Kyrgyzstan's tax regime includes corporate income tax, VAT, personal income tax, social security contributions, property tax, and excise tax. Businesses operating in Kyrgyzstan should be aware of these taxes and fulfill their tax obligations accordingly. Consulting with a tax professional or referring to the official website of the State Tax Service is advised to stay updated on the latest tax regulations and requirements. By adhering to the tax laws of Kyrgyzstan, businesses can navigate the tax landscape and contribute to the growth of the country's economy.
Corporate Income Tax:
Kyrgyzstan levies corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Kyrgyzstan is progressive, based on the level of taxable income. As of the knowledge cutoff date in September 2021, the tax rates are as follows:
- For taxable income up to KGS 100,000: 10%
- For taxable income above KGS 100,000: 12%
It's important to note that Kyrgyzstan operates on a territorial tax system, meaning that only income derived from activities within the country is subject to taxation.
Types of Business Taxes in Kyrgyzstan:
- Value Added Tax (VAT): Kyrgyzstan imposes a VAT system on the supply of goods and services. The standard VAT rate in Kyrgyzstan is currently set at 12%. However, certain goods and services may be subject to reduced rates or exemptions.
- Personal Income Tax: While not directly a business tax, it's worth mentioning that Kyrgyzstan levies personal income tax on individuals' earnings. The personal income tax rates in Kyrgyzstan are progressive, ranging from 5% to 10%, depending on the individual's income level.
- Social Security Contributions: Employers in Kyrgyzstan are required to make social security contributions on behalf of their employees. The contributions are calculated based on a percentage of the employee's gross salary and are intended to fund various social benefits.
- Property Tax: Kyrgyzstan imposes a property tax on the ownership of land and real estate properties. The tax rates vary depending on the location, size, and purpose of the property.
- Excise Tax: Excise tax is applicable to specific goods, such as alcohol, tobacco, petroleum products, and certain luxury items. The tax rates for excise goods vary depending on the product.
Kyrgyz Tax Authority Website:
For detailed and up-to-date information on business taxes in Kyrgyzstan, it is recommended to visit the official website of the State Tax Service under the Government of the Kyrgyz Republic.
State Tax Service Website: Official State Tax Service Website
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