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14.5. Interest and Penalties

Late Tax Payment

Delay in payment of tax attracts interest at the rate of 0.09% for each day of arrears up to the amount of unpaid tax.

Filing of an Incorrect Return

Understatement of tax liabilities attracts fine ranging from 50% to 100% of the understated tax liability.

Penalty Relief

Kyrgyzstan provided for the following penalty relief for accrued penalties, sanctions, and fines on outstanding tax payable and social security (insurance) contributions premiums due by 1 July 2021:

  • A 100% relief from penalties, sanctions, and fines is provided, if the principal amount due is fully paid by 1 July 2022 (extended from 1 July 2021); and
  • A 50% relief from penalties, sanctions, and fines is provided, if the principal amount due is fully paid by 31 December 2022 (extended from 31 December 2021).

The above penalty relief also applies to penalties, sanctions, and fines accrued after 1 July 2020 based on tax audits or revised filings made by the taxpayers for tax periods before 1 July 2020, provided the principal tax amount is fully paid. Unpaid tax accrued before 1 July 2020 is subject to restructuring.