Kyrgyzstan

Individual - Income determination

Last reviewed - 14 January 2020

Employment income

With few exceptions, all types of direct and indirect income are included in taxable compensation.

The salaries of employees of the diplomatic service of the Kyrgyz Republic, civil servants, and other workers (i.e. citizens of the Kyrgyz Republic) working in overseas missions of the Kyrgyz Republic, as well as offices of public bodies of the Kyrgyz Republic in foreign countries or international organisations located abroad, are not subject to individual income tax.

Additionally, please note that there is a certain threshold of taxable income (monthly) established by the Tax Code. The taxable base should not be less than the minimum income used in calculation of individual income tax. The minimum monthly salary officially established for 2018 is KGS 1,220.

Capital gains and investment income

Capital gains are subject to ordinary income tax rate at 10%.

There is an exemption available for interest income and capital gains from selling shares that are, on the date of a given sale, in the official lists of the stock exchange in the highest and the next to highest category of listing.

Dividends received by an individual resident of the Kyrgyz Republic from participation in domestic companies, as well as dividends received by a non-resident individual as part of the profit subject to 0% profit tax, are not subject to individual income tax.

Exempt income

The Kyrgyz Tax Code stipulates a list of non-taxable income, which includes, among others, social security contributions, obligatory pension contributions, income in the form of property received as inheritance or a gift from relatives, income from realisation of movable and immovable property owned and used by a taxpayer for personal needs, and other income.

Income of servicemen and officers of the Ministry of Internal Affairs and the penal system in kind of money allowances are exempt from personal income tax (PIT). Payments from funds of deputies of the Jogorku Kenesh of Kyrgyzstan (Parliament) are also exempt from PIT.