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Tax Benefits for Creative Economy Development in Central Asia
Tax benefits for creative economy development in Central Asia
Central Asian region countries introduced a special tax regime for the creative economy.
In total, 40 creative types of business (including cinema, television and video content; organization of conferences and commercial exhibitions, jewelry; theatres and museums; architecture and design; as well as craft and souvenir production) will be able to operate in the Republic of Kazakhstan under a special retail tax regime. This regime implies the introduction of a single tax of 2 to 8 per cent, depending on the legal status of the subject of the creative economy, instead of Income Tax and VAT. At the same time, the annual turnover of such a company should not exceed 2.2 billion KZT (around 4.8 million USD as of January 2023), and the staff should employ no more than 200 people. According to the Ministry of Culture and Information of Kazakhstan, 鈥.鈥
Kyrgyz Republic its so-called 鈥淧ark of Creative Industries鈥, another tax incentive for creative entrepreneurs and small and medium-sized businesses. In this case, Park residents are also one quarterly tax on revenue (0.5% in 2023 and 2024, 1% in 2025 and 2026, 2% from 2027) instead of VAT and Sales Tax Rate, as well as insurance contributions of 12% of the average monthly salary.
For UNESCO, another useful instrument to protect and promote the diversity of cultural expressions and to create the conditions for cultures to flourish and to freely interact in a mutually beneficial manner is the , which hasn鈥檛 been ratified by both Kazakhstan and Kyrgyzstan.
In order to support local Creative Industries, and to promote the 2005 Convention at the regional level, UNESCO Almaty has previously implemented two projects. In 2020-2021, "Strengthening Film Industries in Central Asia" project included research assessment of the film industries and concerned legislation, capacity-building and awareness-raising activities for the Film professionals from Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. In 2022-2023, "Strengthening Digital Literacy Skills and Competencies and Promoting Gender Equality in Cultural and Creative Sectors in Central Asia" project, the main outcome of which were the Recommendations on digital skills development for representatives of the three creative industries 鈥 film, music and organization of cultural events 鈥 based on research conducted in Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan.
