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5.1. Tax Base for Resident Entities

Resident companies are subject to corporate tax, known as ‘profit tax’, on their worldwide income earned from within and outside Kyrgyzstan.

Small businesses (i.e., taxpayers who have gross receipts not exceeding the VAT registration threshold and do not qualify as VAT-registered taxpayers)  may elect to be taxed under the simplified system of taxation (see Sec. 8.1.1.).

Capital gains are taxed as ordinary income at the same rate as corporate tax. Capital gains from the disposal of shares listed on the stock exchange in the highest and second-highest listing categories are exempt subject to conditions. Losses from the sale of debt securities are allowed to be carried forward (see Sec. 7.).

Dividend income received by a resident company from another resident company is exempt from corporate tax. Dividends received by a resident company from a non-resident company are included in the taxable income and are taxed at the standard  corporate tax rate.