If you are wanting to do business in Kyrgyzstan, this article will educate you on the tax laws for a LLC which is the most common company type in Kyrgyzstan.

The country imposes a tax on income earned outside the borders separately than if it were made onshore. Thepredominant standard rate for income remitted, from our research, but seek professional advice, is 0%. Kyrgyzstan does not have known exemptions to bring in income earned abroad accrured abroad. Taxes are very reasonable in Kyrgyzstan as the effective rate of taxation on a LLC entity is 10%. This ranks Kyrgyzstan as 26th when compared to corp. taxation rate internationally. . .

The value added tax (VAT) rate in Kyrgyzstan is 12.00%, which ranks Kyrgyzstan as 26th overall with regards to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 1,725.00% to the equivalent of a social security fund and an employee will contribute 10.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 71hours. Contributing to this is the number of yearly labor tax payments, which is 2 in KG.

Thin capitalisation standards are not officially enacted. This refers to any type of restrictions on companies' debt-to-asset ratios. A dividend is distributions of a company profit, voted on by the board, to a particular class of shareholders.Dividends can be one of the following cash payments, shares of stock, or other property. The capital gains taxation rate in KGis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest witholding rate is estimated at 10%This means that the tax authorities expects LLC's to pay tax on at least 10% of payments abroad for interest payments. The dividends witholding rate is 10%Which means that the taxman expects LLC's to pay tax on at least 10% of payments offshore for on dividend payments. The royalties witholding rate 10% This should be interpreted usually that the tax authorities expects relevant legal entities to automatically withhold 10% of money remitted abroad on royalty payments.
There is no known tax on wealth in Kyrgyzstan. There are no known inheritance taxes in Kyrgyzstan. There are not many widely used research and development breaks on taxation in KG.

The above is not tax or legal advice for your company's facts and circumstance. We are able to to reference you to an accountantin Kyrgyzstan who can properly advise you. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.