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Law review for December 7-12, 2020

December 13, 2020

A ban on inspections of businesses by law enforcement agencies introduced

On December 11, 2020, the government of the Kyrgyz Republic introduced a ban on inspections of business entities conducted by law enforcement agencies.

This prohibition does not apply to inspections carried out in the framework of criminal and civil proceedings, at the request of individuals and legal entities, by the customs service in relation to goods under customs control, and on issues related to the prevention of the COVID-19 spread in the Kyrgyz Republic.

The decision was made in order to create favorable conditions for entrepreneurs and support the economic activities of business entities, ensure their legal protection, eliminate unjustified and unnecessary interference of certain law enforcement agencies in the activities of business entities, as well as in connection with the spread of the COVID-19 virus.


GKPEN KR submits for public discussion a draft NLA on the rates of fees for withholding of licenses for subsoil use rights

On December 10, the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic (GKPEN) submitted for public discussion a draft Government resolution “On Approval of the Procedure for Payment, Calculation of Fees and Fee Rates for Withholding Licenses for the Right to Use Subsoil”.

The goal and objective of this NLA is to improve the legislative regulation on fees for retention of a license, as well as to bring them in line with the Code of the Kyrgyz Republic on non-tax income and the Law of the Kyrgyz Republic "On Subsoil".

At a meeting of the Security Council of the Kyrgyz Republic on January 30, 2019, the problems and challenges facing the country's mining industry were considered. Following the meeting, a decision was made "On measures to ensure security in the field of subsoil use of the Kyrgyz Republic". One of the tasks is to increase the rates of fees for the retention of licenses for the right to use subsoil.

As the analysis of the activities of subsoil users has shown, of the 769 production licenses, only 250 licenses, or 35%, are being carried out. Of the 437 prospecting and exploration licenses, only 215 licenses, or 49%, are underway.

As practice has shown, low rates do not contribute to the return of licenses to the state, reduction of licensed areas in order to further put them up for auctions, thereby providing additional revenues to both the national and local budgets.


Funds reimbursed by law enforcement and supervisory authorities will be directed to the state budget

On December 9, at a meeting of the Jogorku Kenesh, the deputies considered the third reading of the draft law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on the Use of Funds Reimbursed by Law Enforcement and Supervisory Bodies".

Based on the decision of the Security Council and the Government's decree, the funds of the Single Deposit Account should be directed directly to the state budget, and not remain with the law enforcement agencies, since this contradicts the Budget Code of the Kyrgyz Republic of 2017. The bill proposes to make appropriate amendments.


The Economy Ministry submits for public discussion a draft regulation on extending the period of transition to electronic tax reporting

On December 8, the Ministry of Economy of the Kyrgyz Republic submitted for public discussion a draft resolution of the Government of the Kyrgyz Republic "On Amending the Resolution of the Government of the Kyrgyz Republic "On Measures to Implement Articles 85, 86 and 89 of the Tax Code of the Kyrgyz Republic" dated December 12, 2018 No. 580.

The purpose of the draft decree of the Government of the Kyrgyz Republic is to support business entities in the context of the COVID-19 coronavirus infection pandemic, as well as in connection with requests from the business community.

The extension of the period for the transition to mandatory submission of tax reporting in the form of an electronic document will allow business entities, especially in the regions, to easier submit reports in electronic form.