The tax rate on transfers through foreign banks has been reduced from 0.2% to 0.1%
The State Tax Service of Kyrgyzstan has announced a reduction in the tax on transactions conducted through banks in other countries. The new rate is 0.1% compared to the previous 0.2%.
These changes were made to the Tax Code in accordance with the law that was adopted on December 31, 2025.
This reduction is related to the introduction of a special tax regime known as the "transaction tax." It applies to operations related to the transfer of funds from an account in a foreign bank to the taxpayer's account in Kyrgyzstan, and then back abroad.
The bank, acting as a tax agent, is responsible for withholding and transferring the tax to the budget during the transaction.
Entrepreneurs wishing to take advantage of this regime must submit an application for its application at their tax registration location by February 1, 2026. At the same time, they cannot engage in any other activities on the territory of Kyrgyzstan.
If transaction activities are conducted alongside another business, the taxpayer is required to register a separate legal entity or become an individual entrepreneur.
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