KYRGYZSTAN TODAY Policy briefs on - Department of Geography

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