Entrepreneurs have been permitted to switch tax regimes until 1 October

The President of Kyrgyzstan has signed a decree on improving the taxation system and tax administration. The document provides for a number of business support measures, including the option to switch from the single tax regime to the general regime until 1 October 2026.

According to the President’s Office, the new measure is aimed at expanding the options available to entrepreneurs and creating more favourable conditions for doing business.

In addition, the decree provides for the write-off of tax arrears for construction companies that participated in the construction of housing for residents of the Batken region following the events of 2022 on the Kyrgyz-Tajik border.

Entrepreneurs will also be permitted to adjust the balances of goods that were excessively legalised before 1 April 2025 to avoid additional tax charges.

Another support measure will be the cancellation of penalties on property tax for 2026. The decision is linked to the transition to a new system of automatic tax calculation based on data from the state cadastre and the need to update information on property.

At the same time, the authorities intend to step up the fight against the shadow economy. In particular, it is proposed to tighten liability for the circulation of contraband goods and to introduce differentiated fines depending on the value of the goods.