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Kyrgyzstan Will Grant a Five-Year Tax Exemption to AI Developers, Mobile App Developers, and Startups
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Published

06/26/2026, 09:33

Kyrgyzstan Will Grant a Five-Year Tax Exemption to AI Developers, Mobile App Developers, and Startups

On June 25, the Jogorku Kenesh passed a law introducing unprecedented tax breaks for residents of the Creative Industries Park. For a period of five years—from August 1 of this year through July 31, 2031—the flat tax rate for them will be reduced to 0%.

These changes are part of the tax reform. They stipulate that, starting August 1, 2026, residents of the Creative Industries Park will be exempt from paying the unified tax for five years. After the preferential period ends, the tax rate will be 2%. Prior to the introduction of this new exemption, the rate was 1%.

According to the State Tax Service, representatives of the creative industries—including IT companies, artificial intelligence and mobile app developers, startups, remote employees of foreign companies, as well as producers of films, videos, and television programs—will be able to take advantage of the new regime. The list of eligible activities may be expanded by the Cabinet of Ministers.

In addition to the exemption from the single tax, representatives of the creative industries are eligible for preferential tax treatment on employee income. Their income tax rate will be 5%, and social security contributions will be 12%. However, this preferential regime applies only to residents of the Creative Industries Park who are registered in accordance with established procedures.

These tax incentives are intended to make Kyrgyzstan a more attractive destination for establishing IT companies and launching new projects, as well as to reduce the outflow of developers and tech entrepreneurs to foreign jurisdictions. At the same time, the preferential regime also applies to other sectors of the creative economy, including film production, which should stimulate the development of high-tech and export-oriented businesses.

The adopted amendments must now be signed by the president, after which they will take effect.


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