Kyrgyzstan tightens VAT deductibility rules

The Kyrgyzstan tax code has been amended to restrict VAT deductions.

From the 1 April, VAT deductions will only be allowable on goods or services where the VAT has been settled (as opposed to the accruals accounting methodology). Furthermore, the payments must have been made through an approved bank account.

Kyrgyzstan VAT is currently levied at 12%. Companies with a taxable turnover above KGS 4m must register for VAT Only resident companies will be affected by this