According to the banking legislation of the Kyrgyz Republic, entrepreneurs are required to conduct their activities through business accounts and electronic wallets. Personal electronic wallets and accounts of individuals cannot be used to receive payments for goods and services in the course of business, which constitutes a violation of the law.
It is important to note that until December 31, 2026, the State Tax Service has suspended raid inspections and control purchases regarding compliance with a number of tax requirements, including the use of equipment for operations with bank cards and electronic money, as well as QR codes.
Control over compliance with these norms is assigned to commercial banks, which, within the framework of their "Know Your Customer" policy, must identify suspicious transactions with personal accounts indicating business activities. If such transactions are detected, banks may restrict or block accounts. The National Bank of the Kyrgyz Republic also has the right to take measures against commercial banks if transaction control is insufficient.
The Tax Service closely collaborates with the National Bank and commercial banks. Previously, before the introduction of administrative responsibility, information about cases of using personal accounts for business was sent to banks for appropriate action.
Tightening control over the use of QR codes by individuals is related to the risks of tax evasion and concealment of real income, especially among large taxpayers, for whom the moratorium on inspections does not apply. Often, organizations accept payments into the accounts of their employees, which has been noted in the catering sector, where funds are transferred to the wallets of waiters rather than to company accounts.
Using a personal electronic wallet for business purposes is subject to administrative liability. For the first violation, a warning is issued with the drawing up of a protocol, and for a repeated violation, fines are imposed: 5,000 soms for individuals and 20,000 soms for legal entities. For repeated violations, the fines increase to 13,000 soms for individuals and 65,000 soms for legal entities.
It should also be noted that the Tax Service does not have direct access to the accounts and electronic wallets of citizens. Obtaining such information is only possible by court order. Compliance with the legislation is monitored through control measures such as raid inspections and control purchases. The presence of a QR code registered to an individual indicates a violation.
In markets and certain segments of retail trade, a moratorium is in effect, which emphasizes explanatory work. For taxpayers not covered by the moratorium, including large taxpayers and VAT payers, control is conducted more thoroughly, considering the risks of budget losses.
Consumer protection legislation and banking regulation do not contradict each other. The Consumer Protection Law requires that the seller does not limit the buyer's choice of payment method, while banking legislation requires cashless payments to a correct business account. Thus, cashless transactions must be carried out only through business accounts and QR codes.
Commercial banks apply remote monitoring of transactions based on risk-oriented models. If money is regularly received from different individuals into one personal wallet, the bank may block the account to clarify the nature of the transactions.
Collecting funds for charitable and non-business purposes into personal accounts is allowed, provided that the bank is notified in advance. One-time receipts generally do not pose a risk; however, systematic transfers from many individuals may raise questions for banks.
The use of cash registers and the issuance of receipts do not exempt from the obligation to accept payments into a business account. Receiving funds into a personal electronic wallet while conducting business is considered a violation, regardless of the use of cash registers.
Representatives of commercial banks report that opening a business account or business wallet can be done quickly, including remotely through mobile applications, provided there is tax registration. However, some entrepreneurs continue to use personal wallets due to the absence of transfer fees, differences in acquiring rates, and delays in crediting funds to business accounts. A lack of understanding of the differences between personal and business accounts also plays a role.
The Government Resolution of the Kyrgyz Republic dated December 23, 2015, establishes a list of types of activities for which cashless payments (POS terminals and/or QR payments) are required. This list includes 18 types of activities, including wholesale trade, pharmacy chains, gas stations, and catering establishments.
The State Tax Service recognizes the importance of explanatory work and actively engages in this activity within its competence. Banking regulation issues fall under the jurisdiction of the National Bank and commercial banks. The Tax Service is ready to expand cooperation with the National Bank, the Union of Banks, and commercial banks to reduce misunderstandings and unfounded concerns among entrepreneurs.
