On 12 February 2025, the President of the Kyrgyz Republic Sadyr Zhaparov signed the Law ‘On Amendments to Some Legislative Acts in the Field of Taxation’. The document amends the Tax Code, the Code of Offences and a number of other laws.
The main changes in the tax legislation
Cancellation of the universal tax return for individuals. Now citizens are not required to file a unified tax return (UTR), which will reduce the bureaucratic burden.
New tax for taxi drivers and couriers – 1% of income. Instead of the patent system, their income will now be subject to income tax. Payments will be withheld by the tax agent – the company through which orders are placed.
Cancellation of ‘zero’ reports. If a business has no tax liabilities for an accounting period, it will not have to submit blank declarations.
Exemption from income tax on the surrender of recyclable materials. Citizens can now hand in waste paper, scrap metal, glass and plastic without withholding 10% tax.
Reduction of VAT by 80% for retail chains. The benefit applies to shops that purchase domestic agricultural products from farmers, cooperatives and agro-logistic centres.
Exemption from the fee for the initial registration of cars produced in Kyrgyzstan. This will support the development of the auto industry and make it cheaper to buy locally produced cars.
Changes in the Code of Offences
Penalties for accepting payments through alien systems. If an entrepreneur uses someone else’s payment system for settlements, he will face:
a warning on the first offence,
a fine of 20,000 KGS (for individuals) and 65,000 KGS (for legal entities) in case of repeated violation.
Increased fines for the sale of excisable goods without excise stamps. Due to the growth of illegal turnover of alcohol and tobacco, fines for the sale of counterfeit goods are doubled.
Other changes
Transition to a single tax for property developers until 1 July 2025. Companies will be able to choose this regime and the tax will be 6% for cash payments and 4% for non-cash payments.
Write-off of tax debts from individuals on car re-export operations for 2022-2025.
Legalization of residual goods without documentation. Businesses can declare such goods until 1 April 2025 without penalty, except for alcohol, tobacco, medicines, petroleum and jewellery.
The law officially published and became effective from 1 January 2025, except for certain provisions.
