The State Tax Service of the Kyrgyz Republic has announced the implementation of temporary tax benefits for transactions related to the sale of passenger motor vehicles.
According to the information from the State Tax Service, until January 1, 2029, the sale of cars will be exempt from several taxes, which will ease the financial burden on citizens and increase transparency in the car market.
Among the established tax benefits:
– individuals who are not registered as individual entrepreneurs or legal entities can sell passenger motor vehicles without recognizing this activity as systematic, even if they sell more than two cars per year;
– sales of passenger motor vehicles by individuals are not subject to income tax;
– income from such sales is exempt from profit tax;
– the supply of passenger motor vehicles is not subject to value-added tax (VAT);
– transactions for the sale of passenger motor vehicles are exempt from sales tax.
Additionally, individuals (except for individual entrepreneurs) are not required to pay taxes, as well as penalties and fines on income received from the sale of motor vehicles until January 1, 2026.
These measures aim to reduce the tax pressure on the population and entrepreneurs, as well as to increase transparency in the field of transactions with motor vehicles.
