Kyrgyzstan legal and accounting and tax considerations in 2023
- Kyrgyzstan companies incur a corporate tax rate of 10%, with leasing companies paying a reduced rate of 7% and businesses involved with gold mining and refinement paying a rate of 0%. Individual income is taxed at a rate of 10% for both residents and non-residents;
- Kyrgyzstan resident company and individuals settle their tax liabilities either by monthly payments, third party withholdings, or a combination of both;
- Resident Kyrgyzstan companies are required to withhold tax at a rate of 10% from the payments to foreign companies unless reduced by a double taxation treaty. However, Kyrgyzstan’s 21 double tax treaties minimize withholding tax for service fees, dividends, interest, royalties, and branch profits;
- An individual is considered tax resident if he is present in Kyrgyzstan for at least 183 days per year and is subject to pay Kyrgyzstan tax;
- Annually, medium sized businesses pay corporate income tax, tax on interest, property tax, payroll tax, stamp duty, and also value added tax;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
- A Kyrgyzstan LLC involving only one person may not act as the sole participant for another LLC;
- All business choosing to submit an annual audited financial statement must submit statements by March 31st of each year. Annual audits are not required, but are recommended to ensure full legal compliance in the event of an audit being carried out by the tax authorities;
- A Kyrgyzstan company secretary is not required when forming a company in Kyrgyzstan, however we recommend one be appointed to ensure compliance with the corporation act during Kyrgyzstan company incorporation;
- The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.