Tax policy in globalisation: The case of Kyrgyzstan

In this study that is examining the tax policies in globalisation taking Kyrgyzstan as a sample is tried to review and analyze the generally about globalisation, global tax problems and problems that emerges in Kyrgyzstan tax policy. In globalisation process that causes economical, political, social and cultural changes, developed countries gain advantage, where non-developed countries have disadvantages. As a result of increasing integration of the world?s economy, first of all, a single government?s choice of tax policies effects the other government tax policies and it gets difficult for countries to apply tax policy independently.Kyrgyzstan as a transition economy, after independence chose ?shock therapy? method and rapid withdrawal of government from newly formed market economy causes such serious economic problems as ceasing of production, unemployment, high inflation, corruption and poverty. The impact of globalisation on Kyrgyzstan tax policy seen almost after Kyrgyz Republic Tax Law put into practice, which was formed taking developed countries tax system as a model, there appeared several tax problems and to solve these applied many reform applications. Like other countries, Kyrgyzstan also tends to increase GDP to develope economy and to rise investments in the country, applied various tax incentives like reducing tax rates, forming FEZ. In spite of these tax incentives, investments, especially FDI inflows remain low with comparison to other CIS countries, which was the paradoxal condition. Consequently, beyond tax incentives, Kyrgyzstan needs followings; supply political stabilization, decrease illegal economy, put away corruption, destroy poverty, improve technology, inform people about taxes, solve problems ( like increasing salary) of personnels in tax offices.Key Words: Globalisation, Tax Policy, Tax Problems, Transition Economy, Kyrgyzstan.