Banks Required to Share Business Account Information with Tax Service
New Procedure Proposed for Information Exchange between Tax Service and Banks
Bishkek – 24.kg news agency – 11:00, 21 October 2023
The Ministry of Economy and Commerce of Kyrgyzstan has submitted a draft resolution to the Cabinet for public discussion, proposing the approval of a new procedure for providing information to the Tax Service for banks, payment organizations, and payment system operators.
According to the Ministry of Economy, the previous rule, which required information to be provided only by court decision, had led to the growth of the shadow economy and made it difficult to track taxpayers’ cash flows.
“The exchange of information between the tax authority and banks was solely on paper, which resulted in bureaucratic delays in document preparation. This had a negative impact on taxpayers’ perception of the Tax Service and created a sense of instability in the system as a whole,” stated the background statement to the draft resolution.
With the recent amendments to the Tax Code on April 3, 2023, new opportunities and simplified procedures for the exchange of information have been introduced between the Tax Service and banks, payment organizations, and payment system operators.
Under the new procedure, information can be exchanged in both paper and electronic forms. If information needs to be provided upon request, the requirements for it are clearly defined. Moreover, the Tax Service is now allowed to send one request simultaneously to several or all banks operating in Kyrgyzstan.
When contacting the banks, the Tax Service will specify the exact information needed. Additionally, the Ministry of Economy has established the procedure for requesting various types of information.
The proposed changes aim to streamline the exchange of information between the Tax Service and the aforementioned financial institutions. By allowing electronic forms of information exchange and clarifying the requirements, it is expected that this new procedure will enhance efficiency, reduce bureaucratic delays, and contribute to a more transparent and effective tax control system.
The draft resolution is currently open for public discussion and stakeholders are encouraged to provide their feedback and suggestions. The Ministry of Economy and Commerce will carefully consider all relevant comments before finalizing the new procedure.
