Starting January 1, 2026, Kazakhstan will introduce a new Tax Code. It will bring numerous changes for businesses, including an increase in the VAT rate from 12% to 16%, higher excise taxes on tobacco, alcohol, and energy drinks, and much more. Because of this, there is a risk that many small and medium-sized enterprises may either close down or “relocate” to Kyrgyzstan. “Indeed, we have some of the lowest taxes in the Eurasian Economic Union. There are different taxation regimes. For e-commerce, it’s 2% plus social fund contributions. For trade, one can purchase a patent. For other types of activities, it’s 4% for non-cash payments, 6% for cash payments, and 8% when using cash registers,” economist Iskender Sharsheev told Vesti.kg. For this reason, many companies from Russia and other countries have already opened their representative offices in Kyrgyzstan. “The only obstacles sometimes come from local restrictions, which can create barriers to their continued operations. However, it’...
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