PRELIMINARY DRAFT OF THE NEW TAX CODE PUBLISHED – KEY CHANGES
As quoted by the AsiaPlus on 3 February 2021, preliminary draft of the new version of the Tax Code, prepared by the inter-governmental working group, was published (Tajik language only) at http://itcmf.tj/kodeks, for discussion.
Here are the key changes which we identified so far.
Corporate Income Tax Rates
The general tax rate on corporate income is proposed to be reduced to 18% from 23% (the latter general rate is currently applicable).
Special tax rate for banks (other credit institutions) and mobile operators is proposed to be 20%.
Tax rate for goods producers will remain the same – 13%.
Minimum income tax applied at 1% of gross income is proposed to be abolished.
Excise tax on mobile operators
The tax rate will be increased from 5% to 7%.
Social Tax
Tax rate is proposed to be reduced to 20% for employer organizations (except for governmental organizations for whom the rate of 25% will remain the same).
Social tax rate for part of the tax to be deducted at source (form employee income) will increase from 1% to 2%.
Individual Income Tax
Proposed changes to the tax rates are as follows:
| Income (TJS) | Tax rate (on the excess (%)) |
| Below 60 | 0 |
| Between 60 and 4800* | 12 |
| Between 4800 and 19800** | 15 |
| Above 19800 | 18 |
* 80 Calculation Indices ** 330 Calculation Indices
Value-added Tax
VAT threshold is proposed to be changed. Currently, if gross income for the preceding 12 months exceeds TJS 1 million (appr. USD 88 500), then taxpayer becomes VAT payer and must switch to general taxation regime (where taxation typically is on a net basis, at a higher rates and with more scrutiny on the part of the tax authorities).
The new rules, if adopted, will leave this threshold the same for those working with cash only. For those working only with wire transfers this threshold is raised to TJS 3 million. However, this applies to VAT payer status only and does not automatically bring such taxpayer within the general taxation regime. See further on Simplified Tax Regime below.
Simplified Tax Regime
The upper limit – now TJS 1 million – beyond which entrepreneurs (individuals or companies) must switch to general taxation regime is proposed to be lowered to TJS 0,5 million.
The tax rate is proposed to be 6%. Now it can be 5% or 6% and there is a possibility to opt for being taxed on a net basis in which case the rate is 15% (and for those engaged in the production of goods, the tax rate is 16%.
Road User Tax
This tax, notoriously known only to Tajikistan, and promised to be abolished on several occasions, is being proposed for removal again.
Currently the tax operates at 1% of the value of any non-capital expenses of the taxpayer.