Easier Tax Reporting and Lower Insurance Premiums for Small Businesses
The State Tax Service of the Kyrgyz Republic has rolled out an important update for businesses in the apparel and textile industry. As of August 2024, companies with fewer than 49 employees will benefit from a lower insurance premium rate of 12.25% when filing income tax and state social insurance reports through the STI-161 online service.
This update simplifies the reporting process and ensures businesses can take full advantage of reduced costs.
What’s Changing?
Previously, all apparel and textile businesses followed standard social insurance rates. Now, the government has introduced a tiered system:
- 12.25% for businesses with fewer than 49 employees
- 12% for businesses with 50 or more employees
While the difference may seem small, it can make a big impact on small businesses by helping them reduce costs and stay competitive.
Why This Matters for Businesses
For many small businesses in the sewing and textile sector, managing tax and insurance payments can be complicated. With this new update:
✔ Easier compliance – The STI-161 reporting service has been improved for smoother tax filing.
✔ Lower costs – Reduced insurance rates help businesses save money.
✔ More efficiency – Primary and revised reports can now be submitted more easily online.
What Should Businesses Do?
If you run a small apparel or textile business in Kyrgyzstan, make sure to:
- Check your employee count – If you have fewer than 49 employees, you qualify for the lower 12.25% rate.
- Use the updated STI-161 online service – It’s now easier to submit both primary and revised reports.
- Stay compliant – Keep up with the latest tax regulations to avoid penalties and ensure your business benefits from lower costs.
Looking Ahead
This move aligns with Kyrgyzstan’s efforts to support small businesses, especially in industries that play a key role in the country’s economy. With smoother reporting and lower insurance premiums, the apparel and textile sector can focus on growth and innovation.
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