The IT Park of the Kyrgyz Republic is a zone with a special IT park regime created for individu-als and organizations that are residents of the IT Park and carry out their activities in accordance with the ITP Act.
The IT Park regime is a special legal and tax regime applied to ITP residents only, under which all ITP residents are exempt from taxes and social security commonly required by the Kyrgyz law within 15 years from the establishment of the IT Park, provided that the residents carry out activities listed in Article 4 of the Law "On the IT Park of the Kyrgyz Republic".
The key objectives of the IT Park are:
- Promote development of domestic software products and advanced and high information technologies and provide interactive services through service centers (call-centers);
- Create a comprehensive system for government support of domestic high-tech businesses;
- Promote local R&D products in both domestic and international markets, boost exports of software and IT services;
- Attract investments by creating a favorable tax and business environment for international IT developers;
- Create a favorable environment and infrastructure for legalization of the domestic IT in-dustry;
- Promote science and science education to encourage more professionals into the IT sector;
- Facilitate the introduction of world’s best practices and quality standards in software development.
Residents of the IT Park are exempt from the following taxes for a period established by the ITP law::
- Profit tax,
- Sales tax, and
- Value added tax.
The rate of personal income tax for ITP residents that are employees of the IT Park and ITP resi-dents that are self-employed entrepreneurs is 5%.
Employees of the IT Park and individual residents pay 12% of the average monthly salary as social security.
Social security contributions are distributed as follows:
- 10% to the Pension Fund, and
- 2% to the State Pension Savings Fund.
All individuals and organizations registered as ITP residents in accordance with the Kyrgyz law are exempt from paying full social security normally payable on income of full- and part-time employees and contractors under contracts, agreements or one-time service arrangements within 15 years from the registration as ITP residents in accordance with the Kyrgyz law.