As part of the gradual incorporation of Kyrgyzstan into the Eurasian Economic Union (EAEU) and the harmonisation of tax legislation between the member countries, the value-added tax (VAT) part of the Tax Code has been amended.
The threshold for obligatory registration as a VAT payer has been increased to 8 million Kyrgyzstani som (KGS). Import and realisation of jet fuel consumed by international air carrier operators was added to VAT exemptions.
In general, sales tax rates were decreased 0.5%, except for operations in bank and mobile communication. A 0% rate has been introduced for operations paid via non-cash methods.
Provisions on transfer pricing regulations were developed granting the tax authorities the right to carry out transfer pricing controls on operations with goods for which the minimum target price has been established.
Consideration of the new Tax Code is postponed indefinitely.