KYRGYZSTAN TODAY Policy briefs on - Department of Geography

Appendix
DRAFT
Resolution of KR Jogorku Kenesh
On Amending the Draft Tax Code of the Kyrgyz Republic and Draft Law of the
Kyrgyz Republic “On Making the Tax Code of the Kyrgyz Republic Effective”
I. To introduce the following amendments to the Tax Code of the Kyrgyz
Republic approved by the Resolution of the Kyrgyz Government, Ref. No.
270, as of June 6, 2008):
1. To remove the following words from paragraph 4, Article 153: “[…] only if such
transfer is not caused by reciprocal services, works, or goods provided to the member
of this organization for free or below cost.”
2. To replace the words “[…] not pursuing any political goals” from paragraph 6,
Article 153: with “not involved in supporting political parties or election campaign
candidates.”
3. To remove the following words from paragraph 29, Article 153: ““[…] only if
such transfer is not caused by reciprocal services, works, or goods provided to the
member of this organization for free or below cost.”
4. To add the following words as Item 16 to Article 153:
“16. Entrepreneurial activities are goods, services, and works sold or provided on a
regular basis for the purpose of obtaining profit. Entrepreneurial activities do not
include income coming from gifts, donations, investments, and non-regular activities
(i.e. fund-raising activities), as well as any activity which involves voluntary labor, fees
from members and founders, and income coming from goods, works, and services sold
at or below cost with no goal to obtain profit or when such activities are connected with
the non-commercial goals specified in articles of association.”
5. To add the following words as Item 20 to Article 153
“20. Related persons are individuals related to stakeholders (founders, members,
participants, board members and employees) by blood or in any other specific way in cases
when such relations can affect the conditions or economic outcomes of organization’s
activities. These relations include:
− relations between founders/partners in one enterprise;
− when one person reports to another due to working or entrepreneurial
activities;
− individuals exercising control over the third person; and
− individuals are relatives.
In the Tax Code, the following types of relations refer to relatives:
− spouse, children, parents;
− siblings (by blood or marriage), grandparents; and
− non-married partners living together and having one budget.
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