From November 1, 2020, the tax on income from the extraction and sale of gold ore and gold concentrate will increase by 7 percent until 2023, and from 2023 – by 10 percent.

The Law of the Kyrgyz Republic of August 22, 2020 No. 141 increased the rates of income tax for taxpayers engaged in the extraction and sale of gold ore and gold concentrate, the State Tax Service reported.

In accordance with the Law, the tax base for royalties is also the value of chemically pure metal contained in metal-containing ore or concentrate of exchange metal.

If the cost of a chemically pure metal contained in a metal-containing ore or a concentrate of exchange-traded metal is lower than the proceeds received from the sale of metal-containing ores and concentrates of exchange-traded metals, then the proceeds received from the sale of metal-containing ores and concentrates of exchange metals are used as the royalty tax base.

Taking into account the amendments introduced, a single rate is set for royalties:

- for gold, silver and platinum, as well as metal-containing ores and concentrates of gold, silver and platinum in the amount of 5 percent;

- for metals, metal-containing ores, metal concentrates, with the exception of gold, silver and platinum in the amount of 3 percent.

The Law comes into force on November 1, 2020.