Kyrgyzstan introduces tax breaks for the jewellery industry

In Kyrgyzstan, jewellers will be exempt from VAT on imports of equipment and raw materials. The relevant decree was signed by the Prime Minister, Adylbek Kasymaliev.

The document was adopted to implement the presidential decree on supporting specific sectors of the economy and concerns the development of jewellery production in the country.

According to the decree, companies and entrepreneurs engaged in jewellery production will be able to import equipment, technology, reagents and semi-finished products without paying VAT on import. They will also be exempt from customs clearance fees associated with the release of goods.

The benefits will apply only to entities included in a special list. This list will be drawn up by the authorised tax authority.
To be included on the list, entrepreneurs must:

• be registered as a sole trader or a legal entity;
• be registered on a special register for working with precious metals and stones;
• operate under the single tax scheme at a rate of 0.25% for the production and sale of jewellery;
• have no tax arrears;
• have production premises that comply with health and safety standards.

In addition, jewellery to be exported from Kyrgyzstan for participation in overseas exhibitions and fairs will also be exempt from customs duties on such transactions.

The decree will come into force 10 days after its official publication.