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4.1. Domestic PE of a Foreign Entity

The Income Tax Act of Kyrgyzstan defines a permanent establishment as a fixed place of business through which the operations of a company are, wholly or partly, carried on. Fixed place of business includes:

  • A place of management;
  • A branch office;
  • A work office;
  • A factory;
  • A workshop;
  • A mine, oil or gas well, quarry or any other place designated for the extraction of natural resources;
  • A plot of land;
  • A construction site or construction, installation or assembly facility, and related supervisory activities provided such activities are carried on for 183 or more calendar days during any 12-month period;
  • An installation or site used for surveying for natural resources or related supervisory services, or a drilling rig or a vessel used for the exploration of natural resources provided that such use / services are carried on for 183 or more calendar days during any 12-month period; and
  • Provision of services in Kyrgyzstan, including consultation services, rendered by a non-resident or through any hired personnel, provided that such personnel carried on such services in Kyrgyzstan for 183 or more days during any 12-month period.

The following places of business do not constitute a permanent establishment for a foreign enterprise in Kyrgyzstan:

  • Using facilities such as warehouses or buildings exclusively for storage, display, or delivery of goods and merchandise owned by the foreign enterprise;
  • Maintaining an inventory of goods and merchandise owned by the enterprise for storage, display or delivery purposes;
  • Maintaining an inventory of goods and merchandise owned by the foreign enterprise for the purpose of processing by another enterprise;
  • Maintaining a permanent place for the sole purpose of purchasing goods or the gathering of information for the enterprise;
  • Maintaining a permanent place of business for an activity that only undertakes work of a preparatory or auxiliary nature; and
  • Activities performed through an independent agent in Kyrgyzstan if such agent usually performs such activities in the ordinary course of his business.