This law is aimed at implementing the presidential decree of December 5, 2025, concerning support for certain sectors of the economy and includes numerous tax and insurance benefits for entrepreneurs, individuals, and legal entities.
According to the new provisions, VAT on equipment, technologies, reagents, and semi-finished products used in jewelry production is abolished. Also, until January 1, 2029, citizens and companies are exempt from paying sales tax on vehicles, and until January 1, 2026, there is a provision for the write-off of tax debts of individuals arising from the re-export of vehicles.
In addition, the sale of vehicles produced and/or assembled in Kyrgyzstan, as well as their components, is exempt from taxation. For workers in the garment and textile industry, a minimum income tax rate of 1% of the average salary will apply until January 1, 2030, and unified insurance contribution rates will be established for all participants in this sector.
Individuals renting out property will pay insurance contributions at a rate of 6% of the reduced average salary, which corresponds to the rate for individual entrepreneurs. The standard tax rate on activities outside the country has been reduced to 0.1%, including tax on transactions through banks of other states.
The law also includes the legalization of previously imported or produced stocks of jewelry made from precious metals for a period of two months from the introduction of a moratorium on tax audits. Licensing for the retail sale of alcoholic beverages has been abolished, and tax disputes are no longer subject to consideration by arbitration courts.
Additionally, amendments have been made to the Code of Offenses of the Kyrgyz Republic, including a new Article 295¹, which establishes liability for activities with jewelry without special accounting and strengthens liability measures for the illegal movement of goods and vehicles across the borders of EAEU countries, including increased fines and confiscation for repeated violations.
The law was approved by the Jogorku Kenesh of the Kyrgyz Republic on December 24, 2025.
