What the proposal includes
The key aspect of the changes is the modification of the transaction tax mechanism. Previously, the tax rate was reduced from 0.2% to 0.1% for transfers through foreign banks, and the banks where accounts are opened became tax agents. There was also a restriction allowing non-residents to open a current account only in one bank.However, practice has shown that international settlements often occur through complex chains of bank transfers. The developers of the amendments point out that the current rule limits the efficiency of cross-border operations and reduces the competitiveness of Kyrgyzstan's banking system.
The new version proposes to allow foreign legal entities to open accounts in several banks in the country. The procedure for tax registration of non-residents will also be clarified, which will help avoid situations with duplicate TINs and improve information exchange between tax authorities and banks.
The amendments also aim to eliminate ambiguities in defining the term "transaction," expand the taxable base for receipts to current accounts, establish the principle of single taxation, and simplify the status of tax agents without the need to detail the directions of fund movement. Transaction services are proposed to be excluded from the list of those exempt from other taxes, replacing them with a special tax regime.
In addition, a separate block of amendments concerns the extension of the deadline for submitting applications to switch to a simplified tax system from February 1 to March 1, 2026, considering that some companies did not manage to meet the requirements within the established timeframe. Taxpayers will also be allowed to sell remaining goods that were formed before registration under the previous tax regime until the end of 2026.
A new type of fee is also introduced into the Code on Non-Tax Revenues — for issuing permits (accreditation) to non-residents for opening and servicing bank accounts in Kyrgyzstan.
Goals of the proposed changes
According to the developers, these changes are aimed at reducing risks associated with taxes, compliance, and sanctions, as well as enhancing control over cross-border financial flows.
