Tajikistan

Merchandise Trade

• Tajikistan has been a member of the World Trade Organization (WTO) since March 2, 2013.


• Tariff rates range between 0 and 15%, with the overall trade-weighted import tariff averaging out to around 7.18%. The tax rate of 0% is granted to certain types of goods (such as for some types of printed publication, unwrought wool, gaseous hydrocarbons, and electricity). The country has kept an export promotion trade policy with little to no export duties.


• Tajikistan is signatory to several free trade agreements (FTAs), primarily among the following Commonwealth of Independent States (CIS) countries: Russia, Belarus, Kazakhstan, and Kyrgyzstan.


• The importation of alcohol and tobacco products in Tajikistan may be subject to quantitative restrictions and excessive requirements for health, safety and security.

Sources: WTO - Trade Policy Review, Fitch Solutions

Multinational Trade Agreements

Active

1. Armenia (effective March 1994): Tajikistan's main exports to Armenia in 2016 were other made-up textile articles, sets, worn clothing and worn textile articles and rags. Tajikistan's main imports from Armenia in 2016 were pharmaceutical products.
    
2. Belarus (effective 1998): Belarus exports to Tajikistan include sugar, tractors, carpets and flooring, construction materials, medications, malt, refrigerators and freezers. Tajikistan exports to Belarus include cotton yarn, untreated cotton fibre, dried fruits and nuts.
    
3. Kyrgyzstan (effective January 2006): Tajikistan mainly exports fruits, nuts and tobacco to Kyrgyzstan. Tajikistan's imports from Kyrgyzstan include coffee, tea, milk, preparations of cereals, spirts and vinegar.
    
4. Russia (effective April 1993): In 2017, Russia's trade with Tajikistan totalled USD717.6 million, up 4.31% compared to 2016.
    
5. Ukraine (effective July 2002): The main imported goods from Ukraine to Tajikistan are foodstuff, canned goods, sugar, confectionery, pharmaceuticals, cement, bauxite, coal, coke, pitch, oil, synthetic corundum, aluminium oxide, aluminium hydroxide, motors and generators, turbines, paper, building materials, metal products, home appliances, agricultural equipment, tractors, machinery, products used in the electrical, railway cars, furniture and accessories. The main exported goods from Tajikistan to Ukraine are raw cotton and food products, including fruit and vegetables, and dried fruit.
    
6. Uzbekistan (effective January 1996): Uzbekistan's exports to Tajikistan are mainly transportation services, mineral fertilisers and food products. The list of exported Tajikistani goods includes cables, carpet products, building materials and coal. With a growing range of products traded, it is hoped that bilateral trade will reach USD500 million by 2020.
    
7. Commonwealth of Independent States Free Trade Area (FTA; effective September 2012): This is an FTA between Russia, Ukraine, Belarus, Uzbekistan, Moldova, Armenia, Kyrgyzstan and Kazakhstan. The agreement was designed to reduce all trade fees on a number of goods between participating countries.
    
8. Economic Cooperation Organization Trade Agreement (effective 2008): This trade agreement consists of a free trade region formed between Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan. Intra-regional trade accounts for around 7.64% of the total trade among member states.

Foreign Direct Investment

• Value Added Tax: 18%
• Corporate Income Tax: 13-23%

Source: Tax Committee under the Government of the Republic of Tajikistan

Important Updates to Taxation Information

• The Tajik tax system is still relatively new and many tax concepts and issues that are standard in most market economies are just emerging. The process of paying taxes is complex, resulting in high administrative costs for businesses, except for goods producing industries such as manufacturing as they benefit from low corporate income tax (CIT).
   
• The import of technology, equipment and materials to meet the needs of the fish farming sector and (or) the import of goods by the companies operating in the field of fish farming directly for its own needs is exempt from value added tax (VAT).
   
• Companies operating in the field of fish farming are exempt from CIT; VAT, except for VAT on goods imported for further domestic sale; and road and property tax for a period of six years.

Localisation Requirements

The employment of foreign nationals is not discouraged, but there are few jobs available. According to the Tajikistani Law on Audits, local companies require at least 70% of all employees to be Tajikistani. If the CEO of the company is foreign, then the percentage of staff who should be Tajikistani is raised to at least 75%.

Foreign Worker Permits

Work visas for foreigners are issued in Tajikistan for a duration of no more than three months. Work visas can be extended on the basis of a work permit, provided by the Migratory Service of the Ministry of Internal Affairs of the Republic of Tajikistan. Companies attempting to employ foreign citizens must apply for a corporate work licence in order to receive permission to hire foreign employees. A letter must be submitted to the immigration authority outlining the staff list of the company. A corporate work licence is issued, subject to application and the demands of the local labour market. A corporate work licence is usually issued for up to one year, but can be extended on an annual basis. Work permits for foreign nationals must be obtained by a company on the individual's behalf and last for up to one year, with the possibility of an extension. Dependents may accompany a main traveller by obtaining a visa on the basis of the main applicant's application.

Visa/Travel Restrictions

For most foreign nationals, visas must be obtained in their respective home country, prior to entering the Republic of Tajikistan. To receive a visa upon arrival, a registered letter from the Tajik Ministry of Foreign Affairs confirming the applicant's request for a visa is required. A visa upon arrival will be issued for 45 days only at the Immigration Office at the International Airport in Dushanbe. Tajikistan has a visa-free regime with 19 countries, including several of its neighbours and Russia, Mainland China, India, Iran and North Korea.

Sources: Government websites, Fitch Solutions

Sovereign Credit Ratings

Sources: Moody's, Standard & Poor's, Fitch Ratings

Hong Kong’s Trade with Tajikistan

Export Commodity	Commodity Detail	Value (US$ thousand)
Commodity 1	Professional, scientific and controlling instruments and apparatus	235.1
Commodity 2	Telecommunications and sound recording and reproducing apparatus and equipment	83.7
Commodity 3	Office machines and automatic data processing machines	51.7
Commodity 4	Electrical machinery, apparatus and appliances and electrical parts thereof	17.8
Commodity 5	Chemical material and products, N.E.S.	7.2

Import Commodity	Commodity Detail	Value (US$ thousand)
Commodity 1	Telecommunications and sound recording and reproducing apparatus and equipment	188.9
Commodity 2	Crude animal and vegatable materials	4.4