Managing Partner of LEX Participates in Parliamentary Hearings on Proposed Amendments to the Tax Code of the Kyrgyz Republic

On 12 October 2026, Andrey Lee, Managing Partner of LEX Law Firm, took part in parliamentary hearings of the Jogorku Kenesh concerning the draft Law of the Kyrgyz Republic “On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation.” The hearings were organized by the Committee on Finance, Budget, Entrepreneurship and Competition Development.

During the discussion, Andrey Lee presented proposals aimed at improving Articles 139 and 140 of the Tax Code of the Kyrgyz Republic, which govern the application of market prices for tax purposes.

The proposed amendments are intended to provide greater clarity in the existing mechanism for comparing transactions. In particular, when determining market prices, it is proposed that greater consideration be given to differences in the commercial terms of transactions, including payment and delivery terms, transportation and storage costs, volume-based incentives, product promotion expenses, and other factors that may affect pricing.

As Andrey Lee noted, the current Tax Code already incorporates the principle that transactions should be compared under comparable economic conditions. However, tax administration practice demonstrates the need for a more detailed and consistent mechanism for applying this principle. Such clarification would help reduce the risk of unjustified tax assessments and promote a more uniform approach to determining market prices.

At the same time, the proposed amendments do not restrict the powers of the tax authorities. Tax control, the use of weighted average prices, the existing 20% threshold, and the taxpayer’s obligation to document differences in transaction terms would all remain in place.

LEX Law Firm will continue to contribute to the professional discussion on the development of tax legislation and tax administration practice in the Kyrgyz Republic.