Legal News

Legal Digest (October 2025)

Table of contents:

  • On the Implementation of a Pilot Project for the Use of Non-Geostationary Satellite Systems
  • On Amendments to Certain Decisions of the Government of the Kyrgyz Republic and the Cabinet of Ministers of the Kyrgyz Republic in the Sphere of Authorized State Bodies Empowered to Conduct Inspections
  • On Amendment to the Resolution of the Government of the Kyrgyz Republic «On the Regulation of Trade Activities in the Territory of the Kyrgyz Republic»
  • On Establishing the Policy Rate of the National Bank of the Kyrgyz Republic
  • On the Ratification of the Agreement on the Unified System of Customs Transit between the Eurasian Economic Union and a Third Party (Third Parties)
  • On Amendments to Certain Legislative Acts Concerning Banking Relations
  • On the Signing of the Law of the Kyrgyz Republic “On Consumer Credit”
  • On Amendments to Certain Legislative Acts in the Sphere of Taxation

On the Implementation of a Pilot Project for the Use of Non-Geostationary Satellite Systems

By Decree, a pilot project has been launched to provide Internet access using telecommunication networks based on non-geostationary satellite systems.

To accelerate the digital transformation of the Kyrgyz Republic, reduce the digital divide, and create conditions for the adoption of innovative telecommunication solutions, it has been mandated to implement a pilot project from October 6, 2025, to October 5, 2026, aimed at providing Internet access to the population, including remote and hard-to-reach regions, through telecommunication networks utilizing non-geostationary satellite systems.

The participants of the pilot project are designated as telecommunications service providers. During the implementation period, they shall make payments for the use of the radio frequency spectrum to the Regulatory and Supervisory Service for Communications under the Ministry of Digital Development and Innovation Technologies of the Kyrgyz Republic.

Upon completion of the pilot phase, the Cabinet of Ministers is instructed to prepare and submit a report on the results of the project, as well as, if necessary, proposals for improving the legal and regulatory framework in the field of communications and digital development.

The Decree enters into force on the date of its official publication.

On Amendments to Certain Decisions of the Government of the Kyrgyz Republic and the Cabinet of Ministers of the Kyrgyz Republic in the Sphere of Authorized State Bodies Empowered to Conduct Inspections

By Government Resolution, the list of authorized state bodies entitled to conduct unscheduled inspections, control inspections, and re-inspections of local self-government bodies has been updated.

In addition to the Department for Disease Prevention and State Sanitary and Epidemiological Supervision under the Ministry of Health of the Kyrgyz Republic, the list now also includes the Veterinary and Phytosanitary Inspection Service under the Ministry of Water Resources, Agriculture, and Processing Industry of the Kyrgyz Republic.

Furthermore, the adopted Resolution adds the Ministry of Science, Higher Education, and Innovation of the Kyrgyz Republic to the list of authorized state bodies entitled to conduct inspections of business entities.

The Resolution shall enter into force ten days after the date of its official publication.

On Amendment to the Resolution of the Government of the Kyrgyz Republic «On the Regulation of Trade Activities in the Territory of the Kyrgyz Republic»

Amendments Adopted to the Resolution «On the Regulation of Trade Activities in the Territory of the Kyrgyz Republic».

The Resolution establishes that catering establishments are entitled to independently determine additional service conditions for visitors, provided that such conditions do not contradict the legislation of the Kyrgyz Republic and do not include service charges.

It is prohibited to charge separately for service, dish delivery, table setting, or any other actions performed by service staff beyond the main cost of the order.

All components of catering services must be included in the prices indicated in the menu, price list, or any other document available to consumers prior to placing an order.

The final amount payable must not differ from the total calculated based on the publicly available price list.

The Resolution enters into force on January 1, 2026.

On Establishing the Policy Rate of the National Bank of the Kyrgyz Republic

By Resolution, the policy rate of the National Bank of the Kyrgyz Republic has been set at 10.00 percent per annum.

The Resolution enters into force on October 28, 2025.

On the Ratification of the Agreement on the Unified System of Customs Transit between the Eurasian Economic Union and a Third Party (Third Parties)

The agreement on the unified system of customs transit between the Eurasian Economic Union and a third party (third parties) has been ratified.

The purpose of the Agreement is to complete the domestic procedures required for the entry into force of the Agreement.

The ratification aims to simplify and optimize the transportation of goods, reduce administrative barriers and costs for carriers, and enhance the efficiency of customs cooperation.

Implementation of the Agreement will enable:
– the use of a unified electronic transit declaration;
– a single guarantee mechanism for the payment of customs duties, taxes, special, anti-dumping, and countervailing duties;
– the application of specific simplifications for authorized economic operators of the Union member states and third parties;
– the use of navigation seals to monitor the movement of goods under the customs transit procedure across the territories of the Union and third parties;
– mutual recognition of decisions and customs control results adopted by customs authorities, in accordance with the provisions of the international agreement on the unified customs transit system.

On Amendments to Certain Legislative Acts Concerning Banking Relations

The Law of the Kyrgyz Republic “On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Banking Relations” has been signed.

The main purpose of the Law is to align the provisions of relevant legislative acts with the Law of the Kyrgyz Republic “On Consumer Credit” and to establish an effective legal mechanism for its implementation and supervision.

The Law stipulates that the general provisions of the Civil Code of the Kyrgyz Republic concerning loans, credit, and the sale of goods on credit shall apply to consumer credit relations, taking into account the specific features provided by the legislation on consumer crediting.

According to the Law, the maximum permissible interest rate or markup shall be calculated based on the weighted average nominal interest rate determined by the National Bank of the Kyrgyz Republic on a semiannual basis, plus an additional 12 percent.

The Law also grants the National Bank of the Kyrgyz Republic the authority to apply enforcement measures against creditors that violate consumer rights or exceed established limitations.

Furthermore, the Law introduces liability for creditors that breach the consumer credit legislation, in the form of a fine amounting to 650 calculation indicators, in accordance with the Code of Offences of the Kyrgyz Republic.

On the Signing of the Law of the Kyrgyz Republic “On Consumer Credit”

The Law of the Kyrgyz Republic “On Consumer Credit” has been signed.

The Law is aimed at protecting the rights and legitimate interests of borrowers, ensuring transparency and comparability of lending conditions, preventing excessive debt burden, curbing unfair lending practices, and promoting responsible lending.

The provisions of the Law do not apply to loans issued for the purchase, construction, or completion of residential real estate secured by property, except in cases explicitly provided for by the Law.

The Law defines the procedure for granting consumer credit, the terms and conditions of credit agreements, the calculation and application of the borrower’s debt burden ratio, as well as the procedures for modifying or terminating the credit agreement. It also establishes the rights and obligations of both parties, mechanisms for dispute resolution, and borrower protection measures.

In particular, the Law stipulates that the total amount of charges (including interest, markups, commissions, penalties, and fines), including in cases of credit restructuring, shall not exceed 60 percent of the principal amount of the loan.

If the borrower’s debt burden ratio exceeds 60 percent, the creditor must provide a written notice to the borrower, prior to signing the agreement, informing them of the risks of non-fulfillment of obligations and possible liability measures.

Additionally, the nominal interest rate under a consumer credit agreement, calculated based on its terms, may not exceed 0.08 percent per day.

On Amendments to Certain Legislative Acts in the Sphere of Taxation

The Law of the Kyrgyz Republic “On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Taxation” has been signed.

The main purpose of the Law is to improve tax legislation, simplify tax administration procedures, and create conditions for fair competition and reducing the shadow economy.

The Law introduces amendments to several legislative acts, including the Tax Code, the Labor Code, and the Laws “On Consumer Protection,” “On Notaries,” and “On the Implementation of the Tax Code of the Kyrgyz Republic.”

In particular, it provides for:

Amendments to the Tax Code of the Kyrgyz Republic, including:
– repeal of part 3 of article 3 regulating the application of investment agreements concluded by the Cabinet of Ministers;
– assigning the administration of markets and mini-markets responsibility for monitoring compliance with tax legislation by business entities operating on their premises;
– exemption of individuals from income tax when selling wool, hides, and used batteries;
– exemption from income tax for employees of organizations operating in the field of football, including salaries, bonuses, compensations, and other incentive payments;
– granting taxpayers investment deductions under individual investment account agreements;
– application of a 0 percent tax rate for the transfer or exchange of real estate for state needs under a decision of the Cabinet of Ministers;
– aligning the provisions of the Tax Code with principles of digitalization and administrative simplification.

An amendment to Article 91 of the Labor Code, allowing non-cash payment of wages not only by legal entities but also by individual entrepreneurs.

An amendment to the Law “On Consumer Protection,” introducing a direct prohibition on the use in business activities of payment equipment (including POS terminals and QR codes) registered to individuals.

An amendment to the Law “On Notaries,” establishing that conducting notarial activities without paying taxes and social contributions, or without using cash registers, is grounds for revocation of a license.

An addition to Article 4 of the Law “On the Implementation of the Tax Code of the Kyrgyz Republic,” providing that tax benefits under investment agreements concluded before December 31, 2025, remain valid until their expiration, despite the repeal of part 3 of article 3 of the Tax Code.