Tax alert – Mazars Central Asia
As of July 1, 2024, changes to the special tax regime based on the patent came into force (see Law of the Kyrgyz Republic No. 31 of February 02, 2024 "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation").
Patents for the following types of trading activities have been discontinued:
- retail sales in markets and mini markets, in stores, outside stores, shopping centers and markets, in outlets into shopping malls;
- sale of spare parts and materials for cars outside markets using kiosks, pavilions, containers, wagons, trays, counters, tents, yurts, manual mobile carts, sheds and other temporary iron structures;
- sale of products of the "fast food" network;
- breeding and sale of pets;
- production (sale) of bread;
- production (sale) of sand block, cinder block and paving stones at home;
- sale of products of handicraft activity (folk - artistic crafts) of own production;
- manufacture and sale of tombstones, pedestals and related elements;
- activities of artists, including sale of paintings and portraits.
Traders who traded under a patent need to operate under a general tax regime or a simplified tax regime on a single tax basis.
An individual entrepreneur may apply the 0% single tax rate if he:
- sells goods, works, and services to the population,
- does not carry out export-import operations,
- uses check-out machine,
- has no more than 2 employees and
- the amount of revenue does not exceed 15 000 000 soms.
For an individual entrepreneur engaged in trading activities, an additional condition for applying the 0% rate is accommodation in a trading facility.
An individual entrepreneur engaged in trading activities in markets and mini markets , according to the list of the Cabinet of Ministers, pays tax at the 0.1% rate if he:
- is not engaged in the production of goods,
- the amount of revenue does not exceed 100 000 000 soms for the last 12 consecutive months,
- the activity is carried out with the mandatory use check-out machine, electronic invoices and accompanying documents.
The single tax rate for other subjects of trade activities is:
- 0.5% - if the amount of revenue for the last 12 months is less than 30 000 000 soms,
- 1% - if the amount of revenue for the last 12 months is less than 50 000 000 soms.