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Important! Information on the Transaction Tax

Dear clients,
We hereby inform you that, according to the information of the State Tax Service, taxpayers engaged in transaction-related activities are required to submit an application to the tax authorities at their place of tax registration no later than February 1, 2026

In accordance with Decree of the President of the Kyrgyz Republic No. 350 dated December 5, 2025, amendments have been introduced to the Tax Code, under which a special tax regime “Transaction Tax” has been implemented. The transaction tax rate has been reduced from 0.2 percent to 0.1 percent.

It is stipulated that the bank where the account is opened shall withhold and pay this tax as a tax agent when a transaction is carried out.

Entities carrying out transactions are entitled to apply exclusively the special tax regime “Transaction Tax”, and within the framework of this regime, carrying out other activities in the territory of the Kyrgyz Republic is prohibited.

Taxpayers engaged in transaction-related activities must submit an application for the application of the special tax regime to the tax authorities at their place of tax registration no later than February 1, 2026.

Transaction means an operation for redirecting funds by an organization, an individual entrepreneur, a branch or representative office of a foreign organization registered in the Kyrgyz Republic in accordance with the legislation of the Kyrgyz Republic on state registration, as well as by a foreign organization that does not have a permanent establishment in the Kyrgyz Republic and has undergone tax registration without state registration at the address of the bank where its account is opened, on the instruction of a foreign entity, from it or another foreign entity, to another foreign entity or to its address.

Redirecting of funds is understood as their receipt and transfer both in cash and non-cash form, including cases of receipt and transfer through another taxpayer, as well as the use of an account of an organization, individual entrepreneur, branch or representative office of a foreign organization opened in a bank of a foreign state, or an account in a bank of the Kyrgyz Republic of a foreign organization that does not have a permanent establishment in the Kyrgyz Republic and has undergone tax registration without state registration at the address of the bank in the Kyrgyz Republic where its account is opened.

For all arising questions, you should contact the territorial division of the State Tax Service at your place of tax registration in accordance with the applied tax regime.