The fiscal system in Kyrgyzstan is highly centralised. All revenues from extractive industries go to the state budget whilst local governments only collect property tax and land tax. The Law on Subsoil and Subsoil Use, adopted in May 2018, mandates all extractive companies to report beneficial ownership and financial data according to the EITI Standard.
Mining companies in the Kyrgyz Republic operate under a general tax regime. In addition, they pay specific taxes such as royalty and bonuses. There are several non-tax payments which are governed by the Law on Nontax Payments.
Licenses
Depending on the significance of the field, licenses can be issued based on a tender (for deposits of national importance), auction (for fields approved by the State Committee for Industry, Energy and Subsoil Use) or negotiations (all other fields).
According to the license register of the State Committee on Industry, Energy and Subsoil Use, there were 2366 active licenses in the Kyrgyz Republic as of 2019.
Contracts
The Kyrgyz Republic has not published license agreements or other contractual arrangements with extractive companies, apart from the concession agreement of the Kumtor project, as legally mandated. However, the State Committee for Industry, Energy and Subsoil Use is considering to gradually existing license agreements more accessible .
Social and economic contribution
About 10% of national employment in 2017 was within the extractive industry. Most employees were engaged in basic metal production, mine coal, oil and natural gas production. The average monthly salary of extractive industry employees is more than three times higher than the national average.