The State Tax Service intends to automatically deduct tax debts from citizens' bank accounts and wallets.

Виктор Сизов Economy
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The State Tax Service of the Kyrgyz Republic has proposed changes to the Tax Code that involve the automatic deduction of tax debts from bank accounts. This initiative aims to improve the mechanism for collecting tax arrears, allowing the tax service to approach banks and electronic money operators for the automatic deduction of confirmed debts.

How the new mechanism works

The taxpayer will receive a notification of the debt and will have 30 days to voluntarily repay the debt.

If the debt is not paid within the specified period, the STS will send a demand to the bank or payment system. Financial institutions and operators are required to promptly transfer the necessary amounts to settle the debt, and there are penalties for non-compliance with this requirement.

Collection is possible from any form of funds storage, and the tax authority will monitor that banks and operators fulfill their obligations for full repayment of the debt.

Who the changes are addressed to

These amendments apply only to individuals and their funds in bank accounts. Previously, such measures were applied exclusively to legal entities and individual entrepreneurs. "The changes are aimed at improving the mechanism for collecting confirmed tax debts and creating equal conditions for all taxpayers," the initiators emphasized.
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