Starting January 1, 2026, a new Tax Code will come into effect in the neighboring country
In Kazakhstan, an updated Tax Code will take effect on January 1, 2026, bringing significant changes for businesses. Among the innovations are an increase in the VAT rate from 12% to 16%, as well as a rise in excise taxes on tobacco products, alcohol, and energy drinks.
These changes may lead to the risk of many small and medium-sized enterprises closing down, as well as their possible "emigration" to Kyrgyzstan.
"We really have some of the lowest taxes within the EAEU. There are many types of taxation. For example, there is a 2% tax and social fund contributions for e-commerce. Patents can be used in trade. For other types of activities, the tax is 4% for cashless payments, 6% for cash, and 8% when using cash registers," noted economist Iskender Sharshiev in a conversation with Vesti.kg.
As a result, many companies from Russia and other countries have already opened their offices in Kyrgyzstan.
"However, there are local restrictions that sometimes hinder their activities. Nevertheless, such measures are aimed at protecting local markets and national trade, as well as preventing risks associated with double taxation. Nonetheless, the relocation of part of the business is quite likely," he added.
It is worth noting that Kyrgyzstan also plans changes to its tax system. In particular, it is proposed to increase excise taxes on tobacco products, alcohol, and energy drinks to reduce their consumption among citizens.
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