A decree issued by the President of Kyrgyzstan ‘on measures to improve the taxation system and tax administration’ will grant a number of tax incentives to businesses in the IT sector, as well as those engaged in creative and artistic activities, the country’s tax service announced on Friday.
Thus, for a period of five years, IT sector employees, artificial intelligence and app developers, bloggers, remote workers for foreign companies and start-up founders will be exempt from paying taxes.
In addition, preferential income tax rates of 5% and insurance contributions of 12% will be introduced for this category.
This measure will enable Kyrgyzstan to become one of the regional hubs for the development of IT, artificial intelligence and creative industries, attracting talented specialists, innovative companies and investment from around the world, the statement emphasises.
The preferential tax regime will help entrepreneurs channel more funds into business development, the introduction of new technologies and enhancing the competitiveness of domestic companies.