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UK, Kyrgyzstan to Sign Agreement on Avoidance of Double Taxation

Tuesday 13 June 2017

(AKIPress) — Minister of Economy of Kyrgyzstan Arzybek Kojoshev and UK Ambassador Robin Ord-Smith will sign an agreement on avoidance of double taxation between the governments of Kyrgyzstan and UK, UK embassy said June 13.

As of 1 March 2017, Kyrgyzstan has concluded DTTs with 28 countries.

Passive income from sources in Kyrgyzstan by a non-resident that is not connected with a PE is taxable at the source of payment, without deductions, at the following rates:: Dividends and interest: 10%.

  • Insurance premiums received under risk insurance or re-insurance agreements: 5%.
  • Authorship fee and royalty: 10%.

Income obtained by a non-resident from performing activities and services in Kyrgyzstan not connected with a PE is taxable at the source of payment, without deductions (with the exception of VAT), at the following rates:

  • Income from telecommunication or freight services in international communication and transportation between Kyrgyzstan and other countries: 5%.
  • Income from management and consulting services: 10%.
  • Other services and activities: 10%.

WHT applies to Kyrgyzstan-source income regardless of whether the payment is made within or outside of Kyrgyzstan.

The application of DTTs often effectively provides a reduction of WHT rates or, in the case of non-passive income, an income tax exemption. Note that the application of treaty privileges is not necessarily automatic, and taxpayers may need to comply with certain administrative procedures to secure relief. Tax treaties

According to the Tax Code, the provisions of international tax agreements and other acts to which Kyrgyzstan is a party and ratified by the President or the Parliament (as appropriate) take precedence over the provisions of the Tax Code.

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