The State Tax Service of the Kyrgyz Republic organized a meeting with representatives of the banking sector and the Union of Banks of Kyrgyzstan. The agenda included issues related to new changes in tax legislation, as well as a special tax regime called the "Transaction Tax." There was also a discussion about the proposal to reduce the tax rate from 0.2% to 0.1%, as provided by the Law of the Kyrgyz Republic dated December 31, 2025.
Furthermore, the participants of the meeting considered opportunities for joint efforts aimed at implementing services for automating the administration processes of the transaction tax.
According to the current tax legislation, it is the bank where the account is opened that performs the functions of a tax agent, withholding and paying the tax to the budget during transactions.
Entities that carry out transactions can only use the special tax regime "Transaction Tax," and they are prohibited from engaging in any other activities on the territory of Kyrgyzstan.
Taxpayers engaged in transactions are required to submit an application for the application of the special tax regime at their place of tax registration no later than February 1, 2026.
