According to the statement, the main goal of the new law is to implement the decree of the President of the KR "On Measures to Support Certain Sectors of the Economy" dated December 5, 2025, No. 350. Furthermore, it aims to improve the legislation of Kyrgyzstan, as well as enhance the transparency and efficiency of legal regulation.
Key provisions of the law:
- Equipment, technologies, semi-finished products, and reagents intended for jewelry production are exempt from VAT;
- Individuals and legal entities are not required to pay taxes when selling passenger motor vehicles until January 1, 2029;
- Individual citizens not registered as individual entrepreneurs are exempt from tax obligations, including penalties and sanctions, for income received before January 1, 2026, from the sale of motor vehicles;
- Manufacturers of vehicles and components produced or assembled in Kyrgyzstan are exempt from sales tax upon their sale;
- Unified rates of insurance contributions are established for all participants in the sewing and textile industry until January 1, 2030, as well as a minimum income tax of 1% of the average monthly salary of employees in this sector;
- For property tenants, the insurance contribution rate is set at 6% of the truncated average monthly salary;
- The single tax rate for activities outside the KR is reduced to 0.1% (from the current 1%);
- The tax rate on transactions conducted through foreign banks is reduced to 0.1% (from the current 0.2%);
- Legalization of 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 testing and hallmarking products with their own hallmark confirming the corresponding sample are delegated to domestic jewelry manufacturers on a voluntary basis, with the prospect of reducing the rates of assay fees;
- Licensing of retail sales of alcoholic beverages is abolished;
- Arbitration courts will no longer consider tax disputes.
