Kyrgyzstan’s parliament, the Jogorku Kenesh, has approved a bill introducing new tax incentives for businesses and select sectors of the economy. The decision was made at a parliamentary session on June 25.
The bill was drafted to implement a presidential decree aimed at improving the country’s tax system and tax administration.
One of the key changes is the introduction of five-year tax breaks for players in the creative industry. Companies and specialists in IT, artificial intelligence and mobile app development will be exempt from taxes, along with remote workers employed by foreign companies, startups, and producers of film, video and television content, as well as other creative activities to be defined by the Cabinet of Ministers. These groups will also benefit from a preferential income tax rate of 5% and social security contributions set at 12%.
In addition, the single tax rate for saunas and bathhouses will be cut from 8% to 5%. For catering businesses, the single tax rate will be set at 5% in Bishkek and Osh, and 3% in the rest of the country.
The law also raises tax rates on income for companies engaged in gold and silver mining and processing, with the rates to be tied to prices on international commodity exchanges.
To support the livestock sector, entrepreneurs who have exported cattle and small livestock will have 97% of their tax arrears written off, along with a full cancellation of accrued penalties and tax sanctions that arose before January 1, 2026. To qualify for this relief, they must pay off the remaining 3% of their debt.
A similar measure applies to coal mining companies, which will have penalties and tax sanctions waived if they fully repay their principal tax debt by the end of 2026.
The law further provides for the write-off of penalties on property tax accrued for 2026, provided the underlying debt is settled. Entrepreneurs will also be allowed to adjust records of inventory entered into information systems before April 1, 2025, without facing additional tax consequences.
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