Kyrgyzstan Cuts Single Tax Rates for Sauna, Bathhouse, and Catering Services

The flat-rate tax rates will be reduced for businesses providing sauna and bathhouse services, as well as catering services.

The Decree of the President of the Kyrgyz Republic ‘On Measures to Improve the Taxation System and Tax Administration’ provides for a reduction in flat-rate tax rates: for sauna and bathhouse services — from 8% to 5%; for catering businesses — to 5% in Bishkek and Osh, and to 3% in the rest of the country.

Furthermore, the document introduces a provision on advance payments, which applies exclusively to entrepreneurs selling residential and non-residential property, with the flat-rate tax rate for such entities set at 4 per cent regardless of the form of payment.

The proposed changes are based on the results of a pilot project to introduce fiscal software, which demonstrated increased business transparency, growth in recorded revenue and an expansion of the tax base. Furthermore, the reduction in rates should create more favourable conditions for business development and reduce the tax burden.