Kyrgyzstan

Social insurance contributions

Taxpayers of social insurance contributions are legal entities (employers’), farms, and individuals. Generally, the base for calculation includes the gross remuneration of local and foreign personnel. In accordance with the Instruction ‘On Statutory Social Insurance Contributions’, the current rates are as follows:

• Employer:
  • Social contributions: 2.25% (2% to the fund of obligatory social security, 0.25% to the employees health fund).
  • Pension contributions: 15% (3% in respect of foreigners temporary residing in Kyrgyzstan).

• Employee:
  • State cumulative pension fund: 2%.
  • Pension contributions: 8%.

There are separate treatments on social insurance contributions for employees and employees with disabilities working under labour agreements.

Consumption taxes

Value-added tax (VAT)

In Kyrgyzstan, VAT is assessed on taxable supply and taxable imports. The VAT rate is 12%, except for certain zero-rated supplies and certain exempt turnover.

See the Other taxes section in the Corporate tax summary for more information.

Immovable property tax

Taxpayers

The following are subject to immovable property tax:

• Kyrgyzstan and foreign legal entities.
• Individuals who own immovable property in Kyrgyzstan, including property obtained under financial lease or mortgage agreements.

Subject of taxation

Taxable immovable property is divided into the following groups:

• Group 1: Houses, apartments, summer residencies (cottages), other buildings and constructions, and annexes to and separately built garages that are not used for entrepreneurial activity.
• Group 2: Houses; apartments; vacation hotels; rest homes; sanatoriums; resorts; and manufacturing, administrative, industrial, and other buildings and constructions designated or used for carrying out an entrepreneurial activity.
• Group 3: Temporary premises made of metal and other structures, such as kiosks and containers, designed and/or used for entrepreneurial activities.
• Group 4: Vehicles, including self-moving machines and machinery.

Taxable base

The taxable base of immovable property is based on the area of the property and is determined using the following formula:

TB=V*A*Ki*Kr*Kz, where:

• 'V' is the taxable value of 1 square metre of area, which depends on the operational life and the building materials used, and may vary from 4,000 Kyrgyzstani som (KGS) to KGS 15,000.
• 'A' is the taxable area of residential premises (excluding non-taxable area, which varies depending on type and population size of location) or the total area of business premises.
• 'Ki' is the industrial index used for business premises, which varies from 0.2 to 1.2; for residential premises, Ki is 1.
• 'Kr' and 'Kz' are regional and zone coefficients, which depend on the location of the property. These coefficients may vary from 0.1 to 1.2.

For property of Group 4, the taxable base is determined based on engine volume or book value.

Tax rates

The tax rate for immovable property is set by the Tax Code at 0.35% for residential property and 0.8% for property used in business activities. The tax rate for property of Group 4 varies from 0.01 KGS to 1.8 KGS per cubic centimetre, depending on type of vehicle and its useful life.

Tax payments and filing returns

The tax period for property tax purposes is a calendar year. However, legal entities and individual entrepreneurs must make tax payments for immovable property on a quarterly basis. Individuals must pay immovable property tax by 1 September of the reporting year.

All taxpayers are liable to submit a tax information report by 1 March for legal entities and individual entrepreneurs, and by 1 April for individuals.

Net wealth/worth taxes

There are no net wealth/worth taxes in Kyrgyzstan.

Inheritance and gift taxes

There are no inheritance and gift taxes in Kyrgyzstan.