The law signed by President Sadyr Japarov has come into effect and pertains to changes in the tax system of the Kyrgyz Republic.
The purpose of this law is to implement the president's decree on measures to support certain sectors of the economy, as well as to improve legal regulation and increase its transparency.
Key provisions of the Law:
– all 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 and motorcycle vehicles until January 1, 2029;
– individuals, excluding individual entrepreneurs, are exempt from paying taxes, 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 not required to pay sales tax upon their sale;
– for all participants in the sewing and textile industry, unified rates of insurance contributions are established until January 1, 2030, with a minimum income tax of 1% of the average monthly salary of employees;
– for tenants, the insurance contribution rate will be 6% of the truncated average monthly salary;
– the single tax rate has been reduced to 0.1% (from the current 1%) for activities outside the Kyrgyz Republic;
– the tax rate on transactions conducted through foreign banks has been reduced to 0.1% (from 0.2%);
– legalization of remaining jewelry made of precious metals is provided with a moratorium on inspections by tax authorities during the legalization period;
– domestic jewelry manufacturers will be able to voluntarily conduct testing and hallmarking of products with their own mark, which excludes the mandatory state hallmark, with the possibility of reducing hallmarking fees;
– licensing for the retail sale of alcoholic products is abolished;
– tax disputes will not be considered by arbitration courts.
