This law was developed in accordance with the presidential decree issued on December 5, 2025, under number 350, and is aimed at supporting certain sectors of the economy. The main goal is to improve legislation, as well as to enhance the transparency and efficiency of legal regulation.
Key provisions of the new law include:
— exemption from VAT for equipment, technologies, reagents, and semi-finished products used in jewelry production;
— individuals and legal entities will not be required to pay taxes on the sale of passenger motor vehicles until January 1, 2029;
— individuals not registered as individual entrepreneurs are exempt from tax obligations, including penalties and sanctions, on income from the sale of motor vehicles received before January 1, 2026;
— manufacturers of vehicles, as well as components produced or assembled in Kyrgyzstan, are exempt from sales tax upon their sale;
— until January 1, 2030, uniform rates of insurance contributions are established for all participants in the garment and textile industry, and the minimum income tax will be 1% of the average monthly salary of workers in this sector;
— for property tenants, the insurance contribution rate will be 6% of the truncated average monthly salary;
— the single tax rate for activities outside Kyrgyzstan has been reduced to 0.1% (previously 1%);
— the tax rate on transactions through foreign banks has been reduced to 0.1% (previously 0.2%);
— legalization of previously imported or produced jewelry made from precious metals is provided, with a moratorium on inspections conducted by tax authorities during the legalization period;
— functions for testing and hallmarking jewelry are transferred on a voluntary basis to domestic producers, excluding the state hallmark, with the possibility of reducing hallmarking fees;
— licensing for the retail sale of alcoholic beverages has been abolished;
— the consideration of tax disputes will no longer fall under the jurisdiction of arbitration courts.
