and inexpensive connection of the country to global networks and data transmission routes.

In addition, by this decree, the President of the Kyrgyz Republic, in particular recommended to focus on creating a secure infrastructure for collecting, processing, storing and analyzing data, using the country’s energy potential and ensuring appropriate security according to international standards, and also pointed out the need to build data centers.

The President also noted the need to implement the projects “Safe City”, “Safe Road Traffic” and the transfer of public services to the “Tunduk” system, thanks to which the interaction of citizens with government bodies to obtain the necessary documents or certificates will be greatly improved.

The decree came into force on the date of official publication in the Erkin Too newspaper dated January 15, 2019 No. 2.

Procedure for confirming the residence of Kyrgyzstan has been simplified

In Kyrgyzstan, the procedure for obtaining a document to confirm the tax status (residence) of the Kyrgyz Republic has been simplified.

A new simplified procedure for obtaining the document was introduced in order to create favorable conditions for taxpayers and it is aimed at minimizing the contacts of business entities with employees of tax authorities.

Thus, the government of the Kyrgyz Republic approved the Regulation on the procedure of implementation of agreements on avoidance of double taxation and prevention of tax evasion on income and capital taxes entered into by and between the Kyrgyz Republic and foreign states.

According to this Regulation, in order to confirm residency, a taxpayer needs only to file a statement in the prescribed form if there is tax registration – to the central office of the State Tax Service, in the absence of tax registration – to the Ministry of Economy of the Kyrgyz Republic.

Previously, the taxpayer had to apply to the central office of the State Tax Service to confirm his residency after obtaining the relevant certificate of tax registration with the territorial tax authority.

The pilot project on state registration of legal entities in electronic form was introduced

From March 1, 2019 to January 1, 2020, the pilot project on state registration of legal entities in electronic form is being implemented in the territory of Bishkek and Chui region.

The approved Temporary procedure for state registration of legal entities in electronic form determines the procedure for state registration of legal entities using the information system for online registration of legal entities through the information and communication Internet network, on the State portal of electronic services.

For online registration of legal entities, the applicant shall:

1) have an identification card – a passport of a citizen of the Kyrgyz Republic of 2017 issue (ID-card);

2) to log in to the Information System by means of a reader (smart card), allowing to authenticate the applicant and the person on whose behalf the information will be signed.

Documents for registration of legal entities are submitted to the judicial authorities in the form of an electronic image of the document. The electronic image of the document is created using technical means in the manner prescribed by the approved Procedure.

The resolution came into force on March 1, 2019.

Draft law on introduction of a mechanism for resolving disputes between business entities and state bodies through arbitration

Ministry of Economy of the Kyrgyz Republic is developing a draft law, which plans to introduce a mechanism for appealing to an arbitration court in disputes between an entrepreneur and a controlling state body.

The initiated amendments will allow equalizing the rights of foreign and national investors in terms of resolving investment disputes through arbitration. They will also contribute to the International Arbitration Court at the Chamber of Commerce and Industry of the Kyrgyz Republic to resolve investment disputes between the Kyrgyz Republic and foreign, as well as domestic investors.

The Agreement on Trade and Economic Cooperation between the EAEU and its Member States with China has been ratified

President of the Kyrgyz Republic Sooronbay Jeenbekov signed the Law of the Kyrgyz Republic “On ratification of the Agreement on Trade and Economic Cooperation between the Eurasian Economic Union and its member states, on the one hand, and with China, on the other hand, signed on May 17, 2018 in Astana”.

The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on January 23, 2019.

The purpose of the Agreement is to create a basis for the further development of economic relations between the Parties by ensuring cooperation and simplifying interaction in the areas covered by this Agreement.

The law comes into force ten days from the date of official publication.

Fifth degree freedom of the air will be used in the Kyrgyz Republic

President of the Kyrgyz Republic Sooronbay Jeenbekov signed the Law of the Kyrgyz Republic “On amendments to the Air Code of the Kyrgyz Republic” adopted by the Jogorku Kenesh of the Kyrgyz Republic on December 6, 2018.

According to the law, the Air Code includes a definition of the right of “fifth degree freedom of the air”, meaning that foreign air vehicles have a right in respect of regular air transportation to offload and take on board passengers, luggage and cargo and (or) mailings within the territory of the Kyrgyz Republic from or to a third country.

The law comes into force ten days from the date of official publication. (It was published in the newspaper “Erkin Too” dated January 15, 2019 No. 2)

New fees for state registration (re-registration) and liquidation of legal entities and their branches (representative offices) have been established

New fees for state registration (re-registration) and liquidation of legal entities and their branches (representative offices) have been established.

The fee for state registration and liquidation of legal entities, branches (representative offices) is one calculation unit. For state re-registration of legal entities, branches (representative offices) a fee of 50 percent of the calculated indicator rate is established.

The Resolution comes into force on January 1, 2019.

New bank rate of the National Bank of the Kyrgyz Republic has been established

A new bank rate has been established by the Resolution of Management of the National Bank of the Kyrgyz Republic dated February 25, 2019 which is 4,50 % per annum.

The Resolution comes into force on February 26, 2019.