The parliament of Kyrgyzstan has adopted the draft law on the creative industries park in three readings.
What is it and what is it for? And also who can become its resident and when will it start to operate officially? Let’s find it out together with Nazgul Kubakaeva, director of Creative Industries Association.
See also: Creative Economy of Kyrgyzstan: Many People, No Conditions
This is a special tax regime for companies and legal entities that ear 90 per cent of profit from selling creative industries park products.
It comprises nearly 20 types of activity. The full list is given below:
- Architecture, urban and regional planning, landscape design, interior design;
- Fine arts, including creation of scenery;
- Media art, including digital art, creation of virtual and added reality, mixed reality, 3D design;
- Music, performance art;
- Film, television, radio, photography, videography, video production;
- Animation, graphic design, multimedia design;
- Media, internet streaming, running podcasts and blogs;
- Handicraft, arts and crafts, artistic crafts;
- Fashion industry, including design of apparel, accessories, creation of collections;
- Programming, development of IT products, robotics industry, and artificial intelligence;
- Creation of computer and mobile games, cybersport;
- Literature, scriptwriting, storytelling;
- Art management;
- Publishing industry;
- Activity of creative spaces, including museums, galleries, libraries, recreation and entertainment parks, coworking places, training centres, maker spaces;
- Activity of accelerators and business incubators;
- Activity of travel operators, guides, interpreters, animators, organisers of travel entertainment, development of travel routes;
- Organisation of conferences, forums, entertainment, fashion shows, shows and mass events, production;
- Advertisement, marketing in social media, public relations;
- Training in creative professions, including professional courses, testing and certification centres.
Now the law “On creative industries park” should be signed by the president.
Afterwards, the government should submit the law “On amendments and modifications to the Tax Code” and law “On social contributions” to the parliament. These documents will describe how many per cent must be paid by creative industries companies registered in the Park.
And, finally, the cabinet of ministers should issue a decree to explain the kinds of activities that may be registered in the Park and how it will work.
The law to be signed by the president will come into force within 15 days after its official publication. As to the Park, it will start working once all laws about tax amendments, social contributions and government decree are adopted.
Now the ministry of economy discusses the rates with creative industries entrepreneurs. All procedures – from discussion to adoption – are expected to end by the end of this year.
Self-employed entrepreneurs and limited liability companies can join the Creative Industries Park. In the long view, residents of the Park can be citizens of other countries.
The procedure of joining is being developed and will be discussed later.
The Creative Industries Park is a chance for the state to turn representatives of creative industries into economic entities, which requires their legal registration as self-employed entrepreneurs.
The key obligation is to carry out transparent activity and pay taxes according to the special regime. The similar system operates in the Hi-Tech Park for IT companies.
Moreover, as was already said, 90 per cent of profit must come from selling creative industries products.
Residents can develop and expand their industry. Moreover, they will have an opportunity to enter the global market and represent their products there. These measures are expected to contribute to development of entrepreneurship in the area of creative economy.