The Cabinet of Ministers of Kyrgyzstan amended Resolution No. 23 of January 17, 2025, regulating measures to implement Article 430 of the Tax Code. The corresponding document was signed by Chairman of the Cabinet of Ministers Adylbek Kasymaliev.
The amendments concern the procedure for including goods in the list of products exempt from value-added tax (VAT) when exported from free economic zones (FEZs) to the rest of Kyrgyzstan.
According to the amended document, goods included in this list will be exempt from VAT for one year from the date of the Cabinet of Ministers’ decision to include them.
Furthermore, the resolution changes the criteria for including goods in the list. Specifically, the import share threshold confirming the import-substituting nature of the product has been reduced from 80 to 50 percent.
The procedure for reviewing applications for inclusion of goods in the list has also been clarified. The documents will be accepted by the FEZ general directorates, which will conduct economic calculations and substantiate the products’ compliance with established criteria.
The proposals are then sent to the National Investment Agency, where an interdepartmental working group is established with representatives of government agencies, including the Tax and Customs Services, as well as the National Statistical Committee.
Following the review, the agency may prepare a draft Cabinet resolution amending the list of goods.
The resolution will come into force in 15 days.
