Corporate - Corporate residence

Last reviewed - 29 June 2021

There is no concept of corporate residence in the Kyrgyzstan tax legislation.

Legal entities formed under the Kyrgyz law should be taxed in Kyrgyzstan on their worldwide income, whereas foreign legal entities should be taxed only in relation to Kyrgyzstan-sourced income.

Permanent establishment (PE)

Under Kyrgyzstan tax legislation, a PE is a permanent place of business through which a non-resident carries out business operations, including activities performed through an authorised person. A PE includes the following:

  • Any place of management, department, office, factory, workshop, mining, oil and gas wells, land, construction site, or project.
  • Any services rendered by non-residents by hiring personnel working in the territory of Kyrgyzstan for a duration of more than 183 calendar days within any consecutive 12-month period.

A PE is not created in Kyrgyzstan if a non-resident is limited to the following activities in Kyrgyzstan:

  • Use of warehouses or buildings exclusively for storage or demonstration activities.
  • Use of a fixed place of business exclusively for preparatory purposes.
  • Performance of activities in Kyrgyzstan through an agent in cases where such agent usually performs such activities in the ordinary course of business.

Creation of a PE may be connected with the establishment of a branch or subsidiary. Both branches and subsidiaries are considered appropriate business vehicles for foreign investors, and the choice between them is determined by the business the investor is engaged in, along with various other factors.