The Kyrgyzstan State Tax Service issued a release in July 2019 concerning the preferential tax treatment available for qualified industrial enterprises. The release includes that new industrial enterprises established from 1 January 2019 in specified areas may be eligible for preferential tax treatment. This includes an exemption from sales tax, income tax, land tax, and property tax for a period of five years, which may be subsequently extended for an additional period of up to 10 years. The release also clarifies that the preferential tax treatment does not extend to any branches or representative offices of an enterprise outside of a specified area.

Qualifying industrial activities for the preferential tax treatment include:

• All types of industrial production based on innovative technologies;
• Light and food industry, including textile, apparel, leather, and footwear production, and food production (excluding tobacco products);
• Power industry, including power generation, transmission, and distribution;
• Agricultural processing, including processing and preserving of meat, poultry, fish, fruits, vegetables, and milk and cheese;
• Assembly production, including the manufacture of computers, electrical equipment, machinery, automotive manufacturing, and others; and
• Any export-oriented production

To enjoy the preferential tax treatment, an industrial enterprise must enter into an investment agreement with the local authorities of a specified area.