Taxes in Kyrgyzstan in 2026 for individuals and businesses
Seven taxes nationwide and 10% on almost everything. But a residence permit opens your foreign income to the tax office, and a salary below the local average is taxed as if it were the average. The 2026 rates for individuals, sole traders, companies and non-residents, with worked examples in som.
Kyrgyzstan takes 10% of salaries and 10% of company profits: half of what Kazakhstan charges on corporate profits and 2.5 times less than Russia's corporate tax. Below are all the 2026 rates with worked examples, plus the rules that turn low percentages into unpleasant surprises.
What taxes are there in Kyrgyzstan in 2026: all rates in one table
The Kyrgyz Tax Code lists just seven taxes. Six are national: personal income tax, corporate profit tax, VAT (value added tax), excise, subsoil use taxes and sales tax. One is local: property tax. Everything else is a special regime, such as the single tax or a patent, which replaces several of these taxes with one payment.
The legal basis is the Tax Code of 18 January 2022 No. 3. The latest package of amendments, Law No. 145, was signed by President Sadyr Japarov on 6 August 2026. Here is a quick cheat sheet; details and calculations follow further down the page.
| Tax | 2026 rate | Who pays and on what |
|---|---|---|
| Personal income tax | 10% | Individuals on salary and other income; employee contributions and a personal allowance of 650 som a month are deducted from salary first |
| Personal income tax, reduced | 5% or 1% | 5% for employees of Hi-Tech Park and Creative Industries Park residents, employees in preferential border settlements and people with Group I or II disability; 1% for the garment and textile industry until 1 January 2030 |
| Social Fund contributions | 10% + 2.25% | 10% withheld from the employee, 2.25% paid by most private employers; banks, mobile operators, internet providers, mining, energy, alcohol, tobacco and fuel producers and importers pay 17.25% |
| Corporate profit tax | 10% | Companies and sole traders on the general regime; mining and sale of gold, silver, copper and several other metals 0% |
| Dividends to individuals | 0% or 10% | 0% for Kyrgyz citizens and residents on dividends from Kyrgyz companies; 10% withheld for non-residents, or the treaty rate |
| VAT | 12% | Everyone on the general regime, no registration threshold; exports 0% |
| Sales tax | 1-3% | On turnover under the general regime, on top of VAT; mobile telecoms and crypto sales 5% |
| Single tax | 0-8% | Simplified regime on turnover instead of profit tax, VAT and sales tax; most services 4% if paid to a bank account and 6% in cash |
| Patent | Fixed amount | Small businesses and self-employed individuals from a list set by the Cabinet of Ministers (the Kyrgyz government) |
| Property tax | Som per m² | Housing in Bishkek: 63 som per m² in a brick or concrete building, multiplied by an annual inflation coefficient |
| Withholding tax on foreign companies | 5-10% | Dividends, interest, royalties, services performed in Kyrgyzstan 10%; insurance and international transport 5% |
| Vehicle tax | None | Removed from the Code in 2025, there is no annual car tax |
Many amounts in Kyrgyz law are set in calculation units. The calculation unit (raschetny pokazatel, RP) is a notional unit for fines, fees and allowances: 1 RP = 100 som, a figure unchanged since 2006. The personal allowance of 6.5 RP is 650 som a month; a fine of 70 RP is 7,000 som.
The currency is the Kyrgyz som (KGS). The official rate of the National Bank of the Kyrgyz Republic in 2026 is about 87 som to the US dollar, so 1,000 som is roughly 11.4 dollars.
Search results still show outdated figures: a 0.35% tax on the value of housing, an annual vehicle tax, a VAT registration threshold of 30 million som. None of these apply in 2026. If someone quotes them to you, those figures come from the old Code.
We will calculate online the tax on your income and show how to pay less legally.
Compare taxes in 146 countries: relocation taxes 2026
Kyrgyzstan vs its neighbours: where are taxes lower
A 10% corporate tax is the lowest among the countries bordering Kyrgyzstan and its partners in the EAEU (Eurasian Economic Union: Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan). Personal income tax and VAT match the best in the region. Here is how they compare side by side.
| Country | Personal income tax | Corporate tax | VAT | What to know |
|---|---|---|---|---|
| Kyrgyzstan | 10% | 10% | 12% | Single tax for most sole traders 0.5-6% of turnover; sales tax of 1-3% on top under the general regime |
| Kazakhstan | 10%, 15% on annual income above 8,500 MCI | 20% | 16% | A new Tax Code took effect on 1 January 2026 and VAT rose from 12% to 16%; the MCI (monthly calculation index) is 4,325 tenge in 2026, so the threshold is about 36.8 million tenge a year, roughly 7.3 million som |
| Uzbekistan | 12% | 15% | 12% | Non-residents pay 20% income tax |
| Tajikistan | 12% on salary from the main employer | 18% | 14% | Employers pay 20% social tax |
| Russia | 13-22%, progressive | 25% | 22% | VAT went up from 20% to 22% on 1 January 2026 |
| Georgia | 20% | 15% on distributed profit | 18% | Small business status gives sole traders 1% of turnover up to 500,000 lari |
| Armenia | 20% | 18% | 20% | Small businesses can use a turnover tax |
The gap is widest at company level. Example calculation: an LLC (in Kyrgyzstan an OsOO, the local limited liability company) with annual profit of 10 million som pays 1 million som of profit tax. The same profit would cost 2 million in Kazakhstan and 2.5 million som equivalent in Russia.
But the headline rate is not the only test. Under the Kyrgyz general regime you pay sales tax on top of VAT, salaries are taxed no lower than the local average, and a foreigner with a residence permit is taxed on worldwide income. Georgia, by contrast, does not tax its residents' foreign income at all. Compare countries by the structure of your own income, not by the headline percentages.
Who is a tax resident of Kyrgyzstan
The threshold is the familiar 183 days. But in Kyrgyzstan residency on its own decides little: how much you pay depends on the combination of citizenship, residency and a residence permit.
Under article 24 of the Tax Code, a resident is a person who spends 183 days or more in the country in any 12 consecutive months ending in the current tax year. Citizens serving the Kyrgyz state abroad are also residents.
One detail matters: time abroad for medical treatment, business trips or study counts as time in Kyrgyzstan. You cannot shed residency with a long business trip. Days spent by diplomats, consular staff, employees of international organisations and their families do not count.
| Status | Which income is subject to income tax |
|---|---|
| Kyrgyz citizen, resident or not | Formally Kyrgyz and foreign income, but income a citizen earns on the territory of a foreign state and foreign dividends are exempt |
| Foreign resident with a residence permit or kairylman status | Worldwide income at 10%; only foreign dividends are exempt |
| Foreign resident without a residence permit | Only Kyrgyz-source income |
| Non-resident | Only Kyrgyz-source income, with no standard deductions |
Kairylman is the status of an ethnic Kyrgyz who has resettled in Kyrgyzstan from another country. For tax purposes it is treated like a foreigner with a residence permit.
The table shows a paradox. A foreigner who lives in Bishkek for more than 183 days without a residence permit pays tax only on Kyrgyz income. Once they obtain a permit, foreign salary, bank interest, rent and capital gains all enter the tax base. The single exception is dividends from foreign companies.
Citizens get a softer rule. Item 10 of the article on non-taxable income exempts income a Kyrgyz citizen earns on the territory of a foreign state. There is little practice under this wording yet, so check how the tax office treats, for example, remote work for a foreign client performed from Bishkek before you build a plan on it. For the route to a passport, see Kyrgyz citizenship.
If you are resident in two countries at once, the double tax treaty breaks the tie: permanent home, centre of vital interests, habitual abode and only then citizenship. The general logic of the 183-day rule is explained in tax residency and the 183-day rule.
Tax identification number in Kyrgyzstan
The INN (identification tax number) is the unique code the tax office uses to register and track a taxpayer. If a person has a PIN (personal identification number issued by the population registration authority), that number serves as the INN; for citizens it is printed in the passport. If there is no PIN, the State Tax Service (GNS) assigns an INN on registration.
Kyrgyzstan tax residency: how to get it and count the days
Kyrgyzstan makes you resident with 183 days or more in any 12 months in a row that end in the current year. Medical treatment, business trips and study abroad count as days in the country, so a long business trip will not take you out of residency.
A resident pays 10% income tax, and citizens do not pay on income earned abroad. A non-resident pays only on Kyrgyz income. The status is confirmed by a State Tax Service certificate.
The law does not stop you from confirming the status on your own. But mistakes cost more: your former country rejects a Kyrgyz certificate without proof of days. Murblz support removes these risks: we count days, obtain the certificate and prepare papers for the other country. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
183-day calculator
Tax residency calculator for Kyrgyzstan
Enter your travel dates: the calculator shows whether you are a tax resident of Kyrgyzstan today and at year end, and how many days are left before the threshold.
Counting by dates needs JavaScript. Below are the same rules by country.
What is the income tax rate in Kyrgyzstan
10%, with no progression: a business owner and a shop assistant pay the same rate on salary. And a courier working through a delivery app pays just 1% until the end of 2027.
The base rate is set by article 197 of the Code and applies to almost all income, from wages to capital gains. The reduced rates look like this.
| Who or what income | Rate in 2026 |
|---|---|
| Most income of individuals | 10% |
| Employees of Hi-Tech Park and Creative Industries Park residents, except building maintenance and security staff | 5% |
| Employees of organisations in preferential border settlements | 5% |
| Employees of state IT organisations with at least 51% state ownership | 5% |
| People with Group I or II disability, and Group III hearing disability | 5% |
| Garment and textile industry employees | 1% until 1 January 2030 |
| Taxi drivers and couriers working through aggregator platforms | 1% until the end of 2027, 2% in 2028-2029, 5% from 2030 |
| A foreigner sells a stake in a Kyrgyz company | 10% withheld; 0% if the stake was held for more than 5 years |
Deductions
Standard deductions are available to everyone except non-residents. The personal allowance is 6.5 RP, or 650 som a month. Each dependant adds another 100 som a month. Employee Social Fund contributions and contributions to a private pension fund, capped at 8% of the base, are also deducted.
Other deductions are available only to citizens and foreigners with a residence permit:
- Education deduction for yourself and dependants under 24 at licensed Kyrgyz schools and universities: up to 10% of the base, or 25% with three or more dependants.
- Property deduction for interest on a mortgage or housing loan: up to 2,300 RP, or 230,000 som a year.
- Investment deduction for an individual investment account: up to 1,000,000 som of contributions a year.
Minimum base: salary is taxed at no less than the average
This is the rule that surprises newcomers most. If a salary is below the average monthly wage for the district or city, income tax is calculated on the average, not on the actual amount, and the employer pays the difference out of its own pocket. The figures for the next year are calculated by the National Statistical Committee and by law must be published by 1 November.
For 2026 the national average wage is 36,047 som and the Bishkek average is 44,074 som, while 28,829 som is applied in Bishkek to calculate taxes and contributions. The rule does not apply to part-time second jobs, public sector staff, people with disabilities, junior service staff and a few other categories.
The practical upshot: putting the director of your own LLC on a token salary of 5,000 som does not save anything. Tax is still calculated on at least 28,829 som.
What taxes are deducted from salary in Kyrgyzstan and what is take-home pay
On 1 August 2024 the combined social contribution rate fell from 27.25% to 12.25%. In most sectors an employer now pays 2.25% instead of 17.25%, almost eight times less.
Contributions are set by a separate law of 24 January 2004 No. 8 on social insurance contribution rates; the cut came with Law No. 136 of 23 July 2024. The full rate still applies in certain sectors.
| Payer | Most private companies and employing sole traders | Banks, mobile operators, internet providers, mining, energy, alcohol, tobacco, fuel, public sector |
|---|---|---|
| Employer | 2.25% (1% pension fund, 1% health insurance, 0.25% workers' health fund) | 17.25% |
| Employee | 10% (8% pension fund and 2% State Funded Pension Fund) | 10% |
| Total | 12.25% | 27.25% |
Contributions have a floor. On the reduced tariff an employer pays at least the amount calculated on 100% of the average monthly wage; on the full tariff, on 60% of it.
Since 1 January 2026 there is also a ceiling. Combined employee and employer contributions for one person per month cannot exceed the amount calculated on 20 times last year's national average wage. The GNS uses 36,047 som, so the 2026 contribution ceiling is 720,940 som a month. Maximum contributions are 88,315 som at 12.25% and 196,456 som at 27.25%. Anything above the ceiling is contribution-free.
Employees of Hi-Tech Park residents pay 12% not on their own salary but on the average monthly wage. For a well-paid developer that is pocket change compared with 10% of the actual salary.
Worked example: salary of 80,000 som at a Bishkek LLC
| Step | Amount |
|---|---|
| Gross salary | 80,000 som, about 915 dollars |
| Employee contributions, 10% | 8,000 som |
| Personal allowance, 6.5 RP | 650 som |
| Income tax base: 80,000 - 8,000 - 650 | 71,350 som |
| Income tax, 10% | 7,135 som |
| Take-home pay | 64,865 som, about 740 dollars |
| Employer contributions, 2.25% | 1,800 som |
| Total employer cost | 81,800 som |
The employee loses 15,135 som, about 18.9% of gross pay. The total burden on payroll is 16,935 som, roughly 20.7% of total cost. If the same salary is paid by a bank or a mobile operator, employer contributions rise to 13,800 som, total cost to 93,800 som and the overall burden to 30.8%.
For comparison, see the payroll burden in neighbouring Kazakhstan, which switched to a new Tax Code in 2026.
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What taxes does a sole trader pay in Kyrgyzstan
A sole trader developing software in Bishkek with turnover of 250,000 som a month hands the state about 6,700 som. Paid as a salary, the same amount would lose seven times as much. That is why freelancers and IT specialists almost always work as individual entrepreneurs (IP, the Kyrgyz sole trader status) on the single tax.
The simplified regime based on the single tax (articles 418-426 of the Code) is paid on turnover and replaces profit tax, sales tax and VAT. A sole trader's profit after the single tax is not subject to income tax. The regime itself has no turnover ceiling; limits apply only to the 0% and 0.5% rates.
| Activity | Paid to a bank account | Cash |
|---|---|---|
| Trade with turnover up to 50 million som over 12 months (except importers, exporters, distributors, pharmacies and fuel) | 0.5% | 0.5% |
| Other trade | 2% | 4% |
| Manufacturing, farm produce processing, software development, tour operators and travel agents | 2% | 4% |
| All other activities, including most services and consulting | 4% | 6% |
| Sale of new residential and commercial units by developers | 4% | 4% |
| Bathhouses and saunas | 5% | 5% |
| Lotteries and billiards | 8% | 8% |
| Sale of crypto and other virtual assets | 8% of the margin between purchase and sale price | 8% of the margin |
| Garment and textile manufacturing, jewellery | 0.25% | 0.25% |
| Sale of goods located abroad that never cross the Kyrgyz border | 0.1% | 0.1% |
| Sole trader selling to the public, turnover up to 15 million som, with an online till, no staff (up to two in retail) | 0% | 0% |
| Creative Industries Park resident, from 1 August 2026 to 31 July 2031 | 0% | 0% |
The Code also treats payments from the public via QR code, POS terminal or an identified e-wallet into the recipient's account as non-cash. From 1 January 2027 catering moves to a flat rate: 5% in Bishkek and Osh and 3% elsewhere.
Small businesses file and pay the single tax quarterly, by the 20th of the following month. The regime is closed to banks, insurers, investment funds, securities market professionals, excise taxpayers (with an exception for catering), gold miners, mobile operators and internet providers, and energy and gas suppliers.
Sole trader contributions for themselves
These are due under any tax regime: at least 6% of last year's average monthly wage in the trader's district or city, or at least 3% for market stall traders. In Bishkek, using the 28,829 som figure, that comes to about 1,730 som a month.
Worked example: a software developer sole trader in Bishkek
| Step | Monthly amount |
|---|---|
| Revenue from a foreign client paid to the sole trader's account | 250,000 som, about 2,860 dollars |
| Single tax, software development, non-cash 2% | 5,000 som |
| Own contributions, 6% of 28,829 som | about 1,730 som |
| Total taxes and contributions | about 6,730 som, roughly 2.7% of revenue |
If the same 250,000 som were a salary, the employee would lose 25,000 som in contributions and 22,435 som in income tax, 47,435 som in total. A consultant with the same turnover pays 4%, or 10,000 som of single tax. To work with foreign clients you will need a business account with a local bank.
Patent
Patents are bought by self-employed individuals, sole traders in activities on the Cabinet of Ministers list, and currency exchange offices and pawnshops. The Cabinet sets the base amount, and the tax office may adjust it for floor space, seasonality and location.
A patent covers one territory and one activity; two activities need two patents. For non-trading activities it is issued for 15, 30, 90, 180 or 365 days. There are no field tax audits while a patent is valid, but Social Fund contributions are paid separately.
What taxes do companies pay: corporate tax, dividends and preferential regimes
A Kyrgyz company on the general regime pays 10% on profit, but that is not the whole bill: 12% VAT and a sales tax of 1% to 3% of turnover come on top. That is why most small LLCs use the single tax and IT exporters join the Hi-Tech Park.
Corporate profit tax under article 240 is paid by Kyrgyz companies, foreign companies through a permanent establishment and sole traders on the general regime. A Kyrgyz company is taxed on worldwide income, and foreign tax is credited only where there is a double tax treaty and only up to the Kyrgyz tax on the same income.
A 0% rate applies in three cases:
- mining and sale of gold, silver, copper, antimony, mercury, tungsten and tin; subsoil use taxes still apply;
- large investments in new equipment, except in mining, trade and excisable goods;
- preferential activities in specially designated territories on the Cabinet of Ministers list.
From the second quarter a company pays advance instalments: 10% of cumulative accounting profit, by the 20th of the second month after the reporting period. The final settlement comes with the unified tax return by 1 April. Losses can be carried forward for up to 5 years.
Dividends
Dividends a company receives from Kyrgyz and foreign entities are exempt from profit tax until 1 January 2031. For individuals, the Code exempts dividends from Kyrgyz companies if the recipient is a Kyrgyz citizen (resident or not) or a foreign resident (with or without a residence permit). A non-resident individual pays 10% on Kyrgyz dividends; a foreign company pays 10% withholding tax or the treaty rate.
| Structure | Tax in the company | Tax on dividends | Total for the owner |
|---|---|---|---|
| LLC on the general regime, resident owner | 10% of profit | 0% | 10% of profit plus VAT and sales tax on turnover |
| LLC on the single tax, services paid to an account | 4% of turnover | 0% | 4% of turnover |
| Hi-Tech Park resident | 0% | 0% | 1% of turnover paid to the park management |
| LLC with a foreign shareholder, no treaty | 10% of profit | 10% withheld | about 19% of profit |
Choose the regime at registration: switching from the general regime to the single tax is only possible from the start of the next quarter. More on this in company registration in Kyrgyzstan.
Hi-Tech Park: 0% for IT exporters
Hi-Tech Park (HTP) residents are exempt from profit tax, sales tax and VAT. Their employees pay 5% income tax and contributions of 12% of the average monthly wage. In return, a resident pays the park management 1% of turnover quarterly, works only with non-cash payments and earns at least 90% of its income from qualifying activities. The law lists three: software development, export of IT services and software, and interactive service centres (call centres).
The key requirement is export: at least 80% of services must go abroad. Under the old version of the law the regime was limited to 15 years and would have expired in 2026. A law signed in November 2024 made it indefinite. Foreign companies and individuals can become residents too.
Other special regimes
| Regime | What it means |
|---|---|
| Creative Industries Park | 0% single tax from 1 August 2026 to 31 July 2031 for residents such as developers, bloggers and film and video producers; employees pay 5% income tax |
| E-commerce tax | 2% of turnover for online shops on a Kyrgyz domain and marketplace operators instead of profit tax, VAT and sales tax |
| Transaction tax | 0.1% on money received from or on the instructions of a foreign party and forwarded on; domestic transfers are not taxed |
| Trade outside the country | Single tax of 0.1% of turnover from selling goods located abroad that never cross the Kyrgyz border; the rate was cut from 1% in January 2026 |
| Tamchy SFIT | A special financial investment territory with its own legal regime under a separate law; qualifying activity inside it is exempt from all taxes |
| Mining (crypto) tax | 10% of the cost of electricity consumed, including VAT and sales tax, instead of profit tax, VAT and sales tax |
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VAT and sales tax in Kyrgyzstan
Kyrgyzstan has no VAT registration threshold: any company or sole trader on the general regime becomes a VAT payer from day one. Many websites still cite a 30 million som threshold, but article 255 of the Code, as amended by Law No. 78 of 3 April 2023, contains none.
VAT registration takes effect from the first day of the month after the application, and a late registrant is treated as registered retroactively. The only way out of VAT is a special regime, above all the single tax. The standard rate is 12%.
| Supply | VAT |
|---|---|
| Most goods and services, imports | 12% |
| Exports of goods, international transport, servicing transit flights | 0% |
| Sale and rental of housing (except hotels and guesthouses), sale of land | Exempt |
| Financial and insurance services | Exempt |
| Passenger cars (heading 8703 of the EAEU customs nomenclature) | Exempt until 1 January 2029 |
| Electronic services supplied by foreign companies to individuals in Kyrgyzstan | 12%, filed quarterly |
The VAT period is a month; the return and payment are due by the 25th of the following month. Because Kyrgyzstan is in the EAEU, import VAT on goods from member states is paid to the tax office rather than at customs. Goods from third countries pay VAT at the border together with customs duty under the EAEU common tariff.
Sales tax
Sales tax is paid by businesses on the general regime on top of VAT and profit tax. The rate depends on the activity and on whether the supply is subject to VAT. The base is turnover excluding VAT and the sales tax itself.
| Activity | Supplies subject to VAT | Supplies without VAT or exempt |
|---|---|---|
| Trade and manufacturing | 1% | 2% |
| Other activities, including services | 2% | 3% |
| Banks, insurers | 2% | 2% |
| Mobile telecoms, sale of virtual assets (on the margin) | 5% | 5% |
| Sale of new premises by developers | 2% | 2% |
Exports, sales outside the country and international transport are not subject to sales tax. It is paid monthly by the 20th; small businesses pay quarterly.
Example calculation: a services company on the general regime with turnover of 10 million som excluding VAT charges 1.2 million som of VAT and pays 200,000 som of sales tax, then 10% on profit. On the single tax the same turnover, paid to an account, costs 400,000 som. The general regime mainly makes sense when your customers need input VAT to reclaim.
Property tax, car tax, inheritance and crypto in Kyrgyzstan
A foreigner pays five times more tax on a 100 m² flat in Bishkek than a citizen next door with an identical flat. The reason is a floor-area exemption that foreigners do not get.
Property tax is no longer based on value. The base is floor area in square metres, the rate is set in som per metre for each city and district depending on the wall material, and the result is multiplied by an inflation coefficient the tax office sets by 1 October of the previous year.
| Property | Bishkek, som per m² | Osh, som per m² |
|---|---|---|
| Housing: brick, timber, concrete, blocks, glass, sandwich panels | 63 | 57 |
| Housing: adobe, cinder block, metal and other materials | 42 | 38 |
| Garden or household plot | 1.8 | 1.8 |
| Commercial building: brick, concrete and similar | 145 | 130 |
| Commercial building: other materials | 96 | 86 |
| Land under commercial property | 3.9 | 3.5 |
The housing exemption: part of the floor area of one home per owner is not taxed. In cities with 500,000 or more people, which means Bishkek, it is 80 m² of a flat or 150 m² of a house; in villages under 5,000 people it is 290 m² of a flat and 360 m² of a house. Foreigners do not get this exemption; the only exception is for compatriots holding a Meken card, the document issued to ethnic Kyrgyz with foreign citizenship.
Example calculation: a 100 m² flat in a brick building in Bishkek. A citizen pays on 20 m²: 20 × 63 = 1,260 som a year, multiplied by the inflation coefficient. A foreigner pays on the full area: 100 × 63 = 6,300 som, about 72 dollars, and this amount is also multiplied by the coefficient. Housing tax is due by 1 September. For buying, see investment property in Kyrgyzstan.
Is there a car tax in Kyrgyzstan
There is no longer an annual car tax: the vehicle tax was abolished from 1 January 2025, removed from the Code in summer 2025 and is absent from the list of taxes in article 37. An individual's income from selling a car is exempt from income tax until 1 January 2029, and sales of passenger cars are exempt from VAT for the same period. Tax debts of individuals (other than sole traders) on car sales made before 1 January 2026, including penalties and interest, are written off on the taxpayer's application under Law No. 262 of 31 December 2025.
Inheritance, gifts and capital gains
There is no separate inheritance or gift tax. Property inherited or received as a gift from close relatives is not taxed. A gift from anyone else, including crypto, counts as income and is taxed at 10%.
Capital gains are taxed as ordinary income at 10%: the base is sale proceeds minus the cost of purchase or construction and renovation. Exempt are:
- the sale of a home you have owned for more than a year from registration of title, except in resort and recreation zones; for a home inherited or gifted by a close relative, the year runs from the donor's registration;
- the sale of a household plot after a year of ownership;
- the sale of personal belongings and cars (cars until 2029);
- interest on deposits and balances in Kyrgyz banks (interest from a foreign bank is taxed);
- income from securities in the top listing tiers of the Kyrgyz stock exchange or foreign exchanges on the Cabinet of Ministers list.
Crypto
For an individual, profit on selling virtual assets, meaning proceeds above the purchase price, is taxed at 10% income tax. A business on the general regime pays 5% sales tax on the margin; on the single tax, 8% of the margin. Mining has its own tax: 10% of the cost of electricity consumed, due monthly by the 20th. For a country comparison, see crypto and taxes when relocating.
Taxes in Kyrgyzstan for non-residents and the treaty with Russia
A non-resident pays 10% on Kyrgyz income without a single deduction, and a foreign company with no presence in the country pays 5% to 10% at source. The Kyrgyz payer withholds tax from the gross amount and pays it over by the 20th of the following month.
| Income of a foreign company | Withholding rate without a treaty |
|---|---|
| Dividends and interest (except international bonds and listed securities) | 10% |
| Royalties and copyright fees | 10% |
| Work and services performed in Kyrgyzstan | 10% |
| Premiums for voluntary insurance and reinsurance | 5% |
| Premiums for compulsory insurance | 10% |
| International communications and transport | 5% |
| Sale of a stake in a Kyrgyz company | 10%; 0% if held for more than 5 years |
A permanent establishment, meaning a taxable presence of a foreign company, can arise without an office. It is created by services through staff in Kyrgyzstan for 183 days or more in any 12 months, a construction site lasting as long, a dependent agent and electronic services through a Kyrgyz domain.
Double tax treaties
Kyrgyzstan has treaties in force with more than 30 countries. They include Russia, Kazakhstan, Uzbekistan, Tajikistan, Belarus, Ukraine, Moldova, Armenia, Turkey, China, India, Pakistan, Iran, Mongolia, Malaysia, South Korea, the UAE, Germany, Austria, Switzerland, the UK, Poland and Canada.
The treaty with Russia was signed in Moscow on 13 January 1999, entered into force on 6 September 2000 and has applied since 1 January 2001. The Kyrgyz Ministry of Justice database lists it as in force. Russia's 2023 suspension of treaties covered unfriendly states and did not affect Kyrgyzstan.
| Income | Rate under the Russia treaty |
|---|---|
| Dividends | Up to 10% |
| Interest | Up to 10%; 0% if the recipient is the state, the central bank or an agreed public body |
| Royalties | Up to 10% |
| Dual residency of an individual | Permanent home, centre of vital interests, habitual abode, citizenship, then mutual agreement |
Kyrgyz domestic rates are already 10%, so the Russia treaty matters less for lowering rates than for crediting tax and settling residency. A Kyrgyz resident can credit foreign tax only where there is a treaty and only up to the Kyrgyz tax on the same income.
If you remain a Russian tax resident and own a Kyrgyz company, check the Russian controlled foreign company (CFC) rules: the profit of an LLC in Bishkek may be taxable in Russia.
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When to pay taxes in Kyrgyzstan and what the penalties are
Almost every payment in Kyrgyzstan is due by the 20th of the following month, and the annual return in spring. A late report costs a company 7,000 som each time, and late-payment interest runs at 0.09% a day.
| What | Deadline |
|---|---|
| Income tax on salaries and the tax agent report | By the 20th of the following month |
| Social contributions | By the 20th of the following month |
| VAT return and payment | By the 25th of the following month |
| Sales tax | Monthly by the 20th, small businesses quarterly |
| Single tax | Small businesses quarterly by the 20th after the quarter, medium and large monthly |
| Profit tax instalments | From the second quarter, by the 20th of the second month after the period |
| Withholding tax on payments to foreign companies | By the 20th of the month after payment |
| Unified tax return | Companies by 1 April, sole traders and individuals by 1 May |
| Housing tax | By 1 September |
| Mining tax | Monthly by the 20th |
The unified tax return is filed by companies, sole traders and individuals with income that did not pass through a tax agent: for example, a foreigner with a residence permit paid by a foreign employer. Sole traders on a patent or on the single tax at 0%, 0.1% and 0.5% are exempt from filing it.
Penalties
- Late report: 10 RP (1,000 som) for individuals, 30 RP (3,000 som) for sole traders, 70 RP (7,000 som) for companies, per case.
- Late unified tax return: 70 RP (7,000 som) for everyone, individuals included.
- Understated tax found in a field audit: up to 10% no penalty, 10% to 50% a penalty of 50% of the shortfall, above 50% a penalty of 100%.
- No report filed at all and found by an audit: the full tax plus a 100% penalty.
- Late-payment interest: 0.09% of the arrears per day, capped at 100% of the arrears.
The limitation period for tax liabilities is 6 years. The Code article restricting travel abroad for tax debtors was repealed from 1 July 2025, but if a debt is enforced through the courts and bailiffs, the debtor can still be barred from leaving the country.
Pitfalls that Kyrgyzstan tax guides leave out
The low rates are real. But the system has features that can cost more than any difference in percentages.
A residence permit widens the tax base. As a resident without a permit you are taxed only on Kyrgyz income. Once you have one, foreign salary, interest, rent and capital gains are taxed at 10%; only foreign dividends stay exempt. Plan the timing of your permit with this in mind.
A residency certificate may not work. The Russia treaty does not treat as resident a person taxed in the country only on local-source income. For a foreigner without a residence permit, that can make it hard to prove Kyrgyz residency to claim treaty benefits.
The exemption for citizens is new. Income a citizen earns on the territory of a foreign state is exempt in 2026, but there is little practice yet. For an overview of the country's programmes, see Kyrgyzstan; for a passport for those born in the USSR, see Kyrgyz citizenship for people born in the USSR.
The single tax demands discipline. You need a KKM (cash register machine, an online till), electronic invoices and separate accounting for each activity. Cash costs 2 percentage points more than non-cash, and signs of artificially splitting a business cost you the 0% and 0.5% rates. Exceed the 15 million som limit at the 0% rate without filing in time, and tax is recalculated retroactively.
Foreigners pay housing tax on the full floor area. The 80 m² exemption on a Bishkek flat applies only to citizens and compatriots with a Meken card.
The minimum salary for tax is the city average. A small official salary does not push tax below the 28,829 som base in Bishkek.
The rules change often. Since January 2022 the Tax Code has been rewritten 10 times, five times in 2025 alone. Check any figure against the current version in the Ministry of Justice database before you file.
To live in the country you will need a personal account with a local bank. To compare Kyrgyzstan with other countries, see taxes by country.
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Who benefits from Kyrgyzstan's taxes and who does not
Kyrgyzstan wins where income can run through a sole trader or company paid to a bank account. It loses where you need zero tax on foreign passive income or a watertight residency certificate.
It suits IT specialists and freelancers with foreign clients: a sole trader on the single tax pays 2% to 4% of turnover plus fixed contributions. IT companies exporting at least 80%: the Hi-Tech Park gives 0% profit tax and VAT with no end date. Small retailers with turnover up to 50 million som: 0.5% of turnover. And anyone drawing income through a Kyrgyz company: dividends to residents and citizens are not taxed.
It does not suit people living on foreign passive income who plan to get a residence permit: interest, rent and capital gains will be taxed at 10%, while Georgia, for example, does not tax its residents' foreign income. Cash businesses: 6% of turnover on the single tax is more than it looks. Companies whose customers need input VAT: they must use the general regime with 12% VAT and sales tax. And anyone who remains a Russian tax resident: a Kyrgyz company does not switch off Russian CFC rules.
Your actual burden depends on citizenship, residence permit, income structure and the regime you choose. We will review your case on a consultation and help you pick a regime at registration.
FAQ
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