Kyrgyzstan

The recent changes made to the tax code of Kyrgyzstan include the following:

• The sales tax rate from 2023 changed as follows:
  • When selling goods, works, or services subject to value-added tax (VAT), paid in cash:
    1. Activity and production sphere: 1%.
    2. For activities not provided for by subparagraph (i): 2%.

• • When selling goods, works, or services exempt from VAT, paid in cash:
    1. For trading activities and the production sector: 2%.
    2. For activities not provided for by subparagraph (i): 3%.
• The sales tax rate for the sale of goods, works, or services paid for in a non-cash form is set at 0% from 2023.
• From 1 January 2023, the tax on income for mining and/or processing enterprises increases. In particular, for gold ore and concentrate, depending on the volume, 11% to 30% of the profit received is paid. Until 2023, these rates were 3% less and ranged from 8% to 27%.
• The excise rate on electronic cigarettes has increased from 1,800 to 2,000 Kyrgyzstani soms (KGS) per 1,000 pieces. The excise rate on heated loose tobacco (heated tobacco stick, heated capsule with tobacco) of cylindrical shape from 1 May 2024 to 31 December 2024 is KGS 2,500 per 1,000 pieces. In subsequent years, the excise tax on these types of goods will also increase.
• Rates for other excisable goods from 2023 range from KGS 250 to 4,000, depending on the type of excisable product.
• The gambling tax rate has changed as follows: 
  • For one gaming table (one fleet) of the casino: KGS 1 million (previously it was KGS 750,000).
  • For one slot machine in the hall of slot machines and computer simulators: KGS 75,000 (previously it was KGS 50,000).
  • For one point of acceptance of rates (cash desk) of a bookmaker's office and totalisator: KGS 350,000 (previously it was KGS 200,000).
• The rate for a resident of the Creative Industry Park under the simplified taxation system based on a single tax is 0.5%.
• An indefinite tax exemption is provided for individual entrepreneurs with an annual volume of proceeds from the sale of goods, works, or services up to KGS 8 million who meet the requirements for the use of cash registers, as well as pay insurance premiums for state social insurance.
• A reduction in the single tax rate is provided for taxpayers providing catering services. The single tax rate for a public catering entity is reduced from 8% to the following:
  • In the cities of Bishkek and Osh:
    • In cash: 6%.
    • In non-cash form: 4%.
  • In the rest of the territory of Kyrgyzstan:
    • In cash: 5%.
    • In non-cash form: 3%.
• Single tax rates are established for:
  • agricultural procurers at 0.5% on the gross proceed
  • agricultural milk collectors at 0.25% on the gross proceed, and
  • performing special construction work during the construction of buildings at 6% on the gross proceed.
• In connection with the abolition of the Resolution of the Cabinet of Ministers of the Kyrgyz Republic on minimum level of control prices for certain types of goods, the concept of the minimum level of control prices is excluded in the Tax Code, and, accordingly, transactions with such goods have been excluded from the list of controlled transactions for the purposes of applying transfer prices.