The State Tax Service of the Kyrgyz Republic has announced the implementation of temporary tax benefits for citizens engaged in the sale of passenger cars.
According to the information from the State Tax Service, until January 1, 2029, car sales will be exempt from various taxes, aimed at alleviating the financial burden on citizens and improving transparency in the automotive market.
In particular, the following tax concessions are planned:
– the sale of passenger motor vehicles by individuals (excluding registered individual entrepreneurs and legal entities) will not be considered a systematic activity, even if more than two cars are sold during the calendar year;
– such sales will not be subject to income tax;
– income from the sale of passenger motor vehicles will not be subject to profit tax;
– transactions for the sale of passenger motor vehicles will be exempt from value-added tax (VAT);
– the sale of passenger motor vehicles will not be subject to sales tax.
Additionally, individuals (except for individual entrepreneurs) will be exempt from taxes, penalties, and sanctions on income received before January 1, 2026, from the sale of motor vehicles.
These measures are aimed at reducing the tax burden on the population and business entities, as well as increasing the transparency of transactions in the motor vehicle market.
