We hereby submit the Law of the Kyrgyz Republic “On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation” dated October 29, 2025, No. 243.
During the development of this draft law, the Business Development Council (BDC), as part of the Interdepartmental Working Group, collected proposals and comments from its members, and also formulated and submitted its own recommendations aimed at improving the regulatory framework and creating favorable conditions for business activities.
In the final version of the law, the following BDC proposals were fully or partially incorporated:
- Extension of the deadline for taxpayers to file complaints against decisions of the tax authorities to 60 days (previously, BDC had proposed increasing this period to 90 days instead of 30) – Article 167.
- Clarification that the acquisition, transfer, or sale of participation shares is taxable only if carried out on a professional basis, i.e., within the framework of systematic entrepreneurial activity – Article 23.
- Removal of the possibility to send a notice on securing the fulfillment of tax debt acknowledged by the taxpayer in electronic form – Article 97.
- Exemption from taxation for a foreign organization on the sale of a share in the capital or other participation interest in a domestic organization if the foreign organization held the share for more than 5 years – Article 249 (previously, BDC proposed broader exemptions, including full exemption from taxation for transactions between foreign entities. Following BDC’s work, this compromise solution was adopted).
- Exclusion of income received by a foreign organization from the sale of participation shares in a domestic organization from the list of income sourced in the Kyrgyz Republic – Article 174.
- Clarification that the tax base of an insurance organization is calculated after deducting amounts paid to reinsurers and agency fees, i.e., the actual income remaining at the disposal of the company – Article 366.
- Clarification of the criteria for business fragmentation, limiting the application of this term exclusively to interdependent entities engaged in small-scale trade or to individual entrepreneurs selling goods, works, and services to the population while complying with conditions for applying preferential rates under Article 423 of the Kyrgyz Tax Code (previously, BDC proposed removing this provision to reduce the risk of arbitrary interpretation and to protect entrepreneurship. This proposal was partially considered through the introduction of corresponding clarifications in its application criteria).
