In accordance with the changes made to the Tax Code of the Kyrgyz Republic, the tax rate on transactions conducted through foreign banks has been reduced from 0.2% to 0.1%. This innovation became possible due to the Law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation, Social Insurance, and Non-Tax Revenues," which was adopted on December 31, 2025.
It is worth reminding that this tax was established by the Law of the Kyrgyz Republic dated July 31, 2025. It represents a special tax regime concerning operations for the transfer of funds that are received exclusively from the settlement account of a foreign bank through the taxpayer's account in a bank of the Kyrgyz Republic to the account of a foreign bank.
The tax is paid by the bank where the taxpayer's account is opened, which acts as the tax agent when conducting transactional operations.
Entities conducting such transactions can only use the special tax regime "transaction tax."
They must submit an application for the application of this special regime to the tax authorities by February 1, 2026, at their place of tax registration.
It is important to remember that taxpayers who apply this tax are not allowed to engage in other activities on the territory of the Kyrgyz Republic.
If a taxpayer decides to combine transactional activities with other types of business, they will need to register a separate limited liability company or individual entrepreneur to conduct such activities.
