Employer Tax Contributions

Tax Type	Rate	Base
Social Contributions (Employer)	17.25%	Employee's gross salary
Social Contributions (Pension Fund - Foreigners)	3%	Employee's gross salary
Personal Income Tax (Withholding)	10%	Employee's gross income (after deductions)

Filing & Compliance

• Monthly reports for accrued income, withheld PIT, and social contributions must be filed monthly.
• Withheld PIT and social contributions are due monthly, typically by the 20th day of the month following the reporting period.
• Annual tax returns are due by April 1.

In Kyrgyzstan, employers are responsible for withholding and remitting various taxes from employee salaries, primarily personal income tax and social security contributions.

Personal Income Tax (PIT)

The personal income tax rate in Kyrgyzstan is a flat 10% of an employee's gross salary after allowable deductions.

• Deductions: Employees can claim deductions for expenses related to education (for themselves or dependents, capped at 10% of total taxable income), and mortgage interest payments (capped at 230,000 KGS annually). These deductions require submitting a tax return (Form 100) along with supporting documentation by April 1st of the following year. Standard deductions also exist, such as 6.5 Calculated Index (CI, where 1 CI = 100 KGS) and 1 CI per dependent monthly.

• Tax Return & Payment: For salary income (tax withheld at source), employers file monthly tax returns (Form 091) by the 20th of the following month. For other income (not withheld at source), individuals file an annual tax return (Form 100) by April 1st of the following year.

Social Security Contributions

Employers contribute 17.25% of an employee's gross salary towards social security. Employees also contribute, with their 10% share deducted from their salary by the employer and remitted to the relevant funds. The employer contributions break down as follows:

• Pension Fund: 15% of gross salary
• Medical Insurance Fund: 1% of gross salary
• Health Improvement Fund: 0.25% of gross salary

Sales Tax

Sales tax is applicable to goods and services sold within Kyrgyzstan. Rates vary depending on the nature of goods and services. It differs from VAT, applying to sales turnover for Kyrgyz entities and foreign companies using an Employer of Record (EOR) service.

Other Taxes

While not directly related to employee deductions, employers should be aware of other taxes like property tax (with quarterly payments for businesses and an annual payment by September 1st for individuals) and excise taxes on specific goods.

Additional Employer Obligations

Employers act as tax agents, responsible for withholding and remitting employee taxes on time. Penalties apply for late payments. They also maintain records of employee salaries and tax deductions.

Freelancers

Freelancers in Kyrgyzstan have two tax status options: "Individual" (paying the flat 10% income tax and contributions based on the average monthly salary) or "Sole Proprietor" (using the patent system, with different rates, deadlines, and reporting requirements).

It is important to note that tax laws and regulations are subject to change, and this overview represents the situation as of February 5, 2025. Always verify with official sources or consult a tax professional for the most current information.