During the last session of the Jogorku Kenesh, a draft law was approved concerning amendments to various legislative acts of the Kyrgyz Republic related to taxation, social insurance, and non-tax revenues.
The State Tax Service reports that this draft law was developed in accordance with the decree of the President of Kyrgyzstan regarding measures to support certain sectors of the economy, as well as to improve legislation and enhance its transparency and effectiveness.
The measures adopted are aimed at the comprehensive development of the jewelry and textile industries, as well as supporting small and medium-sized enterprises.
Key provisions of the draft law:
– exemption from VAT for equipment, technologies, reagents, and semi-finished products used in jewelry production,
– cancellation of taxes for individuals and legal entities when selling vehicles,
– write-off of tax debts for individuals arising from transactions involving the re-export of vehicles,
– exemption of automobile manufacturers from sales tax when selling vehicles,
– reduction of income tax rates and insurance contribution tariffs for the sewing and textile sector,
– establishment of an insurance contribution rate of 6% of the truncated average monthly salary for landlords,
– reduction of the single tax to 0.1% for activities carried out outside Kyrgyzstan,
– reduction of the tax rate on transactions through banks of foreign states to 0.1%,
– legalization of stocks of jewelry made of precious metals imported or produced earlier, within two months, with a moratorium on inspections by tax authorities during the legalization period,
– the possibility for domestic producers of jewelry made of precious metals to independently assay and hallmark their products, with discussions on reducing assay fees,
– amendments to the Administrative Procedural Code, the Law "On Arbitration Courts," and the Tax Code of the Kyrgyz Republic,
– cancellation of licensing for the retail sale of alcoholic beverages under the Law "On the Licensing and Permitting System" and legislation on the state monopoly on the production and sale of ethyl alcohol and alcoholic beverages.
