KYRGYZSTAN TODAY Policy briefs on - Department of Geography

2) grants;
3) assets transferred on a gratuitous basis (donations), including goods, services,
and works, if they are used as specified in articles of association;
4) subsidies received from the national or local budgets, state target funds, or as
part of humanitarian or technical aid;
5) humanitarian aid;
6) payment for the following services provided by NPOs in accordance with noncommercial
goals specified in articles of association, if this income is reinvested
in these activities or any other non-commercial activities specified in articles of
association:
a) supply of goods, works, and services provided by not-for-profit organizations
to public offices and institutions;
b) supply of goods, works, and services provided by not-for-profit organizations
for the purpose of social security and protection of children, people with
disabilities, and low-income persons;
c) supply of services provided by not-for-profit organizations in the area of
health care, education, science, culture (services of museums, picture galleries,
theaters and libraries) and amateur sports;
d) services to supply irrigation water and other services specified in articles
of association which are provided by water users associations for their
members;
e) services to renovate and maintain apartment buildings provided by
house owners associations, housing and construction cooperatives, house
management offices, as well as public utilities provided by the abovementioned
not-for-profit organizations to those living in apartment
buildings.
2. When determining the taxable amount of profit tax, all income received by nonfor-profit
organizations from sources specified in part 1 of this Article is not included
in their total annual income. This is done to exempt not-for-profit organizations from
profit tax.
3. Interest/investment income of not-for-profit organizations, including but not
limited to income from bank deposits, debt instruments, negotiable securities, rent,
royalty) is exempt from tax if used to achieve the organization’s non-commercial goals
specified in articles of association.
4. Income received from non-regular income-generating activities, such as transfer
of property belonging to an organization, to be used to achieve the organization’s noncommercial
goals specified in articles of association, or gained as a result of voluntary
labor, is exempt from profit tax and other taxes.
5. Interest yields accrued by credit unions for providing credits to their members
are exempt from tax.
Article 397. Status of charitable organization.
1. Not-for-profit organizations, legally registered public associations, foundations,
institutions, associations of legal entities, and jamaats (community associations) can
be regarded as “charitable organizations” (hereinafter referred to as COs) if (1) they
have at least one year of experience in socially useful activities from the day of their
registration with tax authorities, (2) their articles of associations specify that any
income received by an organization as a result of its activities is not transferred to
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