Published
03/04/2025, 14:23From 2025, changes in tax legislation aimed at strengthening control over financial transactions of businesses have come into force in Kyrgyzstan. One of the key innovations is the introduction of fines for entrepreneurs who accept payments through payment systems registered to other persons. This change is designed to curb tax evasion schemes and increase the transparency of payments.
In addition, the law toughens penalties for the circulation of excisable products without excise stamps or with their counterfeiting - fines for such offences are now doubled. Another important change concerns the payment of wages: from 1 July 2025 legal entities are obliged to transfer them only in non-cash form, otherwise they will face administrative liability. Also from 1 September, a fixed income tax of 1% is introduced for taxi drivers and couriers, which includes mandatory payment of insurance contributions.
A number of changes are aimed at simplifying tax reporting and business support. In particular, the obligation to file ‘zero’ reports for taxpayers without liabilities has been cancelled, which reduces the administrative burden. Also, mandatory income declaration for pensioners and students has been cancelled, but for some categories of citizens it is retained. Tax exemptions have been introduced for recyclers of waste paper, scrap metal, as well as transactions with glass and plastic.
Additionally, control over taxpayers has been strengthened. Now banks are obliged to provide tax authorities with information on customer accounts, and medium-sized businesses from 1 July must report monthly on sales tax and unified tax. The possibility of filing electronic complaints against decisions of tax authorities has also been introduced. In the real estate sector, fixed property tax rates are introduced for residential and non-residential properties, and raw materials for jewellery production imported by domestic manufacturers are exempt from VAT.
