Maintaining of accounting documentation
The Tax Code stipulates the requirements for maintaining of accounting documentation in the Tajik language.
The Tax Code prescribes a calendar year as the tax year.
Annual CIT declarations are due by 1 April in the year following the tax year-end.
Taxpayers are required to submit their estimated calculation of monthly (quarterly) advance payments of CIT.
Taxpayers are required to submit, on a monthly basis, the notification reflecting their income and expenses for the corresponding month for income tax purposes.
Taxpayers under the general taxation regime are required to draw up a reconciliation with the tax authority once a month, unless otherwise established by the Tax Code.
Taxpayers are required to submit annual financial statements, including the balance sheet along, with the income tax declaration by 1 April of the year following the reporting year.
Payment of tax
With respect to CIT, advance payments are due every 15th day of the month (quarter). Payment of any outstanding CIT liabilities is required not later than 10 April following the reporting tax period.
Fines and interest penalties
The fine for failure to file a tax return ranges from a minimum amount of 1 calculation index (CI), which is currently TJS 58, to a maximum fine of 100 CI, or TJS 5,800. The amount of the fine depends on the taxpayer’s category and should be assessed based on each ten days of delay. In the absence of tax returns, the tax authorities are entitled to assess taxes based on any information available.
Fines may be assessed in the amount of 25% to 40% of the understated tax liabilities. In severe cases, a violation may be considered a criminal offence (if the amount of understated tax liabilities exceeds TJS 800,000).
A fine for failure to withhold and remit tax may be assessed in the amount of 25 to 200 CI (approximately TJS 1,450 to TJS 11,600) of the tax not withheld.
Interest penalties may apply to late tax payments in the amount of 0.05% of the underpaid tax amount for each day of tax underpayment.
Tax audit process
Tajikistan tax authorities have the right to conduct regular tax audits (once per year for planned tax audits). Generally, there are two types of audits:
- Planned tax audits. Planned tax audits are conducted according to the list of entities that fall under tax audit, published by the competent authority.
- Unplanned tax audits. Reorganisation or liquidation of a legal entity, the expiration of the contract on subsoil use, validation of the VAT amount that is charged for a return, etc., may trigger an unplanned tax audit.
Documentary tax audits may be further subdivided into comprehensive (i.e. covering all taxes), thematic (covering only specific type of taxes), or cross-check (covering only transactions with a particular counterparty). Comprehensive and thematic audits may be conducted once a year.
The first planned documentary tax audit of a small business, implementing the simplified tax system, can be carried out only after 36 full calendar months from the date of its registration.
The tax authority sends or presents a notice of a tax audit to a taxpayer no later than ten working days before the start of the documentary tax audit unless otherwise provided in the Tax Code.
The period of tax audits, specified in issued orders, shall not exceed 30 working days from the date of receipt of the order, unless otherwise provided in the Tax Code.
The taxpayer is entitled to provide an explanation for violations identified during the in-house supervision within ten days.
Statute of limitations
Taxpayers are allowed to make changes to prior period tax returns within the statute of limitations (three years). No fines should apply to corrections in this case.