Content Group 5 of Tajikistan

Country Content

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.

Business Taxes

Type of Tax	Tax Rate and Base
CIT	- 23% on operating profits - 13% for companies involved in production of commodities
Capital Gain Tax	Part of business income (gains derived by investors and issuers from trade at a stock exchange are exempted for five years from the beginning of participating on the stock market)
Withholding Tax	-Royalties: 15% -Interest, Dividends: 12% on net earnings (dividends received by investors on securities traded at the stock exchange are exempted for five years from the beginning of participating on the stock market)
Branch Remittance Tax	15% on net earnings
VAT (standard)	18% on the value of the products
Social Tax	Social tax is withheld by the employer at the rate of 1% of the employment income, 25% contribution on gross salaries by employer.

Country Title

Taxation – 2020