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Law review for September 9-13, 2019

September 15, 2019

September 12, 2019 – The Government of the Kyrgyz Republic has drafted the Government Regulation "On approval of the Action Plan to reduce the level of the unobserved sector of the economy for 2019-2021."

According to the National Statistical Committee of the Kyrgyz Republic, the unobservable economy in 2017 amounted to KGS 125.2 billion, and its GDP share decreased by 0.9 percentage points compared to the previous year and amounted to 23.6 percent.

Based on an analysis of the reasons forcing an enterprise to be in the shadows, the draft Government Resolution aims at reducing the level of the unobserved sector of the economy, eradicating the reasons that encourage economic entities to go into the shadows, as well as minimizing corruption risks and creating favorable conditions for business.

This NLA is posted on the official website of the Government of the Kyrgyz Republic for public discussion.


On September 12, the Deputies of the Jogorku Kenesh of the Kyrgyz Republic adopted the following bills:

In the first reading:

- “On Special Economic Territories in the Kyrgyz Republic.” The bill introduces types of special economic territories: industrial, innovative, technological and tourism-recreational. Each territory type will be created based on the needs of the regions of Kyrgyzstan. Special economic territories can be located both on a small area and cover the territory of entire regions.

The activities of the SEZ and the specially protected area are different. FEZ subjects are exempted from taxes. Special economic territories are proposed to be created to develop remote and high mountain regions where certain types of preferences and benefits should be provided to business entities, depending on the volume of attracted investments and the number of jobs created.

- “On Amending Certain Legislative Acts of the Kyrgyz Republic” (Tax Code, Land Code, Forest Code, Laws On Tariffs for Insurance Contributions for State Social Insurance, On Introducing a Moratorium on the Transfer (Transformation) of Irrigated Arable Land to Other Lands Categories, On Specially Protected Natural Territories, and On Public-Private Partnership in the Kyrgyz Republic”). The draft law is introduced in a package with the draft Law “On Special Economic Territories in the Kyrgyz Republic”.


On September 12, the MPs considered the draft Law “On ratification of the Protocol on amendments and additions to the Agreement between the Government of the Kyrgyz Republic and the Government of the Russian Federation on the provision of technical assistance to the Kyrgyz Republic as part of the process of joining the Eurasian Economic Union of March 31, 2015, signed on December 24, 2018 in Moscow” in the second reading.

According to the technical assistance mechanism, all measures (works and services) for the arrangement and material and technical equipment of Kyrgyz checkpoints are carried out by Russian organizations (the Federal Customs Service of the Russian Federation and Crocus International JSC). Due to the fact that it is not possible to complete all types of work, the Russian side proposed a procedure for prolonging the deadlines until the end of 2019 and on some points – until December 2020.


On September 11, of the Jogorku Kenesh deputies adopted the following bills:

In the first reading:

- “On the Accession of the Kyrgyz Republic to the Agreement Establishing the Global Institute for Green Growth signed on June 20, 2012 in Rio de Janeiro.” The initiator is the Government, Resolution No. 322 of 06/28/19.

- “On Amendments to the Tax Code of the Kyrgyz Republic”. The initiator is the Government, Resolution No. 288 of 06/10/19.

- “On Amending the Law of the Kyrgyz Republic “On Compulsory Third Party Liability Insurance of Motor Vehicle Owners.”


On September 11, the Jogorku Kenesh deputies considered the first reading of the draft law “On Amending the Tax Code of the Kyrgyz Republic.”

Since January 1, 2019, the Code of the Kyrgyz Republic on Violations has entered into force. From the moment of its entry, liability for violation of tax legislation that does not have signs of a criminal offense or misconduct will be established by this Code. The Code of Administrative Responsibility of the Kyrgyz Republic has expired. The draft law introduces editorial amendments to the current tax legislation and does not establish new duties on citizens and legal entities that worsen their situation. The draft law was developed in order to bring it in accordance with the norms of the Code of the Kyrgyz Republic on violations.


On September 10, the Committee on Constitutional Legislation, Government, Judicial Legal Issues and the Rules of the Jogorku Kenesh approved the draft law “On Amendments to the Code of the Kyrgyz Republic on Non-Tax Income” in the first reading.

The concept of the proposed bill is aimed at simplifying the procedure for obtaining notarial services by individuals and legal entities. The draft law provides for the introduction of a norm for the payment of state duties by a notary as a representative of the payer when he performs certain actions and issues documents of legal value.