Tax authorities introduce deposit payments for risk group companies

The State Tax Service of Kyrgyzstan (STS) is tightening control over the import of goods from the Eurasian Economic Union (EAEU) countries. Companies that fall under the risk criteria are now required to make a deposit of at least 20% of the taxable value of goods to a special account of the tax authority before importing the products.

The STS will determine the risk level of taxpayers when issuing a tax registration certificate labelled ‘For the purpose of importing goods from EAEU member states’. The risk criteria are considered to be:

• receipt of the certificate for the first time,
   
• cancellation of a previously issued document,
   
• change of tax registration or the founder of the company.

The decision on inclusion in the risk group is made by a tax officer through the information system.

The new requirement is aimed at strengthening control over VAT payment, preventing fictitious imports, fighting shadow turnover and ensuring tax revenues. It should also reduce the risks of drawing up documents for front persons and liquidated companies.

Honest taxpayers who do not fall under the risk criteria are exempted from the mandatory deposit. Detailed information on deposit and refund procedures can be found on the STS website in the Knowledge Base section.