Kyrgyzstan has proposed tax breaks for the IT sector, bloggers and start-ups

Kyrgyzstan’s President Sadyr Zhaparov has signed a decree on measures to improve the taxation system and tax administration. The document provides for the submission to the Jogorku Kenesh of a number of tax initiatives aimed at supporting business and specific sectors of the economy.

According to the decree, it is proposed to exempt activities in the fields of software development and artificial intelligence, start-ups, outsourcing companies, film and video content producers, bloggers, and representatives of other creative industries from a number of taxes for a period of five years. For these categories, it is planned to set income tax at 5% and social security contributions at 12% of the average monthly wage.

It is also proposed to introduce a flat tax of 5% for saunas and bathhouses, and for catering establishments — 5% in Bishkek and Osh and 3% in the rest of the country. Furthermore, provision is made for the write-off of tax arrears for construction companies involved in building housing for residents of the Batken region following the border incidents, as well as an increase in the tax burden on gold and silver mining enterprises depending on global prices for precious metals.