Kyrgyzstan to write off 12 billion KGS in bad tax debt

Tax arrears accrued for periods prior to 1 January 2022 are subject to write-off. This was announced by the Deputy Chairman of the State Tax Service, Kubanychbek Ysabekov.

According to him, the tax authorities will independently write off:

• debts for tax periods prior to 1 January 2022, including cases with a court decision that has entered into force;
• property tax arrears, including on vehicles, except in cases where a court decision has already been issued.

In addition, in certain areas, debts for the periods up to 2024–2025 may be written off, including in cases where there is a court decision, but only at the request of the taxpayer.

Debts will not be written off if there is a court conviction for tax offences or an ongoing criminal case.

According to Ysabekov's estimates, most of the debts — about 12 billion KGS— are uncollectible and have been outstanding for more than six years.

‘The write-off will allow the tax service to clean up its database and start from scratch,’ he said, adding that the measure will also help citizens whose debts were incurred through fraud.

The decision is being implemented as part of legislative changes signed by President Sadyr Zhaparov, which are aimed at reducing the tax burden, supporting business and strengthening economic stability.