The tax on transfers through foreign banks is now 0.1% instead of 0.2%
The State Tax Service of Kyrgyzstan has confirmed that the tax rate on transactions using foreign banks has been reduced. The current tax rate is 0.1%, which is half of the previous rate of 0.2%.
These changes were made to the Tax Code in accordance with a new law that was adopted on December 31, 2025.
The new tax regime, known as the "transaction tax," applies to money transfers made from accounts of foreign banks to taxpayer accounts in Kyrgyzstan, and then transferred back abroad.
Banks act as tax agents, withholding and remitting the tax to the budget during each transaction.
Entrepreneurs wishing to take advantage of this regime must submit the appropriate application at their tax registration location by February 1, 2026. It is important to note that they cannot engage in other activities within the country.
If they plan to combine transactional activities with other businesses, they will need to register a separate legal entity or individual entrepreneur.
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