What is the tax regime to choose for SMEs in Kyrgyzstan?

What is the tax regime to choose for SMEs in Kyrgyzstan?

According to the Tax Code of the Kyrgyz Republic, "The tax regime recognizes the composition of taxes and their elements, as well as the procedure for their calculation and payment, applied in cases and in accordance with the procedure established by the tax legislation of the Kyrgyz Republic."

The Kyrgyz Republic establishes a general tax regime and special tax regimes.

The general tax regime is a taxation system in which a taxpayer has tax obligations under national and local taxes established by this Code.

A special tax regime is a taxation system in which a special procedure for determining the composition of taxes and their elements is applied instead of national taxes and/or exemption from the obligation to pay certain national and local taxes in accordance with the Tax Code of the Kyrgyz Republic.

 The special tax regime is:

1) patent-based tax;

2) simplified taxation system based on a single tax;

3) tax regime in free economic zones;

4) tax regime in the Hi-Tech Park;

5) mining tax;

6) tax on activities in the field of electronic commerce;

7) gambling tax.

For small and medium-sized businesses, we recommend a simplified taxation system based on a single tax, since this regime provides tax benefits until the end of 2024.