DRAFT LAWS PASSED SECOND READING

At the Jogorku Kenesh of the KR.

On February 12, 2019, a meeting of the Economic and Fiscal Policy Committee of the Jogorku Kenesh of the Kyrgyz Republic was held, at which, besides other issues on the agenda, the draft laws “On Guarantee Funds in the Kyrgyz Republic” and “On Amendments to the Tax Code of the Kyrgyz Republic” were considered, and also heard information on the activities of OJSC “Guarantee Fund” for the period from December 2016 to 1 January 2019.

The speaker on the draft law on guarantee funds was the Minister of Economy O. Pankratov. The meeting was also attended by the Chairman of the National Bank T. Abdygulov.

A new version of the Law of the Kyrgyz Republic “On Guarantee Funds in the Kyrgyz Republic” was developed by OJSC “GF” jointly with the NBKR. In accordance with the proposed amendments, the NBKR will regulate and supervise the activities of the guarantee funds.

On the second issue of amending the Tax Code the speaker was the deputy of the Jogorku Kenesh Kozhobek Ryspaev. The discussion of this issue was attended by the Minister of Economy O.M. Pankratov, Chairman of the NBKR T.S. Abdygulov and Chairman of the State Tax Service under the Government of the Kyrgyz Republic T.Zh. Abzhaparov.

The draft of amendments and additions to the Tax Code of the Kyrgyz Republic has been prepared by Open Joint Stock Company “GF” and concerns the tax regulation of guarantee funds in terms of Loan Loss Provision (LLP). The initiation of the proposed amendments is related to the need to include guarantee funds in the list of financial and credit institutions, which, according to Article 207 of the Tax Code of the Kyrgyz Republic, are provided with deductions from the total annual income generated by LLP.

Currently, LLP created by the guarantee funds is subject to double taxation.

On the tenth issue of the agenda of the Economic and Fiscal Policy Committee, information on the activities of OJSC “Guarantee Fund” for the period from December 2016 to 1 January 2019 was considered and taken into account.

On all questions arising from the deputies, detailed replies were given by speakers and invited heads of relevant departments.

It should be noted that the first reading of these draft laws took place in early December 2018.