Tajikistan

Corporate - Withholding taxes

Last reviewed - 14 January 2020

New requirements on tax residency certificates have been introduced and are effective from 1 January 2016. Thus, the tax residency certificates should be apostilled and legalised for the purpose of application of the DTTs.

Tajikistan-source income of non-residents is subject to WHT at its source at the rates shown in the following table:

Types of income at source of payment Tax rate (%)
Dividends and interest 12
Insurance and reinsurance premiums 6
International transport and telecommunications 5 to 6
Royalties, rent, lease income, management fees, and other income 15

The information outlined in the table below is provided for application by business entities. Foreign legal entities that do not carry on activities in Tajikistan through a PE are subject to WHT on income from sources in Tajikistan, subject to the terms of a relevant DTT. Tajikistan has enforced DTTs with 32 countries and 3 DTTs that are pending. In cases where certain DTTs envisage the tax rates applying for taxation of dividends/interest that exceed the rates envisaged by the Tajikistan domestic tax legislation, we believe that such income is subject to taxation at rates envisaged by the above-mentioned domestic tax legislation. The below table does not represent tax provisions provided by respective DTTs for government-owned legal entities, governmental institutions, or governmental organisations (central/national banks).

Recipient WHT (%)
Dividends Interest Royalties
Non-treaty 12 12 15
Treaty:      
Armenia 10 10 10
Austria 5 (1a)/10 0 (2a)/8 8
Azerbaijan 10 10 10
Bahrain 8 8 (2b) 8
Belarus 15 0 (2c)/10 15
Belgium (pending) 0 (1b)/15 0 (2d)/10 10
Brunei (pending) 5 (1c)/10 10 10
China 5 (1d)/10 8 8
Czech Republic 5 0 (2e, 2f)/7 10
Finland 5 (1d)/15 0 (2e, 2f)/10 5
Germany 5 (1c)/15 0 5 (3a)
India 5 (1d)/10 0 (2g)/10 10
Indonesia (pending) 10 10 10
Iran 10 10 8
Jordan 10 (1d)/10 10 10
Kazakhstan 10 (1e)/15 10 10
Kuwait 5 (1f, 1g) 10 10
Kyrgyzstan 5 (1h)/15 10 10
Latvia 0 (1i)/5 (1d)/10 0 (2f)/7 5 (3b)/10
Luxembourg 0 (1b)/15 0 (2h)/12 10
Moldova 5 (1d)/10 5 10
Pakistan 5 (1d)/10 10 10
Poland 5 (1d)/15 10 10
Romania 5 (1d)/10 10 10
Russia 5 (1j)/10 0 (2i)/10 0
Saudi Arabia 5 (1d)/10 8 (2b) 8
South Korea 5 (1d)/10 0 (2j, 2k)/8 10
Switzerland 5 (1k)/15 0 (2j, 2k, 2f)/10 5
Thailand 10 0 (2e, 2f)/10 5 (3c)/10
Turkey 10 10 10
Turkmenistan 10 10 10
Ukraine 10 10 10
United Arab Emirates 0 0 10
United Kingdom 5 (1l)/10/15 (1m) 0 (2l)/10 7
Uzbekistan 5 (1d)/10 10 10

Notes

  1. Where one of the following conditions is met:
     
    1. Beneficial owner is a company (other than a partnership) that directly holds at least 15% of the capital of the company paying the dividends.
    2. Beneficial owner is a company resident of another contracting state and directly holds for an uninterrupted period of at least 12 months at least 10% of the capital of the company paying the dividends.
    3. Beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends.
    4. Beneficial owner is a company (other than a partnership) that directly holds at least 25% of the share capital of the company paying the dividends.
    5. Beneficial owner is a legal entity and directly holds no less than a 30% stake in the company paying the dividends.
    6. Beneficial owner is a company that directly holds at least 20% of the capital of the company paying the dividends.
    7. Beneficial owner is an individual.
    8. Beneficial owner is a company that holds at least 50% of the share capital of the company paying the dividends.
    9. Beneficial owner is a company (other than a partnership) that directly holds at least 75% of the capital of the company paying the dividends.
    10. Beneficial owner is a person who directly holds at least 25% of the share capital of the company paying the dividends.
    11. Beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the company paying the dividends.
    12. Beneficial owner is a pension scheme or a company that directly holds at least 10% of the capital of the company paying the dividends.
    13. Beneficial owner is a resident of another contracting state and such dividends are paid out of income (including gains) derived directly or indirectly from immovable property by an investment vehicle that is resident of a contracting state whose income from such immovable property is exempt from tax and which distributes most of that income annually.
       
  2. Where one of the following conditions is met:
     
    1. Recipient is beneficial owner of the interest and such interest is paid: (i) with respect to indebtedness arising as a consequence of the credit sale of any equipment, merchandise, or services, and (ii) to a financial institution.
    2. Interest applied to income is deemed as income from debt-claims. The term ‘income from debt-claims" means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds, or debentures. Penalty charges for late payment should not be considered as income from debt-claims for the purpose of the corresponding DTT.
    3. Interest arising in a contracting state could be exempt from taxation at a certain amount approved by a government in such state if the recipient and beneficial owner of interest is resident of another contracting state and transaction resulting in a debt-claim was approved by a government of a contracting state.
    4. Interest is paid with respect to a loan given or a credit granted by an enterprise to another enterprise.
    5. Recipient is beneficial owner of the interest and such interest is paid in respect to credit sales of any merchandise or equipment.
    6. Recipient is beneficial owner of the interest and such interest is paid in respect to a loan or credit of any kind granted by a bank.
    7. Recipient and beneficial owner of the interest is an institution that could be agreed between the competent authorities of the contracting states.
    8. Recipient and beneficial owner is a financial institution or a collective investment vehicle in a contracting state.
    9. Interest is paid to supplier by customer on commercial credits on deferred payments basis for purchased goods, equipment, performed works, rendered services.
    10. Recipient is beneficial owner of the interest and such interest is paid in connection with the credit sale of any industrial, commercial, or scientific equipment.
    11. Recipient is beneficial owner of the interest and such interest is paid in connection with credit sale of any goods by an enterprise to another enterprise.
    12. Beneficial owner of the interest is a bank.
       
  3. Where one of the following conditions is met:
     
    1. The term ‘royalties’ as used in the corresponding DTT means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic, or scientific work, including cinematograph films, any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial, or scientific experience. The term ‘royalties’ shall also include payments of any kind received as a consideration for the use of, or the right to use, a person's name, picture, or any other similar personality rights, or the recording of entertainers' or sportsmens' performances by radio or television.
    2. Royalties are paid for the use of, or the right to use, software or industrial, commercial, or scientific equipment.
    3. Royalties are paid for the use of, or the right to use, any copyright of literary, artistic, or scientific work.