KYRGYZSTAN TODAY Policy briefs on - Department of Geography

was subject to some administrative penalties which it didn’t object to, it may re-apply
for the CO status one year after facing administrative fines.
6. Finances to be used for social purposes may include salaries and other expenses
directly related to achieving social goals.
7. CO is not entitled to spend its funds or use its property to support political parties,
election campaign candidates, and commercial enterprises.
8. Annually, no later than April 15 each year, CO should produce a written financial
report that should be submitted to the public at its request. This report should reflect the
sources of funds received, amounts obtained from different sources, and information on
how these funds were used by CO.
9. If it becomes known that a not-for-profit organization that received a CO status
does not meet the requirements, tax authorities may recall the certificate according to
which this non-for-profit organization is regarded as CO. In this case, (1) the organization
is stripped of special tax benefits granted upon COs, and (2) the organization and its
management may be brought to justice in compliance with the Kyrgyz legislation.
10. The decision of a tax authority on recalling the certificate according to which a
non-for-profit organization is regarded as CO, depriving this organization of tax benefits
and bringing it and its management to justice can be appealed in a higher-level tax
authority or in court.
11. A not-for-profit organization that obtains the CO status can, at any time, reject
the CO status by submitting an appropriate written request to a local tax office and by
returning its certificate. In this case, the not-for-profit organization loses its CO status
from the day of submitting its written request.
12. If, upon voluntary refusal or recall of the certificate, the certificate is rescinded,
a not-for-profit organization is stripped of special tax benefits devised for COs, but is
not freed from its obligations with regard to money and property gained at the time of
being a certified CO, nor is it freed from reporting the use of this money and property.
Donations made by physical or legal entities to such a CO before the certificate was
rescinded are subject to deduction.
Article 398. Taxation of COs.
1. A zero-rate tax is levied upon CO income.
2. CO is exempt from value-added tax (VAT) on imported goods, materials, and
equipment brought in by CO or for CO and (1) used by CO for its social purposes,
(2) used by CO for at least three years for its social purposes, or (3) disseminated free of
charge as part of its social activities.
3. CO is exempt from sales tax, property tax and land tax.
Article 399. Taxation of donations from physical and legal entities.
1. The total annual income of legal entities, if they pay profit tax, is reduced by an
amount which is equal to the cost of gratuitously transferred assets, including money
and property at its balance-sheet value, as well as costs incurred as a result of works or
services provided to CO on a gratuitous basis within one taxation year. This amount
should not exceed 5 percent of taxable income or 0.2 percent of gross profit, provided
that these assets were not used for the benefit of the legal entity that transferred them.
2. Total annual income of physical entities, if they pay income tax, is reduced by the
amount which is equal to the cost of gratuitously transferred assets, including money
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