Lowest income tax among post-Soviet countries in Kyrgyzstan

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In Kyrgyzstan, the head of the Tax Service, Altybek Abduvapov, stated during a press conference in Bishkek on the topic "Results of the Tax Service for 11 months of 2023," reported by Economist.kg, that Kyrgyzstan has the lowest corporate income tax among the former Soviet countries.

He presented the 2023 year-end report, revealing that the Tax Service of Kyrgyzstan collected 225 billion 744.7 million soms in taxes and insurance contributions over 11 months.

The established plan was exceeded by 3.5 billion soms. Compared to the same period in 2022, there was an increase of 39.9 billion soms, he said.

"The structure of the collected funds includes 168 billion 164 million soms for taxes and payments and 57 billion 580.7 million soms for insurance contributions," informed the head of the Tax Service.

According to him, these indicators are linked to the improvement and strengthening of tax administration, as well as the transition of entrepreneurs to online services.

Moreover, the efficiency of the tax collection process is associated with the implementation and use of cash register machines, electronic waybills, electronic invoices, and other digitization projects.

He also mentioned that among the EAEU countries, Kyrgyzstan has the lowest corporate income tax ranging from 0% to 12%. He provided examples of other countries. In Russia, the corporate income tax is 20%, the same as in Armenia, Belarus, and Kazakhstan. In Uzbekistan, it ranges from 12% to 20%, while in Tajikistan, it varies from 5% to 20%.

Abduvapov stated that many people directly link taxes and commodity prices, considering it a misconception. He explained the factors influencing commodity prices, saying, "The connection between commodity prices and taxes is much more challenging than it seems at first glance. Various factors, such as the economic situation in the country, market conditions, supply and demand, influence price formation."

CentralasianLIGHT.org

December 14, 2023