Revenue from “Google tax” to amount to about 700 million soms in Kyrgyzstan
Revenue from «Google tax» paid by foreign companies in Kyrgyzstan is expected to be 700 million soms in 2024. This amount is indicated by the Ministry of Finance in the draft revised republican budget.
It is noted that 561.5 million soms were received from VAT on electronic services of foreign organizations for nine months.
The so-called «Google tax» was introduced in 2022 for foreign organizations providing electronic services to users of the Kyrgyz Republic from abroad. The VAT rate is 12 percent of the amount of services sold.
At least 48 foreign companies providing electronic services paid taxes in Kyrgyzstan in 2023, including Google, Facebook, Yandex Go, streaming services, and software developers. According to the State Tax Service, four companies registered in the Netherlands, two companies each in the USA, Great Britain, Russia, and one each in Ireland, the United Arab Emirates, Armenia, Kazakhstan, and Cyprus, have previously undergone remote tax registration procedure.
