The President instructed the Cabinet of Ministers to prepare and submit this draft law for consideration by the Jogorku Kenesh within a month.
The changes introduced to the Tax Code concern the taxation of participants in free economic zones. The key innovation affects paragraph 5 of article 430, which regulates the import of goods into the territory of the FEZ with subsequent export to the EAEU countries.
Let's examine the significant changes and their potential benefits for business.
Comparative analysis of the old and new versions of article 430 p.5:
| When importing goods into the territory of the FEZ with subsequent export to the territories of EAEU member states, except for the Kyrgyz Republic, a single tax is paid at the rates specified in article 423 of this Code, provided that the origin of the goods is established in accordance with the rules set forth in the EAEU Treaty. | Now, when importing goods into the territory of the FEZ with subsequent export, except for the Kyrgyz Republic, the same single tax is paid at the rates specified in article 423 of this Code, provided that the rules for determining the origin of the goods are followed, as stipulated in the EAEU Treaty. |
| A FEZ entity importing goods into the territory of the FEZ for subsequent export to EAEU member states is required to apply the regime established by article 324 of this Code. | A FEZ entity importing goods into the territory of the FEZ for subsequent export is also required to apply the regime established by article 324 of this Code. |
Main changes:
- The exception "except for the territory of the Kyrgyz Republic" has been removed for the re-export of goods from the FEZ to other EAEU countries.
- The import of goods into the FEZ of Kyrgyzstan with subsequent export to Russia, Kazakhstan, Belarus, or Armenia is now completely exempt from the payment of the single tax (import VAT according to the rates of article 423).
Practical significance of the changes
Previously, participants in the FEZ in Kyrgyzstan, when importing goods for re-export to EAEU countries (excluding the Kyrgyz Republic itself), were required to pay import VAT, even if the goods had origin from the EAEU.
With the new version, this provision is abolished, and now goods of Eurasian origin imported into the FEZ of Kyrgyzstan will be able to move freely throughout the Union without additional tax expenses upon import.
