The NBKR wants to change the NAP within the framework of tax legislation. This will affect business

The National Bank of Kyrgyzstan has submitted for public discussion amendments to its regulations aimed at bringing them in line with the tax legislation of the republic.
 

The draft decree is designed to take into account the peculiarities of tax registration of individuals who work in trade zones with a special regime, and to bring tax rules in line with the legislation.
 

From July 1, 2024, individuals who are engaged in trade are no longer allowed to pay taxes under a patent. At the same time, such persons, if they work under a patent or tax in trade zones with a special regime, are not required to register as individual entrepreneurs.
 

The Tax Service has recently approved the form of a document that confirms the right to pay tax in trade zones with a special regime. Such a document may be used when opening an account or obtaining a loan.
 

The draft decree expands the list of documents that entrepreneurs can use in banks and financial institutions. The amendments concern nine regulatory acts governing the work of banks and other financial organizations.

These amendments relate to the rules of operation of microfinance organizations, credit unions and banks. They include clarification of requirements for documents confirming the solvency of clients and restrictions on issuing loans in foreign currency for individuals, except for entrepreneurs who are engaged in activities based on a certificate, patent or decision of the Tax Service body on the application of tax payment in a trade zone with a special regime. This is aimed at improving credit risk management and tax compliance.
 

Key changes:

• Stricter requirements for microfinance organizations:
  
  Microfinance organizations will be required to have documentary evidence of the applicant's solvency, including income certificates or documents proving entitlement to income-generating assets.
   
• Ban on loans in foreign currency:
  
  Credit unions, banks and microfinance organizations will not be able to issue mortgage and consumer loans in foreign currency to individuals. An exception is made for entrepreneurs who have a certificate, patent or a decision of the Tax Service on the application of tax payment in a trade zone with a special regime.
  Documentary proof of entrepreneurial activity:
  
  Entrepreneurs operating under a patent or certificate will be required to provide copies of these documents to open accounts, obtain loans and other financial transactions.
   
• Changes to credit risk management:
  
  It is proposed to update the requirements for credit risk management at various financial institutions.