Kyrgyzstan

Kalikova & Associates

"The leader in the market and the first choice for international companies and law firms that do not have a local presence"

Chambers Global

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Moldova Moldova Moldova Moldova

71, Erkindik blv.

Bishkek

Tel.: +996 (312) 666-060

Fax: +996 (312) 662-788

www.k-a.kg

KYRGYZSTAN: TAX COMPASS 2011

Corporate income taxation
Corporate Tax 10%
Dividends 10%
Participation Exemption

Available only for Kyrgyz companies (tax residents) in relation to               

dividends payable by domestic companies 		0%
Capital gains

Applicable only to capital gains from sale of own shares,
interest and capital gains from securities listed in stock exchanges at

highest and pre-highest category of listing 		0%
Deduction of Interests
Provided that incurred debt was used for economic activity/operation of the company 		Fully deductible
Thin Capitalization Rule N/A
Depreciation
Accelerated depreciation		 Linear/Nonlinear
max. 50%
Transfer Pricing Rules
Methods: Comparable Market Prices		 Yes

Loss carried forward

Loss carried backward

Up to 5 years

N/A
Fiscal unity/Tax consolidation N/A
Withholding taxation
Withholding tax rate for dividends 10%
Withholding tax rate for interests and royalties 10%
Double Tax Treaty Network ( 21 DTTs): reduction / elimination of WTH taxation  
Personal Income tax
Tax rate 10%
Dividends
 10%
Participation Exemption
Available only for Kyrgyz nationals (tax residents) in relation to dividends payable by domestic companies		 0%
Inheritance tax N/A
Real Estate Transfer Taxes / Duty N/A
Value Added Tax
General rate 12%
Other rates
Exemption available		 20%/0%
SALES TAX Max 3%
Property taxation
Immovable property (except for land)
  • for personal use
  • for commercial use

 

0.35%

0.8%
Land tax
Calculated according to the special formula of each type of land and depends on certain characteristics such as base rate of the land tax, land area, inflation, zonal and commercial use coefficients
Severance Tax (bonus, royalty)
On minerals: gas, oil, metals, carbons etc.
Excises
Excise duties are imposed on both import and manufacture of a list of goods
Social Security Contributions
On monthly salary
  • employee
  • employer
 27.25% (total rate)
10%
17.25%
Reduced rate                                    
Applicable only to foreign nationals temporarily residing in the Kyrgyz Republic (shall be paid by the employer) 
3%
Incentives for Investors

Tax stability clause (freedom to choose within 10 years from the beginning of  business activities most favorable terms in case of introduction of changes in tax legislation)

Special tax regimE
Simplified tax regime based on single tax available for small businesses/ individual entrepreneurs:
  • for production, trade and agricultural processing industries
  • in other cases


4%
6%

Mandatory / voluntary patent based tax
Tax contract: prescribes tax liability in fixed amount in relation to corporate income tax, VAT and sales tax
Free economic zones: tax exemption (except for personal income tax, social security contributions, withholding tax and special fee (for providing tax exemption) in the amount of 0.1 to 2% of annual proceeds from sale goods and services)
Parks of high technologies (effective from July 15, 2011): exemption from corporate income tax, VAT and sales tax
Advance (binding) tax rulings N/A
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