|
TAX CODE OF THE REPUBLIC OF TAJIKISTAN SECTION VII. VALUE-ADDED TAX CHAPTER 29. TAX CONCESSIONS Article 211. Tax Exemption 1. An exemption from the value-added tax shall mean that deliveries of goods, work performed, and services provided that are exempt from the VAT are not taxable transactions and their value is not included by the taxpayer in taxable turnover, and imports exempt from the VAT are not included in the value of taxable imports. Accordingly, the value of such deliveries of goods, work performed, and services provided and such imports of goods may not serve as the basis for assessment of the VAT by a taxpayer in accordance with Article 224 of this Code. 2. The following deliveries of goods (other than exports of goods), work performed, and services provided shall be exempt from the VAT: 1) the sale, transfer, or leasing of real estate, other than: - the sale or transfer of hotel premises or housing for vacationers; - the sale or transfer of newly built residential premises, other than cases in which the premises have been used as housing for at least two years; 2) the provision of financial services (with respect to financial leasing in accordance with Article 33 of this Code, the exemption shall apply exclusively to interest and shall not extend to amounts payable to a lessor by a lessee against the value of the object of the financial lease (principal)); 3) the delivery of domestic and/or foreign currency (other than for numismatic purposes), as well as securities; 4) the performance of religious and ceremonial services by a religious organization; 5) the provision of medical services, with the exception of cosmetic medical services; 6) the provision of services in the sphere of: - pre-school childcare and education; - general primary and general secondary education; - basic, secondary, and higher vocational and professional education, post-graduate professional education; - supplemental and special education. The activities specified under subitems 5) and 6) of this item shall be exempt from the value-added tax only if they are performed by persons who have the appropriate state licenses (permits) to engage in the given activities, which have been issued in accordance with the procedure established by regulatory legal acts of the Republic of Tajikistan; 7) the delivery of goods, the performance of work, and the provision of services as humanitarian assistance; 8) the delivery of goods, the performance of work, and the provision of services produced (performed, provided) directly by penitentiary institutions of the Republic of Tajikistan or state enterprises that are part of the penitentiary system of the Republic of Tajikistan; 9) the delivery of newspapers, magazines, fiction, children's literature, scientific and technical books and textbooks, as well as the performance of work related to their publication. The concessions provided for under this subitem shall not extend to said types of products of an erotic or specialized advertising nature; 10) the delivery of children's goods (clothing and footwear, headwear, socks and hosiery) based on a list established by the Republic of Tajikistan government; 11) the delivery of specialized products for individual use by disabled persons based on a list established by the Republic of Tajikistan government; 12) sanatorium and health resort services. A list of institutions (organizations) providing such services shall be established by the Republic of Tajikistan government. 3. The delivery of primary aluminum, raw cotton, and cotton fiber, including delivery for export, shall be exempt from the value-added tax. 4. The following types of imports shall be exempt from the VAT: 1) imports of domestic and/or foreign currency (other than for numismatic purposes), as well as securities; 2) imports of gold, silver, platinum, palladium (rhodium, iridium, ruthenium, osmium) by the National Bank of Tajikistan, as well as imports of gold, silver, platinum, palladium (rhodium, iridium, ruthenium, osmium), natural (cut and uncut) diamonds, sapphires, emeralds, rubies, alexandrites, pearls, and spinel by the Republic of Tajikistan Ministry of Finance for the State Valuables Repository; 3) imports of goods as humanitarian assistance, as well as imports of goods transferred on an unrequited basis to charitable organizations for the purpose of dealing with the aftereffects of natural disasters, accidents, and catastrophes, and imports of goods transferred on an unrequited basis to government bodies of the Republic of Tajikistan; 4) imports of manufacturing and industrial equipment and components thereof (constituting an integral unit, that is, the manufacturing and industrial equipment cannot be operated without these components) for the purpose of establishing or adding to the authorized capital of an enterprise or the technical retooling of an existing production facility, on the condition that this property is used directly for the production of goods, the performance of work, or the provision of services in accordance with the enterprise's charter documents and does not fall under the category of excisable goods, as well as personal property imported into the Republic of Tajikistan by foreign employees of enterprises with foreign investment directly for their own needs. In the event that such an enterprise is liquidated or the aforementioned manufacturing and industrial equipment and components thereof, which have been imported into the Republic of Tajikistan, are not used or are sold by the enterprise to another person within four years of the date of their entry (importation) into the Republic of Tajikistan, the amount of VAT not paid in accordance with this subitem shall be payable to the budget. This concession shall be granted and equipment shall be classified as manufacturing and industrial equipment following the procedure established by the Republic of Tajikistan government; 5) imports of agricultural equipment and spare parts thereof, as well as medicines, based on a list established by the Republic of Tajikistan government in accordance with the foreign economic activity commodity nomenclature; 6) imports of goods for the implementation of targeted projects approved by the Republic of Tajikistan government at the expense (within the limits) of proceeds from grants and/or credits (loans) provided by legal entities or individuals, foreign states, governments of foreign states, or international organizations; 7) imports of goods for the construction of high-priority projects. A list of such goods and high-priority projects shall be established by the Republic of Tajikistan government; 8) imports (with the exception of excisable goods) of basic types of raw materials, supplies, energy resources, and equipment based on a list and in quantities established by the Republic of Tajikistan government, effected directly by the Tajik Aluminum Plant for the production of primary aluminum; 9) imports of specialized products for individual use by disabled persons based on a list established by the Republic of Tajikistan government. Article 212. Taxation of International and Transit Shipments 1. The provision of transportation or other services and the performance of work directly related to international freight and passenger transport, as well as the delivery of fuel and lubricants and other consumables loaded onto aircraft for consumption during international flights, shall be exempt from the VAT. International shipments shall be understood to mean freight and passenger transport, the point of departure and point of destination of which (or one of these points) is located outside the Republic of Tajikistan. 2. For the purposes of this article, work and services performed in connection with international shipments shall include: 1) work and services related to the transport (transportation, shipment), loading, unloading (offloading), transshipment, and forwarding of goods exported from the territory of the Republic of Tajikistan, as well as goods in transit across the territory of the Republic of Tajikistan; 2) work and services related to the transport (transportation, shipment) of mail, passengers, and baggage outside the Republic of Tajikistan; 3) technical, commercial, navigation, and airport servicing of international flights. 3. In the case of the performance of work and provision of services referred to under subitem 1) of item 2 of this article, the VAT exemption shall apply provided that the following conditions are met: 1) there is an agreement (contract) for the performance of work or provision of services concluded directly with the supplier of the exported goods (the exporter of the goods); 2) documentation of the shipment is provided in the form of a single set of international shipping documents; 3) in the case of transit freight, there is a freight customs declaration for goods that have been imported onto the territory of the Republic of Tajikistan, prepared on the basis of the transit regime. 4. In the case of the performance of work and provision of services referred to under subitems 2) and 3) of item 2 of this article, the VAT exemption shall apply provided that the following conditions are met: 1) there is an agreement (contract) for the performance of work or provision of services concluded directly with the recipient (customer) of said work or services; 2) documentation is provided in the form of a single set of international shipping documents; 5. The shipment and servicing of transit freight consignments referred to under subitem 3) of item 1 of Article 213 of this Code shall be exempt from the VAT. 6. This article shall not apply to states that impose a value-added tax on the provision of transportation or other services or on the performance of work directly related to international freight shipments and passenger travel to the Republic of Tajikistan. Article 213. Provisions Specific to Taxation Involving the Movement of Goods Across the Customs Frontier of the Republic of Tajikistan 1. When goods are imported onto the customs territory of the Republic of Tajikistan, depending on and in compliance with the conditions of the chosen customs regime, taxation shall apply according to the following procedure: 1) when goods are placed under the release for free circulation customs regime, the tax shall be applied in full; 2) when goods are placed under the re-import customs regime, the taxpayer shall pay the amount of taxes from which the taxpayer was exempt or which were refunded to the taxpayer in connection with the export of goods in accordance with this Code, following the procedure provided for by the customs legislation of the Republic of Tajikistan; 3) when goods are placed under the transit, customs warehouse, re-export, duty-free shop, processing under customs control, free customs zone, free warehouse, destruction, and forfeiture to the state customs regimes, the tax shall not be paid; 4) when goods are placed under the processing on the customs territory customs regime, the tax shall be paid at the time of the importation of these goods onto the customs territory of the Republic of Tajikistan with a subsequent refund of the tax that has been paid when the processing products are exported from the customs territory of the Republic of Tajikistan; 5) when goods are placed under the temporary import customs regime, there shall be a full or partial exemption from payment of the tax following the procedure provided for by the customs legislation of the Republic of Tajikistan; 6) in the case of the importation of products of the processing of goods that were placed under the processing outside the customs territory of the Republic of Tajikistan customs regime, there shall be a full or partial exemption from payment of the tax following the procedure provided for by the customs legislation of the Republic of Tajikistan; 2. When goods are exported from the customs territory of the Republic of Tajikistan taxation shall apply according to the following procedure: 1) when goods are placed under the export outside the territory of the Republic of Tajikistan customs regime, the tax shall not be paid or taxes that have been paid shall be refunded (credited) by tax authorities of the Republic of Tajikistan following the procedure provided for by the customs legislation of the Republic of Tajikistan and this Code. The procedure specified under this subitem shall also apply to the export of goods outside the customs territory of the Republic of Tajikistan in accordance with the export customs regime with respect to goods which at the time of export have been placed under the customs warehouse, free warehouse, or free customs zone customs regimes; 2) when foreign goods that have been placed under the re-export customs regime are exported, taxes that were paid at the time the goods were imported onto the customs territory of the Republic of Tajikistan (in connection with failure to meet the deadlines established by the customs legislation for the mandatory export of foreign goods placed under the re-export customs regime) shall be refunded to the taxpayer following the procedure and under the conditions determined by the customs legislation of the Republic of Tajikistan; 3) when goods are exported from the customs territory of the Republic of Tajikistan in accordance with other customs regimes not referred to under subitems 1) and 2) of this item, no exemption from payment of the tax and/or refund of the taxes paid shall be offered, except as otherwise provided by the customs legislation of the Republic of Tajikistan. 3. When individuals transport goods across the customs frontier of the Republic of Tajikistan, which are not intended for production or other commercial activity, a simplified or concessional procedure for payment of the tax may be applied. In this case the value of goods acquired and intended for personal consumption must not exceed the amount established by the Republic of Tajikistan government. Any excess shall be subject to taxation following the generally established (nonconcessional) procedure. The application of a simplified or concessional taxation regime to such operations shall be performed following the procedure established by the Republic of Tajikistan government. 4. In the event of a failure to comply with the conditions of the chosen customs regime, in those cases provided for by the customs legislation of the Republic of Tajikistan, a taxpayer shall pay the taxes as well as interest accrued on the amount in question.
|
