|                                                                                                                                                             |  | TAXES IN KYRGYZSTAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | August 1997Under Kyrgyzstan's 1996 tax code (see BISNIS Bulletin, April/May 1997, Page 5), a variety of
taxes apply to foreigners living and doing business there, including:--value-added tax (20 percent of the value of taxable goods);
--excise taxes: audio and video devices: 20 percent; carpets: 35 percent; crystal: 30 percent;
goods made of gold: 10 percent);
--tax on profits and revenues of enterprises (30 percent);
--highway-user tax (0.8 percent of gross income);
--allocations for prevention and liquidation of emergency situations (1.5 percent turnover or gross
income);
--customs duties (10 percent of customs value); 
--wage fund tax (33 percent in the state and private sectors; 23 percent in the cooperative and
agricultural sectors);
--land tax (rates of land tax shall be developed by government and approved by Parliament).Income Tax
Foreign physical persons must pay income tax at the following rates, which are progressive on the
marginal sums:--wages up to 5 times the minimum annual salary: 5 percent;
--5 to 15 times the minimum annual salary: 10 percent;
--15-25 times the annual minimum salary: 15 percent;
--25-35 times the annual minimum salary: 20 percent;
--35-45 times the annual minimum salary: 30 percent;
--over 45 times annual minimum salary: 40 percent.Individuals are exempt from income tax if they work for an organization which has a special
agreement with the Government of Kyrgyzstan (such as a foreign embassy).Value Added Tax
VAT is applied to imports entering from non-CIS countries when the goods entering the country
were not processed by customs of another CIS country before reaching Kyrgyzstan. This tax is
collected from any legal entity and physical person.  Imports from CIS countries are not subject to
VAT.  Various goods are exempt from VAT, including disaster relief, goods entering Kyrgyzstan
erroneously, goods for official (diplomatic, consular, representative) and personal purposes,
goods imported as basic means of production or purchased on credit, humanitarian aid, and transit
goods. Maximum fees, based on the declared value may include:--VAT: 20 percent;
--processing documents: 0.15 percent;
--customs duties: 10 percent.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)