Taxes & Duties

Taxation in the Kyrgyz Republic is regulated by the Constitution of the Kyrgyz Republic, the Tax Code of the Kyrgyz Republic, specific laws, regulations, and instructions. The authorized agency responsible for the supervision of timely payment of taxes is the State Committee on Taxes and Duties of the Kyrgyz Republic.

Types of Taxes

Currently, as many as 17 types of taxes and mandatory payments exist in the Kyrgyz Republic.

National taxes are:

  • Profit tax
  • Income tax
  • Value added tax
  • Excise tax
  • Automobile road tax

 Local taxes and duties are:

  • Land tax
  • Health resort tax
  • Advertisement tax
  • Automobile parking fee
  • Garbage collection fee
  • Hotel tax
  • Retail sail tax and tax on paid services to individuals
  • Property tax
  • Automobile owner tax

Mandatory allocations are:  

  • Allocations to the Social Fund of the Kyrgyz Republic
  • Allocations to the Fund for Prevention and Liquidation of Emergency Situations in the Kyrgyz Republic
  • Allocations for the development and replenishment of mineral resources and raw materials in the Kyrgyz Republic

Taxpayers

For the purposes of taxation, a distinction is made between resident legal entities and non-resident legal entities in the Kyrgyz Republic. Non-resident entities may be either non-resident legal entities having permanent representation in the Kyrgyz Republic, or non-resident legal entities not having permanent representation in the Kyrgyz Republic.

 Non-resident legal entities having permanent representation in the Kyrgyz Republic

 A non-resident legal entity, activities of which have features of permanent representation may only act on the basis of establishment of a legal entity, registration of a branch or representative office within the Kyrgyz Republic. Status of branches and representative offices of non-resident legal entities for the purposes of taxation is considered equal to the legal entity status.

Non-resident legal entities not having permanent representation in the Kyrgyz Republic

In cases where business activities of a foreign legal entity do not have features of permanent representation in the Kyrgyz Republic, yet the entity derives income from sources located within the territory of the Kyrgyz Republic, for the purposes of taxation it is considered to be a non-resident legal entity without permanent representation in the Kyrgyz Republic. In this case the individual or legal entity from which the non-resident entity obtains its income must calculate, withhold, and transfer to the budget the amount of income tax of the non-resident without deductions as follows:

  • Dividends and interest – 10%
  • Insurance payments on insurance agreements or agreements of risk re-insurance– 5%
  • Royalties – 30%
  • International telecommunication or international transportation services between the Kyrgyz Republic and other countries – 5%
  • Management and consulting services – 30%
  • Other services or works – 30%