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TAX CODE OF THE REPUBLIC OF TAJIKISTAN SECTION IV. PERSONAL INCOME TAX (TAX ON INCOME OF INDIVIDUALS) CHAPTER 17. GENERAL PROVISIONS Article 133. Taxpayers Payers of the income tax shall be resident and nonresident individuals who have objects of taxation in accordance with Article 134 of this Code. Article 134. Object of Taxation 1. The object of taxation with respect to the income tax for residents shall be their taxable income, defined as the difference between gross income for the calendar year and deductions of expenses as provided for by this Code for the given period. 2. A nonresident taxpayer who is doing business in the Republic of Tajikistan through a permanent establishment shall be subject to the income tax on taxable income related to the permanent establishment and defined as the difference between gross income for the calendar year from sources in the Republic of Tajikistan related to the permanent establishment (subitem 3) of item 8 of Article 34 of this Code) and the deductions provided for under this Code with respect to this income for the given period. 3. The gross income of a nonresident not referred to in item 2 of this article shall be subject to taxation at the source of payment if so specified under Article 164 of this Code, without taking any deductions. 4. A nonresident individual earning income from a source in the Republic of Tajikistan from work for hire or income from the sale or transfer of property not related to his permanent establishment in the Republic of Tajikistan shall be subject to the income tax on gross income of this type for the calendar year, less the deductions provided for under this Code which relate to this income for the given period. Article 135. Gross Income 1. Gross income of a resident taxpayer shall consist of income earned by him from sources in the Republic of Tajikistan and outside the Republic of Tajikistan. 2. Gross income of a nonresident taxpayer shall consist of income earned by him from sources in the Republic of Tajikistan. 3. All types of income, both that received in cash and in kind, other than income that is exempt from income tax (profit tax) in accordance with this Code, shall be included in gross income, including: 1) income earned in the form of wages; Article 136. Income Received in the Form of Wages 1. Any payments or benefits, including in kind, received by an individual from work for hire, shall be considered income received in the form of wages, including income from previous work for hire received in the form of a pension or in another form, or income from future work for hire. 2. For the purposes of item 1 of this article, the value of benefits from work for hire shall be equal to the amount indicated below, minus any payment by the worker for the benefit received: 1) in the case of a loan at a below-market rate, the amount equal to interest that would be payable at the market rate for loans of this type; 2) in the event of the sale or transfer of goods, work, or services free of charge by an employer to an employee, the market value of these goods, work, or services; 3) in the event of assistance in obtaining an education for the employee or his dependents (excluding training programs directly related to the employee's performance of his duties), the cost of the educational assistance to the employer; 4) in the event of reimbursement for an employee's expenses, the amount of the reimbursement; 5) in the event of the forgiveness of a debt or obligation owed by an employee to an employer, the amount of the debt or obligation that is forgiven; 6) in the event of the payment of insurance premiums under life and health insurance agreements and other similar payments by an employer, the cost of these insurance premiums or payments made by the employer; 7) in other cases, the market value of the benefit in accordance with Article 32 of this Code. 3. Gross income shall not include reimbursement of business travel expenses in accordance with norms established in the relevant regulatory legal acts, as well as reimbursement of business travel expenses by international organizations and their institutions, foundations, and nongovernmental institutions that are nonresidents, at the expense of the funds of these entities. 4. Gross income shall not include payments for hospitality and other similar expenses (related to making arrangements for parties, housing of guests, etc.) received by an individual. 5. The costs and expenses referred to in item 2 of this article shall include excise taxes, value-added tax, and any other tax payable by an employer in connection with the transaction in question. 6. Gross income earned by an individual shall not include the social tax paid by an employer and this person in accordance with Section IX of this Code. Article 137. Income from Activity Not Related to Work for Hire 1. The following shall be treated as income from activity not related to work for hire: 1) income from commercial activity, including: - profit from the sale or transfer of assets used for the purposes of commercial activity, in accordance with Article 194 of this Code; - income received for agreeing to limit commercial activity or to close an enterprise; - proceeds earned from the sale of fixed assets and treated as income in accordance with item 7 of Article 153 of this Code; - compensated deductions in accordance with Article 193 of this Code; 2) income from noncommercial activity, including: - interest income; 3) any other income representing an increase in the net value of the taxpayer's assets, other than wages. 2. Individual entrepreneurs, with the exception of payers of the value-added tax, may be subject to the income tax on the basis of a patent or other simplified system, following the procedure established by the Republic of Tajikistan government. The patent form of taxation shall not be applied if individual entrepreneurs are actually hiring personnel for the purpose of performing commercial activity, regardless of whether the hiring is documented or not. 3. Individual entrepreneurs who are not payers of the income tax in accordance with item 2 of this article on the basis of a patent or other simplified system shall be subject to the income tax in accordance with the provisions of Sections IV and VI of this Code. In this case an individual entrepreneur shall be issued a certificate of registration as an individual entrepreneur following the procedure established by the Republic of Tajikistan government. Article 138. Adjustment of Gross Income Dividends and interest earned by individuals and previously taxed at the source of payment in the Republic of Tajikistan in accordance with Articles 162 or 163 of this Code shall be excluded from gross income. Article 139. Right to Personal Deductions 1. An individual shall have the right to take a deduction equal to the monthly minimum wage for each month of the tax year. In the case of an individual who is an employee, the deduction shall be allowed only with respect to wages earned at his principal place of employment. Income earned by an individual that does not exceed 12 times the monthly minimum wage per year or the monthly minimum wage on average per calendar month shall not be subject to the income tax. 2. The following individuals shall have the right to a deduction equal to 10 times the minimum monthly wage for each month of the tax year: 1) Heroes of the Soviet Union and Heroes of Tajikistan, persons who have been awarded any of the three degrees of the Order of Glory, as well as persons disabled since childhood and persons with Group I and II disabilities; 2) veterans of the Great Patriotic War and persons with equivalent status, veterans of other combat operations in defense of the USSR who served as military personnel at military units, headquarters, and installations and who were part of the active-duty army, former partisans, and soldier-internationalists; 3) citizens who have suffered from and survived radiation sickness caused by accidents at nuclear facilities; those who participated in clean-up efforts related to such accidents within exclusion zones; those who were involved in operations or other work at nuclear facilities during the accident clean-up period. 3. An individual shall have the right to deduct the social tax paid in accordance with Chapter 35 of this Code. 4. An individual shall have the right to one of the deductions established under items 1 and 2 of this article, whichever is the largest. Article 140. Income Tax Rates 1. An individual's taxable income shall be subject to the income tax at the following rates: No. Amount of taxable income (monthly average)
Tax rate and amount 2. For purposes of taxation, both the amount of taxable income and the amount of deductions shall be calculated on a cumulative basis from the beginning of the year. Article 141. Exemption The following types of personal income shall not be subject to the income tax: 1) income from official diplomatic or consular work by a person who is not a citizen of the Republic of Tajikistan; 2) income earned from work for hire by a person who is not a resident or citizen of the Republic of Tajikistan and who is present within the territory of the Republic of Tajikistan for less than 90 days in a tax year, if this income is paid by a nonresident employer or on behalf of and at the expense of an employer who is not a resident of the Republic of Tajikistan, and is not paid by a permanent establishment of a nonresident in the Republic of Tajikistan; 3) the value of property received from another individual in the form of a gift or inheritance, except for income from this property and property received as labor compensation; 4) the value of gifts received from legal entities, as well as prizes (winnings) in contests and competitions, including cash prizes, if: - the value of the gifts received from legal entities does not exceed 100 times the monthly minimum wage in a year; - the value of prizes (winnings) from international contests and competitions does not exceed 500 times the monthly minimum wage in a year; - the value of prizes (winnings) from domestic contests and competitions does not exceed 100 times the monthly minimum wage in a year; 5) government pensions, government stipends, and government benefits, including payments and benefits for burial, pregnancy and childbirth, in connection with a disability (including temporary disability), and in connection with the loss of a breadwinner; 6) child support and alimony, with respect to the persons receiving such payments; 7) one-time payments, material assistance at the expense of the budget, provided in accordance with the procedure established by regulatory legal acts, as well as humanitarian and charitable assistance, including that provided in the event of natural disasters; 8) income from the sale or transfer by an individual of real property that has been the taxpayer's principal place of residence for the past five years; 9) income from the sale or transfer by an individual of personal property, other than property used by the taxpayer for commercial activity; 10) state prizes awarded by the Republic of Tajikistan; 11) insurance payouts received under savings and repayment agreements up to the amount of payments made against such agreements, when insurance premiums under these agreements have been paid at the individual's own expense, and insurance payouts received as a result of the death of an insured person; 12) income from the sale by beekeepers of honey from their own hives; 13) income from the sale of agricultural produce grown (produced) on household plots without any industrial processing; 14) cash allowances, cash remuneration, and other payments received in connection with service (the performance of official duties) by military personnel, members of the rank-and-file and command staff of the ministries of defense, internal affairs, security, emergency situations, and civil defense, the Committee for Protection of the State Border, the Main Tax Police Administration, and the Customs Department of the Ministry of State Revenues and Fees of the Republic of Tajikistan, the National Guard, as well as reservists called up for training duty or inspections; 15) payments for blood donation; 16) earnings from government bonds and government lotteries of the Republic of Tajikistan; 17) targeted social assistance, benefits and compensation, with the exception of those related to labor compensation, paid at the expense of the state budget in the amounts and following the procedure established by regulatory legal acts; 18) restitution for losses sustained by a worker as a result of injury or other health impairment related to the performance of his duties on the job, in accordance with the legislation of the Republic of Tajikistan; 19) the value of special clothing and/or uniforms and footwear, means of individual protection, first aid equipment, soap, disinfectants, milk, and other equivalent food products for therapeutic and preventive-care meals based on norms and within the spheres of activity established in accordance with regulatory legal acts of the Republic of Tajikistan government; 20) insurance payouts under an employer's mandatory liability insurance agreements (at the employer's expense) for injury (in the event of injury) to an employee's life and health in the performance of his duties on the job (official duties); 21) restitution for financial damages awarded under a court ruling; 22) personal income that is exempt in accordance with other provisions of this Code.
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