Residents of the Creative Industries Park have had their flat-rate tax waived for five years

President Sadyr Zhaparov has signed a law introducing far-reaching changes to Kyrgyzstan’s tax legislation. One of the key measures is the introduction of a zero-rate flat tax for residents of the Creative Industries Park for a period of five years, according to the State Tax Service.

The zero rate applies specifically to the flat tax and does not mean that companies are automatically exempt from all other mandatory payments.

The law also sets new rates for certain types of business. For saunas and bathhouses, the flat tax will be 5 per cent. From 1 January 2027, catering businesses in Bishkek and Osh will pay 5 per cent, and 3 per cent in other regions.

For companies selling flats and premises in new-build developments, the flat-rate tax is set at 4 per cent. The obligation to pay tax on advance payments received remains in place only for this sector. For other businesses, this obligation will be abolished from 1 January 2026.

Until 1 October 2026, flat-rate tax payers are permitted to voluntarily switch to the general tax regime. In addition, businesses will be able to adjust excessively declared stock balances.

Specific concessions are provided for the agricultural and coal sectors. Livestock exporters will have 97 per cent of their tax arrears written off, along with all accrued interest and penalties for the period up to 2026, provided they pay the remaining 3 per cent.

Coal enterprises will have interest and fines accumulated up to 2026 written off, provided the principal debt is repaid in full by the end of this year.

At the same time, tax rates on the income of enterprises mining and processing gold and silver are being increased. The rates will depend on the price of the metals on international commodity exchanges.

The confiscation of vehicles used to transport goods is being removed from the Code of Administrative Offences. Instead, differentiated fines will be applied.

The law also simplifies the mandatory details required on invoices and transfers responsibility for administering e-commerce involving goods ordered by individuals from countries outside the EAEU to the tax authorities.