A meeting was held in the Kyrgyz Republic between representatives of the State Tax Service and participants from the banking sector and the Union of Banks of the country.
The event focused primarily on new amendments to tax legislation, including the special tax regime "Transaction Tax." One of the key topics was the proposal to reduce the tax rate from 0.2% to 0.1%, as stipulated by the Law of the Kyrgyz Republic adopted on December 31, 2025.
Additionally, the possibility of joint efforts to implement services that can automate the administration process of the transaction tax was discussed.
It is worth noting that according to the current tax legislation, the bank where the account is opened acts as the tax agent, withholding and paying the tax to the budget when transactions are made.
At the same time, entities conducting transactions are entitled to use only the special tax regime "Transaction Tax," which prohibits the conduct of any other activities on the territory of the Kyrgyz Republic.
Taxpayers engaged in transactions will need to submit an application for the application of the special tax regime at their place of tax registration by February 1, 2026.
