There are no specific transfer pricing (‘TP’) regulations in Kyrgyzstan. However, broad rules on the determination of the value of transactions between related parties are provided for in the tax laws of Kyrgyzstan. The broad rules empower the tax authorities to determine the value of the following transactions:
- Transfers between related parties;
- Barter transactions;
- Cross-border transactions (i.e., foreign trade transactions);
- Transactions without supporting documentation;
- Transactions with inactive entities/individuals; and
- Transactions with entities/individuals eligible for special tax regulations.
In case the values/prices of the above-mentioned transactions applied by the taxpayer are below the market value by more than 20%, then the tax authority can recalculate the value of the transaction, or adjust the income, assess any additional tax, penalty, or fine on the basis of the market value of such transactions.
Applicable TP Methods
The following TP methods are applicable to transactions between related parties:
- Comparable uncontrolled price (CUP) method;
- Resale price method; and
- Cost-plus method.
The most preferable method is the CUP method, and taxpayers are allowed to use the other methods where the comparable or pricing data is not available for the market.
Use and Availability of Comparables
N/A