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Kyrgyzstan is a newly independent state of ex-Soviet Republic that boast of its low inflation level and substantial industrial growth. Previously the rates of Kyrgyzstan Taxes fluctuate between 35 to 50 percent. A new tax code was introduced on July 1, 1996 by the government of the country in order to resolve the dilemma regarding taxes. The parliament of the country can introduce or revoke Taxes of Kyrgyzstan, though tax prerogatives is provided to legislative assembly. According to the new Taxes of Kyrgyzstan, the principal taxes labeled on foreign investors are profits tax, which are 30% for legal persons, 15% for for nonresident dividends and 15% for repatriation of earned income.
Taxes in Kyrgyzstan offers reasonable depreciation on the equipments and assets that fall into 25 or 30 percent bracket. Natural resource sector and deductibility of equipment repairs are the prime tax issues of the investors in Kyrgyzstan as only 5% deductions is alloted for non capital repairs. 15% tax is imposed on the dividends and interest. A 20% VAT is imposed on the the taxable turnover after the deduction of the input tax. The input VAT is levied on the invoices of the goods and services ordered, which also include import.
Kyrgyzstan Taxes impact on leasing though the tax code of Kyrgyzstan allowed tax relief on import, VAT and profit taxes.
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