The Ministry of Ecology in Kyrgyzstan has issued a reminder regarding the imperative need to adhere to the country’s mining laws concerning subsoil use.
In order to prevent the unauthorized transfer of licenses for subsoil exploitation, the Ministry underscores that, as per the Subsoil Law, such transfers are prohibited until a period of two years has elapsed since the conclusion of the license agreement for conducting mining activities.
Furthermore, it is clarified that the transfer of a license to another party, resulting from the transfer of rights under the license, is treated akin to obtaining a new license. This action necessitates the payment of a bonus as mandated by Kyrgyz tax laws. However, any such transfer can only occur if the current subsoil user is devoid of outstanding payments related to bonuses, royalties, and fees for subsoil use.
According to Article 351 of the Tax Code, except in specific instances like inheritance or the reorganization of a legal entity without altering its ownership structure, the transfer of subsoil usage rights to another entity is subject to taxation.
Failure to meet the stipulated deadlines for bonus or license fee payments can lead to the suspension and eventual termination of subsoil usage rights.
