Solution: High Technologies Park (HTP) of Kyrgyz provides low-tax regime and regulatory advantages for companies and specialists in the sphere of ICT and elaboration of software. The tax benefits offered are: 5 percent income tax, 10 percent social contributions and 2 percent pension funds with average monthly salary in country, 1 percent deductions from company turnover to the directorate of HTP.
Implementation: HTP development was initiated by Kyrgyz Software and Services Developers Association (KSSDA) in cooperation with the Ministry of Transportation and Communication and had been realized since 2008.
Residents - A resident of the HTP is any individual or organization registered as an HTP resident in the manner prescribed by the HTP Act. An individual or organization can become an HTP resident if at least 90 percent of their income comes from the activities listed below.
Activities of HTP residents:
- Software development, including: Analysis, design and development ofinformation systems, including off-the-shelf software;
- Analysis of information needs and user issues;
- Design, development, supply and documentation of proprietary and/or off-the-shelf software, including custom products;
- Software patching as requested by users;
- Exports of information technologies and software products;
- Setting up interactive service (call) centers and providing interactive services.
Foreign individuals and organizations can also become HTP residents. Any individual or organization wishing to join ITP should submit an application in a form approved by the Supervisory Board.
One year after final registration, no less than 80 percent of goods and services produced by the resident should go for export and/or no less than 80 percent of resident’s revenues should be from the exports of goods and services.
Achievements: There are eight company residents and for 2014 total income was $1,407,366. 80 percent of customers are from abroad: Kazakhstan, Russian Federation, Ukraine and elsewhere.
Replication: the solution can be replicated in countries where is demand to governmen’s stimulation for development of the ICT sector.