The law is aimed at implementing the decree of the President of the Kyrgyz Republic "On Measures to Support Certain Sectors of the Economy" dated December 5, 2025, No. 350, as well as improving the country's legislation, enhancing its transparency, and increasing the effectiveness of legal regulation.
Key provisions of the law:
- Equipment, technologies, reagents, and semi-finished products intended for jewelry production are exempt from VAT;
- Individuals and legal entities will not pay taxes on the sale of passenger motor vehicles until January 1, 2029;
- Individuals not registered as individual entrepreneurs are exempt from tax obligations, including penalties and sanctions, on income from the sale of motor vehicles received before January 1, 2026;
- Manufacturers of vehicles and components produced or assembled in Kyrgyzstan are exempt from sales tax upon their sale;
- Until January 1, 2030, unified rates of insurance contributions for all participants in the sewing and textile industries will be established based on the average salary, and the minimum income tax will be 1% of the average salary of workers in these sectors;
- For tenants, the insurance contribution rate will be 6% of the truncated average salary;
- The rate of the single tax for activities outside Kyrgyzstan is reduced to 0.1% (from the current 1%);
- The tax rate on transactions conducted through banks of foreign states is reduced to 0.1% (from 0.2%);
- Legalization of remaining jewelry made from precious metals has been introduced, with a moratorium on tax authority inspections during the legalization period;
- Domestic jewelry manufacturers have been delegated functions for testing and hallmarking products, and the issue of reducing assay fees will be considered;
- Licensing of retail sales of alcoholic beverages has been abolished;
- Tax disputes have been excluded from the jurisdiction of arbitration courts.
