The State Tax Service of the Kyrgyz Republic informs about the reduction of the tax rate on transactions conducted through foreign banks from 0.2% to 0.1%.
These changes were made to the Tax Code of the country as part of the Law of the Kyrgyz Republic "On Amendments to Certain Legislative Acts in the Field of Taxation, Social Insurance, and Non-Tax Revenues," which came into effect on December 31, 2025.
It is worth noting that the transaction tax was first established by the Law of the Kyrgyz Republic dated July 31, 2025. This tax regime applies to money transfer operations that are received exclusively from a foreign bank account to the taxpayer's account in a bank in Kyrgyzstan and then transferred to a foreign account.
The tax is paid by the banking institution where the account is opened, which acts as the tax agent when carrying out transactions for the taxpayer.
Individuals conducting such transactions are required to use only the special tax regime "transaction tax." They are required to submit an application for the application of this tax regime at their tax registration location no later than February 1, 2026.
It is important to note that taxpayers who choose this tax cannot engage in other business activities on the territory of Kyrgyzstan.
In the event that transactional activities are combined with other business activities, the taxpayer must register a separate limited liability company or individual entrepreneur to conduct such activities.
