TAX CODE OF THE REPUBLIC OF TAJIKISTAN

PART II. SPECIAL PART

SECTION VI. GENERAL PROVISIONS CONCERNING THE PROFIT TAX AND INCOME TAX
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CHAPTER 21. INTERNATIONAL TAXATION

Article 166. Taxation of Net Profit of a Permanent Establishment of a Foreign Legal Entity

In addition to the profit tax, a permanent establishment of a foreign legal entity shall be subject to a tax on the net profit of this permanent establishment at the rate of 8 percent.

Article 167. Foreign Tax Credit

1. The amount of income tax or profit tax paid outside the Republic of Tajikistan shall be applied as a credit against the payment of these taxes in the Republic of Tajikistan provided that confirmation of the payment of the tax outside the Republic of Tajikistan is furnished following the procedure established by the authorized government body.

2. The amount of the credit referred to under item 1 of this article must not exceed the amount of tax assessed in the Republic of Tajikistan with respect to the given income or profit, at the rates in effect in the Republic of Tajikistan.

Article 168. Income Earned in Countries with Concessional Taxation

1. If a resident directly or indirectly controls more than 10 percent of the authorized capital or holds more than 10 percent of the voting shares in a foreign enterprise which, in turn, earns income in a country with concessional taxation, the portion of said income that applies to the resident shall be included in its (the resident's) taxable income (profit).

2. A foreign state shall be considered a state with concessional taxation if the tax rate in the country is 30 percent lower than the rate established in accordance with this Code, or if it has laws regarding the confidentiality of financial information or information about companies which make it possible to maintain the secrecy of the actual owner of property or recipient of income (profit).

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