A decree by the President of Kyrgyzstan titled “On Measures to Improve the Tax System and Tax Administration” will provide a range of tax incentives for entities in the IT sector, as well as those engaged in creative and artistic activities, the country’s tax service announced on Friday.
Specifically, IT workers, artificial intelligence and app developers, bloggers, remote workers for foreign companies, and startup founders will be exempt from taxes for a period of 5 years.
In addition, this category will be subject to a preferential income tax rate of 5% and social security contributions of 12%.
This measure will enable Kyrgyzstan to become a regional hub for the development of IT, artificial intelligence, and creative industries, attracting talented professionals, innovative companies, and investments from around the world, the statement emphasizes.
The preferential tax regime will help entrepreneurs allocate more funds to business development, the implementation of new technologies, and the enhancement of domestic companies’ competitiveness.
