The Jogorku Kenesh supported the ratification of a tax agreement with Hong Kong

The Jogorku Kenesh passed, on its second reading, a bill to ratify the agreement between Kyrgyzstan and Hong Kong on the avoidance of double taxation of income and capital and the prevention of tax evasion.

The corresponding resolution was adopted on October 30 and published on the parliament’s website on November 3. The agreement itself was signed by the parties on March 2, 2026.

The document is intended to make the tax conditions for mutual trade and investment more predictable. It allocates the parties’ rights to tax and provides mechanisms to take into account tax already paid on the same income in another jurisdiction.

The agreement also sets maximum withholding tax rates. Specifically, a 5% rate applies to dividends if the company—the actual recipient of the income—directly owns at least 20% of the payer’s capital for 365 days, including the date of payment. For interest and royalties, a limit of 8% is set, provided the terms of the agreement are met.

The next stage is the third reading. The Committee on International Affairs, Defense, Security, and Migration has been tasked with finalizing the bill, taking into account the written proposals and amendments that have been adopted, and resubmitting it to Parliament for consideration.