Revenues from the patent system in Kyrgyzstan decreased by 184 million KGS

Revenues to the Kyrgyz budget from the patent taxation system decreased in 2025, despite the introduction of a new type of payment—a patent for commercial activities. According to the Ministry of Finance report, total patent revenues decreased from 1 billion 306.6 million KGS in 2024 to 1 billion 122.4 million KGS in 2025.

Thus, the budget received 184 million KGS less in patents over the year.

The main reason for the decline was a drop in revenues from mandatory patents. While in 2024 this type of tax provided the budget with 549.5 million KGS, in 2025 it provided 459.6 million KGS, which is 89.9 million KGS less.

Revenues from voluntary patents also declined. In 2024, they amounted to 1.31 billion KGS, while by the end of 2025, they had fallen to 1.06 billion KGS.

There was no compensation for the lost revenue from the new patent on commercial activities. However, this instrument brought 65.9 million KGS to the budget.

Against this backdrop, the simplified tax system based on retail sales showed positive dynamics. In 2025, the treasury received 652,200 KGS in this area, which is more than twice the figure for 2024 (292,800). In absolute terms, however, this growth remains insignificant.

At the same time, a decline in revenue from the patent system does not necessarily indicate a decline in entrepreneurial activity. It may well be due to some small businesses switching to other tax regimes.