KYRGYZSTAN TODAY Policy briefs on - Department of Geography
KYRGYZSTAN TODAY Policy briefs on - Department of Geography
KYRGYZSTAN TODAY Policy briefs on - Department of Geography
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6. To change numbering <strong>of</strong> items in Article 153 as follows: Items 16-18 to Items 17-<br />
19, and Items 19-30 to Items 21-32.<br />
7. To remove paragraph 3 <strong>of</strong> Article 189. To change numbering <strong>of</strong> paragraphs in<br />
Item 1, Article 189 from 4-9 to 3-8.<br />
8. To remove Article 208 and change numbering <strong>of</strong> Articles in the draft code<br />
accordingly.<br />
9. To remove paragraph 1 in Item 1, Article 212. To change numbering <strong>of</strong> paragraphs<br />
in Item 1, Article 212 from 2-6 to 1-5.<br />
10. To remove Article 251 and change numbering <strong>of</strong> Articles in the draft code<br />
accordingly.<br />
11. To remover Article 252 and change numbering <strong>of</strong> Articles in the draft code<br />
accordingly.<br />
12. To remove paragraph 4 in Article 315.<br />
13. To remove the words “organizati<strong>on</strong>s <strong>of</strong> people with disabilities” and “charitable<br />
organizati<strong>on</strong>s” from paragraph 5 in Article 343.<br />
14. To add Articles 394-401 to Chapter 58 “Taxati<strong>on</strong> <strong>of</strong> n<strong>on</strong>-for-pr<strong>of</strong>it organizati<strong>on</strong>s<br />
(NPOs). Specific features <strong>of</strong> legal and physical entities with regard to their c<strong>on</strong>necti<strong>on</strong> to NPOs”<br />
in SECTION ХVI (SPECIAL TAX REGIMES) <strong>of</strong> the draft Tax Code with the following<br />
wording:<br />
Chapter 58. Taxati<strong>on</strong> <strong>of</strong> not-for-pr<strong>of</strong>it organizati<strong>on</strong>s (NPOs). Specific features<br />
<strong>of</strong> legal and physical entities with regard to their c<strong>on</strong>necti<strong>on</strong> to NPOs.<br />
Article 394. Sources <strong>of</strong> income am<strong>on</strong>g not-for-pr<strong>of</strong>it organizati<strong>on</strong>s liable to tax.<br />
Similar to commercial organizati<strong>on</strong>s, not-for-pr<strong>of</strong>it organizati<strong>on</strong>s pay all taxes <strong>on</strong><br />
income received from entrepreneurial activities, except for cases specified in Article<br />
396 <strong>of</strong> this Code, as well as entrepreneurial activities implemented by not-for-pr<strong>of</strong>it<br />
organizati<strong>on</strong>s which gain the status <strong>of</strong> charitable instituti<strong>on</strong>s following the requirements<br />
outlined in this Code.<br />
Article 395. Income and cost account <strong>of</strong> not-for-pr<strong>of</strong>it organizati<strong>on</strong>s.<br />
1. If involved in entrepreneurial activities with taxable income, not-for-pr<strong>of</strong>it<br />
organizati<strong>on</strong>s c<strong>on</strong>duct a separate account <strong>of</strong> their income and costs pertaining to such<br />
activities, as well as any other income and costs coming from other sources which are<br />
not related to business activities.<br />
2. When calculating pr<strong>of</strong>it tax, all costs directly related to entrepreneurial activities<br />
<strong>of</strong> not-for-pr<strong>of</strong>it organizati<strong>on</strong>s, such as the costs <strong>of</strong> producing goods for sale, should be<br />
deducted completely. The deducti<strong>on</strong> <strong>of</strong> general expenses related to the organizati<strong>on</strong> as<br />
a whole, such as <strong>of</strong>fice rent, overhead costs, salaries, and others should be c<strong>on</strong>tingent <strong>on</strong><br />
the amount <strong>of</strong> pr<strong>of</strong>it received from entrepreneurial activities and income coming from<br />
other sources which are not related to entrepreneurial activities.<br />
Article 396. Sources <strong>of</strong> income am<strong>on</strong>g not-for-pr<strong>of</strong>it organizati<strong>on</strong>s exempt from taxes.<br />
1. The types <strong>of</strong> income received by not-for-pr<strong>of</strong>it organizati<strong>on</strong>s which are exempt<br />
from indirect tax, i.e. VAT, sales tax, etc, are listed below:<br />
1) membership and entrance fees if they are specified in the organizati<strong>on</strong>’s articles<br />
<strong>of</strong> associati<strong>on</strong> and if the organizati<strong>on</strong> keeps record <strong>of</strong> its members;<br />
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