Baker Tilly Bishkek Presented the Tax Aspects of Working with Kumtor to UK Business

On 14 September 2026, a meeting between representatives of UK mining, engineering and consulting companies and Kumtor Gold Company CJSC, organised by the British Embassy in the Kyrgyz Republic, took place in Bishkek.

What taxes does a foreign company pay in Kyrgyzstan

During the event, Albina Rakhmidinova, Partner and Head of the law firm Baker Tilly Bishkek Legal, presented information on tax regulation in the Kyrgyz Republic to UK business. Albina noted that the Kyrgyz Republic has a relatively attractive tax environment. The base rate of profit tax and income tax is 10%, the VAT rate is 12%, and the sales tax rate ranges from 1% to 5% depending on the type of activity and the form of settlement. At the same time, the actual tax burden largely depends on many factors, including the chosen operating model, the nature of the goods and services, their place of supply, and the possibility of applying international agreements on the avoidance of double taxation.

Two models of cooperation with Kumtor and their tax implications

Albina focused on two models of structuring cooperation with Kumtor and the tax implications of each model. The choice of model should be made taking into account the nature and duration of the works and services, the presence of personnel in the country, Kumtor’s special regime, and the terms of the specific contract with Kumtor.

How British investments are protected in Kyrgyzstan

Participants of the meeting also learned about the system of guarantees for foreign investors, which includes, among other things, national treatment, protection against unlawful expropriation, the right to freely transfer income and capital, and the possibility of resolving disputes through international arbitration. Additional protection for British investors is provided by the 1994 bilateral Agreement on the Promotion and Protection of Investments, as well as the Agreement between the United Kingdom and Kyrgyzstan for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and capital gains, signed on 13 June 2017 (ratified by Kyrgyzstan in 2022).

Support for British companies entering the market

Baker Tilly Bishkek thanks the British Embassy in the Kyrgyz Republic for organising the meeting. The company is ready to provide British companies with comprehensive support in entering the Kyrgyz market, including structuring cooperation, tax advisory, business registration, and legal support for their projects in Kyrgyzstan.