Value-added tax (VAT)
VAT is generally assessed on taxable turnover, which includes goods and services. The VAT rate is 18%. 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 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 VAT for five years.
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. 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. Such services include legal, marketing, consulting, accounting, engineering, audit, data processing, etc.
A VAT refund is generally available for qualified exporters if input VAT exceeds assessed VAT.
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 two taxes, which are paid based on the taxable base.
A tax on land plots is paid annually 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 annually and applies to immovable real property, such as buildings, houses, and flats. The real estate tax rate varies from 3% to 15% and depends on territory coefficients.
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 25% of salary. In addition to an employer's portion, 1% social tax is withheld from employee's income.
The formula for calculating road tax is total deductions of the reporting year multiplied by the 1% tax rate (0.25% for trade companies). If actual deductions do not exceed 70% of gross income, the tax base for road tax is 70% of gross income. It is contemplated that the tax will be eliminated by the end of 2021.
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%.