"Google Tax" Is Becoming a Significant Source of Budget Revenue for Kyrgyzstan

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In the first five months of 2026, foreign companies providing e-services in Kyrgyzstan transferred 648.5 million soms ($4,6 mln) in value-added tax, known as the "Google tax," to the country's budget, Akchabar.kg reported.

The increase in revenue from the so-called "Google tax" indicates the continued expansion of the digital services market in Kyrgyzstan and the increased efficiency of tax administration. In the first five months of 2026, foreign companies transferred $4,6 mln in VAT to the budget, an increase of 144.3 million soms, or almost 29%, compared to the same period last year. This trend reflects both the increased consumption of digital services and the expansion of the range of foreign suppliers registered with the country's tax authorities.

The "Google Tax," which has been in effect in Kyrgyzstan since 2022, applies to foreign companies providing electronic services, from streaming video and music to cloud services, online advertising, software, and mobile apps. These international companies include Google, Apple, Meta, Microsoft, Netflix, Spotify, Adobe, and other major digital product providers.

For Kyrgyzstan, these revenues are important because they help ensure a level playing field for foreign and local companies and increase budget revenue without imposing an additional tax burden on domestic businesses. Given the ongoing digitalization of the economy and the growth of online consumption, revenues from foreign electronic service providers are expected to continue to show steady positive trends.

CentralasianLIGHT.org

June 26, 2026