United States-Kyrgyzstan Tax Treaty

Kyrgyzstan International Tax Compliance Rules

 International Tax Compliance Rules

Quick Summary.  Located in Central Asia, Kyrgyzstan is a landlocked country bordering Kazakhstan, Uzbekistan, Tajikistan and China.  Long at the crossroads of great civilizations as part of the Silk Road, Kyrgyzstan is a mountainous country with heavy agricultural production. Kyrgyzstan consists of seven provinces and a capital at Bishkek.

Kyrgyzstan is a unitary parliamentary republic.  Kyrgyzstan obtained independence in 1991 following the fall of the Soviet Union.  Its 1993 constitution provides for a unicameral republic with a legislative branch, president and prime minister, independent judicial branch headed by a Supreme Court.  Following the 2005 so-called “Tulip Revolution” and subsequent political reforms, it became a parliamentary country.

The country’s tax laws are set out primarily in the Tax Code of the Kyrgyz Republic.

Kyrgyzstan is a member of the World Trade Organization (WTO), Eurasian Economic Union, the Shanghai Cooperation Organisation, the Organisation of Islamic Cooperation, and the United Nations.

U.S.-Kyrgyzstan Tax Treaty.  

Convention between the United States of America and the Union of Soviet Socialist Republics on Matters of Taxation

Currency.  Kyrgyzstan Som (KGS)

Common Legal Entities. Limited liability company, open and closed joint stock companies, partnership, sole proprietorships, and branches.

Tax Authorities.  State Tax Service

Tax Treaties. Kyrgyzstan is a signatory to more than 25 tax treaties.

Corporate Income Tax Rate.  10%

Individual Tax Rate. 10%

Corporate Capital Gains Tax Rate.  Subject to ordinary income tax rates.

Individual Capital Gains Tax Rate. Subject to ordinary income tax rates.

Residence.  Individuals are deemed a tax resident if physically present in Kyrgyzstan for 183 days or more during a 12-month period.

Withholding Tax

            Dividends. 10%

            Interest. 10%

            Royalties. 10%

            Commissions.

Transfer Pricing. Kyrgyzstan provides for an arm’s-length standard and generally follows OECD guidelines.

CFC Rules. No.

Hybrid Treatment. No.

Inheritance/estate tax.  No.

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