Billions in turnover by unregistered services

According to an analysis of payments conducted by the State Tax Service jointly with commercial banks, Kyrgyz citizens and organizations made about 15.9 million payments to 11 unregistered foreign companies in 2024–2025. The total value of the payments exceeded 13.2 billion soms.

The largest volumes were recorded for the following services:

Shanghai Xunmeng Information Technology Co., Ltd. (Pinduoduo) — 8.89 billion soms;

Alibaba Group Holding Limited (1688) — 2.83 billion soms;

Microsoft Corporation — 1.01 billion soms.

The list of companies with significant financial turnover in Kyrgyzstan but without tax registration also includes Twitch Interactive, Inc., Valve Corporation, Sony Interactive Entertainment LLC, Epic Games Inc., Electronic Arts Inc., VK Company Limited, Telegram FZ-LLC and Dropbox Inc.

Tax requirements and threat of blocking

Under Kyrgyzstan’s Tax Code, foreign companies providing electronic services, including software, online games, advertising, hosting and digital content, must register for tax purposes before beginning operations in the country. Registration is carried out electronically through the VAT Office service and simultaneously makes the company liable for VAT. Providing such services does not create a permanent establishment in Kyrgyzstan.

A total of 73 foreign companies have officially registered in Kyrgyzstan. The State Tax Service has repeatedly sent explanatory letters to the unregistered companies, including through diplomatic channels via the Ministry of Foreign Affairs, but has received no response.

The tax authority said that if the violations continue, it will initiate procedures to block access to the platforms’ websites and applications in Kyrgyzstan.

The so-called «Google tax» has been in effect in Kyrgyzstan since 2022. It requires foreign internet companies selling digital services and content to individuals in Kyrgyzstan to pay VAT at a rate of 12 percent.