Tax Alert, Issue #3, August 2026 (Russian)
August 18, 2026
Kyrgyz Republic Tax & Legal Alert: Key Updates (August 2026)
Major legislative and regulatory changes in the Kyrgyz Republic cover cross-border penalties, non-resident banking, VAT import rules, double tax treaties, and trade quotas:
- New Fee for Non-Resident Bank Accounts: Foreign non-resident entities will now face a fee for the permit/accreditation required to open and maintain bank accounts in the Kyrgyz Republic (amount to be set by the Cabinet of Ministers)
- Progressive Fines for EAEU Border Document Non-Compliance: Fixed penalties have been replaced with a tiered scale based on cargo value:
- Under KGS 500k: KGS 50,000 for individuals | KGS 100,000 for legal entities
- KGS 500k to KGS 1M: KGS 100,000 for individuals | KGS 200,000 for legal entities
- KGS 1M and above: KGS 200,000 for individuals | KGS 300,000 for legal entities
- Conditional VAT Assessment Regime Changes: Suppliers of heat energy, electricity, gas, and motor vehicles are now excluded from the conditional VAT import regime
- Kyrgyz Republic – Hong Kong Double Tax Treaty: A draft law has been submitted to ratify the DTT signed in March 2026
- Dividends: 5% (with $\ge$20% capital holding) or 10% standard
- Interest & Royalties: 8%
- Anti-Abuse: Implementation of the Principal Purpose Test (PPT)
- Expanded Excise Tax on Petroleum Components: A draft proposal subjects specific chemical components (HS codes 2902600000, 2902700000, 2909199000, 2921420001) to an excise tax of KGS 5,000 per tonne, applied retroactively to January 1, 2025
- Increased EV Duty-Free Import Quota: Under EAEU Council Decision No. 79, the duty-free import quota for electric vehicles has expanded from 15,000 to 25,000 units, tracked via a real-time online counter on the State Customs Service portal
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