The State Tax Service has clarified the procedure for writing off tax arrears via bank accounts and e-wallets

From 1 January 2026, new rules on the recovery of tax arrears from individuals came into force in Kyrgyzstan. The State Tax Service has provided clarification on how debts will now be deducted from citizens’ bank accounts and e-wallets.

Previously, the automatic recovery mechanism applied only to legal entities and sole traders. It now extends to ordinary citizens as well. If a taxpayer fails to settle the debt within 30 days of notification, the tax authorities are entitled to send a special tax payment demand to the bank or payment system, after which the funds will be debited automatically.

These changes became possible following amendments to the Tax Code adopted at the end of 2025. At the same time, the term ‘electronic payment system operator’ was introduced into legislation, allowing debts to be recovered not only from bank accounts but also from e-wallets.

The tax authorities emphasise that this applies only to recognised debts. These include amounts specified by the taxpayer themselves in their tax returns, amounts assessed by the tax authorities and not contested within the deadline, amounts confirmed by a court, or amounts acknowledged by the taxpayer themselves.

If such debt is not settled voluntarily, it is deemed enforceable, and the state is entitled to recover it by compulsory means through financial institutions.