Published
10/03/2025, 16:04From 6 to 9 October, negotiations will be held in Bishkek between delegations from Kyrgyzstan and Japan on the conclusion of an agreement on the elimination of double taxation and the prevention of tax evasion. At the same time, Japanese investment in the republic is traditionally small and remains unstable.
According to the National Statistics Committee, in 2024, direct investment from Japan amounted to only $2.3 million — almost 15% less than a year earlier ($2.7 million in 2023) and 70% less than in 2022 (when FDI amounted to $7.6 million).
For comparison, China provided $286.5 million, Russia — $279.3 million, and Kazakhstan — $113.6 million. Thus, Japan is not even among the ten largest sources of FDI in Kyrgyzstan.
However, the conclusion of a double taxation agreement could change the situation. For Japanese companies, which are cautious and rely on a predictable tax environment, the existence of such an agreement could be a sign of confidence.
This could be reinforced by the entry into Kyrgyzstan of Japan's largest bank, MUFG Bank. The day before, the Ministry of Finance held talks with representatives of the bank and proposed investing in the Kambar-Ata HPP-1 and China-Kyrgyzstan-Uzbekistan railway projects. It is important to note that until now, this bank has not been on the list of the republic's creditors.
