Practice has shown that international settlements often require complex chains of transfers and the use of multiple banks. According to the developers, the existing restriction on opening an account in one bank reduces the efficiency of transactions, complicates foreign economic calculations, and weakens the competitiveness of the country's banking system.
In this regard, it is proposed to allow non-residents to open accounts in several banks in Kyrgyzstan. Additionally, the procedure for tax registration of foreign companies will be clarified, which will help avoid situations where one entity receives multiple TINs and ensure proper data exchange between banks and tax authorities.
The amendments also provide for the elimination of ambiguities in the definition of the term "transaction," the expansion of the taxable base for incoming funds to settlement accounts, the implementation of the principle of single taxation, and the simplification of the status of the tax agent without the need to detail the directions of fund movement. Transaction services may also be excluded from the list of those exempt from other taxes, being replaced by a special regime.
Separately, the issue of transitioning to a simplified taxation system with a rate of 0.1% for entities operating outside Kyrgyzstan is being considered. Given the appeals from several companies regarding the impossibility of meeting deadlines, it is proposed to extend the application period for transitioning to the new system from February 1 to March 1, 2026. Taxpayers will also be allowed to sell off inventory created before registration under previous tax conditions until the end of 2026.
In addition, a new fee for issuing permits (accreditations) to non-residents for opening and servicing bank accounts in Kyrgyzstan will be introduced into the Non-Tax Revenues Code.
Goals of the Proposed Changes
The developers of the amendments emphasize that these measures will help reduce risks associated with compliance, taxes, and sanctions, as well as improve centralized control over the transactions of financial flows at the international level.
