Page 32 - CEE Tax Guide 2025

Kyrgyzstan

Forvis Mazars LLC
118 Moskovskaya st., 5th floor,
Business center Olymp, Bishkek,
Kyrgyzstan
Phone: +996 312 882 155
www.forvismazars.com/kg

Corporate taxes and other direct taxes VAT and other indirect taxes

Taxable income is calculated as annual income The VAT concept is quite similar to the concept
minus expenses. Only properly documented applied in developed countries worldwide. Turnover
expenses may be deducted, provided that expenses subject to VAT is in general the total value of sales
are related to the taxable income. Dividends and (Output VAT). VAT paid to suppliers (input VAT)
capital gains are excluded from taxable income. is deducted from Output VAT. Input VAT cannot
The percentage of depreciation norms for fixed be offset if the goods, works, or services purchased
assets is set out in the Tax Code and is substantively are not related to the taxable turnover, the VAT-
similar to IFRS principles. Losses can be carried invoice is not issued by a supplier or is issued
forward within the following 5 calendar years in violation of legal requirements, the supplier
inclusively; the rule on carrying forward losses does is declared by court as inactive entity, etc. The
not apply to losses generated during periods when VAT rate for the export of goods is 0% and there
a company enjoyed tax benefits. There are no thin is a procedure for refund of the related input VAT.
capitalization rules. A special VAT procedure applies to the export/import
WHT is applied to incomes paid to non-residents of goods to/from the countries belonging to the
that are not registered for tax purposes Eurasian Economic Union such as Russia, Belarus,
in Kyrgyzstan. Taxable incomes are listed in the Kazakhstan, and Armenia.
Tax Code. Kyrgyzstan has signed 32 treaties on the Sales tax applies to revenue besides VAT. The
avoidance of double taxation. Though the treaty rate varies from 0% to 5% depending on the type
rates prevail over the Tax Code, it is important of activity and whether the revenue was received
to have a duly issued tax residency certificate for the in cash or not.
non-resident to apply the treaty. The multilateral Excise tax is paid by importers and sellers of:
instrument (MLI) is not in force.
1) Alcoholic products
Transfer pricing in Kyrgyzstan 2) Tobacco products

Arm’s length principle Since 2009 3) Oil products.
Documentation liability No N/A VAT options in Kyrgyzstan Applicable / limits
APA No N/A Distance selling No
Country-by-Country No N/A Call-off stock No
liability
VAT group registration No
Master file-local file N/A N/A
(OECD BEPS 13) Cash accounting – yearly Available without limits.
applicable amount in EUR (approx.)
Penalty Import VAT deferment No
lack of documentation N/A Local reverse charge

tax shortage N/A N/A Option for taxation
Related parties N/A N/A letting of real estate No

Safe harbors 20% N/A supply of used real estate No
Level of attention paid 8/10 VAT registration No
by Tax Authority threshold

Central and Eastern European tax guide 2025 Forvis Mazars 32