In recent years, Kyrgyzstan has shown significant progress in digital transformation and the development of its IT sector. One of the key initiatives in this area has been the establishment of the High Technology Park (HTP), which supports IT companies and fosters the development of innovative solutions in the country. In this article, we explore what HTP in Kyrgyzstan looks like in 2025, what advantages it offers, and what opportunities it creates for IT businesses within this framework.
What is the High Technology Park in Kyrgyzstan?
The High Technology Park (HTP) in Kyrgyzstan is a special economic zone established to promote the development of information technologies and stimulate innovation. It was launched in 2011 with the goal of creating favorable conditions for IT companies and attracting investment into the high-tech sector.
The main objective of HTP is to build a strong ecosystem for IT business growth by offering favorable conditions to companies working in the field of information technology. This includes reduced tax burdens, simplified business operations, and access to various resources essential for successful development and expansion.
Benefits for HTP Participants
Companies that join Kyrgyzstan’s High Technology Park in 2025 enjoy several key advantages, making business operations more profitable and sustainable. Some of the main benefits include:
Tax Incentives
One of the primary attractions for HTP participants is significant tax relief. Companies are exempt from most taxes, including VAT, personal income tax, corporate income tax, and social contributions. This dramatically reduces operational costs and allows businesses to allocate more resources toward project development.
Favorable Conditions for Employees
Employees of companies registered in the HTP also benefit. Specifically, they pay reduced personal income tax rates, making employment terms more appealing and competitive.
Government Support
HTP is a government-backed initiative, ensuring stable support from national authorities. State programs to support IT entrepreneurship include professional training, subsidies for innovative projects, and access to facilities for growth and development.
Global Opportunities
Participation in the HTP gives companies the opportunity to enter international markets. Exporting IT services and products globally becomes more accessible due to the provided incentives and support, helping increase sales and expand client bases beyond Kyrgyzstan.
Who Can Become a Resident of the High Technology Park (HTP) in Kyrgyzstan?
To become a resident of Kyrgyzstan’s High Technology Park (HTP), a company must meet several criteria. First and foremost, its core activity must be related to the IT sector — this may include software development, IT services, application and game creation, and other high-tech areas.
In addition, the company must be registered in Kyrgyzstan and comply with all the requirements applicable to HTP residents. The application and admission process is relatively lengthy — it includes submitting the application and presenting it before a review board, and takes approximately one month.
We can help you apply to HTP remotely. Contact us for details.
Moreover, you can open a company in Kyrgyzstan remotely without visiting the country, and now it is possible to fully launch a business and access all available benefits entirely online.
Main Tax Benefits in HTP Kyrgyzstan
- Exemption from VAT
HTP resident companies are exempt from value-added tax (VAT), which reduces the cost of services and product development. - Exemption from Corporate Income Tax
HTP residents do not pay corporate tax, allowing them to reinvest all earned profits into business development. - Reduced Personal Income Tax
Employees of HTP-resident companies pay a reduced personal income tax of 10% instead of the standard 12%, making working conditions more attractive. - Exemption from Social Contributions
HTP-resident companies are exempt from contributions to the Social Fund of Kyrgyzstan, significantly reducing payroll costs.
Additional Benefits
The High Technology Park also provides benefits on exports of products and IT services, encouraging companies to expand globally.
These tax incentives are designed to support the IT business, reduce financial burdens, and stimulate the growth of the high-tech sector in Kyrgyzstan.
Mandatory Contributions to HTP
Despite the tax exemptions, HTP-resident companies are required to pay certain contributions to the Park itself. These payments serve as compensation for the benefits provided and state support.
- Compulsory HTP Contribution
Companies registered in HTP must contribute 1% of their gross revenue in exchange for the ability to enjoy tax incentives and other advantages of HTP residency.
This payment replaces a portion of the standard taxes the company would otherwise pay under the regular tax system.
This percentage-based contribution is the primary mandatory fee for all HTP participants. It allows the Park to sustain its operations and provide infrastructure, international promotion, and other support services to residents.
Additional Expenses
Besides the mandatory 1% contribution, residents are responsible for:
- Administrative and registration fees when applying to join park
- Annual internal audits
- Fees for renewing residency status
The cost of audit services may range from $500 to $2,000 per year.
Prospects for HTP Development
The HTP in Kyrgyzstan represents a unique opportunity for IT companies to grow in a favorable business environment. The country is continuing to integrate into the global digital economy, opening significant opportunities for technology-based businesses.
Amid the global digital transformation and rising demand for IT services, Kyrgyzstan is well-positioned to become a regional hub for innovation and development. The HTP program actively contributes to this process by offering not only incentives, but also the infrastructure needed for rapid business scaling.
Conclusion
The High Technology Park in Kyrgyzstan is a powerful tool for supporting and stimulating the IT sector. Tax incentives, simplified business regulations, and state support make this program attractive for both local and international companies.
In the context of growing global interest in information technologies, Kyrgyzstan — through HTP — has the potential to strengthen its position on the international stage by encouraging innovation and boosting the export of digital services.
For those who are not involved in software development, we recommend considering the Creative Industries Park (CIP) — an alternative to HTP for designers and creative professionals.
We also recommend looking into Armenia’s IT tax incentives, which include a 1% tax rate starting in January 2025.
