In 2025, Kyrgyzstan attracts international companies thanks to low taxes, simplified registration, and the absence of currency restrictions. This makes the country convenient for opening a branch or representative office, especially for IT and creative businesses. Double Taxation Avoidance Treaties (DTAs) with 34 countries allow businesses to optimize their tax burden, positioning Kyrgyzstan as a hub for service exports.
Advantages of Kyrgyzstan for Branches and Representative Offices
Kyrgyzstan offers foreign companies:
- Minimal taxes: Special regimes such as the High Technology Park (HTP) and the Creative Industries Park (CIP) provide a 1% turnover tax.
- DTAs: Treaties with 34 countries minimize taxation in the company’s home country.
- Freedom of transfers: No currency control, simplifying withdrawals through banks such as Demir Bank.
- Russian language: Documentation and reporting in Russian ease operations for CIS-based companies.
- EAEU access: Entry to Russian, Kazakh, Belarusian, and Armenian markets without customs barriers.
- Relocation: The country has a simplified pathway to Kyrgyz citizenship.
DTAs: Which Countries Benefit the Most?
DTAs allow companies to pay taxes only in Kyrgyzstan or credit the taxes paid there in their home country. Kyrgyzstan has treaties with 34 countries, including Russia, Kazakhstan, Belarus, Armenia, Ukraine, Turkey, India, and China. The greatest benefits go to companies from:
Russia
- DTA: In force since 1999 (updated in 2023). Profits are taxed only in Kyrgyzstan if it qualifies as a permanent establishment.
- Benefits:
- Corporate tax in Russia (20%) is far higher than 1% in HTP or CIP.
- As an EAEU member, Kyrgyzstan is not subject to restrictions on transfers to “unfriendly” countries.
- A branch or representative office allows international work while bypassing sanctions on Russian banks.
- Example: A foreign IT company remotely registers a branch in Kyrgyzstan, in HTP, pays 1% of revenue, and accepts U.S. client payments via Payoneer.
Kazakhstan
- DTA: In force since 1997 (updated in 2022). Profits are taxed in Kyrgyzstan.
- Benefits:
- Kazakhstan’s 20% corporate tax is higher than Kyrgyzstan’s.
- EAEU simplifies cross-border operations.
- Kyrgyz banks support SPFS, easing transfers.
- Example: A Kazakh game development company opens a branch or representative office in CIP to work with local and foreign clients.
Belarus
- DTA: In force since 1997. Taxes paid in Kyrgyzstan are credited in Belarus.
- Benefits:
- Sanctions restrict Belarusian banks, but Kyrgyz banks operate freely.
- Belarus’s corporate tax (18%) is higher than 1% in HTP/CIP.
- Example: A Belarusian SMM studio opens a representative office in CIP, pays 1%, and uses Wise for transfers.
Armenia
- DTA: In force since 2001. Branch profits are taxed in Kyrgyzstan with credit in Armenia.
- Benefits:
- Armenia’s corporate tax (18%) is higher than in HTP/CIP.
- CIP does not require export services, unlike Armenia’s IT regime (0% only on exports).
- Example: An Armenian architecture studio opens a branch in CIP to target the Kyrgyz market.
Ukraine
- DTA: In force since 1996. Branch profits are taxed in Kyrgyzstan.
- Benefits:
- Ukraine’s corporate tax (18%) is higher than in HTP/CIP.
- Kyrgyzstan provides stable banking channels for transfers.
- Example: A Ukrainian IT firm opens a representative office in HTP to serve European clients.
Turkey, India, China
- DTAs: Active since the 1990s–2000s.
- Benefits: Corporate tax (20–30%) is higher in these countries than Kyrgyzstan’s 1%. DTAs allow tax crediting.
Countries without a DTA (e.g., U.S., U.K.): Branch profits are taxed both in Kyrgyzstan and at home, but the low 1% rate still makes it attractive. For non-DTA countries, opening a standalone Kyrgyz LLC (OsOO) may be more advantageous.
Tax Regimes for Branches and Representative Offices in Kyrgyzstan
- High Technology Park (HTP)
- For: IT companies (software, blockchain, esports) with 90% export income.
- Taxes:
- 1% turnover contribution.
- 5% personal income tax (instead of 10%).
- 12% social contributions on average salary.
- Reporting: Quarterly declarations, proof of IT activity.
- Benefits: Minimal tax, no VAT.
- Creative Industries Park (CIP)
- For: Design, marketing, gaming, media, fashion (72 activities). Export not required.
- Taxes:
- 1% turnover in 2025 (2% from 2027).
- 5% personal income tax.
- 12% social contributions.
- Reporting: Quarterly declarations, proof of creative activity.
- Benefits: Low tax and flexibility for local and international markets.
- General Tax Regime (GTR)
- For: Turnover above 30 million KGS (~$350,000) or outside HTP/CIP.
- Taxes:
- 10% corporate income tax.
- 12% VAT (if over 30m KGS).
- 1–3% sales tax.
- 17.25% social contributions.
- Reporting: Monthly VAT and payroll, annual declaration.
- Simplified Tax Regime (STR)
- For: Small businesses under 30 million KGS turnover.
- Taxes:
- 4% on income or 6% on profit (income – expenses).
- Exempt from VAT and corporate income tax.
- 17.25% social contributions.
- Reporting: Quarterly and annual declarations.
Why Is It Profitable?
- Low rates: 1% in HTP/CIP vs. 18–30% in DTA countries.
- DTAs: Pay taxes only in Kyrgyzstan or credit them at home.
- Banking: Payoneer, Wise, SPFS support simplifies transfers.
- Registration: Branch opens in 5–10 days, state fee ~$12.
- Flexibility: CIP doesn’t require export, good for local market.
- EAEU: Access to 180 million consumers without customs duties.
How to Open a Branch or Representative Office?
- Choose the form:
- Branch: commercial activity, registered as permanent establishment.
- Representative office: marketing/research only, no income.
- Documents:
- Company’s founding documents (translated into Russian/Kyrgyz).
- Resolution to establish branch.
- Legal address (virtual office ~$20/month).
- Director’s passport.
- Process: Registration via e.gov.kg or at Public Service Centers within 5–10 days.
- Tax regime: Apply for HTP/CIP within 15 days of registration.
Practical Recommendations
- Choose the right regime: HTP for IT, CIP for creative industries. Ensure 90% income compliance for HTP.
- Hire a lawyer: Services ($50–100) pay off by simplifying registration.
- Open a bank account: Use Demir Bank for Payoneer/Wise.
- Check DTA terms: See tax.gov.kg.
- File reports: Quarterly declarations via salyk.kg in Russian.
- Consider residence permit: Founders may obtain residency to manage the branch.
Conclusion
In 2025, Kyrgyzstan is one of the most attractive jurisdictions for branches due to its 1% tax rate in HTP and CIP, DTAs with 34 countries, and free fund transfers. Companies from Russia, Kazakhstan, Belarus, Armenia, Turkey, and India gain maximum advantage by minimizing taxes and bypassing banking restrictions. HTP is ideal for IT, while CIP fits creative businesses targeting any market. For non-DTA countries, setting up a separate Kyrgyz LLC is highly profitable. Registration takes 5–10 days, and banks simplify transfers. To get started, consult with advisors via htp.kg or creative.kg to optimize registration and taxes.