Audit of a company in Kyrgyzstan , financial statements, accounting, consulting in Kyrgyzstan

In accordance with legislation of Kyrgyzstan, all companies incorporated in that jurisdiction must annually keep accounting records and prepare financial statements in accordance with the International Financial Reporting Standards (IFRS).

The filing of financial statements in Kyrgyzstan is regulated by the Securities Market Act, Accounting Act and other enactments.

Financial statements of a company consist of the following documents:

• Profit and loss statement (form No.1);
• Statement of financial position (form No.2);
• Cash flow statement (form No.3);
• Statement of changes in equity (form No.4);
• Explanatory note (disclosures).

Financial statements and tax accounts are made in the national currency of Kyrgyzstan (som – KGS).

Besides financial statements, companies must prepare and file with tax authorities of Kyrgyzstan the following kinds of reports:

• Profit tax return – annually by 1 April following the reporting year.
• Statement of preliminary profit tax for companies registered under the general tax regime – quarterly by 20 May, 20 August and 20 November of the current year.
• Sales tax report for companies registered under the general tax regime – monthly by the 20th day of every month following the reporting quarter (tax must be calculated and paid by the 25th day of every month following the reporting month).
• VAT return for companies registered under the general tax regime – by the 25th day of every month following the reporting month (tax must be calculated and paid by the 25th day of the month following the reporting month).
• Single tax report for companies registered under the simplified tax system – quarterly by the 20th day of every month following the reporting quarter (tax must be calculated and paid by the 20th day of the month following the reporting quarter).

In accordance with the Kyrgyz Republic Code of Offences, the following penalties may be imposed on a company:

• Failure of public interest entities, large and medium-sized businesses to meet the requirements regarding the organization of accounting and cash transactions results in a penalty of 100 calculation indices (10 000 KGS) for individuals.
• Failure of public interest entities, large and medium-sized businesses, irrespective of the form of ownership, to comply with the international financial reporting standards results in a penalty of 280 calculation indices (28 000 KGS) for legal entities.
• Absence or distortion of accounting or failure to file within the prescribed period accounting and tax reports, balance sheets, calculations and other documents connected with the calculation and payment of taxes to the budget results in a penalty of 30 calculation indices for individuals, and 130 calculation indices (13 000 KGS) for legal entities.
• Tax evasion by concealment (understatement) of profit, income or other taxable items results in a penalty of 75 calculation indices for individuals, and 230 calculation indices (23 000 KGS) for legal entities.
• Failure to comply with deadlines for filing zero tax reports results in a warning or a penalty of 10 calculation indices (1 000 KGS) for individuals, and 50 calculation indices (5 000 KGS) for legal entities.
• Failure to provide a single tax return or provision of a single tax return with false, incomplete or distorted information or failure to pay tax within the prescribed period result in a warning or a penalty of 10 calculation indices (1 000 KGS) for individuals, and 50 calculation indices (5 000 KGS) for legal entities.
• Failure of non-bank financial entities and their managers to meet the requirements regarding keeping source accounting documents (on paper as well as electronically) in the manner and during the period determined by archiving legislation and other legislation results in a penalty of 100 calculation indices (10 000 KGS) for individuals, and 280 calculation indices (28 000 KGS) for legal entities.