Value-added tax (VAT)
VAT is generally assessed on taxable turnover, which includes goods and services. The standard VAT rate is 15%. Individuals and businesses are required to register as VAT payers if the taxpayer’s taxable turnover exceeds a threshold of TJS 1 million for the preceding 12-month period.
Generally, the Tax Code exempts the following from VAT: goods and services that are not provided in Tajikistan under the place of supply rules; sale, transfer, or rent of real estate property; financial services; certain medical services and certain other goods and services.
Additionally, professional participants who carry out activity on the Tajikistan stock exchange are exempt from 50% of VAT.
For goods, if the terms of delivery provide for the transportation of goods, the place of supply is determined as the initial point of transportation. In other cases, the place of supply of goods is determined at the place of their transfer or at the time of their receipt at the disposal of the buyer. Services are generally considered to be provided at the place of business of the service provider or the actual place where services are rendered. However, certain types of services are considered to be provided at the location of the buyer.
A VAT refund is generally available for qualified exporters if input VAT exceeds assessed VAT.
VAT on remote services
Foreign persons that provide remote services, directly or through intermediaries, to Tajik individuals and individual entrepreneurs should assess VAT on such supplies if the place of supply is recognised as Tajikistan.
The operators of an electronic trading platform are recognised as a tax agent if, in the course of rendering remote services, they authorise payment to the recipient; authorise the delivery of the goods to the recipient; or establish the terms of delivery. The initial supplier and the operator of the electronic trading platform may agree that the payment of VAT on remote services will be made by the initial supplier.
A resident of Tajikistan is considered a recipient of remote services if at least two of the following indicators indicate the territory of Tajikistan:
- billing (payment) address of the recipient of remote services;
- network address or Internet Protocol (IP) of the equipment used to receive remote services or another method for determining the geographic location (geolocation) of the recipient of remote services;
- data (details) of the beneficiary bank, including bank or billing account for payment;
- mobile code of the international identification number of the mobile subscriber, which is stored on the card of the subscriber identification block used by the recipient of remote services;
- the location of the fixed line of the recipient of remote services, through which the service is provided to the recipient;
any other commercial information indicating that the recipient is a resident of Tajikistan. Electronic services include inter-alia:
- granting the rights to use software for electronic computers (including computer games) and databases via an information and communication network;
- advertising services in an information and communication network;
- granting the rights to use electronic books, informational materials, educational materials, graphic images, music works with or without text, audio-visual works, including by providing remote access to them for viewing or listening through the Internet;
- interactive bets on gambling in bookmakers; and
- provision of domain names, hosting services, etc.
The following services are not considered as electronic services:
- Sale of goods (performance of work, provision of services) if, when ordering through the Internet, the delivery of goods (performance of work, provision of services) is carried out without using the Internet.
- Sale of (transfer of rights to use) programs for computers (including computer games) and databases on tangible media.
- Consulting services by email.
- Services for providing access to the Internet.
VAT registration is carried out by submitting an application no later than 30 calendar days from the date of the beginning of providing e-services.
VAT is calculated based on the cost of provision of e-services at a 15% rate. No obligation to issue tax invoices arise.
VAT is paid on a quarterly basis and a VAT return should be submitted electronically no later than the 20th day of the month following the reporting period.
The place of provision of e-services by foreign persons should not be a reason for creation of a PE in Tajikistan.
The tariff rates established by the government, ranging from 0% to 23%, are applied on an ad valorem basis, at a specific rate, or via a combination of the two. The tax rate of 0% is granted to certain types of goods (e.g. some types of printed publication, unwrought wool, gaseous hydrocarbons, electricity).
Note that Tajikistan is signatory to several free trade agreements, primarily among the following Commonwealth of Independent States (CIS) countries: Russia, Belarus, Kazakhstan, and Kyrgyzstan.
Customs clearance cannot be performed without certification of goods, for which the importer should pay a fee based on the time spent by a certification specialist. Fees for customs clearance range from approximately 10 United States dollars (USD) to USD 450, depending on customs value.
Excise tax is assessed on beverages, tobacco products, fuel, tyres, passenger automobiles, jewellery, carpets, means of sealing, mobile communications, etc. Excise tax rates are established by the government.
Property tax is divided into three taxes, which are paid based on the taxable base.
A tax on land plots is paid quarterly based on the rates established by the Tajikistan government applied to the area of the land plot, which vary depending on the location of the land plot.
Real estate tax
Tax on real estate is paid quarterly and applies to immovable real estate property, such as buildings, houses, and flats. The real estate tax rate varies from 3% to 18% and depends on territory coefficients.
Vehicle tax is computed as a percentage of the calculation index applied for horsepower of the vehicle engine. The percentage ranges from 1% to 15%.
There are no transfer taxes in Tajikistan.
There are no stamp taxes in Tajikistan.
There are no payroll taxes borne by an employer other than social tax (see below).
An employer is obligated to make social tax payments at the rate of 20% of salary. In addition to an employer's portion, 2% social tax is withheld from employee's income.