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TAX CODE OF THE REPUBLIC OF TAJIKISTAN SECTION XV. SALES TAX (ON COTTON FIBER AND PRIMARY ALUMINUM) CHAPTER 43. SALES TAX (ON COTTON FIBER AND PRIMARY ALUMINUM) Article 311. Payers of the Tax Payers of the sales tax on cotton fiber and primary aluminum (referred to hereinafter as the "sales tax") shall be legal entities and individuals engaged in the delivery of cotton fiber and primary aluminum produced in the Republic of Tajikistan (referred to hereinafter as "taxable goods") to the domestic and foreign markets. Article 312. Object of Taxation The object of taxation shall be the value of taxable goods delivered, pledged as security, sold under futures (forward) contracts, and provided as customer-supplied raw materials, and the export of taxable goods outside the Republic of Tajikistan (referred to hereinafter as "taxable transactions"). Article 313. Tax Base 1. The value of taxable goods sold (delivered), calculated on the basis of the price of the taxable goods in effect on the date a taxable transaction takes place, taking into account the quality, type, and grade, in the respective international (regional) commodity exchange identified by the Republic of Tajikistan government, shall be used to determine the tax base. 2. Legal entities and individuals engaged in the resale of taxable goods shall pay the sales tax in the form of the difference between the tax amounts calculated on the basis of the prices used for taxation on the date of sale of the taxable goods to buyers and the date of their purchase from their own suppliers. Article 314. Tax Rates The sales tax rates for calculating the amount of tax shall be determined as a percentage of the exchange price of the taxable goods in the following amounts: 1) 10 percent for cotton fiber; Article 315. Procedure for Calculation of the Tax and Payment Deadlines 1. The amount of tax payable shall be calculated by sellers independently on the basis of the exchange prices in effect on the date a taxable transaction takes place, taking into account the quality, type, grade, and volume of taxable goods, as well as the tax rates. The method used to effect the taxable transaction shall be indicated in tax payment documents. 2. In the event of the resale of taxable goods, the tax shall be determined taking into account the price on the date of purchase and on the date of sale, and the volume of the taxable transaction. 3. If the seller does not have an exchange price on the day of sale, the tax shall be calculated on the basis of available data on the exchange price of the taxable goods on the date closest to the day of sale. The amount of tax shall be revised by the taxpayer when data are received about the exchange price of the taxable goods sold as of the date of sale. 4. The tax shall be paid prior to the delivery of the taxable goods no later than three days after funds have been posted to the seller's bank account, or in the case of a cash settlement, receipt of funds by the seller's cashier's office, and in the case of the unrequited transfer or exchange of taxable goods, or their transfer as customer-supplied raw materials or as security, before they are shipped, delivered, or transferred. 5. When taxable goods are exported outside the Republic of Tajikistan, the tax shall be paid prior to their crossing the customs frontier of the Republic of Tajikistan. Persons who allow the transfer of taxable goods or their export outside the country without payment of the sales tax shall be held accountable in accordance with the legislation of the Republic of Tajikistan. In the case of exports, taxable goods shall not be subject to further taxation after the tax has been paid. Article 316. Crediting of the Sales Tax on Cotton Fiber and Primary Aluminum Against the Value-Added Tax on Deliveries of Products of their Processing to the Domestic Market of the Republic of Tajikistan 1. With respect to deliveries to the Republic of Tajikistan domestic market of goods that are products of the direct processing of cotton fiber and primary aluminum (referred to hereinafter as "processing products") by residents of the Republic of Tajikistan, it shall be permitted to apply the sales tax paid on the purchase of cotton fiber and primary aluminum as a credit against the VAT that is payable on deliveries of processing products to the Republic of Tajikistan domestic market. 2. In the case of deliveries of processing products for export and to the Republic of Tajikistan domestic market, the credit in accordance with item 1 of this article shall be applied following the procedure established under Articles 228, 229, and 230 of this Code. When using the proportional method, the amount of sales tax applied as a credit shall be determined based on the proportion of deliveries of processing products to the domestic market in the total amount of deliveries of processing products (to the domestic market and for export). When determining the amount of sales tax to be applied as a credit using the separate method, a payer of the value-added tax shall maintain separate accounting records of expenditures and sales tax on cotton fiber and primary aluminum used for the production and delivery of processing products to the Republic of Tajikistan domestic market and for export. 3. When processing products are exported, the sales tax shall not be applied as a credit against the VAT that is payable. 4. If the difference between the amount of VAT that is payable on domestic deliveries of processing products and the corresponding amount of sales tax is negative, the sales tax that has been paid shall not be reimbursed (refunded) from the budget. A positive difference between said amounts shall be payable to the budget. 5. An instruction on the procedure for applying the credit provided for under this article shall be issued by the authorized government body in consultation with the Republic of Tajikistan Ministry of Finance. Article 317. Monitoring Payment of the Tax Tax authorities shall monitor the payment
of the sales tax to the budget in full and in a timely manner.
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