TAX CODE OF THE REPUBLIC OF TAJIKISTAN

PART II. SPECIAL PART

SECTION XVII. LOCAL TAXES
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CHAPTER 48. RETAIL SALES TAX

Article 337. Taxpayers

Payers of the retail sales tax (referred to hereinafter in this chapter as the "tax") shall be individuals and legal entities engaged in the retail sale of goods.

Article 338. Object of Taxation

The object of taxation shall be the retail sale of goods, including the sale of food through public food service establishments, on the territory of a city (region).

For the purposes of this chapter, the retail sale of goods shall refer to the sale of goods for cash, including the use of funds on bank cards to pay for goods.

Article 339. Tax Base

The tax base shall be the value of the retail sale of goods. In this case the value of the retail sale of goods shall be determined on a cash basis from free (market) prices, including all taxes, including the value-added tax and excise taxes on excisable goods, but not including the retail sales tax.

Article 340. Tax Rate

The tax rate shall be set at 3 percent of the free (market) prices, and the retail price of goods shall be the free (market) price, plus the tax amount.

Article 341. Tax Period

The tax period shall be a calendar quarter.

Article 342. Procedure for Determination of the Tax Base, Calculation of the Tax, Submission of a Return, and Payment of the Tax

1. The value of goods sold through retail outlets shall be determined by a taxpayer independently on the basis of the read-outs from cash registers with fiscal memory, other accounting documents, or entries in a sales ledger, the form and procedure for the maintenance of which, including the use of computer technology, shall be established by the authorized government body and shall be reflected in the quarterly retail sales tax return.

2. The value of goods sold through retail outlets for a specific taxpayer or group (category) of taxpayers of the same type may also be determined on the basis of a time-study survey performed by the respective tax authorities following the procedure established under this Code.

3. When the estimated value of goods sold through retail outlets is determined using the results of a time-study survey, the appropriate tax authority shall conclude an agreement with a taxpayer defining the specific amounts, procedure, and conditions for payment of the tax to the budget in the coming tax periods before the end of the current tax year. An agreement may not be changed before the end of the current tax year.

4. A return indicating the amount of tax due for a reporting quarter shall be submitted to the appropriate tax authority before the 15th of the month following the reporting quarter, and the tax shall be paid to the budget within this same deadline.

5. If payment of the tax in the current tax year is made pursuant to an agreement between the respective local tax authority and a taxpayer that was concluded on the basis of the results of a time-study survey performed in the current tax year, a return shall not be submitted before the end of the current tax year. If there is no change in the basic parameters of operations and if a taxpayer wishes to conclude a similar agreement for the year following the current year (the coming tax year), the taxpayer shall inform the respective local tax authority to this effect in writing before December 31 of the current tax year.

If under an agreement for the coming tax year, concluded before April 1 of that coming year, a taxpayer agrees to pay as tax to the budget in each tax period of the coming year a sum equal to one-fourth of the annual tax amount for the previous year, plus the average annual inflation coefficient used in the drafting of the Republic of Tajikistan Law "On the State Budget" for the coming year, a time-study survey shall not be performed and a return shall not be submitted in that coming tax year. A taxpayer may not be denied the opportunity to conclude such an agreement and an agreement that has been concluded may not be changed before the end of the tax year for which it was concluded, with the exception of cases in which the basic parameters of the taxpayer's operations have changed by more than 50 percent.

A taxpayer shall have the right to pay the tax in accordance with the mechanism provided for under this item for no more than two calendar years following the year in which the last time-study survey was performed.

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