The Cabinet of Ministers is tightening oversight of residents of the High-Tech Park

The Cabinet of Ministers of Kyrgyzstan has tightened oversight of the activities of residents of the High-Tech Park. The relevant amendments have been made to the decree establishing the Park, which has been in effect since 2012.

The main change will be the introduction of a compliance auditor position within the High-Tech Park’s structure. This new specialist will analyze residents’ activities, verify compliance with legal requirements, identify signs of tax base underreporting, potential tax and social contribution evasion, as well as instances of receiving unjustified benefits under the High-Tech Park regime.

Particular attention will be paid to companies’ compliance with key requirements for maintaining resident status. Specifically, auditors will verify whether companies derive at least 90% of their revenue from activities permitted within the High-Tech Park and whether at least 80% of their revenue comes from the export of goods and services.

In addition, the powers of the HTP Directorate and the Supervisory Board are being expanded. They will now be able to request additional financial documents and explanations from residents, as well as receive information about potential violations from government agencies.

Another significant change will be the strengthening of the HTP’s cooperation with government agencies. The park’s management will be able to exchange information with the Tax Service, the State Financial Intelligence Service, and other authorized bodies to prevent abuse of the preferential regime.

The document devotes special attention to transactions involving virtual assets. Residents will be required to notify the HTP management of significant changes in their revenue structure and of specific transactions in which virtual assets are used as the subject of civil rights.

Another innovation concerns companies that are effectively inactive. If a resident submits zero financial statements for two or more consecutive quarters and has no cash inflows, the Directorate will be able to initiate an audit of its compliance with High-Tech Park legislation.

If significant violations are identified, government agencies will have the right to submit proposals to the Supervisory Board to revoke the company’s High-Tech Park resident status.