III.  
SECTOR SPECIFIC SUPPORT: THE INTERNATIONAL CENTER FOR NOT FOR 
PROFIT LAW 
A. PROJECT PURPOSE 
The purpose of the Counterpart/ICNL Consortium is: 
Assist in the development of a comprehensive legal and fiscal framework that will 
support and strengthen the NGO sector. 
The purpose of ICNL is: 
Develop a legislative environment that is supportive of the long term growth of the NGO 
sector in Central Asian countries. 
B. PROJECT IMPACTS 
K
YRGYZSTAN
President Terminates Resolution No. 20 
On May 25, 2002 President Akaev terminated Resolution No. 20 ( Resolution ) of the Government of 
Kyrgyzstan  On Some Issues of Publishing Activities.  The advice and commentary provided by 
ICNL's local expert helped NGOs and mass media representatives effectively address their concerns 
regarding the Resolution and its contradictions with domestic and international law, leading to its 
termination. Several provisions in the Resolution directly contradicted the Kyrgyz Constitution and 
provisions of international law protecting freedom of speech. The Resolution seriously threatened 
freedom of speech and the right to disseminate information. For example, the Resolution required the 
registration of all fax machines, copiers, scanners and other equipment that could be used for 
publishing activities and required prior certification for any publishing activity. Many Kyrgyz and 
international mass media organizations and NGOs protested against the restrictive Resolution. Forty 
two roundtables discussing the Resolution and its effect on civil society took place throughout 
Kyrgyzstan, and ICNL provided written commentary and legal expertise regarding the Resolution and 
its conformity with domestic and international law. Over 800 representatives from the mass media, 
NGOs, and government officials of all levels participated in these roundtables and signed declarations 
against the Resolution. ICNL is proud to have participated in one of the most effective and successful 
advocacy campaign in Kyrgyzstan in recent years. 
The Bill of Amendments to the Kyrgyz Tax Code Is Submitted to the Speaker of the Legislative 
Assembly of the Jogorku Kenesh 
On June 10, 2002, the Bill of Amendments to the Kyrgyz Tax Code (the draft law  On Introduction of 
Amendments and Additions to the Tax Code of the Kyrgyz Republic ) was submitted to the Speaker 
of the Legislative Assembly of the Jogorku Kenesh, and will be submitted to the Government of 
Kyrgyzstan for review and approval before being included into the Parliament's fall agenda. ICNL 
worked closely with the drafters to ensure that the amendments took into consideration the particular 
tax issues related to the operation and financial viability of noncommercial organizations.  The 
proposed amendments clarify the definitions of key terms; exclude humanitarian aid, grants, and other 
donations from gross taxable income; and exempt goods and services provided by charitable 
organizations from VAT as well as those provided to NCOs at or below cost or those provided for 
specified public benefit purposes. The amendments to the Tax Code were the culmination of extensive 
efforts by ICNL to improve the tax treatment of NGOs. A roundtable on NGO taxation in January was 
organized with the assistance of ICNL at the initiative of two Parliamentary Committees. In February 
ICNL organized and financed a workshop at Lake Issyk Kul where the official Working Group 
(including parliamentarians, senior government officials, tax experts, and ICNL) developed initial 
drafts of the proposed amendments. Subsequently, the draft amendments were presented to the IMF, 
the Barents Group, NGOs and international organizations. The draft amendments were subsequently 
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