President signs law on tax breaks for businesses and citizens

Kyrgyz President Sadyr Zhaparov has signed the Law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation, Social Insurance and Non-Tax Revenues."

The document aims to support certain sectors of the economy and implements the provisions of the head of state's decree of 5 December 2025.

The law provides for a number of tax and administrative concessions for entrepreneurs, legal entities and individuals.

Key changes:

VAT on equipment, technology, reagents and semi-finished products for jewellery production has been abolished;

until 1 January 2029, the tax on the sale of vehicles for legal entities and individuals has been abolished;

until 1 January 2026, tax arrears of individuals arising from car re-export operations will be written off;

the sale of vehicles manufactured and/or assembled in Kyrgyzstan, as well as their components, is exempt from taxation;

until 1 January 2030, a minimum income tax of 1% of the average salary and uniform insurance contribution rates have been set for workers in the garment and textile industry;

for citizens who rent out property, the insurance contribution rate has been reduced to 6% of the reduced average salary;

the single tax rate for activities outside Kyrgyzstan has been reduced from 1% to 0.1%;

the tax rate on transactions through foreign banks has been reduced from 0.2% to 0.1%;

A two-month legalisation period has been introduced for precious metal jewellery balances, with a moratorium on tax audits.

Licensing for the retail sale of alcoholic beverages has been abolished.

Tax disputes have been excluded from the jurisdiction of arbitration courts.

Strengthened liability for violations

The law also amends the Code of Offences. A new article has been introduced for activities involving jewellery without special accounting: the fine for individuals is 5,000 soms, and for legal entities — 13,000 soms.

Liability for the illegal movement of goods and vehicles across the borders of EAEU countries has been tightened. Fines have been increased to 20,000 soms for individuals and 65,000 soms for legal entities. Higher fines and confiscation of goods and transport are provided for repeat violations within a year.

The law was adopted by the Jogorku Kenesh on 24 December 2025.