The law signed by President Sadyr Japarov has now come into effect and includes changes to the tax, social, and non-tax legislation of the Kyrgyz Republic.
The purpose of the new law is to implement the president's decree aimed at supporting certain sectors of the economy, as well as improving legal regulation and increasing its transparency.
Key provisions of the Law:
– exemption from VAT for equipment, technologies, reagents, and semi-finished products necessary for jewelry production;
– individuals and legal entities will not pay taxes on the sale of passenger and motorcycle vehicles until January 1, 2029;
– individuals, except for individual entrepreneurs, are exempt from tax obligations on income received from the sale of vehicles until January 1, 2026;
– manufacturers of cars and components produced or assembled in Kyrgyzstan are exempt from sales tax upon realization;
– until January 1, 2030, uniform insurance contribution rates based on the average monthly salary are established for all participants in the sewing and textile industry, with a minimum income tax of 1% of this amount;
– for property tenants, the insurance contribution rate will be 6% of the truncated average monthly salary;
– the unified tax rate for activities outside Kyrgyzstan is reduced to 0.1% (previously 1%);
– the tax rate on transactions conducted through banks of foreign states is reduced to 0.1% from the previous 0.2%;
– legalization of the remaining previously imported or produced jewelry made of precious metals is provided, with a moratorium on inspections by tax authorities during the legalization period;
– the functions of assay control and marking of products, except for the state assay mark, are transferred on a voluntary basis to domestic jewelry manufacturers, with a possible reduction in assay fees;
– licensing of retail sale of alcoholic beverages is abolished;
– tax disputes are excluded from the jurisdiction of arbitration courts.
