Published
05/26/2026, 14:05Changes to the procedure for the recovery of tax arrears have been approved in Kyrgyzstan, effectively formalising the expanded use of the digital KGS in transactions between citizens, the state and financial institutions.
The Cabinet of Ministers has amended the resolution on measures to implement the provisions of the Tax Code. The document modernises the system for enforcing tax claims and strengthens the role of non-cash instruments, including digital currency.
The main change is that the digital KGS is officially included in the list of payment methods for settling tax arrears. This means that the digital state currency is moving beyond its narrow scope of application and is being integrated into the existing financial infrastructure.
In effect, the digital KGS can be used not only for traditional banking transactions but also for payments via electronic payment systems when fulfilling obligations to the state.
At the same time, the document expands the mechanisms for debt recovery. Tax authorities are granted the right to send demands to all banks and payment systems simultaneously, including e-wallets, without first verifying whether the taxpayer holds accounts.
It is specifically stipulated that such demands also apply to new accounts opened after they are sent, and that compliance must take place within the next working day.
Provision is also made for the automatic conversion of foreign currency funds into KGS at the National Bank’s exchange rate on the date of execution.
The document comes into force on 1 January 2026, with certain provisions taking effect on 1 January 2027.
