Tax for a Luxurious Lifestyle: Should It Be Collected from Bloggers in Kyrgyzstan?

Thursday, February 20, 2025, 17:22 "Depending on how these bloggers are monetized" In neighboring Kazakhstan, bloggers are subject to taxation. According to government agencies, many lead a luxurious lifestyle while often failing to pay taxes on their income, resulting in billions of tenge in unpaid tax obligations. Economist Iskender Sharsheev explained to Vesti.kg whether similar taxes should be imposed on bloggers in Kyrgyzstan. “Taxation depends on how these bloggers are monetized. If we talk about income from external platforms like TikTok and YouTube, the earnings are relatively small. It’s hard to live lavishly unless you have diamond play buttons. But in my opinion, such achievements should be a source of pride and support, not taxation,” Sharsheev stated. On the other hand, advertising contracts present a different situation, the expert explained. “If bloggers engage in advertising activities, the existence of a contract necessitates registration as an individual entrepreneur (IE) or a limited liability company (LLC). This requires mandatory registration with tax authorities, selecting a tax regime, and paying taxes. For example, I run a Kyrgyz-language channel with 54,000 subscribers, focused on politics and geopolitics—topics that are often complex and sensitive. I receive minimal income from the channel. If I receive any support, I pay a single tax. This is standard practice for anyone acting in good faith. Those who disregard tax obligations may face administrative measures,” warned Iskender Sharsheev. He also noted that donations (financial contributions from individuals) are not subject to taxation under current legislation. “However, the purpose of the donations must be considered: whether they are for charitable causes or intended to support an individual’s personal development. The Tax Code includes provisions regarding advertising. When a client orders targeted advertising, payment is made through accounting, and an additional 10% of the advertisement's cost must be paid to the budget. This requirement is specified in the Tax Code,” the economist added. To provide context, Kazakhstan’s State Revenue Committee reported that 594 bloggers had underreported their income by 53.3 billion tenge. These individuals were summoned to appear before the committee and submit reports. According to blogger Alisher Yelikbayev, 8,000 influencers received official notifications from the tax authorities, commonly referred to as “letters of happiness.” Source: https://vesti.kg/obshchestvo/item/135904-nalog-za-shikarnyj-obraz-zhizni-nuzhno-li-ego-sobirat-s-blogerov-kyrgyzstana.html