LAW OF THE KYRGYZ REPUBLIC

of August 12, 2025 No. 198

About investments in the Kyrgyz Republic

Accepted by Jogorku Kenesh of the Kyrgyz Republic on June 26, 2025

This Law is directed to creation of the favorable investment climate in the Kyrgyz Republic, stimulation of attraction of national and foreign investments, establishment of equal and fair legal principles and guarantees of protection of investments, and also on assistance to sustainable economic and social development of the Kyrgyz Republic.

Chapter 1. General provisions

Article 1. Subject of regulation of this Law

This Law regulates the legal relationship arising when implementing by national and foreign investors of direct investments in the territory of the Kyrgyz Republic, establishes the principles of investment policy of the state, determines the rights of investors, and also mechanisms of protection of their interests and interaction of participants of investing activities.

Article 2. Principles of investing activities

Relations of subjects of investing activities are performed according to the following principles:

1) supremacy of law;

2) justice;

3) publicity and openness;

4) freedom of investing activities;

5) presumption of conscientiousness of the investor;

6) guarantee of protection of investments.

Article 3. Legislation of the Kyrgyz Republic on investments, investing activities and mode of stabilization

1. The legislation on investments, investing activities and the mode of stabilization is based on the Constitution of the Kyrgyz Republic and consists of this Law, international treaties which became effective according to the legislation of the Kyrgyz Republic (further - the international agreements), and other regulatory legal acts of the Kyrgyz Republic regulating questions of implementation of investments.

2. In case of introduction of amendments or amendments to this Law, the tax legislation of the Kyrgyz Republic or the legislation on non-tax payments the investor and/or the invested company which signed the agreement on the stabilization having the right within 10 years from signature date of the specified agreement to apply the optimum conditions provided by the specified regulatory legal acts at the time of their choice. The specified right extends to taxes, including the value added tax, except for other indirect taxes, and also to non-tax payments, except for payments for the services provided by state bodies. The procedure and conditions of application of the mode of stabilization are determined by the legislation of the Kyrgyz Republic.

3. Application of the mode of stabilization does not limit the right of the investor and/or the invested company to use more favorable conditions established by the legislation of the Kyrgyz Republic which became effective after agreement signature about stabilization.

4. The right to use the mode of stabilization is granted:

1) to the investor performing investments in the capital of the invested company within 3 years from signature date of the agreement on stabilization in the amount of at least 200 million som determined by the official rate of National Bank of the Kyrgyz Republic (further - National Bank) on the date of signing of the specified agreement, and also to the most invested company;

2) to the investor performing the activities connected with studying, search, investigation and development of minerals on condition of investment of investments into the capital of the invested company within 5 years from signature date of the agreement on stabilization in the amount of at least 1 billion som determined by the official rate of National Bank on the date of signing of the specified agreement and also to the most invested company.

5. Failure to carry out by the investor of obligations on investment of the investments into the capital of the invested company established by this Article is the basis for agreement cancelation about stabilization and penalties of unpaid taxes and non-tax payments on which economy was reached as a result of application of the mode of stabilization.

6. Change of shareholding structure or members of the investor and/or the invested company does not terminate the mode of stabilization and does not influence fixed terms of its application.

7. If the international treaty provides others, more advantages in comparison with regulations of the national legal system regulating investment legal relationship are applied provisions of the international treaty in that part in which their application corresponds to national interests of the Kyrgyz Republic.

8. For the purpose of protection of homeland security, public order, public health care, protection of the rights and freedoms of other persons the investing activities of the foreign investor can be prohibited or limited to the laws of the Kyrgyz Republic.

9. Investments into the financial credit institutions and the organizations providing payment services are regulated bank and payment by legislations of the Kyrgyz Republic.

Article 4. The main terms used in this Law

In this Law the following main terms are used:

1) the assets which are under indirect control of the investor - assets, control of which is exercised through the third parties or the structures which are not direct owners, but having opportunity to influence the decisions connected with use of these assets;

2) derivatives (derivative securities) - securities, the mechanism of release and which addresses it is connected with the right to acquisition or sale throughout the term established by the agreement of underlying asset or with property right (obligation) arising in connection with the change in price of the underlying asset which is the cornerstone of such security;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info