Content Group 4 of Tajikistan

Country Content

Foreign Direct Investment

Foreign Direct Investment Policy

The Tajikistani government continues to publicly advocate for increased foreign investment, particularly in energy and transport infrastructure. All sectors of Tajikistan’s economy are open to foreign participation with the exception of aviation, defence, security, and law enforcement, which require special government permission for the operation of such types of businesses or services.

Among the key foreign investors are Nelson Gold Corporation (mining of gold and silver), Gulf International Minerals (mining of gold fields), Kabool Textiles and Adjind International (textile industry).

Tajikistan’s legislation allows for 100% foreign ownership of local companies, but the government can legally expropriate property under the terms of Tajikistan's Law on Investments, Law on Privatisation, Law on Joint Stock Companies and Criminal Code.

The State Committee on Investments and State Property Management of the Republic of Tajikistan chiefly facilitates FDI in the country.

Tajikistan’s Investment Law (Article 4) guarantees equal rights for both local and foreign investors. According to this law, foreigners can invest by jointly owning shares in existing companies with other Tajikistani companies or Tajikistani citizens, by creating fully foreign-owned companies, or by concluding agreements with legal entities or citizens of Tajikistan that provide for other forms of foreign investment activity.

Tajikistani law allows foreign firms to acquire assets, including shares and other securities, as well as land and mineral usage rights. Foreign firms may also exercise all property rights to which they are entitled, either independently or shared with other Tajikistani companies and citizens of Tajikistan.

The State Investments and Property Management Committee is responsible for filing and coordinating foreign investment project proposals as they pass through the review pipeline.

Tajikistan has a history of expropriating land based on the grounds that the properties involved were illegally privatised following Tajikistan's independence.

Sources: WTO - Trade Policy Review, ITA, US Department of Commerce, Fitch Solutions

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme

Main Incentives Available

Free Economic Zones (FEZs): Sughd, Pyanj, Ishkoshim and Dangara

In these zones, investors benefit from:

- Free transfer of income abroad

- Import of goods to the FEZ is exempt from customs and taxes, as well as the application of prohibitions and restrictions of an economic nature, established in accordance with the Tajikistani law; export abroad of goods from FEZ is exempt from customs and taxes, as well as the application of prohibitions and restrictions of an economic nature, established in accordance with Tajikistani law.

- Profits of foreign investors and wages of foreign employees, resulting in a foreign currency, may be freely repatriated.

- A simplified procedure of entry and exit for foreign employees - including 50% decrease in consular fees.

- Exemption from all taxes, except individual income tax (from 8% to 13% withheld from employee salary) and social tax (25% from payroll budget).

- Businesses have the right to attract foreign workers, mainly in the position of managers and technical advisors; however, the number of foreign employees should not exceed 20% of the total number of employees in the FEZ.

- The one-stop registration process speeds up the process of opening a business.

Sources: US Department of Commerce, Fitch Solutions

Country Title

Investment Policy