Tax rate on transactions through foreign banks reduced

The State Tax Service reminds that the tax rate on transactions carried out through a foreign bank has been reduced from 0.2% to 0.1%.

These changes have been made to the Tax Code of the Kyrgyz Republic in accordance with the Law of the Kyrgyz Republic ‘On Amendments to Certain Legislative Acts in the Field of Taxation, Social Insurance and Non-Tax Revenues’ dated 31 December 2025.

Previously, the transaction tax was introduced by the Kyrgyz Republic law dated 31 July 2025. It is a special tax regime and provides for the taxation of transactions involving the transfer of funds received exclusively from a foreign bank account through a taxpayer's account opened with a Kyrgyz bank to a foreign bank account.

The bank where the account is opened withholds and pays this tax to the budget as a tax agent when the taxpayer carries out a transaction.

Entities carrying out transactions are entitled to apply exclusively the special tax regime ‘transaction tax’.

They are required to submit an application for the application of the special tax regime ‘transaction tax’ at their place of tax registration by 1 February 2026.

It is important to note that taxpayers applying this tax are not entitled to carry out other activities in the country.

If transaction activities are combined with other business activities, the taxpayer is obliged to register a separate limited liability company or individual entrepreneur to carry out such activities.