As part of efforts to improve the business environment and investment climate in the Kyrgyz Republic, the Investment Council Secretariat has announced the formation of a new Advisory Group on Tax Disputes. The initiative aims to provide an open platform for constructive dialogue among stakeholders to facilitate the development of transparent and equitable tax dispute resolution mechanisms.

The announcement follows a recent meeting between Secretariat officials and executives from Natural Agro, a prominent agribusiness company. Head of the Secretariat Uluk Kydyrbaev and Chief Legal Expert Bakytbek Samakov represented the government, while Natural Agro was represented by General Director Mike Jonathan Lund and Financial Manager Valeria Golinko.

A key issue on the agenda was the inconsistency between Part 7 of Article 169 of the Tax Code of the Kyrgyz Republic and current legal norms, which made dispute resolution difficult. Specific issues included the identification of the competent state body and the clarification of relations in tax disputes.

"Natural Agro” is working with the Chamber of Tax Consultants to analyze and propose changes to the relevant legislation. They also raised issues related to tax registration for agricultural producers and challenges faced by processors during audits.

The newly established advisory group will include representatives from the business community, government agencies and professional associations. By promoting a comprehensive and inclusive dialogue, it aims to strengthen the business environment and investment climate in the Kyrgyz Republic. The group will focus on understanding current mechanisms and proposing fair and alternative approaches to resolving tax disputes, thereby helping to create a climate of confidence for responsible entrepreneurs and investors.

Protocol of the meeting at the Prime Minister's Office

of the Kyrgyz Republic on April 5, 2024 (download PDF file in Russian)

Work Plan of the Investment Council

under the Cabinet of Ministers of the Kyrgyz Republic for 2024 (download PDF file in Russian)

Uluk Kydyrbaev, the head of the Secretariat of the Investment Council, held a meeting on April 29, 2024, with representatives from the employer associations of Mecklenburg-Western Pomerania, Germany. Among the association's official representatives were Sven Müller, Deputy Director General and Spokesperson for International Relations at the Federation of Business Associations of Mecklenburg-Vorpommern; Markus Mattissen, Project Manager of the "Social Dialogue in Central Asia" at the region's Business Education Center; Azzambek Zheenbai uulu, Executive Director; and Bakytbek Sartmametov, Head of Legal Support at Business Association JIA.

The meeting focused on the prospects for cooperation through a joint project between the Mecklenburg-Vorpommern Employer Association and the JIA Business Association. The project aims to create a coordination platform to promote Kyrgyz businesses in Germany and adapt successful projects in vocational and technical education.

Following the meeting, further steps were agreed upon to strengthen ties.

A meeting was held at the Secretariat of the Investment Council to discuss the opportunities for sustainable development in the regions of the Kyrgyz Republic, particularly in supporting the private sector's adoption of green technologies and business approaches. The meeting featured a presentation on 'Methods of Municipal Property Privatization in the Kyrgyz Republic'. Participants included representatives from ministries and agencies, business associations, and the GIZ program 'Green Economy and Sustainable Private Sector Development', funded by the governments of the Federal Republic of Germany, Switzerland, and the European Union.

During the presentation, an assessment of the current situation regarding the management and leasing of municipal property by entrepreneurs was discussed. The meeting explored opportunities to:

• Support business development of innovations through investment in capital assets, including green projects;
• Encourage local governments to focus on the most promising and priority economic sectors, and develop municipal-private partnerships.

Furthermore, the existing barriers to the use of municipal property by the business community in the regions and possible solutions for their removal were presented, aiming at the sustainable development of the private sector and the local community as a whole.

As a result of the discussion, participants agreed on the need to continue dialogue and develop specific proposals for amending current regulations to facilitate the development of municipal-private partnerships in the Kyrgyz Republic.