Creative Industries Park of Kyrgyzstan

a new stage in the development of Creative Economy

In an era where innovation drives economic growth, Kyrgyzstan has taken a significant step by initiating the creation of the Creative Industries Park (CIP). This unique project aims to transform the landscape of the creative economy in Central Asia, providing a favorable environment for innovators and entrepreneurs, contributing to the growth of the country's entire economy.

Unique Tax Model to Stimulate Creativity

Virtual residency in the Creative Industries Park is not tied to a geographical location and provides unique tax benefits worldwide, designed to stimulate creative entrepreneurship and attract talent and investment:

The single tax on revenue for CIP residents is 0.5% in 2024, 1% in 2025 and 2026, and from 2027 will be fixed at 2%. These rates are significantly lower than in traditional economic zones, making it an attractive option for creative enterprises;
Income tax on salaries for employees of CIP residents is reduced from 10% to 5%;
Social Fund contributions are fixed at 12% of the average monthly salary (AMS) in the region of tax registration of the resident, which is significantly less than the standard rate of 27.25% of the employee's salary. For example, in 2024, the AMS in Bishkek is 30,749 som, meaning employers registered in CIP will pay 12% of 30,749 som for each employee, which is 3,690 som, and this amount does not depend on the actual salary of the employee.

These benefits not only reduce operating costs for startups and established creative businesses but also make CIP an extremely economically advantageous option for freelancers and small teams at the very beginning of their journey.

Milestones and Future Prospects

CIP is not only about favorable tax policies but a comprehensive ecosystem designed to support all aspects of creative entrepreneurship. Since its conceptualization, the park has achieved significant milestones:

On October 19, 2021, the Creative Industries Association of Kyrgyzstan was created, uniting the efforts of creators in promoting the value of the creative economy.
On April 21, 2022 — the President of the Kyrgyz Republic signed a decree on measures for the development of the creative economy, which marked the beginning of a strategic approach to this area.
On the same day — the Cabinet of Ministers approved the Concept for the Development of the Creative Economy for 2022-2026, setting the direction for future initiatives.
On April 23, 2022 — the first Create4 creative industries festival was held with the participation of President Sadyr Japarov, gathering more than 2,000 participants, which became a bright start for further development.
On July 30, 2022 — the Law on the Creative Industries Park was adopted by the deputies of the Jogorku Kenesh.
On August 8, 2022 — the Law was signed by President Sadyr Japarov and officially entered into force.
On April 3, 2023 — amendments were made to the Tax Code, simplifying conditions for Park participants, and the Law on Insurance Contribution Rates for State Social Insurance
On June 23, 2023 - Resolution "On some issues of creating CIP" was adopted, regulating the activities and management structure of the Park.
On December 5, 2023 — a Cabinet of Ministers resolution was adopted, establishing the list of activities in CIP.
On February 22, 2024 — the CIP Supervisory Council was created, providing strategic guidance.
On April 20-21, 2024 — the fourth creative industries festival was successfully held, covering 36 locations in all seven regions of Kyrgyzstan and expanding its geography to Tashkent. The event brought together 50 organizations and companies that became co-organizers, confirming the scale and significance of the festival for the regional creative community.
On April 9, 2024 - the Creative Industries Park Directorate was registered, which became the first resident of CIP and will now carry out registration of CIP residents.

Transformational Impact on Local and Regional Economies

With the implementation of CIP, a transformational impact on the local economy is expected, reducing youth unemployment through the creation of new jobs, emergence from the "shadow sector" of a number of entrepreneurs and encouraging formalization of creative services. By creating conditions that lower barriers to entry and providing a supportive environment, the Park aims to retain local talent and attract foreign creative entrepreneurs.

Furthermore, the extraterritorial nature of the Park means it is not tied to a specific location, which provides flexibility and promotes the creation of creative hubs across the country. This model is designed to set a precedent in the global creative economy, showing how innovative fiscal and administrative policies can contribute to industry growth.

Conclusion

The Creative Industries Park represents a bold step forward for Kyrgyzstan, positioning it as a leader in the global creative economy. By creating an environment that values innovation and reduces bureaucratic obstacles, Kyrgyzstan is not only nurturing its talents but also creating conditions for the next generation of global creative leaders. As the Park develops, it continues to attract attention and optimism, symbolizing a bright future for creative industries in Central Asia and beyond.