In 2025, Kyrgyzstan confidently positioned itself as a new hub for the jewelry business in Eurasia. Thanks to unprecedented tax reforms, the country has quickly created unique conditions for legalizing, developing, and scaling this sector—without ignoring taxes for jewelers. Today, they benefit not only from a preferential tax rate but also from VAT-free access to raw materials, administrative support, and export opportunities. All of this makes Kyrgyzstan a true tax haven for jewelry manufacturers and sellers.
Jewelry Tax Benefits — Record-Low Rate of Just 0.25%
One of the key elements of the tax reform was the designation of the jewelry sector as a separate category with an ultra-low tax rate.
1. Unique Tax Rate — 0.25%
Under the Unified Tax regime, jewelers—both manufacturers and sellers—now pay only 0.25% of turnover.
This is half the standard Unified Tax rate (0.5%) and significantly lower than jewelry-related taxes in most CIS countries.
Comparison:
- In Russia, jewelry businesses face 20% VAT, profit tax, social contributions, licenses, and excise duties
- In Kazakhstan, turnover tax for similar businesses is 1–3%
- In Uzbekistan, the total tax burden is around 4%
Thus, Kyrgyzstan’s rate is one of the lowest in Eurasia, making it extremely attractive for jewelry production and sales.
2. Full VAT Exemption on Raw Material Imports
Since February 2025, amendments to the Tax Code have exempted jewelers from paying VAT on imported raw materials, including:
- Gold (bullion and scrap)
- Precious and semi-precious stones
- Concentrates and alloys
- Jewelry blanks
This significantly reduces production costs, especially for workshops using imported materials. Jewelers can now legally import supplies without paying the previous 12% VAT.
3. Encouraging Transparency through the “Taxpayer Rating”
To foster trust between the government and entrepreneurs, the tax authority introduced an innovative tool—the Taxpayer Rating.
Companies that comply diligently gain access to:
- Simplified inspections
- Automated refund processing
- Priority service and subsidy eligibility
The goal of this system is to phase out the “gray market” and motivate up to 80% of previously informal workshops to legalize their operations. With a tax rate of just 0.25%, this is now a realistic opportunity for thousands of jewelers to come out of the shadows.
Outlook for the Jewelry Sector in Kyrgyzstan
The reforms create conditions not only for survival but for active growth, technological renewal, and entry into international markets.
1. Accelerated Production Development
Just as Kyrgyzstan became a leading apparel producer in the CIS, the jewelry sector is now gaining momentum through:
- Mass equipment upgrades
- Transition to serial production
- Emergence of new brands
- Growth in specialized jewelry colleges and training courses
2. Reduction of the Shadow Economy
Previously, many jewelers operated unofficially due to fears of high taxes, regulations, and inspections. Now, with just 0.25% tax and a simplified system, licensing becomes unnecessary, and running a legal business is more profitable than staying underground—laying the foundation for a transparent, competitive market.
3. Gold Export and Processing Growth
Although Kyrgyzstan produces about 20 tons of gold annually, jewelry exports in 2024 accounted for only 0.05% of that volume—largely due to limited processing and export logistics. This is now changing:
- Local production is expanding
- Exhibition venues are opening
- The government promises support for exporters (including VAT refunds)
4. Investment and Industry Creation
By presidential decree (Sadyr Japarov), the jewelry industry has been designated as a priority sector for state support. This includes:
- Establishing processing and design centers
- Participation in international jewelry exhibitions
- State subsidies for leasing and raw materials
- Tax holidays for new enterprises in free economic zones
The government is committed to developing a full-fledged jewelry industry with export potential—just as it did with the garment sector.
Why You Should Start a Jewelry Business in Kyrgyzstan Now
Kyrgyzstan is a rare example of a country offering:
- Minimal taxes for jewelers (0.25%)
- No VAT on raw materials
- Moratorium on inspections and simplified registration
- State support and international positioning
- Access to free economic zones and affordable labor
Starting a business under these conditions is a smart strategic move. And if you want to launch quickly and without bureaucracy, our company offers remote registration of an LLC or IE—no personal visit to Kyrgyzstan required.
We handle:
- Preparation of all documents
- Registration with tax and social authorities
- Provision of a legal address
- Assistance with opening a bank account
- Support during the initial stages
Start your jewelry business legally, profitably, and safely—Kyrgyzstan welcomes jewelers!