The income tax rate has been reduced in half — from 10 to 5 percent — for entrepreneurs and residents of Batken region of Kyrgyzstan. The State Tax Service reported.
In addition, taxpayers and individuals are provided with a number of tax preferences.
In particular, according to the Tax Code, benefits are provided in two directions: in certain border settlements with a special preferential tax regime, and throughout Batken region.
As for the first direction, the entities registered and operating in 62 villages of Batken, Leilek and Kadamdzhai districts included in the list of certain preferential border settlements are provided with the following tax benefits:
- The income tax rate for employees of taxpayers is set at 5 percent;
- Exemption from income tax, sales tax;
- They may be exempted from property tax by the decision of local councils.
As for the second direction, benefits for these types of taxes are provided to taxpayers registered with the tax authorities of the region and carrying out preferential types of industrial activity, without the requirement to conclude an investment agreement.
The exception is their separate subdivisions located outside Batken region.
Preferential industrial activities include:
All types of industrial production based on innovative technologies;
- Light and food industries;
- Electric power industry;
- Processing of agricultural products;
- Assembly production;
- Any export-oriented production.
The tax debts formed as of June 1, 2021 of entities affected by the events on the Kyrgyz-Tajik section of the state border in Batken region from April 28 to April 30 last year (included in the list of victims, approved by the state commission for restoration and development of border villages in the region) are written off.
