All Tajik legal entities are subject to corporate income tax (CIT) in Tajikistan. Tajik residents are taxed on their worldwide income. Non-residents are subject to CIT in Tajikistan only on Tajikistan-source income. Non-residents operating through a permanent establishment (PE) are generally subject to the same CIT provisions.
CIT is computed by applying the statutory 23% rate to taxable income (13% for enterprises producing goods), which is calculated based on gross income decreased by allowed deductions and losses carried forward from previous periods.
Simplified tax system
The simplified tax system for small business entities (hereinafter ‘tax under the simplified system’) is a special tax regime under which income tax for small business legal entities or income tax for individual entrepreneurs shall be paid under a simplified procedure. The simplified tax regime is applied by small businesses with aggregate annual income that does not exceed 1 million Tajikistan somoni (TJS).
Taxpayers who pay the tax under the simplified system are not liable for:
- Income tax, except for withholding tax (WHT).
- Road tax.
- Income tax from revenues of the individual entrepreneur, functioning according to the certificate, except for WHT.
- VAT, except for the import VAT and reverse-charge VAT.
The tax base for applying tax under the simplified system is the aggregate income. For activities related to production of goods, the tax rate is 4% (for non-cash transactions) or 5% (for cash transactions); for other activities, the tax rate is 5% (for non-cash transactions) or 6% (for cash transactions).
Local income taxes
There are no provincial or local income taxes in Tajikistan.