Tajikistan

Overview

Last reviewed - 30 June 2022

Tajikistan, the smallest country in Central Asia, is landlocked and mountainous. It is bordered by Afghanistan to the south, Uzbekistan to the west, Kyrgyzstan to the north, and the People's Republic of China to the east.

Tajikistan has been under the rule of various empires throughout its history, the longest period of which was under the Persian Empire. In the 19th century, the Russian Empire began to spread into Central Asia and eventually took control of Tajikistan. Tajikistan became independent in 1991, following the disintegration of the Soviet Union, and experienced a civil war between regional sectors from 1992 through 1997. Emomali Rahmonov came to power in 1992 and continues to rule to this day. In 1994, Tajikistan adopted a new constitution that restored the office of the president, transformed the Soviet-era Supreme Soviet into the Supreme Assembly (Majlisi Oli), recognised civil liberties and property rights, and provided for a judicial system that was not fully independent.

Tajikistan has an approximate population of 9.506 million people as of 1 January 2021. The main ethnic group is presented by Tajiks. The official language of Tajikistan is the Tajik language, while Russian is largely spoken for business and government purposes. The Tajik population also consists of an Uzbek minority and a small population of Russians, whose numbers are declining due to migration. Tajikistan has a high rate of literacy, with an estimated 99.88% of the population having the ability to read and write. The English-speaking population is mostly based in Dushanbe, the capital of Tajikistan. Tajikistan's currency is the somoni (TJS).

Tajikistan is a member of the World Trade Organisation (WTO), as well as the North Atlantic Treaty Organisation's (NATO) Partnership for Peace programme. Nearly half of the labour force of Tajikistan works abroad, with Russia being the primary migration destination. Other destinations include Kazakhstan, UAE, Ukraine, Afghanistan, and the United States.

The gross domestic product (GDP) of Tajikistan reached around 8.7 billion United States dollars (USD) in 2021. The economy of Tajikistan is represented by a large aluminium plant, hydropower facilities, and a few light industry and food processing factories. Consequently, Tajikistan's primary industrial output and export items are aluminium and textiles. Mineral resources include silver, antimony, mercury, lead, zinc, rock salt, gold, molybdenum, tungsten, iron, tin, boron, strontium, fluorspar, precious and semi-precious stones, bituminous coal, anthracite, graphite, mineral wax, and phosphates. The agricultural sector employs most of the population in Tajikistan. Despite its mountainous territory, Tajikistan successfully grows cotton, which comprises about 50% of the total agricultural production.

According to the Statistical Agency under the President of the Republic of Tajikistan, in 2021 export of goods in Tajikistan reached USD 2.1 billion, while import reached USD 4.2 billion. Tajikistan export operations are mainly comprised of cotton, mineral products, base metal, and electricity. The import of goods is represented by crude oil and wheat. The largest trade partners of Tajikistan are China, Russia, Ukraine, and Kazakhstan.

PwC does not have an office in Tajikistan. However, PwC Kazakhstan has a dedicated team responsible for providing consulting services relating to Tajikistan issues.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

18 (13 for entities producing goods and 20 for the activities of financial institutions and mobile companies)

Corporate income tax (CIT) due dates
CIT return due date

1 April of the year following the reporting year

CIT final payment due date

10 April of year following the reporting year

CIT estimated payment due dates

Advance payment is due on the 15th day of the month following the reporting month

Personal income tax (PIT) rates
Headline PIT rate (%)

Residents: 12 (employment income);

Non-residents: 20 (employment income)

Personal income tax (PIT) due dates
PIT return due date

Salary income: 15th day of the month following the reporting month;

Other income: 1 April of the year following the reporting year.

PIT final payment due date

Salary income: 15th day of the month following the reporting month;

Other income: 1 April of the year following the reporting year.

PIT estimated payment due dates

NA

Value-added tax (VAT) rates
Standard VAT rate (%)

15

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident: 12 / 12 / NA;

Non-resident: 12 / 12 / 15

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

Resident: Capital gains are subject to the normal CIT rate (18% or 13% for entities producing goods or 20% for the activities of financial institutions and mobile companies);

Non-resident: Capital gains are treated as other income subject to 15% rate.

Headline individual capital gains tax rate (%)

Resident: 15 (exempt for certain property if established requirements are met);

Non-resident: 15

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

Property inherited from another individual is exempt from taxation.

Headline gift tax rate (%)

In general, property received as a gift from another individual is exempt from taxation. Gifts from legal entities are exempt as far as value of such gifts does not exceed certain limit. In case value of gift from legal entity exceeds the limit, the general 15% tax is applied.

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.