A recent meeting took place between representatives of the banking sector, the State Tax Service, and the Union of Banks of Kyrgyzstan.
The discussion addressed several issues, including changes in tax legislation, the introduction of a special tax regime "Transaction Tax," and the reduction of this tax rate from 0.2% to 0.1%, which became possible due to the Law of the Kyrgyz Republic adopted on December 31, 2025.
Additionally, issues of joint work on the implementation of automated interaction services and simplifying the administration of the transaction tax were discussed.
It is important to note that according to the current tax legislation, the bank where the account is opened acts as a tax agent, withholding and transferring this tax to the budget when transactions are conducted.
Entities conducting transactions can only use the special tax regime "Transaction Tax," and any other activities on the territory of the Kyrgyz Republic are prohibited.
Taxpayers engaged in transactions must submit an application for transitioning to the special tax regime by February 1, 2026, at their place of tax registration.
