The 80% Export Requirement in HTP: What Residents Need to Know

What does the legislation provide?

According to the Law of the Kyrgyz Republic "On the High Technology Park of the Kyrgyz Republic":

• at least 80% of a resident’s goods, works, and services must be exported;
• and/or at least 80% of a resident’s income must be derived from the export of goods, works, and services.

Thus, after obtaining final registration, the activities of an HTP resident must be primarily export-oriented.

What can be considered an export?

In general, export income covers services from the sale of goods, performance of works, or provision of services to foreign customers outside the domestic market of the Kyrgyz Republic.

When determining the export nature of a transaction, the following are considered:

• the party with whom the contract is concluded;
• the subject and terms of the contract;
• the nature of the services actually rendered or works performed;
• the location of the client;
• documents confirming the fulfillment of obligations;
• the source of the income received;
• other actual circumstances of the transaction.

The mere presence of a foreign end user does not always mean that the income is export income.

For example, if a contract is concluded with a legal entity of the Kyrgyz Republic and the direct client is a Kyrgyz company, such income is considered domestic, even if the results of the services are subsequently used by a foreign client.

In non-standard cases, the export nature of a transaction is determined based on a combination of documents and actual circumstances.

What documents confirm export?

A resident is recommended to keep documents that make it possible to identify the client, the nature of the transaction, the volume of services rendered or works performed, and the amount of income received.

Such documents may include:

• contract with the client;
• attachments and technical specifications; invoices or bills;
• statements of services rendered or works performed, if their preparation is provided for in the contract;
• documents confirming receipt of income; other materials confirming actual fulfillment of obligations.

The list of documents may vary depending on the terms of the contract and the specifics of the company’s activities.

What is usually not considered export income?

Export income does not include income received from:

• legal entities and individual entrepreneurs of the Kyrgyz Republic;
• state authorities and institutions of the Kyrgyz Republic;
• the sale of goods, works, or services on the domestic market;
• transactions where the direct client is a Kyrgyz organization. Each transaction is still assessed based on its actual content and supporting documents.

When does the 80% export requirement become effective?

The export-orientation requirement becomes effective from the date the resident receives final registration in the HTP.

This means that immediately after final registration, the resident must structure their activities with the established export share in mind.

The first assessment of compliance with the requirement is conducted one year after the date of final registration.

For example, if a company obtains its final registration on July 10, 2026, export activity will be assessed for the period from July 10, 2026 to July 9, 2027.

Thus, the requirement applies from the date of final registration, and the actual ratio of export to domestic income is checked for the first time at the end of one full year of activity.

How is the share of export income calculated?

To determine the export share, the income received from exports is compared to the total income of the resident for the relevant period.

For example, if a company’s total income was 10,000,000 soms, of which 8,500,000 soms were from export, the export share will be:

In this case, the export income requirement is met.

It is important to use comparable indicators and ensure consistency in accounting data, quarterly reports, contracts, and primary documents when making the calculation.

How is export activity checked?

When checking, not only the final percentage ratio is taken into account, but also the justification for attributing specific income, goods, works, or services to export.

The assessment is carried out based on reporting, contractual, financial, and other supporting documents.

Special attention may be paid to cases where:

• the client, payer, and final recipient of the service are different parties;
• services are provided as part of a complex contractual model;
• it is impossible to clearly determine the domestic or export nature of the transaction; the documentation of the transaction requires additional analysis;
• there are discrepancies between the contract, reports, and the actual activity carried out.

In non-standard or disputable cases, the question of attributing the relevant transactions to export, as well as the compliance of the resident’s activities with the requirements of legislation, may be referred to the HTP Expert Council.

The Expert Council evaluates the submitted documents and the actual circumstances of the resident’s activities as a whole.

Common mistakes

In practice, difficulties most often arise due to:

• including income from Kyrgyz clients as export;
• the absence of documents confirming the content of the transaction;
• incorrect identification of the direct client;
• mismatches between the contract, certificates, financial and reporting documents; incorrect allocation of export and domestic income;
• untimely control over the structure of income; errors in completing quarterly reports.

How to reduce the risk of non-compliance?

Residents are recommended to:

• monitor the export share from the moment of obtaining final registration;
• regularly calculate the ratio of export and domestic income;
• keep export and domestic transactions separate;
• check that documents correspond to the actual content of the transaction;
• store supporting documents for each transaction; accurately reflect income in quarterly reporting;
• take the export requirement into account when entering new contracts;
• contact the HTP Directorate in advance in case of non-standard or disputable situations.

Conclusion

The requirement to comply with 80 percent export orientation applies from the moment the resident obtains final registration in the HTP.

The first assessment of compliance with the established ratio is conducted one year after the specified date.

In this case, not only the final share of export income is taken into account, but also the actual content of transactions, the status of clients, the nature of services rendered, and the availability of supporting documents.

Regular control over the structure of income and proper documentation of transactions make it possible to identify possible risks in a timely manner and ensure compliance with the law on the High Technology Park of the Kyrgyz Republic.