The purpose of the document is to implement the presidential decree of December 5, 2025, which implies support for certain economic sectors, and it introduces a number of tax and insurance concessions for individuals and legal entities.
According to the new law, VAT on equipment, technologies, semi-finished products, and reagents used in jewelry production is abolished. Legal and physical entities are exempt from paying sales tax on cars until January 1, 2029, and until January 1, 2026, there is a provision for the write-off of tax debts of individuals related to the re-export of cars.
In addition, the law exempts from taxation the sale of vehicles produced or assembled in Kyrgyzstan, as well as related components. For workers in the sewing and textile industry, the minimum income tax is set at 1% of the average salary until January 1, 2030, and insurance contributions will be uniform for all participants in this sector.
For property tenants, the insurance contribution rate will equal that for individual entrepreneurs and will be 6% of the reduced average salary. A new rate of the unified tax for activities outside the country has been established at 0.1%, which also applies to the tax on transactions through foreign banks.
The law provides for the legalization of stocks of jewelry made from precious metals that were previously imported or produced, within two months from the introduction of a moratorium on tax audits during this period. Licensing of retail trade in alcoholic products is abolished, and tax disputes will no longer be considered by arbitration courts.
Changes have also been made to the Code on Offenses. A new Article 295¹ has now been introduced, which establishes liability for transactions with jewelry without special accounting, and the responsibility for illegal movement of goods and vehicles across the EAEU border has been tightened, including increased fines and confiscation for repeated violations.
The law was adopted on December 24, 2025, by the Jogorku Kenesh of the Kyrgyz Republic.
