KYRGYZSTAN TODAY Policy briefs on - Department of Geography

• adopt laws that recognize and protect businessmen and workers in informal
economy with special focus in entrepreneurs’ rights;
• adopt a unified tax system that is fair and simple in its administration, and that
will not incite enterprises to leave the sphere of legal business.
Final steps
To remove unreasonable burdens of checks from businesspeople, it is necessary to
reduce the number and duration of these tax checks and to increase their efficiency. For
this purpose, the “Law on Tax Check Procedure for Entrepreneur Entities” has already
been adopted. This law introduced a procedure for checking entrepreneurs’ activities by
authorized bodies, and specifies mutual rights and responsibilities as well as protecting
the rights of business entities to carry out their activities without illegal interference. In
late April 2008, the “Presidential Decree on Moratorium on Checks conducted by the
Tax Service of the Kyrgyz Republic” and “Decreasing Checks of Entrepreneurs Entities
Carried Out by Other Authorized Supervising Bodies of the Kyrgyz Republic” have
been adopted. The decree was in effect until December 31, 2008.
In October 2008, the new Tax Code was adopted; it was designed to solve many
problems related to systematically developing all business areas. The new edition of the
Tax Code includes:
• simplified taxation: taxes have been reduced by half, from 16 to 8;
• VAT is reduced from 20 to 12 percent. The rate of a single tax for small-scale
businesses working with the simplified system of taxation is lowered from 10 to
6 percent;
• A real estate tax was introduced;
• responsible taxpayers are encouraged.
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