Kyrgyzstan to open financial channels for major international trade

Bishkek, Sept.18, 2019. /Kabar/. Deputies of the Jogorku Kenesh (Kyrgyz Parliament) considered the draft law "On Amendments to the Tax Code of the Kyrgyz Republic" on the first reading.
As Minister of Economy Sanjar Mukanbetov noted, the bill aims to liberalize the economy to attract large foreign capital.
"In international trade transactions, the amount of profit tax will be 3% instead of 10%, and the tax on dividends - 0%. We borrowed this principle from Switzerland, Singapore and Hong Kong," Mukanbetov said, stressing that in the first year of adoption of the amendments, revenues to the budget will reach $15-20 million.
In the course of the discussion, Deputy Abdyvakhap Nurbayev supported the initiative of the Government and proposed to provide for mechanisms to encourage conscientious taxpayers by introducing fiscal preferences and special conditions for them when participating in tenders.
MPs Ainuru Altybayeva and Ulan Primov also supported the proposed changes, noting the tax policy should be more variable. They said positive economic effect can give tax benefits not only for trade, but also for production.
Deputy Kubanychbek Nurmatov reminded the members of the Government that the peak of payments on foreign debt is approaching. " There is need to take prompt measures to replenish the budget: pay special attention to reducing the level of the shadow economy, increasing the transparency of customs flows, development of tourism, processing industry, etc.," he stressed.
MP Bakirdin Subanbekov proposed to focus favorable tax regimes on the regions, and his counterpart Mirlan Zheenchoroyev proposed to simplify the procedure of registration of foreign companies, noting that the entire process of registration in Kyrgyzstan may take up to 25 days.
Parliament Speaker Dastanbek Dzhumabekov noted the changes made open a platform for international trade, and, accordingly, will contribute to increasing the investment attractiveness of the country.
After discussion, the proposed draft law was submitted to a vote on the first reading.