The State Tax Service of the Kyrgyz Republic (GNS) has announced the introduction of temporary tax benefits for citizens engaged in the sale of passenger cars.
According to information from the GNS, until January 1, 2029, car sales will be exempt from a number of taxes. This decision is aimed at reducing the financial burden on citizens and improving the transparency of the car market.
Among the established tax benefits are the following:
– individuals who are not individual entrepreneurs or legal entities will not be considered as conducting activities on a regular basis, even if they sell more than two cars per year;
– income from the sale of passenger cars by individuals will not be subject to income tax;
– profits from the sale of passenger cars will also be exempt from tax;
– transactions for the sale of passenger cars will not be subject to value-added tax (VAT);
– sales of passenger cars will not be subject to sales tax.
Additionally, individuals (except for individual entrepreneurs) are exempt from paying taxes, penalties, and fines on income received before January 1, 2026, from the sale of motor vehicles.
These measures are aimed at reducing the tax burden for the population and entrepreneurs, as well as stimulating transparency in transactions in the motor vehicle market.
