| TAX CODE OF THE REPUBLIC OF TAJIKISTAN PART I. GENERAL PART SECTION I. GENERAL PROVISIONS CHAPTER 2. DEFINITION OF TERMS USED IN THIS CODE Taxpayers shall be individuals and/or legal entities who have an obligation to pay taxes in accordance with this Code. Following the procedure provided for by this Code, separate subdivisions of legal entities shall meet the tax obligations of these legal entities (shall be recognized as taxpayers) based on the (physical, actual) location of these separate subdivisions. Article 9. Object of Taxation and/or Object Related to Taxation An object of taxation and/or an object related to taxation shall be an object that has value, quantitative, or physical characteristics, the existence of which (the object) imposes obligations on the part of a taxpayer (the subject) to pay tax in accordance with the tax legislation. An object of taxation and/or an object related to taxation may consist of property, income, profit, transactions involving the delivery of goods (work, services), the value of goods delivered (work performed, services provided), the import (export) of goods onto (from) the territory of the Republic of Tajikistan, and/or other objects established by this Code. Each tax shall have a respective independent object. Article 10. Tax Base The tax base shall consist of the value, physical,
or other characteristics of an object of taxation and/or an
object related to taxation, on the basis of which the amount
of tax payable to the budget is determined. Article 12. Tax Period The tax period shall be understood to mean the
period of time (calendar year, quarter, month, 10-day period,
or other period of time) established with respect to individual
taxes by this Code, upon the expiration of which (at the end
of which) the tax base is determined and the amount of tax
payable to the budget is calculated. The tax period may consist
of one or several reporting periods (quarters, months, 10-day
periods, or other periods of time) upon the expiration of
which (based on the results of which) advance (current) payments
are made. Article 14. Tax Concessions Concessions on taxes shall refer to advantages compared to other taxpayers which are granted to individual categories of taxpayers as provided for by this Code or international treaties recognized by the Republic of Tajikistan that contain provisions concerning taxation, including the possibility of not paying a tax, paying a smaller amount of tax, or paying the tax at a later date without any negative consequences for the taxpayer that has the concession. Article 15. Commercial and Noncommercial Activity 1. Except as otherwise provided by this article, commercial activity shall refer to any activity the purpose of which is to earn a profit, income, or compensation, regardless of the results of such activity, which is not noncommercial activity as defined by this article. 2. Activity related to the acquisition, sale, transfer, or leasing of property shall be considered commercial activity if at least one of the following conditions is met: 1) this activity is carried out on a systematic basis and is an ordinary activity for the person performing the aforementioned transactions; 2) goods (work, services) produced (performed, provided) by the seller are offered; 3) these transactions are carried out within the context of trading, trading- intermediary (including dealer-related), or intermediary activity. 3. Noncommercial activity shall include activity in the form of the transfer of property (including cash) by one person to any other person for a fee, for the temporary possession, use, or disposition by said person without the transfer of ownership rights to the property or a part thereof, and without the right of subsequent alienation of the property, provided that the transfer does not entail financial services and does not impose additional obligations on the person receiving the given property, other than obligations related to the designated use of the property being transferred or to the payment of remuneration for the aforementioned possession, use, or disposition of the property, except as otherwise provided by this article. 4. Noncommercial activity shall include: 1) the placement of cash in banks or other financial and lending institutions; 2) the leasing out of property, except as otherwise provided in item 2 of this article; 3) the placement of property in trust; 4) the acquisition (sale or transfer) of a stake in the authorized capital of an enterprise or its securities; the acquisition (sale or transfer) of bonds or other bills of exchange; the acquisition (sale or transfer) of a stake in a mutual investment fund or copyrights and other similar rights belonging to the seller, which is the equivalent of noncommercial activity, except as otherwise provided in item 2 of this article; 5) the performance of work for hire by an individual. 5. The following types of activity shall be considered noncommercial activity: 1) the activity of bodies that are part of the system of government authorities in all branches and at all levels, and self-government bodies, which is directly related to the performance of the government functions assigned to them, with the exception of the performance of services paid for on a contractual basis and other commercial activity; 2) charitable activity; 3) religious activity. Article 16. Work for Hire 1. For the purposes of this Code "work for hire" shall mean: 1) the performance of duties by an individual within the context of relations regulated by the Civil Code of the Republic of Tajikistan or the legislation on labor or on the civil service; 2) the performance of duties by an individual that are directly related to service in the ranks of the armed forces or law enforcement authorities or equivalent agencies (institutions); 3) work in a management position at an enterprise or organization. 2. An individual who has worked, is working, or will work for hire shall be referred to as an "employee" in this Code. A person who pays for services performed by such an individual in the capacity of an employee shall be referred to as an "employer," and the payment shall be referred to as "wages." Article 17. Charitable Activity 1. Charitable activity shall be activity performed by legal entities which consists of providing direct financial or other assistance (support), including in the form of unrequited transfers, to individuals in need of such assistance, or to nonprofit organizations directly providing such assistance, including nonprofit charitable organizations (Article 26), or scientific, educational, public information, library, medical, or other activities performed in the public interest, except as otherwise provided by this article. 2. Except as otherwise provided under item 3 of this article, charitable activity shall be defined in accordance with the Republic of Tajikistan Law "On Charitable Activity." 3. The provision of assistance (support) to persons shall not be considered charitable activity if any of the following conditions is present: 1) the person receiving such assistance (support) assumes an obligation of a tangible or intangible nature to the person providing such assistance (other than the obligation to use the funds or property received for their designated purpose); 2) the person accepting such assistance (support) and the person providing such assistance (support) are considered related persons (Article 29 of this Code); 3) such assistance (support) is provided to any individual or legal entity for participation in an election campaign at any level. Article 18. Religious Activity Religious activity shall consist of the activities of religious organizations and faith-based associations for the dissemination of religious beliefs, which have been registered following the established procedure, including through: 1) the organization and performance of religious rituals, ceremonies, and worship services; 2) providing believers with the opportunity to have and/or use houses of worship or religious facilities for joint or individual fulfillment of religious requirements; 3) the receiving and dispatching of pilgrims, religious delegations, representatives of various faiths; the holding of national or international religious meetings, congresses, and seminars; and providing participants in such activities with accommodations, transportation, meals, and cultural services; 4) the maintenance of religious buildings, facilities, religious educational institutions and adjacent grounds; the training of students or persons attending such educational institutions; as well as other similar chartered religious activities. Article 19. Enterprises For the purposes of this Code enterprises (commercial organizations) shall refer to the following organizations engaged in commercial activity or established for the performance of such activity: 1) legal entities and separate subdivisions established by them in accordance with the legislation of the Republic of Tajikistan, which have a separate balance sheet or budget; 2) corporations, companies, firms, and other similar entities established in accordance with the legislation of a foreign state. Article 20. Resident and Foreign Enterprise 1. A resident enterprise shall be an enterprise founded or with headquarters in the Republic of Tajikistan (Articles 21 and 22 of this Code). 2. A foreign enterprise shall be an enterprise that is not considered a resident enterprise in accordance with this article. Article 21. Place Where an Enterprise Is Founded The place where an enterprise is founded shall be the place where it obtained state registration, on in the absence thereof, the enterprise's legal address as shown in documents pertaining to the establishment of the enterprise (charter, contract, statute). Article 22. Headquarters of an Enterprise The headquarters of an enterprise shall be the actual place where the enterprise is managed, that is, the place where its executive administrative body performs its everyday administrative functions. Article 23. Permanent Establishment of a Nonresident (Foreign Enterprise or Nonresident Individual) 1. A permanent establishment of a nonresident (foreign enterprise or nonresident individual) in the Republic of Tajikistan (referred to hereinafter as a "permanent establishment"), except as otherwise provided in this article, shall be understood to mean a permanent location through which the nonresident performs all or part of its commercial activity, including activity carried out through an authorized person. 2. Specifically, the following shall be considered permanent establishments: 1) any place where activities are performed that are related to the production, processing, assembly, packing, packaging, or delivery of goods, regardless of the time period such activity is performed; 2) any administrative location (specifically, a subsidiary, branch, representative office, bureau, office, agency, factory, workshop, shop, laboratory, store, warehouse) of a nonresident, regardless of the time period such activity is performed; 3) any place where operations are performed, including installations and platforms, drilling rigs or ships, used in prospecting for natural resources, underground and open-pit mines, oil and/or gas wells, quarries, land-based or floating derricks and/or wells, regardless of the time period such activity is performed; 4) any place where operations are performed (including the performance of control, supervisory, or monitoring activity) that are related to a pipeline, gas pipeline, prospecting for and/or development of natural resources, and the installation, erection, assembly, adjustment, set-up, and/or servicing of equipment, regardless of the time period such activity is performed; 5) any other place where operations are performed that are related to the operation of computerized gambling machines (including accessories), computer networks and communications channels, amusement parks, transportation or other infrastructure, regardless of the time period they are in operation; 6) a permanent base that a nonresident individual uses for commercial activity. 3. A construction site, erection or assembly project, the performance of supervisory activity related to such projects, and the performance of planning and design work constitute a permanent establishment, regardless of the time period such work is performed. In this context a construction site (project) shall be understood to mean, specifically, a place where activities are performed that are related to the erection and/or reconstruction of real estate properties, including the construction of buildings and structures and/or the performance of installation work; the construction and/or reconstruction of bridges, roads, and canals; the laying of pipelines; the installation of electrical, technological, or other equipment; and/or the performance of other similar work. A construction site (project) shall cease to exist as of the second day following the day on which the certificate of occupancy (the acceptance certificate for the work performed) is signed and payment is made in full for the construction work. 4. A nonresident shall also be considered to have a permanent establishment in the Republic of Tajikistan if the nonresident: 1) collects insurance premiums and/or provides for the insurance or reinsurance of risks in the Republic of Tajikistan through an authorized agent; 2) performs services on the territory of the Republic of Tajikistan continuously for more than 90 calendar days in any consecutive 12-month period ending in the given tax period, through employees or personnel hired for this purpose; 3) is a participant in a simple partnership (joint operating agreement) formed in accordance with the legislation of the Republic of Tajikistan and operating on the territory of the Republic of Tajikistan; 4) holds exhibitions in the Republic of Tajikistan for a fee and/or at which goods are delivered (sold); 5) on the basis of a contractual relationship grants a resident or nonresident the right to represent its interests in the Republic of Tajikistan, and to act and/or conclude contracts (agreements, accords) on its behalf. 5. Temporary or seasonal interruptions in the performance of activities referred to in this article shall not result in the liquidation of a permanent establishment. 6. A nonresident engaged in commercial activity in the Republic of Tajikistan through an independent intermediary (a broker and/or other independent agent acting on the basis of an agency, commission, consignment, or other similar agreement) who is not authorized to sign contracts (agreements) on behalf of the nonresident, shall not be considered to have formed a permanent establishment. An independent intermediary shall be understood to mean a person who performs intermediary duties as part of his usual (principal) activities for the purpose of cooperation between the parties and who is both legally and economically independent of the given nonresident. 7. A subsidiary of a nonresident legal entity established in accordance with the legislation of the Republic of Tajikistan shall not be considered a permanent establishment of the parent nonresident enterprise if relations consistent with the provisions of subitem 5 of item 4 of this article do not arise between the subsidiary and parent enterprise. 8. A site used in the Republic of Tajikistan for the following purposes shall not be considered a permanent establishment of a foreign enterprise in the Republic of Tajikistan (regardless of who uses it): 1) the storage of goods or articles belonging to the foreign enterprise; 2) the purchase of goods or articles, the collection of information for the foreign enterprise; 3) the performance of any other activities of a preparatory or ancillary nature in the interests of the foreign enterprise; 4) the preparation of contracts for signing or the simple signing of contracts on behalf of a foreign enterprise pertaining to credits (loans), the delivery of goods or articles, or the performance of work (provision of services); 5) the performance of any activities referred to in subitems 1) through 4) of this item. 9. A registered representative office of a foreign enterprise that is not a separate legal entity shall be considered a permanent establishment of the foreign enterprise. 10. Dependent personal services (work for hire) performed by a nonresident individual shall not result in the formation of a permanent establishment of said person. 11. The activities of a nonresident shall result in the formation of a permanent establishment in accordance with the provisions of this article regardless of whether or not it has been registered with a tax authority. Article 24. Nonprofit Organizations 1. Nonprofit organizations shall be government bodies in the legislative, executive, and judicial branches, social and/or religious organizations (associations), foundations, institutions, associations (unions), interstate, intergovernmental, and other organizations engaged in noncommercial activity, that is, subject legal entities that are not pursuing the goal of earning a profit, income, or compensation and do not distribute profit (if profit is earned), income, or compensation among their partners (founders). 2. The place where a nonprofit organization is founded and the headquarters of a nonprofit organization shall be determined following the procedure established for enterprises under Articles 21 and 22 of this Code. 3. A nonprofit organization shall be recognized as a resident or foreign nonprofit organization following the procedure established for enterprises (Article 20 of this Code). 4. To the extent that a nonprofit organization engages in commercial activity, its assets and activities directly related to the performance of commercial activity shall also be treated as an enterprise and shall be subject to separate accounting (separate from its principal activity). Article 25. Budgetary Organization A budgetary organization shall be a nonprofit organization that receives funding from the budget for at least 70 percent of its operations, based on a budgetary income and expenditure estimate. Article 26. Charitable Organization 1. A charitable organization shall be a nonprofit organization that: 1) is established for the purpose of performing charitable activities; 2) is registered as such following the procedure established by the legislation of the Republic of Tajikistan and meets the requirements set forth in the Republic of Tajikistan Law "On Charitable Activity." 2. A nonprofit organization shall not be considered a charitable organization (regardless of its legal and organizational status or name), if: 1) the nonprofit organization is participating directly or indirectly in an election campaign at any level by any political party, social organization (movement), or individual; or 2) the receipts or assets of the nonprofit organization are benefiting or could benefit any person, with the exception of benefits resulting from the performance of its charitable activity or reasonable payment for property or services. Article 27. Religious Organization A religious organization shall be a nonprofit organization established for the purpose of performing religious activities and registered as such following the procedure established by the legislation. Article 28. Tax Agent 1. A tax agent shall be any person (an individual or legal entity) who is not an employee of a tax authority, who in accordance with this Code or another act of tax legislation has been assigned duties related the calculation of tax, the withholding of tax from a taxpayer (or at the source of payment), and the transfer of the tax to the appropriate budget. 2. In terms of his rights and responsibilities, a tax agent shall have the same status as a taxpayer, except as otherwise provided by this Code. 3. A tax agent shall be required: 1) to calculate the relevant taxes, withhold them from the taxpayer (or at the source of payment), and transfer them to the appropriate budgets properly and in a timely manner; 2) to maintain a record of income paid to taxpayers and taxes withheld from them (or at the source of payment) and transferred to the appropriate budgets, including the maintenance of a separate record for each taxpayer; 3) to submit to tax authorities documents that are required for verification of the proper calculation, withholding, and payment of taxes; and 4) to perform other duties as assigned by the tax legislation. 4. A tax agent shall bear liability following the procedure established by this Code or other legislative acts of the Republic of Tajikistan for failure to fulfill or improper fulfillment of the duties assigned to the agent by the tax legislation. Article 29. Related Persons 1. Related persons shall be persons who have special relationships that could have a direct influence on the conditions or economic outcome of transactions between them. 2. Such special relationships shall include, specifically, relationships in which: 1) the persons are founders (partners) of the same enterprise, if each person's stake is equal to at least 20 percent; 2) one person directly or indirectly participates in the other person, which is an enterprise, if the first person's stake is equal to at least 20 percent; 3) one person is subordinate to the other person
in an employment relationship or one person is under the (direct
or indirect) control of the other person; 5) the persons directly or indirectly control a third party, if the voting rights of each person account for at least 20 percent of the total; 6) the persons are married to one another or have a family relationship (item 48 of Article 34 of this Code). Article 30. Resident Individuals 1. Individuals shall be considered residents for the entire current calendar year if they were actually in the Republic of Tajikistan for more than 182 days during any consecutive 12-month period ending in the current calendar year, or if they were employed in the civil service of the Republic of Tajikistan outside the country during the current calendar year, regardless of the duration of said service in the current calendar year. 2. The following individuals who are citizens of the Republic of Tajikistan, individuals who have applied for Republic of Tajikistan citizenship or for a permanent residence permit without becoming a citizen of the Republic of Tajikistan, shall be recognized as resident individuals, regardless of the time they have spent in the Republic of Tajikistan and any other criteria specified by this article: 1) those who have been sent abroad on official business by government authorities of the Republic of Tajikistan, including employees of diplomatic and consular institutions and representative offices with equivalent status, trade missions of the Republic of Tajikistan, international or intergovernmental organizations, as well as family members of said individuals; 2) crew members of means of transport belonging to legal entities or citizens of the Republic of Tajikistan that are engaged in international shipping; 3) military and civilian personnel of military bases, military units, groups, contingents, or formations deployed outside the Republic of Tajikistan; 4) persons working at facilities that are located outside the Republic of Tajikistan and are the property of the Republic of Tajikistan or residents or subjects of the Republic of Tajikistan (including on the basis of concession contracts); 5) students, trainees, and interns who are outside the Republic of Tajikistan for the purpose of instruction or practical training, for the entire period of their education or practical training; 6) teachers and scientific workers who are outside the Republic of Tajikistan for the purpose of providing instruction or consultation, or performing scientific work, for the entire period they are teaching or performing said work. 3. For the purposes of item 1 of this article, the time spent by a foreign individual in the Republic of Tajikistan shall not be considered the time the person was actually located on the territory of the Republic of Tajikistan if the person was in the country: 1) in the capacity of a person with diplomatic or consular status (or as a family member of such a person); 2) in the capacity of an employee of an international organization or in the capacity of a person employed by the civil service of a foreign state (or as a family member of such a person); 3) exclusively for the purpose of traveling from one foreign state to another foreign state across the territory of the Republic of Tajikistan. 4. A day spent in the Republic of Tajikistan shall be considered any day during which an individual was actually located on the territory of the Republic of Tajikistan, regardless of the length of time spent. 5. An individual who is not a resident of the Republic of Tajikistan in accordance with this article shall be considered a nonresident of the Republic of Tajikistan. 6. An individual shall be considered a nonresident of the Republic of Tajikistan for the period from the last day the person was in the Republic of Tajikistan in the given tax year until the end of the given tax year, if said person is a nonresident of the Republic of Tajikistan in the tax year immediately following. Article 31. Individual Entrepreneur 1. A resident or nonresident individual shall be considered an individual entrepreneur if he is engaged in commercial activity (Article 15 of this Code) on his own behalf, at his own risk, and assuming his own liability as to property, without the establishment of a legal entity. 2. The performance of commercial activity by an individual in violation of the established procedure for registration and obtaining a license or other document may not serve as grounds for recognizing such a person as an individual entrepreneur for the purposes of taxation. Article 32. Market Prices 1. A market price shall be the price in the free market for goods (work, services) formed as a result of supply and demand, as well as the interests of the parties to a transaction who are not related persons in accordance with Article 29 of this Code, under comparable economic (commercial) conditions. 2. Except as otherwise provided by this Code, for the purposes of taxation the actual price specified by the parties to a transaction (indicated in valid documents) shall be treated as the price of goods (work, services). Unless a tax authority proves otherwise, it shall be assumed that this price is consistent with the market price. 3. When verifying that taxes have been calculated in full, tax authorities shall have the right to check that the prices used are consistent with market conditions only in the following cases involving transactions: 1) between related persons; 2) in which there is an exchange of goods, work, or services (barter transactions); 3) in which foreign trade (foreign economic) transactions are performed; 4) in which the prices applied by the taxpayer for goods (work, services) within a limited period of time (not more than 30 calendar days before or after the delivery of the goods, work, or services) deviate by more than 30 percent in either direction from the market price for identical (similar) goods (work, services). In those cases described in subitems 3) and 4) of this item, a transaction shall be considered to have been actually effected at market prices if the taxpayer cannot prove that the transaction was in fact carried out at prices indicated in valid documents. 4. Only in those cases specified in item 3 of this article shall a tax authority have the right to issue a decision to assess additional taxes, accompanied by the reasons for doing so, taking into account the market prices for the relevant goods (work, services) as determined in accordance with this article. 5. The market price for goods (work, services) shall be determined on the basis of information about transactions performed with identical (similar) goods (work, services) that have been concluded as of the moment the goods (work, services) are delivered, including on the basis of prices on international and other exchanges. 6. Identical goods shall include goods that have the same basic features, which are characteristic for them. When determining whether goods are identical, one shall take into account, among other things, their physical characteristics, quality and market reputation, country of origin, and the producer. Insignificant differences in outward appearance may or may not be taken into account when determining whether goods are identical. 7. Similar goods shall include goods which are not identical but do have similar characteristics and are comprised of similar components, which enables them to perform the same functions and/or to be commercially interchangeable. When determining whether goods are similar, one shall take into account, among other things, their quality, the existence of a trademark, their market reputation, and their country of origin. 8. When determining the market price for goods (work, services), transactions between related persons may be taken into account only in the event that their relationship did not influence the outcome of the transactions in question. 9. The market for goods (work, services) shall be comprised of the sphere of circulation of the given goods (work, services) as determined by the seller's (purchaser's) ability realistically to offer (purchase) the goods (work, services) in an area in close proximity to the seller (purchaser) within the Republic of Tajikistan or outside its borders, without significant additional costs. 10. When determining the market price for goods, work, or services, one shall take into account information on prices at the time of delivery of the given goods, work, or services in operations (transactions) performed with identical (similar) goods, work, or services under comparable conditions. Specifically, one shall take into account transaction conditions such as the quantity (volume) of goods delivered, the time frame for the fulfillment of obligations, payment conditions normally applied in transactions of the given type, as well as other reasonable conditions that may have an influence on the price. Transaction conditions in the market for identical goods (work or services) (or similar goods, work, or services, in the absence of identical ones) shall be considered comparable if the difference between these conditions either does not have a significant influence on the price of these goods (work or services) or may be taken into account after making certain adjustments. 11. If no transactions have been performed with identical (similar) goods (work or services) in the respective market for the goods (work, services) or if there is no supply of the given goods (work, services) in the market, the market price shall be determined on the basis of prices in effect in relevant transactions with identical (similar) goods (work, services) on the date closest to the delivery date of the aforementioned goods (work, services), but not more than 30 calendar days before or after the delivery of the goods (work, services). The market price for securities shall be determined on the basis of stock exchange quotations for identical securities of the same issuer as of the date closest to the sale or transfer of said securities, provided that the quotations are announced in accordance with the procedure indicated above. 12. If the provisions of items 1 through 11 of this article cannot be applied, the market price for goods (work, services) shall be determined in accordance with the procedure established by the Republic of Tajikistan government based on a representation by the Republic of Tajikistan Ministry of Finance that has been approved by the authorized government body, and when necessary, by other government bodies of the Republic of Tajikistan. The following methods may be used to determine the market price in this case: the expenditure method, the subsequent sale price method, and other methods. 13. Transactions involving the exchange of goods, work, and services (barter transactions) shall be transactions in accordance with which each of the parties to the exchange delivers goods (work, services) and acquires goods (work, services). In this case the market prices for the goods (work, services) delivered (acquired) in the course of these transactions shall be determined in accordance with the provisions of this article. 14. Official information sources on market prices for goods (work, services) and exchange quotations, data bases of national and local government authorities, information reported to tax authorities by taxpayers, as well as other relevant information, shall be used when determining and recognizing the market price for goods (work, services). Article 33. Financial Leasing 1. If a lessor leases out depreciable tangible property under a financial leasing agreement, for the purposes of this Code the lessee shall be considered the owner of the property, and lease payments shall be considered payments on loans (consisting of the payment of principal and interest) made to the lessee. 2. The leasing of depreciable tangible property shall constitute financial leasing if it meets the following conditions: 1) the lease provides for the transfer of ownership upon expiration of the lease period or the lessee has the right to purchase the property upon expiration of the lease period at a fixed price or at a price determined in accordance with the lease agreement; or 2) the lease period exceeds 75 percent of the service life of the leased property; 3) the estimated residual value of the property upon expiration of the lease period represents less than 20 percent of its market value at the beginning of the lease; 4) the present discounted value of the minimum payment for the entire lease period is equal to 90 percent of the market price of the property at the beginning of the lease or exceeds it; or 5) the leased property has been manufactured to order for the lessee and upon expiration of the lease the property cannot be used by anyone other than the lessee. 3. Subitem 4 of item 2 of this article shall not apply to a lease which begins during the last 25 percent of the property's service life. 4. For the purposes of this article, the discount rate used to determine the present discounted value of lease payments shall be equal to the interest rate indicated in item 3 of Article 93 of this Code. 5. For the purposes of this article, the lease period shall include an additional period by which the lessee has the right to renew the lease in accordance with the lease agreement. Article 34. Definition of Other Terms Used for the Purposes of this Code 1. Assets - property, other tangible assets, cash or property rights comprising the total fixed and working assets (capital) of an enterprise (person); any valuable belonging to a person; an accounting category that includes the value of a subject's own property, as well as funds and reserves intend for the payment (repayment) of debt (liabilities). 2. Arrears - taxes, interest, and penalties payable to the budget that have been assessed and have not been paid by a deadline, including an extended deadline. 3. Winnings - any type of income in cash and in kind received by taxpayers from contests, competitions (Olympiads), festivals, lotteries, and drawings, including drawings on deposits and debt securities. 4. Import of goods - the importation of goods onto the customs territory of the Republic of Tajikistan based on the release for free circulation customs regime in accordance with the customs legislation of the Republic of Tajikistan. 5. Fixed assets - tangible assets with a service life of more than one year, which are subject to depreciation in accordance with Article 153 of this Code. 6. Grant - property provided on an unrequited basis: by states and governments of states; international and governmental organizations, foreign nongovernmental social organizations and foundations whose activities are charitable and international in nature and are not in conflict with the Constitution of the Republic of Tajikistan; by foreigners and stateless persons, to the Republic of Tajikistan, the Republic of Tajikistan government, legal entities as well as individuals of the Republic of Tajikistan for the achievement of certain goals (tasks) that are not in conflict with the Constitution of the Republic of Tajikistan. 7. Nonresident - a person who is not a resident. 8. Income from sources in the Republic of Tajikistan - this refers to the following types of income in cash and/or in kind received by a person (without taking any deductions): 1) income from work for hire in the Republic of Tajikistan; 2) income from the delivery by the producer of goods produced in the Republic of Tajikistan, and also from the performance of work and provision of services in the Republic of Tajikistan; 3) income from commercial activity that may be applied to a permanent establishment of a nonresident located on the territory of the Republic of Tajikistan, including: - income that may be applied to the sale of goods of the same or similar type as goods sold through such a permanent establishment in the Republic of Tajikistan; - income earned from commercial activity in the
Republic of Tajikistan, which is of the same or a similar
nature as activity performed through such a permanent establishment; 5) income in the form of dividends received from a resident legal entity, as well as income received as a result of the sale or transfer of a stake in such a legal entity; 6) income in the form of interest received from residents; 7) income in the form of interest received from a nonresident person with a permanent establishment or property located on the territory of the Republic of Tajikistan, if the person's debt is related to this permanent establishment or property; 8) a pension, if it is paid by a resident; 9) income in the form of royalties received for property located or being used in the Republic of Tajikistan, or income from the sale or transfer of property referred to in item 38 of this article, which is located or being used in the Republic of Tajikistan; 10) income received from the leasing of movable property being used in the Republic of Tajikistan; 11) income received from real estate located in the Republic of Tajikistan, including income from the sale or transfer of a stake in such property; 12) income from the sale or transfer of shares or a stake in an enterprise, the value of whose assets is formed for the most part directly or indirectly from the value of property located in the Republic of Tajikistan; 13) other income from the sale or transfer of property by a resident, not related to the performance of commercial activity; 14) income received from the performance of management, financial, or insurance services, including reinsurance services, if it is paid by a resident enterprise or a permanent establishment of a nonresident located on the territory of the Republic of Tajikistan, or if it is received on the basis of an agreement with such an enterprise or permanent establishment; 15) income paid in the form of insurance premiums under a risk insurance or reinsurance agreement in the Republic of Tajikistan; 16) income from telecommunications or transportation services involving international communications or shipments between the Republic of Tajikistan and other states; 17) income from activity in the Republic of Tajikistan under individual labor agreements (contracts) or under other agreements of a civil-legal nature; 18) honoraria for managers and/or other payments received by members of an executive management body (board of directors, board, or other similar body) of a resident legal entity, regardless of where the administrative duties assigned to such persons are actually performed; 19) supplemental payments provided in connection with residing in the Republic of Tajikistan; 20) income received by nonresident individuals working in the Republic of Tajikistan, in the form of reimbursement paid to them (to said persons) on the part of (at the expense of) employers or persons hiring them for costs incurred by these nonresident individuals for material and social goods or other material benefits, including expenditures on meals, housing, enrollment of children at educational institutions, and expenditures on leisure activities, including vacation travel for family members; 21) pension payments provided by resident pension savings funds; 22) income paid to theater and film actors, radio and television employees, musicians, artists, and athletes in connection with activity in the Republic of Tajikistan, regardless of the person to whom the payment of such income is made; 23) winnings paid by residents; 24) income earned from providing independent personal (professional) services in the Republic of Tajikistan; 25) income in the form of property located in the Republic of Tajikistan that is received free of charge, including income on such property; 26) other income not covered by the preceding subitems earned on the basis of activity in the Republic of Tajikistan. When determining the source of income in accordance with this item, the place where the income is paid shall not be taken into consideration. 9. In-kind income - income in the form of the delivery of goods, the performance of work, or the provision of services. 10. Dividends - any distribution of funds or property by a legal entity among its partners (shareholders), including: income received by a shareholder (partner) from a legal entity-issuer in the distribution of annual after-tax profits in proportion to the number of the shareholder's shares (the partner's stake) in the authorized (share, statutory) capital of the legal entity; dividends (income) received by a shareholder (partner) that are disguised by other payments; income received by a shareholder (partner) from the distribution of funds or property through the buy-out by the legal entity-issuer of its shares; and income received by a shareholder (partner) from the distribution of property in the event of the liquidation of a legal entity, less (in both cases) the value of property (shares) invested by a founder (partner) as a contribution to authorized capital (share capital). Income received by a shareholder (partner) in the form of a legal entity-issuer's distribution of its own shares among shareholders, which (distribution) does not alter the percentage (stake) of shareholders' shares in the share (statutory) capital of the legal entity-issuer, shall not be considered a dividend. 11. Land for housing construction - this shall refer to land in cities and urban-type settlements allotted to individuals in accordance with the Land Code of the Republic of Tajikistan for housing construction. 12. Electronic signature of a taxpayer - a specially encoded means of ensuring the authenticity, integrity, and authorship of electronic documents. 13. Performance of work - any performance of work for remuneration. 14. Partner - a shareholder, part owner, or other participant in an enterprise's assets and profits. 15. Work - activity the results of which have a tangible form, including construction, installation, and repair work, scientific research, and research and development, shall be considered work. 16. Subsidiary - an enterprise shall be considered a subsidiary if another (parent) enterprise holds a stake equal to 50 percent or more of the equity (shares) with voting rights in this enterprise. 17. Humanitarian assistance - property provided free of charge to the Republic of Tajikistan in the person of its subjects in the form of food, consumer goods, hardware, tools, equipment, medical supplies and medicines, and other items sent from foreign countries and international organizations to improve the living conditions and daily life of the population, and also for the prevention and clean-up of emergencies of a military, environmental, natural, industrial, or other nature, distributed following the procedure established by the Republic of Tajikistan government. 18. Charitable assistance - property given free of charge to individuals for the purpose of providing them with social support and to nonprofit organizations for the purpose of supporting their chartered activities. 19. Territory of the Republic of Tajikistan - this shall refer to the customs territory of the Republic of Tajikistan in accordance with the definition in the customs legislation. 20. Bad (problem) debt - this shall refer to an amount owed to a taxpayer which the taxpayer is not able to recover in full due to the insolvency or liquidation of the debtor, or when the reality of receiving it from the debtor or a third party is unlikely. In any case, a debt on which not a single payment has been made for three years from the date a payment was supposed to be made shall be considered a bad (problem) debt. 21. Household plots - this shall refer to agricultural land allotted to individuals in accordance with norms established by the Land Code of the Republic of Tajikistan, including the land area occupied by structures and courtyards. Household plots shall not include parcels of land allotted following the established procedure for the establishment of peasant (owner-operated) farms, and they shall not include parcels of land provided to individuals under a lease arrangement. 22. Source of payment of income - a legal entity or individual from whom (at whose expense) a subject (another person) receives income. 23. Authorized government body - a central executive body of the Republic of Tajikistan that provides for tax control to ensure the fulfillment of tax obligations to the state, as determined by the Republic of Tajikistan government. 24. Authorized bodies - government bodies of the Republic of Tajikistan, with the exception of tax authorities, which are authorized by the Republic of Tajikistan government to perform the calculation and/or collection of other compulsory payments to the budget. 25. Individual's place of residence - the place where a given individual maintains his permanent or primary residence. This place may be different from the given individual's registered address. 26. Location of a separate subdivision of a legal entity - the place where a given legal entity does business through a separate subdivision; the place where the separate subdivision is actually located. 27. Agricultural products - this shall refer to the initial result (product) of the cultivation of agricultural crops and livestock (including the live animals themselves) that has not undergone further processing. 28. Goods - any tangible or intangible property, including electricity and thermal power, gas, and water. For purposes of the value-added tax, goods shall not include intangible property, cash, and land. 29. Insurance premium (insurance contribution) - the amount paid by an insured person to an insurance institution for assumption by the latter of the obligation to provide restitution for losses sustained by the insured person or to make an insurance payment (insurance compensation) to the insured person should certain events occur (insured event). 30. Tax regime - the set of norms established by the tax legislation and applied by a taxpayer in the calculation and payment of all taxes payable to the budget as established by this Code. 31. Foreign Economic Activity Commodity Nomenclature - a system of commodity classification codes adopted in accordance with the International Convention on the Harmonized Commodity Description and Coding System (the Foreign Economic Activity Commodity Nomenclature of the Eurasian Economic Community). 32. Notification - any written message prepared in consideration of the requirements of Chapter 5 and other provisions of this Code, sent by tax authorities to taxpayers, tax agents, or other persons. 33. Family - spouses, children, and parents residing together and maintaining a common household. 34. Taxpayer Identification Number (TIN) - a number assigned by tax authorities to a legal entity or individual. 35. Resident - a resident individual, resident enterprise, or resident nonprofit organization. 36. Re-import of goods - the importation of goods by the person who exported the given goods, without their further delivery or alteration after export. 37. Re-export of goods - the exportation of goods by the person who imported the given goods, without their further delivery or alteration after import. 38. Royalties - payment for the right to use minerals in the process of the extraction of minerals and processing of industrial by-products; for the use or the right to use copyrights, software, patents, sketches and models, trademarks, and other rights associated with them; for the use or the right to use industrial, commercial, or scientific research equipment; for the use of technological knowledge; for the use or the right to use motion pictures, video films, audio recordings, or other recorded media; for providing technical assistance in connection with the above; or for denial of the use of any of the aforementioned rights. 39. Export of goods - the exportation of goods from the territory of the Republic of Tajikistan in accordance wit the customs legislation of the Republic of Tajikistan. 40. International organization - this shall refer to a subject of international law established on the basis of an agreement among states or governments of states. 41. Separate subdivision of a legal entity - any geographically separate subdivision of a legal entity whose location is equipped with fixed workplaces and that performs some of the functions of the legal entity. A workplace shall be considered fixed if it is established for a period of more than one month. 42. Delivery of goods - transfer of ownership rights to goods, including their sale, exchange, or presentation as a gift, transfer free of charge or with partial payment, payment of wages in kind, and other payments in kind, as well as transfer of ownership of mortgaged goods to the mortgage holder. 43. Transit across the territory of the Republic of Tajikistan - the shipment of goods under the control of customs authorities across the territory of the Republic of Tajikistan between two points on the customs frontier of the Republic of Tajikistan. 44. Accrual method - tax accounting method under which income and expenditures are recorded at the time work is performed, services are provided, or goods are shipped (delivered) for the purpose of their sale and the receipt of property, regardless of the time of payment. 45. Net profit (net income) - profit (income) remaining after the deduction of the profit tax (income tax) from taxable profit (taxable income). 46. Interest - any payment related to a debt obligation, including a tax obligation, including payments for credits (loans) granted and for funds held on deposits (accounts). 47. Hospitality expenses - this shall refer to expenses related to hosting and providing services for any persons, including those effected for the purpose of establishing or maintaining mutual cooperation, as well as participants arriving to attend meetings of a board of directors or auditing commission, or shareholders' meetings. Hospitality expenses shall include expenses related to holding official receptions for said persons, and providing refreshments (meal services) for them during negotiations. 48. Relatives - 1) persons recognized as such in accordance with the family legislation of the Republic of Tajikistan; 2) persons who as a result of long-term guardianship or serving as foster parents have established a relationship similar to that of relatives. Guardianship or foster-parent relationships between persons residing together shall be equivalent to family relationships. The fact that such persons may no longer reside together shall not be taken into consideration when determining that a relationship similar to that of relatives remains in place. 49. Provision of services - any activity for remuneration that does not entail the delivery of goods or the performance of work, including: 1) transportation and freight forwarding services, including the transport of gas, oil, and petroleum products and the delivery of electricity or thermal power; 2) leasing of movable property or real estate; 3) communications services, consumer services, housing and municipal services; 4) services in the area of physical education and sports, educational and medical services; 5) advertising services; 6) services related to the updating of technology, data processing services, and data base management services; 7) services related to the pre-sale preparation of goods; 8) services related to the storage of goods or other property or security services; 9) other services, but excluding for purposes
of the value-added tax the transfer of ownership rights to
cash and leasing arrangements associated with land, as well
as services provided to an employer in the capacity of an
employee. 1) the granting, sale, or transfer of credits, credit guarantees and any other security for money lending transactions, including the management of credits and credit guarantees by a person who has granted the credit or guarantee; 2) the granting, sale, or transfer of loans (including micro-loans), guarantees on loans (micro-loans) and any other security for money-lending transactions, including the management of loans (micro-loans) and guarantees on loans (micro-loans) by a person who has granted the loans (micro-loans) or guarantees; 3) operations related to the management of deposits and accounts, payments, money transfers, debt obligations, means of payment, and instruments of customers; 4) operations related to the circulation of currency, cash, and banknotes that are legal tender (other than numismatic items); 5) operations related to the circulation of stocks, bonds, certificates, bills of exchange, checks, and other securities (other than services related to their safekeeping); 6) operations involving transactions with derivative instruments, forward contracts, options, and similar agreements; 7) services related to the management of investment funds; 8) insurance and reinsurance operations; 9) financial leasing. For the purposes of this Code financial leasing shall be treated as a single operation consisting of the acquisition (delivery and/or import) of depreciable tangible property (depreciable fixed assets) and/or its leasing in accordance with Articles 33 and 192 of this Code. A specific list of operations defined by the term "financial services" in accordance with this item shall be established by the Republic of Tajikistan Ministry of Finance in consultation with the National Bank of Tajikistan and the authorized government body. 51. Share interest - the contribution of property by individuals and legal entities to the establishment of enterprises, with the exception of joint-stock companies. 52. Electronic taxpayer document - a document compiled and transmitted following an established electronic format, which has been encoded and certified by an electronic signature, and which serves as an official reporting document after it has been accepted and its authenticity has been verified. 53. Insurance payment (insurance compensation, insured amount) - the amount paid by an insurance organization to an insured person under property and liability insurance to cover losses sustained as a result of insured events. 54. Leasing company - a legal entity that earns more than 50 percent of its income from leasing operations. 55. Person - an individual or legal entity in
accordance with the Civil Code of the Republic of Tajikistan.
Except as otherwise provided by this Code, a corporation,
company, firm, foundation, institution, or other entity established
in accordance with the legislation of a foreign state, as
well as their separate subdivisions (subsidiaries, representative
offices, permanent establishments, etc.) established in accordance
with the legislation of a foreign state or the Republic of
Tajikistan, international organizations, their branch offices
and representative offices, established and/or functioning
on the territory of the Republic of Tajikistan, for the purposes
of this Code shall be treated as independent legal entities
regardless of whether they have the status of a legal entity
in the foreign state in which they were established.
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