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. CIT liability may not be less than 1% of aggregate income.
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 5%; for other activities, the tax rate is 6%.
Local income taxes
There are no provincial or local income taxes in Tajikistan.