Foreign tax credit
Taxes paid outside Tajikistan may be credited against the same types of taxes in Tajikistan if appropriate supporting documents are provided. The amount of credit may not exceed the amount of tax assessed in respect of such income at the rates applicable in Tajikistan.
Free Economic Zones (FEZs)
Four FEZs were established by the government of Tajikistan to offer reduced taxes and customs fees to both foreign and domestic businesses located in these zones. Tax incentives include FEZs of Sughd, Panj, Ishkoshim, and Dangara. The legislation for the FEZs has been modified several times since the start of the process, but current law requires a minimum investment of USD 500,000 for manufacturing companies, USD 50,000 for trading companies, and USD 10,000 for consulting and service companies, before being eligible for the preferential tax treatment.
An exemption from CIT is available for taxpayers that have made a certain amount of investments into chartered capital of a production company, as follows:
- Two-year exemption if volume of investments is from USD 200,000 up to USD 500,000.
- Three-year exemption if volume of investment is from USD 500,000 up to USD 2 million.
- Four-year exemption if volume of investment is from USD 2 million up to USD 5 million.
- Five-year exemption if volume of investment exceeds USD 5 million.
Tax benefits for specified taxpayers
Tax benefits for entities of the securities market
Tax benefits are available for professional participants, emitters, and investors participating in the organised security market. Tax benefits include:
- Professional participants are exempt from 50% of income taxes and VAT.
- Emitters are exempt from income taxes on income received related to the increase in the value of securities.
- Investors are exempt from income taxes on income from an increase in the value of securities (coupon, discount, etc.).
Tax benefits for poultry, fish farming, and production of combined feed
Tax benefits are available for poultry, fish farming, and production of combined feed for birds and animals. Tax benefits include exemption from:
- Income taxes;
- Land tax;
- Property tax.
The statute of limitation period is extended for the period of use of tax benefits.
Tax benefits for innovation and technological activities
Taxpayers engaged in innovative and technological activities are exempt from paying any taxes, except for social tax as an insured taxpayer, personal income tax and social tax-insurer, as well as at the time of payment of income at the source of payment, including dividends as a tax agent.
The list of types of innovative and technological activities is determined by the Government of Tajikistan.
Tax exemptions for income derived from tourism services
Effective from 1 January 2017, a five-year CIT exemption is available on income derived from tourism services from the moment of state registration. In addition, import of equipment and construction materials for tourist objects are exempt from VAT. The list of tourist objects, titles, and amounts of imported equipment and construction materials is approved by the government of Tajikistan.