The State Tax Service of the Kyrgyz Republic held a meeting with representatives of the banking sector and the Union of Banks of the country. The agenda included important changes in tax legislation, including a new special tax regime "Transaction Tax."
One of the key issues discussed was the reduction of the tax rate from 0.2% to 0.1%, as provided by the Law of the Kyrgyz Republic adopted on December 31, 2025.
Participants of the meeting also discussed joint efforts to implement new services aimed at automating the administration processes of the transaction tax.
We remind you that under the current tax legislation, the bank where the account is opened acts as a tax agent, withholding and transferring the tax to the budget during transactions.
Entities conducting such transactions are required to exclusively use the special tax regime "Transaction Tax." It is important to note that within this regime, engaging in other activities on the territory of the Kyrgyz Republic is prohibited.
Taxpayers conducting transactions must submit an application for the application of the special tax regime at their tax registration location no later than February 1, 2026.
