The State Tax Service (GNS) has announced a reduction in the tax rate on transactions conducted through foreign banks from 0.2% to 0.1%.
This change has been implemented in the Tax Code of Kyrgyzstan in accordance with the Law of the Kyrgyz Republic "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation, Social Insurance, and Non-Tax Revenues," adopted on December 31, 2025.
It is worth noting that the tax on transactions was first established by the Law of the Kyrgyz Republic dated July 31, 2025. This tax regime is intended for taxing money transfers that are received exclusively from a foreign bank account to the taxpayer's account in a bank in Kyrgyzstan, and then sent to a foreign bank account.
When conducting such transactions, the bank where the account is opened acts as a tax agent and withholds the tax, which is then transferred to the budget.
Those who carry out transactions must apply only the special tax regime "transaction tax." Additionally, they are required to submit an application for the application of this regime at their place of registration by February 1, 2026.
It is important to emphasize that taxpayers using this tax cannot engage in other activities on the territory of Kyrgyzstan.
If a taxpayer decides to combine transactional activities with other types of business, they will need to register a separate legal entity (LLC) or become an individual entrepreneur to conduct such activities.
