ARTICLE
31 July 2025

Tax Dispute Resolution In The Kyrgyz Republic: Procedures And Legal Framework

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The taxpayer's right to appeal decisions (actions or inaction) of tax authorities is guaranteed by the Tax Code of the Kyrgyz Republic (hereinafter – the Tax Code) and the Administrative Procedure Code...
Kyrgyzstan Tax

GENERAL PROVISIONS

The taxpayer's right to appeal decisions (actions or inaction) of tax authorities is guaranteed by the Tax Code of the Kyrgyz Republic (hereinafter – the Tax Code) and the Administrative Procedure Code of the Kyrgyz Republic (hereinafter – the APC).

The main categories of tax disputes considered by courts include disputes related to the recovery of tax arrears, refund of overpaid budgetary amounts, and appeals against non-regulatory acts or actions/inactions of tax authorities.

Appeals against tax authorities' decisions or actions/inactions may be filed through:

  • Administrative procedures;
  • Judicial procedures;
  • Alternative procedure.

PRE-TRIAL (ADMINISTRATIVE) APPEAL

An administrative appeal refers to the submission of a complaint against a decision or action/inaction of a regional tax authority to the central office of the State Tax Service under the Ministry of Finance of the Kyrgyz Republic (hereinafter – the STS).

To initiate the administrative appeal process, the taxpayer must file a complaint with the STS regarding the disputed decision or action/inaction and send a copy of the complaint to the tax authority whose decision is being challenged.

Note: The pre-trial procedure is mandatory and must be completed before a judicial appeal can be initiated.

Subject of the Complaint

The following may be appealed:

  • Decisions resulting from desk or field tax audits;
  • Decisions to initiate, extend, suspend, or resume a field audit;
  • Other non-regulatory acts affecting the taxpayer's rights or legitimate interests.

The audit report itself does not give rise to legal consequences and cannot be challenged in court.

Timeframe for Filing

The complaint must be filed within 30 calendar days following the day after receipt of the contested decision. For decisions regarding the initiation, extension, suspension, or resumption of a field audit, the complaint must be filed within 5 business days.

Form and Content of the Complaint

The complaint must be in written form and include:

  • Date of submission;
  • Name of the tax authority receiving the complaint;
  • Full name or legal name and address of the complainant;
  • Taxpayer Identification Number (TIN);
  • Name of the tax authority whose decision is being challenged;
  • Circumstances and evidence supporting the claims;
  • List of attached documents;
  • Reference number of the disputed decision;
  • Address for receiving the outcome of the complaint;
  • Other relevant information.

Attachments must include:

  • Copies of materials and audit reports from the tax inspection;
  • Copy of the decision under appeal;
  • Documents supporting the taxpayer's claims, certified by the taxpayer or relevant authorities;
  • Other case-related documents.

Suspension of Enforcement

Filing a complaint automatically suspends the enforcement of the challenged decision.

Timeframe for Review

The STS must review the complaint within 30 calendar days from the date of registration. This period may be extended but must not exceed 90 calendar days in total, including any extensions or suspensions.

If the STS does not issue a decision within the established timeframe, the complaint is considered satisfied by default, and the contested decision becomes null and void.

JUDICIAL APPEAL

If the administrative appeal outcome does not satisfy the taxpayer, they have the right to file a lawsuit in administrative court to invalidate the decision of the authorized tax authority.

Tax disputes are heard in administrative courts located in the jurisdiction of the tax authority whose decision is being contested.

Procedural Deadlines and Appeals

  • A lawsuit must be filed within three months from the date the STS decision is received or the date the taxpayer became aware of it.
  • The first-instance court must resolve the case within two months from the date of completion of the preliminary proceedings.
  • Appeals against first-instance decisions must be filed within one month, and the appellate court must considerthe case within two months of receipt.
  • A cassation complaint must be filed within three months, and the cassation court must review the case within two months of receipt.

Procedural Requirements

  • The plaintiff must provide evidence of having completed the pre-trial procedure;
  • The state duty is 700 KGS per claim;
  • The courtreviews both substantive and procedural legality. Serious violations of procedure (e.g., lack of notification or breach of audit timelines) may result in the annulment ofthe decision regardless of calculation accuracy.

ALTERNATIVE PROCEDURE

Arbitration Court

As of 2023, taxpayers may choose to resolve disputes either in court or through an arbitration court. The arbitral tribunal must consist of at least three arbitrators, formed in accordance with the legislation on arbitration in the Kyrgyz Republic.

PRACTICAL RECOMMENDATIONS

  • Strictly adhere to procedural deadlines — missing them forfeits the right to administrative appeal and complicates court proceedings.
  • Compile a complete documentary file (audit reports, notifications, correspondence, etc.).
  • When filing a court claim, challenge both the decision of the regional tax office and the final decision of the STS central office.
  • Simultaneously file a motion to suspend recovery of the disputed amount.
  • In case of legal ambiguity, request an official interpretation from the Ministry of Economy and Commerce, which is binding on tax authorities and can be used as evidence of good faith in court.
  • The burden of proof lies with the tax authority, which must justify the legality and validity of its decisions. However, this does not relieve the taxpayer from proving their position.

CONCLUSION

The mechanism for appealing tax decisions in the Kyrgyz Republic is characterized by a mandatory pre-trial stage, effective safeguards for suspending enforcement, and the availability of alternative dispute resolution. By maintaining procedural discipline and presenting strong evidence, taxpayers significantly improve their chances of annulling unlawful decisions and protecting their financial interests.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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