TAX CODE OF THE REPUBLIC OF TAJIKISTAN

PART I. GENERAL PART

SECTION II. GENERAL ADMINISTRATIVE PROVISIONS
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CHAPTER 3. GENERAL PROVISIONS

Article 35. Procedure for the Application of Administrative Provisions

The administrative provisions established in this section and in Section III shall apply to all types of taxes except as otherwise provided by this Code.

The rules set forth under this chapter shall extend to tax agents.

Article 36. Tax Control to Ensure that Payments to the Budget Are Made in Full and in a Timely Manner

1. Tax authorities shall bear full and exclusive responsibility for performing tax control activities related to the monitoring of individuals and legal entities and verification that taxes are calculated correctly and paid in a timely manner, and for all other aspects of taxation and the collection of taxes, with the exception of cases in which this Code assigns such responsibility to other bodies.

2. Tax control shall be performed by tax authorities by means of:

1) the registration of taxpayers and the assignment of a taxpayer identification number;

2) the recording of objects of taxation and objects related to taxation;

3) the recording of budget receipts;

4) the recording of payers of the value-added tax;

5) tax audits;

6) in-house control activities;

7) monitoring of the regulations for the use of cash registers with fiscal memory;

8) monitoring of the correct stamping of certain types of excisable goods and the establishment of excise posts;

9) monitoring authorized bodies responsible for the collection of taxes, fees, and other compulsory payments to the budget.

3. Customs authorities shall perform tax control activities within the scope of their authority with regard to the collection of taxes and other compulsory payments to the budget that are payable in connection with the movement of goods across the customs frontier of the Republic of Tajikistan, in accordance with this Code and the customs legislation of the Republic of Tajikistan.

Article 37. Rights of Taxpayers, Assurance and Protection Thereof

1. A taxpayer shall have the right:

1) to obtain information from tax authorities on taxes and other compulsory payments to the budget, on changes in the tax legislation, and written explanations of issues pertaining to application of the tax legislation;

2) to represent his interests in tax matters personally or through a representative;

3) to be present when tax control measures are being carried out, and to obtain copies of documents concerning the results of tax control measures;

4) to provide explanations to tax authorities regarding the calculation and payment of taxes and other compulsory payments to the budget in response to the results of tax control measures;

5) to obtain statements from his personal account on the status of settlements with the budget relating to the fulfillment of tax obligations;

6) to appeal tax audit reports and notifications based on tax audit reports, and actions (inaction) of tax authority officials, following the procedure established by this Code and other legislative acts of the Republic of Tajikistan;

7) to request the observance of tax secrecy;

8) not to provide information and documents that do not pertain to taxation;

9) to take advantage of tax concessions given the grounds and following the procedure established by the tax legislation;

10) to obtain a deferment of the deadline for the payment of taxes (extension) following the procedure and under the conditions established by this Code;

11) to a timely credit or refund of taxes paid or collected in excess of the required amount (taxes applied to the budget in excess of the required amount);

12) to request that tax authority officials comply with the tax legislation in their performance of actions with respect to taxpayers;

13) not to comply with acts (decisions) and requests of tax authorities and their officials which are not consistent with the tax legislation, other regulatory legal acts pertaining to taxation, and the legislation of the Republic of Tajikistan.

2. A taxpayer shall have other rights provided for under the tax legislation of the Republic of Tajikistan.

3. Taxpayers shall be guaranteed legal protection of their rights and lawful interests.

The procedure for protection of the rights and lawful interests of taxpayers shall be determined by this Code and other legislation of the Republic of Tajikistan.

4. The rights of taxpayers shall be ensured by the corresponding obligations of tax authority officials.

Failure to fulfill or improper fulfillment of duties related to ensuring the rights of taxpayers shall result in liability as provided for by the legislation of the Republic of Tajikistan.

Article 38. Responsibilities of a Taxpayer

1. A taxpayer shall be required:

1) to register as a taxpayer and as a payer of the value-added tax in a timely manner;

2) to meet tax obligations in full in accordance with this Code;

3) to fulfill lawful requests by tax authorities to eliminate violations of the tax legislation that are discovered, and also not to interfere with lawful activities carried out in the performance of their official duties;

4) to allow tax authority officials to examine property that is an object of taxation and/or an object related to taxation on the basis of an official order;

5) to submit tax returns, other tax reporting forms, and documents to the appropriate tax authorities, following the procedure provided for by this Code;

6) to effect settlements with consumers, which are performed in the process of commercial transactions or in the provision of services, using cash, bank payment cards, and checks accompanied by the mandatory application of cash registers with fiscal memory and the issuance of a receipt directly to the consumer in accordance with this Code;

7) to maintain a record of his own income (expenditures), objects of taxation and/or objects related to taxation in accordance with the tax legislation, following the established procedure;

8) to preserve accounting data, other records and documents required for the calculation and payment of taxes for a given calendar, as well as documents confirming income received, expenditures made, and taxes paid (withheld) for at least three years following the end of that calendar year.

2. A taxpayer shall fulfill other obligations as provided for by this Code.

3. In addition to the obligations provided for under item 1 of this article, legal entities and individual entrepreneurs shall be required to provide written notice to the tax authority with which they are registered:

1) regarding all separate subdivisions in existence on the territory of the Republic of Tajikistan no later than 30 calendar days from the date they are established, reorganized, or liquidated;

2) regarding a declaration of insolvency (bankruptcy), liquidation, or reorganization no later than 10 calendar days from the date such a decision is made;

3) regarding a change in their location or place of residence no later than 10 calendar days from the date such a change occurs.

4. A taxpayer shall bear liability in accordance with this Code and other legislation of the Republic of Tajikistan for failure to fulfill or for improper fulfillment of the obligations assigned to him.

Article 39. Right to Representation in Relations Governed by the Legislation on Taxes

1. A taxpayer may participate in relations governed by the legislation on taxes through a legal or authorized representative, except as otherwise provided by this Code.

2. Personal participation by a taxpayer in relations governed by the legislation on taxes shall not deprive him of the right to have a representative, just as participation by a representative shall not deprive a taxpayer of the right to participate personally in said legal relations.

3. The authorities of a representative must be documented in accordance with this Code and other laws of the Republic of Tajikistan.

Article 40. Taxpayer's Legal Representative

1. Persons who are authorized to represent a given legal entity on the basis of the law or its charter documents shall be recognized as legal representatives of a taxpayer that is a legal entity.

2. Persons who are acting in the capacity of a given individual's representatives in accordance with the civil legislation of the Republic of Tajikistan shall be recognized as legal representatives of a taxpayer that is an individual.

Article 41. Actions (Inaction) of a Legal Entity's Legal Representatives

The actions (inaction) of a legal entity's legal representatives which are carried out in connection with the participation of said person in relations governed by the legislation on taxes shall be recognized as the actions (inaction) of the given legal entity.

Article 42. Taxpayer's Authorized Representative

1. An individual or legal entity who has been authorized by a taxpayer to represent his interests in relations with tax authorities and other participants in relations governed by the legislation on taxes shall be recognized as the taxpayer's authorized representative.

2. Officials of tax authorities and tax police units, judges, investigators and prosecutors, as well as other employees of law enforcement and judicial authorities, customs authorities, and military personnel may not serve as a taxpayer's authorized representatives.

3. An authorized representative of a taxpayer that is a legal entity shall exercise his authorities on the basis of a power of attorney issued in accordance with the procedure established by the civil legislation of the Republic of Tajikistan.

An authorized representative of a taxpayer who is an individual shall exercise his authorities on the basis of a notarized power of attorney or a power of attorney that is equivalent to a notarized one in accordance with the procedure established by the civil legislation of the Republic of Tajikistan.

Article 43. Currency Used for Purposes of Taxation

For purposes of taxation, any transaction in foreign currency shall be converted into the domestic currency of the Republic of Tajikistan at the official exchange rate of the National Bank of Tajikistan on the day the transaction is performed.

Foreign currency for which there is no official exchange rate of the National Bank of Tajikistan shall be determined and converted at the exchange rate of a different currency based on the exchange rate of the respective currencies to the U.S. dollar.

Article 44. Measures to Combat Tax Evasion and Alternative Methods of Taxation

1. Any amount of money used in the interests of any person shall be considered to have been paid to the given person for purposes of taxation.

Income (profit) earned shall be subject to taxation in accordance with this Code regardless of the basis on which it was received.

If it is determined, following the procedure established by law, that any income or an element (part) thereof has been earned illegally and is subject to forfeiture to the state, an amount equal to the difference between the unlawful income or an element (part) thereof and the taxes previously withheld (paid) in favor of the state from said unlawful income or an element (part) thereof shall be subject to transfer to the state budget.

2. For the purposes of determining tax obligations, tax authorities shall have the right:

1) not to take into account transactions that are of negligible economic significance (with the exception of significance for tax obligations); or

2) to reclassify a transaction in accordance with the actual situation if the form of the transaction is not consistent with its content.

3. Tax authorities shall have the right to establish (assess) the amount of tax owed using direct or indirect valuation methods (on the basis of assets, turnover, production costs, comparison with similar taxpayers, etc.) in the following cases:

1) when it has reliably (in fact) been established that a taxpayer is not reporting his transactions accurately or is not reporting them following the established form and procedure;

2) when accounting documents required for the determination of tax obligations have been lost or destroyed;

3) tax returns are not filed;

4) a taxpayer refuses to allow tax authority officials to examine (inspect) production, warehouse, commercial, and other premises and grounds that are used by the taxpayer to earn income or that are related to the maintenance of objects of taxation;

5) the documents required for the calculation (assessment) of taxes are not submitted to a tax authority within 30 calendar days following the established deadline.

4. In the case of any transaction between related persons, tax authorities may distribute income or deductions between these persons for the purposes of calculating the taxable income that would have been earned had the transaction been effected between unrelated persons. If a taxpayer applies prices in commercial or financial transactions with a related party that are different from those applied between unrelated persons, for purposes of taxation tax authorities shall adjust the taxpayer's income by the resulting price difference.

5. In the event that an individual declares income that is not consistent with expenditures actually effected on personal consumption, including the purchase of property, tax authorities may determine income for purposes of taxation on the basis of an estimate of the expenditures effected by said person, taking into account income in previous periods.

6. With respect to any taxes, barter and/or or other transactions referred to under item 3 of Article 32 of this Code, including income earned and expenditures effected in kind, shall be treated by tax authorities as the sale of goods (the result of work, services) at market prices with the mandatory presentation of invoices for the relevant transactions following the same procedure as that used in cash sales. If the value of a barter or other transaction referred to under item 3 of Article 32 of this Code is under-reported in an invoice, a tax authority shall adjust the taxable objects in light of market prices in accordance with the provisions of Article 32 of this Code, it shall recalculate the tax amount, and impose sanctions in accordance with this Code.

7. The procedure for the application of measures to combat tax evasion and alternative taxation methods shall be established by the Republic of Tajikistan government, based on a representation from the authorized government body that has been approved by the Republic of Tajikistan Ministry of Finance.

Article 45. Registration of Taxpayers. Procedure for Registration, Re-Registration, and Removal from Registration. Taxpayer Identification Number

1. For tax control purposes, taxpayers and tax agents, as well as all legal entities, including separate subdivisions established by them (subsidiaries, representative offices, permanent establishments, etc.), and citizens of the Republic of Tajikistan over 16 years of age (referred to hereinafter in this article as "taxpayer" or "taxpayers") shall be required to register with tax authorities serving the area where the legal entity is located, where its separate subdivisions are located, where the individual maintains his place of residence, and also where real estate and means of transport belonging to him that are subject to taxation are located, respectively, following the procedure determined by the authorized government body in accordance with this article.

A legal entity that has separate subdivisions located on the territory of the Republic of Tajikistan, and also a legal entity that has real estate and means of transport which are subject to taxation, shall be required to register as a taxpayer both with the tax authority serving the area where the legal entity itself is located, and with the ones serving the areas in which each of its separate subdivisions are located and the area where the real estate and means of transport belonging to it are located.

The authorized government body, taking into account the provisions of this article, shall have the right to establish specific requirements for the registration of large taxpayers.

2. Individuals and legal entities shall be registered with a tax authority as taxpayers regardless of the existence of circumstances which give rise to an obligation to pay one type of tax or another in accordance with this Code.

3. The registration of individuals with tax authorities shall be performed by the tax authority serving the area where an individual maintains his place of residence on the basis of information furnished by bodies referred to in Article 47 of this Code and/or an application submitted by an individual to tax authorities within the deadline established by the legislation of the Republic of Tajikistan.

4. A legal entity's application for registration shall be submitted to the tax authority serving the area in which the given legal entity is located within 30 calendar days of its state registration.

5. In the case of a legal entity doing business in the Republic of Tajikistan through a separate subdivision, a legal entity's application for registration shall be submitted based on the location of the separate subdivision within 30 calendar days of the establishment of the separate subdivision.

6. A legal entity's application for registration based on the location of real estate or means of transport belonging to it shall be submitted to the tax authority serving the area where this property is located within 30 calendar days of its state registration.

The registration of an individual with tax authorities based on the location of real estate belonging to him that is an object of taxation shall be performed on the basis of information furnished by bodies referred to in Article 47 of this Code.

For the purposes of this article, the following shall be recognized as the location of property:

1) for marine and river vessels and aircraft- the location (place of residence) of the property owner;

2) for means of transport not referred to in subitem 1) of this item - the place (port) of registry or place of state registration, and in the absence of such - the location (place of residence) of the property owner;

3) for real estate - the actual location of the property.

7. In those cases referred to under item 3 and the second paragraph of item 6 of this article, a tax authority shall be required to provide immediate notification to an individual regarding his registration.

8. In the event that a taxpayer has difficulties determining the place of registration, the relevant decision shall be made by the tax authority serving the area in which an individual maintains his place of residence or a legal entity is located, on the basis of data furnished by the taxpayer.

9. Tax authorities shall have the right, on the basis of data and information furnished to them by bodies referred to in Article 47 of this Code, as well as any information available to them that is necessary and sufficient for registration purposes, to independently effect the registration of taxpayers with tax authorities (prior to the filing of an application by a taxpayer).

10. The form of an application for registration of an individual and/or legal entity shall be established by the authorized government body. When filing a registration application, a legal entity shall simultaneously submit copies of the following documents, which have been certified following the established procedure: a certificate of state registration, and charter and other documents confirming the establishment of the legal entity in accordance with the legislation of the Republic of Tajikistan.

When filing a registration application, an individual shall simultaneously submit the passport issued to him as a citizen of the Republic of Tajikistan (referred to hereinafter as a "passport"), which serves to confirm the taxpayer's identity. It shall be prohibited to request other documents that are not specified under this article.

When performing the registration of taxpayers, the following personal data shall also be included as part of the information on individuals:

1) last name, first name, patronymic;
2) date of birth;
3) gender;
4) home address;
5) passport data (number, series, date of issue, issuing agency);
6) citizenship.

11. A tax authority shall be required to register a taxpayer within 10 calendar days of the date the taxpayer submits all of the necessary documents and shall be required within the same time period to issue the relevant registration certificate, the form of which shall be established by the authorized government body; and in those cases established by this Code, a tax authority shall also be required to assign a taxpayer identification number to the taxpayer and to issue a Taxpayer Identification Number Certificate.

12. Legal entities shall be required to notify the tax authority with which they are registered of changes to their charter and other founding documents, including those related to the establishment of new separate subdivisions or their liquidation, a change in location, as well as permits to engage in licensed activities, within 30 calendar days of the registration of changes to charter documents or the granting of a permit to engage in licensed activities. Individuals shall be required to notify the tax authority with which they are registered of a change in their place of residence within 30 calendar days of such a change.

13. If a registered taxpayer has changed location or place of residence, the taxpayer shall be removed from registration by the tax authority with which the taxpayer was registered prior to the change in location or residence within 10 calendar days of the taxpayer's submission of a notice of change of location or residence.

14. In the event of the liquidation or reorganization of a legal entity, a decision by a legal entity to close a subsidiary or other separate subdivision or to terminate operations through a permanent establishment, the incapacitation of an individual or the death of an individual, the removal from registration shall be performed by the tax authority with which the taxpayer was registered, at the request of the taxpayer or other person authorized by the legislation within 10 calendar days of the submission of such a request.

15. Registration and removal from registration shall be performed free of charge.

16. When registering a legal entity based on its location or the location of its separate subdivisions (subsidiaries, representative offices, permanent establishments, etc.), and when registering an individual based on his place of residence, each of these persons, including the aforementioned separate subdivisions, shall be assigned a taxpayer identification number (referred to hereinafter as a TIN), which must be used for purposes of collecting all taxes, including customs payments, the social tax, and stamp duty.

A TIN that has been assigned to a given taxpayer shall not be changed under any circumstances (with the exception of those cases referred to in this article) and may not be assigned to another taxpayer (any other individual or legal entity), even in the event of the liquidation of a given taxpayer that is a legal entity (or a separate subdivision thereof) or the death of a given taxpayer who is an individual.

A taxpayer identification number that has been assigned to a specific taxpayer may be changed only in the event that the Republic of Tajikistan government adopts a special decision regarding the complete re-registration of all taxpayers or one of the two taxpayer groups (individuals and legal entities), and also if tax authorities have made errors in assigning a TIN (incorrect assignment of a TIN, assignment of the same TIN to different taxpayers, or the assignment of more than one TIN to the same taxpayer).

Legal entities and their separate subdivisions shall be issued a Taxpayer Identification Number Certificate by the relevant tax authority following the form established by the Republic of Tajikistan government.

A notation shall be made by the relevant tax authority regarding the assignment of a taxpayer identification number to an individual who is a citizen of the Republic of Tajikistan in said person's passport under the "Special Notes" section, by imprinting a stamp and entering the TIN. The procedure for preparing stamp designs and recording the TIN in a passport shall be established by the Republic of Tajikistan government based on a representation from the authorized government body as approved by the Republic of Tajikistan Ministry of Internal Affairs.

The procedure and conditions for the assignment, application, and also the change and correction of a taxpayer identification number in accordance with this Code shall be determined by the Republic of Tajikistan government.

17. Individuals and legal entities shall be required to indicate their taxpayer identification numbers in tax returns, invoices, correspondence with tax, customs, or financial authorities, in customs declarations, in relations with the Social Protection Fund under the Republic of Tajikistan government, in business documents (contracts, agreements), and in other documents as specified by this Code. The TIN must be indicated on letterhead and stamps of legal entities and individual entrepreneurs following the procedure established by the authorized government body in consultation with the Republic of Tajikistan Ministry of Internal Affairs.

18. The authorized government body shall maintain a Uniform State Register of Taxpayers on the basis of registration data, following the procedure established by the Republic of Tajikistan government.

19. An instruction on the procedure for the registration, re-registration, and removal from registration of taxpayers shall be adopted by the authorized government body in consultation with the Republic of Tajikistan Ministry of Internal Affairs, the Republic of Tajikistan Ministry of Finance, and the Social Protection Fund under the Republic of Tajikistan government.

Article 46. Provisions Specific to the Registration of Nonresident Individuals and Legal Entities

1. In consideration of the provisions of Article 45 of this Code, the following shall be subject to registration in the Republic of Tajikistan as taxpayers, accompanied by the assignment of a taxpayer identification number.

1) nonresident individuals engaged in individual entrepreneurial activity in the Republic of Tajikistan through a permanent establishment - with the tax authority serving the area where they are staying (residing);

2) nonresident legal entities doing business in the Republic of Tajikistan accompanied by the formation of a permanent establishment - with the tax authority serving the area in which the permanent establishment is located.

2. A nonresident individual who is engaged in individual entrepreneurial activity in the Republic of Tajikistan through a permanent establishment shall be required to register with a tax authority within 30 calendar days of the date such entrepreneurial activity begins.

3. A nonresident legal entity that is doing business in the Republic of Tajikistan through a permanent establishment shall be required to go through the registration process with a tax authority within 30 calendar days of the date such business begins.

4. An individual or legal entity, including nonresidents, whose activities are treated as a permanent establishment of a nonresident legal entity in accordance with subitem 5 of item 4 of Article 23 of this Code, shall be required to file an application with a tax authority for registration of its nonresident legal entity partner within 10 calendar days of the date a relevant agreement (contract) is concluded with the partner or within 10 calendar days of the date such activities actually begin, for the purpose of the assignment of a taxpayer identification number to the nonresident legal entity.

5. The date on which a nonresident's activities in the Republic of Tajikistan begin shall be one of the following dates:

1) the date on which a contract (agreement) is concluded:

- for the performance of work (provision of services) in the Republic of Tajikistan;

- granting authorities to perform actions in the Republic of Tajikistan on its (the nonresident's) behalf;

- for the purchase of goods in the Republic of Tajikistan for the purpose of their onward delivery;

- as a joint operating agreement (participation in a simple partnership) in the Republic of Tajikistan;

- for the purchase of work (services) for the purpose of doing business in the Republic of Tajikistan;

2) the date on which an individual labor contract or other contract of a civil-legal nature is concluded with an individual in the Republic of Tajikistan;

3) the date on which an agreement (purchase and sale agreement, property leasing agreement) is concluded indicating the opening of an office.

In the event that several of the conditions referred to under this item are present, the date on which activities begin in the Republic of Tajikistan shall be the date on which the first (earliest) of said contracts (agreements) is concluded.

6. Nonresidents not referred to under item 1 of this article who arrive in the Republic of Tajikistan for the purpose of earning income from sources in the Republic of Tajikistan shall be required to submit to the appropriate tax authority a notice that they have started operating in the Republic of Tajikistan within 10 calendar days of the date of their arrival in the Republic of Tajikistan.

7. The Republic of Tajikistan government may establish other special requirements for the registration of nonresident individuals and legal entities.

Article 47. Responsibilities of Bodies Performing the State Registration of Legal Entities, Individuals' Place of Residence, and Civil Status Documents; Issuing Passports to Citizens; and Recording and Registering Property and Property Transactions

1. Bodies that perform the state registration of legal entities shall be required to notify the tax authority serving the area in which they are located of legal entities that have been registered (re-registered) or liquidated (reorganized) during the reporting month before the 15th of the month following the reporting month.

2. Bodies that issue licenses, certificates, and other similar documents to individuals and legal entities shall be required to notify the appropriate tax authorities serving the area in which they are located of persons to whom they have issued such documents, who have had such documents revoked, or whose documents have expired, before the 15th of the month following the month in which said documents were issued or withdrawn or in which the documents expired.

3. Bodies that perform the registration of individuals based on their place of residence or the registration of civil status documents for individuals, or that issue passports to citizens of the Republic of Tajikistan, shall be required before the end of the reporting month to notify tax authorities serving the area in which they are located of the registration or death of individuals, or of passports issued to citizens of the Republic of Tajikistan, respectively, during the first 15 days of the reporting month, and such notification must be provided before the 15th of the month following the reporting month for events that occurred during the second half of the reporting month.

4. Bodies that perform the recording and/or registration (re-registration) of real estate and means of transport that are an object of taxation shall be required to notify tax authorities serving the area in which they are located of real estate and means of transport located on the territory under their jurisdiction and registered with these bodies, and they shall also be required on an annual basis to provide information regarding their owners as of December 31 of the reporting year, before January 31 of the year following the reporting year.

5. Guardianship and foster care bodies, childcare and medical institutions, social protection institutions, and other similar institutions which in accordance with the legislation of the Republic of Tajikistan provide for guardianship, foster care, or management of the property of a ward, shall be required to provide notification of the establishment of a guardianship for individuals who have been found to be incompetent by the courts, of guardianship, foster care, and management of the property of young children, other minors, individuals who have been found by the courts to be of limited competence, competent individuals who have been placed in the care of foster parents, individuals who have been declared missing by the courts, as well as subsequent changes related to such guardianship, foster care, or property management, to tax authorities serving the area in which they are located before the 15th of the month following the month in which the relevant decision was made.

6. Bodies (institutions) that are authorized to perform notary services and notaries shall be required to provide notification of the notarization of real estate titles, inheritance rights, and gift agreements to the tax authority serving the area in which they are located on a quarterly basis before the 15th of the month following the reporting quarter.

7. Bodies that perform the recording and/or registration of users of natural resources, including state registration of land use rights, as well as the licensing of activities related to the use of these resources, shall be required to notify the tax authority serving the area in which they are located of the granting of such rights before the 15th of the month following the month of registration (issuance of the relevant license or mineral use permit).

8. Tax authorities that receive the relevant information from bodies referred to in items 1-7 of this article shall be required within 30 calendar days of the receipt of the information to forward the information to the tax authorities with which the individuals or legal entities in question are registered.

9. The procedure for and form of relations among bodies referred to in this article shall be determined in instructions issued by the authorized government body and the relevant government authorities whose functions include those referred to under items 1-7 of this article.

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