The State Tax Service reported a reduction in the tax rate on transactions conducted through foreign banks from 0.2% to 0.1%.
This change was made to the Tax Code of the Kyrgyz Republic as part of the Law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation, Social Insurance, and Non-Tax Revenues," adopted on December 31, 2025.
It should be noted that the tax on transactions was introduced earlier, on July 31, 2025, in accordance with the legislation of the Kyrgyz Republic. This tax regime is classified as special and applies to operations related to the transfer of funds received exclusively from accounts of foreign banks to the accounts of taxpayers opened in banks of Kyrgyzstan.
The tax is withheld and transferred to the budget by the bank where the taxpayer's account is opened, acting as a tax agent during the transactions.
Entities conducting such transactions are required to use exclusively the special tax regime "transaction tax."
Additionally, they must submit an application for the application of this special tax regime at their tax registration location no later than February 1, 2026.
It is important to emphasize that taxpayers using this regime are not allowed to engage in other activities on the territory of the Kyrgyz Republic.
If a taxpayer combines transactional activities with other entrepreneurial activities, they must register a separate limited liability company or individual entrepreneur to conduct such activities.
