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November 25, 2004 №572

TAX CODE OF THE REPUBLIC OF TAJIKISTAN

PART I. GENERAL PART

SECTION I. GENERAL PROVISIONS

CHAPTER 1. TAX SYSTEM OF THE REPUBLIC OF TAJIKISTAN

Article 1. Relations Regulated by this Code

1. This Code shall regulate legal relations establishing the principles for the design and
functioning of the tax system of the Republic of Tajikistan and the procedure for the establishment,
modification, repeal, and collection of taxes; it shall define the legal status of tax authorities, tax
police units, taxpayers, tax agents, a nd other participants in relations regulated by the tax legislation;
and it shall establish provisions regarding the iden tification of objects of taxation, the fulfillment of
tax obligations and the adoption of measures to ensure their fulfillment, the maintenance of a
registry of taxpayers, objects of taxation, and tax accounting records, the filing of charges for tax
offenses, and the appeal of actions (inaction) of tax authorities and their officials.

2. The concepts and norms establishe d by this Code and other acts of tax legislation shall
apply (except as otherwise provided by the legislat ion) only in the regulation of relations involving
taxation.

3. The collection of customs duties and other customs payments shall be regulated by the tax
legislation, this Code, and other regulatory legal acts, and the collection of stamp duty shall be
regulated by the Republic of Tajikistan Law “O n the Stamp Duty.” The collection of other
compulsory payments to the budget not specified by this Code shall be regulated by the legislation
on other compulsory payments.

Article 2. The Tax Legislation of the Republic of Tajikistan and its Force

1. The tax legislation of the Republic of Tajikistan shall be based on the Constitution of the
Republic of Tajikistan and it shall consist of this Code, regulatory legal acts adopted on the basis of
and in accordance with this Code, and intern ational treaties recognized by the Republic of
Tajikistan.

2. With regard to taxation, official ly published acts of tax legislation in force on the day
circumstances arise (exist) which are related to the fulfillment of a tax obligation shall apply.

Acts of tax legislation officially publ ished in the first and/or second months of a quarter shall
enter into force on the first day of the quarter immediately following the quarter in which they were
published.

If acts of tax legislation are officially published in the third month of a quarter, they shall
enter into force on the first day of the second month of the quarte r immediately following the quarter
of their official publication.

The provisions of the second and thir d paragraphs of this item shall apply unless another
time period for entry into force is stated expl icitly in the act of tax legislation itself.

3. The interpretation of the norms and provisions of this Code, based on a representation by
the Republic of Tajikistan government, shall be provided by the Majlisi Namoyandagon of the
Majlisi Oli [Parliament] of the Republic of Tajikis tan in the form of a relevant resolution of the
Majlisi Namoyandagon, and the interp retation of other acts of tax legislation in the form of a
relevant regulatory legal act shall be provided by the body that adopt ed the given act, except as
otherwise provided by said act. Such interpretations shall be subject to official publication. The
publication of acts of tax le gislation, including interpretations thereof, shall be considered official if
they are published in official prin t publications of the Majlisi Oli of the Republic of Tajikistan, the
Republic of Tajikistan government, and the authorized government body.

4. The provisions of regulatory legal acts adopted on the basis of and in accordance with this
Code may not conflict with the provisions of this Code. In the event of such a conflict, the
provisions of this Code shall apply.

A regulatory legal act on taxes shall be considered inconsistent with this Code if said act
conflicts to a certain extent with the general princi ples (elements) and/or the literal sense of specific
provisions of this Code.

5. The institutions, concepts, and terms of civil, family, and other types of legislation of the
Republic of Tajikistan used in this Code shall be applied in the sense in which they are used in those
types of legislation, except as provided by this Code. In the event of a conflict between the
provisions of this Code and regulatory legal acts that pertain to another type of legislation, for
purposes of taxation the provision s of this Code shall apply.

6. Acts of tax legislation may be retroactive in cases corresponding to Article 45 of the
Constitution of the Republic of Tajikistan.

Acts of tax legislation that establis h new taxes, raise tax rates, establish or increase liability
for violation of the tax legislati on, and establish new obligations fo r taxpayers, as well as for other
participants in relations gove rned by the tax legislation, shall not be retroactive.

Acts of tax legislation that eliminat e or reduce liability for violation of the tax legislation or
establish additional guarantees to protect the rights of taxpayers, tax agents, and their representatives
shall be retroactive except as otherwise explicitl y provided in the act of tax legislation itself.

The provisions set forth under this it em shall also extend to regulatory legal acts governing
the procedure for the collection of taxes payable in connection with the movement of goods across
the customs frontier of the Republic of Tajikistan.

7. It shall be prohibited to include matters related to taxation in nontax legislation, with the
exception of:

1) provisions concerning administrative offenses included in administrative legislation;

2) provisions concerning tax crimes included in criminal legislation;

3) provisions concerning the priority of tax obligations included in bankruptcy legislation;

4) provisions included in customs legislation;

5) provisions in cluded in legislation on the stamp duty;

6) provisions included in legislati on on state social insurance governing the earmarked use of
social tax funds by taxpayers;

7) provisions included in legisl ation on the state budget for the relevant financial year;

8) provisions concerning taxes adopt ed in accordance with legislation on the establishment
of free economic zones;

9) provisions included in legislation on other compulsory payments not established by the
Tax Code of the Republic of Tajikistan;

10) provisions concerning taxes included in international legal acts recognized by the
Republic of Tajikistan.

8. If an international treaty, recognized by the Republic of Tajikistan and containing
provisions concerning taxation, estab lishes regulations and norms that differ from those specified by
this Code and by regulatory legal acts adopted on the basis of and in accordance with this Code, the
regulations and norms of the inte rnational treaties recognized by the Republic of Tajikistan shall
apply.

9. Privileges specified by an international treaty on the preventio n of dual taxation shall not
apply to a resident of a state that is a party to the treaty if the resident in question uses another
person who is not a resident of that stat e for the purposes of obtaining privileges.

10. For foreign states and governments, international organizations , diplomatic and consular
representative offices of foreign states and govern ments, and diplomatic and consular personnel, as
well as representative offices of international organizations and their employees, and family
members of the aforementioned pers ons, exemption from taxes and other tax concession granted in
accordance with this Code or spec ified by international treaties recognized by the Republic of
Tajikistan shall be provided in accordance with th e procedures established by the Republic of
Tajikistan government. Exemption from taxes and other tax concessions must be granted within the
limits and under the conditions prescribed by this Code and international tr eaties recognized by the
Republic of Tajikistan.

11. The authorized government body, acting in consultation with the Republic of Tajikistan
Ministry of Finance, and when necessary with other government bodies of the Republic of
Tajikistan, shall draft, approve, and officially publish instructions on the procedure for the
calculation and payment of the following taxes and payments:

1) the personal income tax (tax on income of individuals);
2) the corporate profit tax;
3) the value-added tax;
4) excise taxes;
5) the land tax;
6) the tax on users of mineral resources;
7) the highway user tax;
8) the tax paid under the simplified system;
9) the uniform tax for producers of agricultural products;
10) the sales tax (cotton and primary aluminum);
11) the minimum business income tax;
12) the customs duty and other customs payments;
13) the social tax;
14) the stamp duty;
15) other compulsory payments.

No provisions of instructions that conflict with this Code and the aforementioned
international treaties recognized by the Republic of Tajikistan shall have any legal force.

Article 3. The Tax System of the Republic of Tajikistan

The tax system of the Republic of Tajikistan shall be comprised of a set of taxes; principles,
forms, and methods for their establishment, modi fication, repeal, and payment, and the application
of measures to ensure their payment; as well as forms and methods of tax control and liability for
the violation of tax legislation, as provided by this Code.

Article 4. Legal Basis of Taxation

1. All individuals and legal entities shall be required to pay all taxes of which they are payers
in accordance with this Code.

2. No one may be required to pay taxes not established by this Code.

3. A tax that is assessed in accordance with th is Code shall constitute an obligation to the
state and shall be payable to the state budget.

Article 5. Tax

A tax shall be a payment to the state budget (referred to he reinafter as “the budget”)
established by this Code that is com pulsory and has no individual equivalent.

Article 6. Taxes of the Republic of Tajikistan

1. Taxes of the Republic of Tajikistan shall consist of national taxes and local taxes.

National taxes shall include:

1) the personal income tax (tax on income of individuals);
2) the corporate profit tax;

3) the value-added tax;
4) excise taxes;
5) the social tax;
6) the land tax;
7) the tax on users of mineral resources;
8) the highway user tax;
9) the tax paid under the simplified system;
10) the uniform tax for producers of agricultural products;
11) the customs duty and other customs payments;
12) the stamp duty;
13) the sales tax (cotton and primary aluminum);
14) the minimum business income tax;
15) other compulsory republic-wide payments.

Local taxes shall include:

1) the real estate tax;
2) the tax on owners of motor vehicles;
3) the retail sales tax;
4) other compulsory local payments.

3. Proceeds from national taxes shall be distributed between th e republican budget and local
budgets in accordance with the budg et legislation of the Republic of Tajikistan. Local tax payments
shall be applied to the respective local budgets.

4. Taxes shall be calculated in monetary terms and sha ll be paid in the domestic currency of
the Republic of Tajikistan, except as provided by the legislation of the Republic of Tajikistan.

5. Tax authorities shall be responsib le for the collection of taxes specified in the special
section of this Code, with the exception of th e tax on owners of motor vehicles. The State
Automobile Inspectorate under the Republic of Tajik istan Ministry of Internal Affairs shall be
responsible for the collection of the tax on owners of motor vehicles.

6. In consideration of item 7 of Ar ticle 2 of this Code, exemption from any national tax or a
change in a tax rate provided for by this Code may be effected through the introduction of
amendments and additions to this Code, and with resp ect to local taxes, on the basis of decisions of
the respective loca l Councils of People’s Deputies.

Article 7. Procedure for the Establishment, Modification, and Repeal of Taxes

1. The establishment of new taxes, in addition to those provided for by this Code, as well as
the modification or repeal of exis ting taxes, shall be carried out exclusively through the adoption of
a Law of the Republic of Tajikistan on amendments to this Code based on a representation from the
Republic of Tajikistan government.

When taxes are established, all th e elements of taxation must be identified, namely: the
taxpayers; the object of taxation; the tax base; the tax period; the procedure for calculation of the
tax; the procedure and deadlines for payment of the tax; and in those cases provided for by this
Code, tax concessions and the gr ounds on which they may be obtai ned (utilized) by the taxpayer.

2. Proposals regarding amendments and additions to the Tax Code of the Republic of
Tajikistan shall be accompanied by economic and other grounds for their introduction.

CHAPTER 2. DEFINITION OF TERMS USED IN THIS CODE

Article 8. Taxpayers (General Definition)

Taxpayers shall be individuals and/or legal entities who have an obligation to pay taxes in
accordance with this Code.

Following the procedure provided for by this Code, separate subdivisions of legal entities
shall meet the tax obligations of these legal entities (shall be recognized as taxpayers) based on the
(physical, actual) location of these separate subdivisions.

Article 9. Object of Taxation and/or Object Related to Taxation

An object of taxation and/or an object related to taxation shall be an object that has value,
quantitative, or physical characteri stics, the existence of which (the object) imposes obligations on
the part of a taxpayer (the s ubject) to pay tax in accordan ce with the tax legislation.

An object of taxation and/or an object related to taxation may consist of property, income,
profit, transactions involving the delivery of goods (work, services ), the value of goods delivered
(work performed, services provided), the import (expor t) of goods onto (from) the territory of the
Republic of Tajikistan, and/or othe r objects established by this Code.

Each tax shall have a respective independent object.

Article 10. Tax Base

The tax base shall consist of the va lue, physical, or other characteristics of an object of
taxation and/or an object related to taxation, on the basis of which the amount of tax payable to the
budget is determined.

Article 11. Tax Rate

The tax rate shall consist of the amount of tax assessed per unit of the tax base.

The tax rate shall be established as a percentage and/or as an absolute amount per unit of the
tax base.

Article 12. Tax Period

The tax period shall be understood to mean the period of time (calendar year, quarter, month,
10-day period, or other period of time) established with respect to individual taxes by this Code,
upon the expiration of which (at the end of which) the tax base is determined and the amount of tax
payable to the budget is calculated. The tax period may consist of one or several reporting periods
(quarters, months, 10-day periods, or other period s of time) upon the expiration of which (based on
the results of which) advance (current) payments are made.

Article 13. Payment Deadline

The tax payment deadline shall be a calendar date determined in accordance with this Code,
before or on which the assessed amount of tax must be paid to the budget, that is, a tax obligation
must be met.

Article 14. Tax Concessions

Concessions on taxes shall refer to advantages compared to other taxpayers which are
granted to individual cate gories of taxpayers as provided for by th is Code or international treaties
recognized by the Republic of Ta jikistan that contain provisions concerning taxation, including the
possibility of not paying a tax, paying a smaller amount of tax, or paying the tax at a later date
without any negative consequences for the taxpayer that has the concession.

Article 15. Commercial and Noncommercial Activity

1. Except as otherwise provided by this article, commercial activity shall refer to any activity
the purpose of which is to earn a profit, income, or compensation, regardless of the results of such
activity, which is not noncommercial activity as defined by this article.

2. Activity related to the acquisition, sale, transfer, or leasing of property shall be considered
commercial activity if at least one of the following conditions is met:

1) this activity is carried out on a systematic basis and is an ordinary activity for the person
performing the aforementioned transactions;

2) goods (work, services) produ ced (performed, provided) by the seller are offered;

3) these transactions are carried out within the context of tr ading, trading- intermediary
(including dealer-r elated), or intermediary activity.

3. Noncommercial activity shall incl ude activity in the form of the transfer of property
(including cash) by one person to an y other person for a fee, for the temporary possession, use, or
disposition by said person without the transfer of ownership rights to the property or a part thereof,
and without the right of subsequent alienation of the property, provi ded that the transfer does not
entail financial services and does not impose additional obligations on the person receiving the
given property, other than obligatio ns related to the designated use of the property being transferred
or to the payment of remuneration for the aforem entioned possession, use, or disposition of the
property, except as otherwis e provided by this article.

4. Noncommercial activity shall include:

1) the placement of cash in banks or other financial and lending institutions;

2) the leasing out of property, except as otherwise pr ovided in item 2 of this article;

3) the placement of property in trust;

4) the acquisition (sale or transfer) of a stake in the authorized capital of an enterprise or its
securities; the acquisition (sale or transfer) of bonds or other bills of exchange; the acquisition (sale
or transfer) of a stake in a mutual investment fund or copyrig hts and other similar rights belonging
to the seller, which is the equivalent of nonco mmercial activity, except as otherwise provided in
item 2 of this article;

5) the performan ce of work for hire by an individual.

5. The following types of activ ity shall be considered noncommercial activity:

1) the activity of bodies that are part of the system of government authorities in all branches
and at all levels, and self-government bodies, which is directly related to the performance of the
government functions assigned to th em, with the exception of the performance of services paid for
on a contractual basis and other commercial activity;

2) charitable activity;

3) religious activity.

Article 16. Work for Hire

1. For the purposes of this Code “work for hire” shall mean:

1) the performance of duties by an individual within the context of relations regulated by the
Civil Code of the Republic of Tajikistan or the legislation on labor or on the civil service;

2) the performance of duties by an i ndividual that are directly related to service in the ranks
of the armed forces or law enforcement author ities or equivalent agencies (institutions);

3) work in a manageme nt position at an enterprise or organization.

2. An individual who has worked, is wo rking, or will work for hire shall be referred to as an
“employee” in this Code. A person who pays for se rvices performed by such an individual in the
capacity of an employee shall be referred to as an “employer,” and the payment shall be referred to
as “wages.”

Article 17. Charitable Activity

1. Charitable activity shall be activ ity performed by legal entities which consists of providing
direct financial or other assist ance (support), including in the fo rm of unrequited transfers, to
individuals in need of such assistance, or to nonprofit organizations directly providing such
assistance, including nonprofit charit able organizations (Article 26), or scientific, educational,
public information, library, medical, or other activiti es performed in the public interest, except as
otherwise provided by this article.

2. Except as otherwise provided under item 3 of this article, charitable activity shall be
defined in accordance with the Republic of Tajikistan Law “On Charitable Activity.”

3. The provision of assistance (support) to persons shall not be considered charitable activity
if any of the following conditions is present:

1) the person receiving such a ssistance (support) assumes an obligation of a tangible or
intangible nature to the person pr oviding such assistance (other than the obligation to use the funds
or property received for their designated purpose);

2) the person accepting such a ssistance (support) and the person providing such assistance
(support) are considered related pers ons (Article 29 of this Code);

3) such assistance (support) is provi ded to any individual or legal entity for participation in
an election campaign at any level.

Article 18. Religious Activity

Religious activity shall consist of the activities of religious organizations and faith-based
associations for the dissemination of religious beliefs, which have been registered following the
established procedure, including through:

1) the organization and performan ce of religious rituals, ceremonies, and worship services;

2) providing believers with the opportuni ty to have and/or use houses of worship or religious
facilities for joint or individual fulfillment of religious requirements;

3) the receiving and dispatching of pilgrims, religious delegations, representatives of various
faiths; the holding of national or international religious meetings, congresses, and seminars; and
providing participants in such activities with accommodations, transportation, meals, and cultural
services;

4) the maintenance of religious bu ildings, facilities, religious educational institutions and
adjacent grounds; the training of students or person s attending such educational institutions; as well
as other similar chartere d religious activities.

Article 19. Enterprises

For the purposes of this Code en terprises (commercial organizations) shall refer to the
following organizations engaged in commercial activity or established for the performance of such
activity:

1) legal entities and separate subdivisions established by them in accordance with the
legislation of the Republic of Tajikistan, whic h have a separate balance sheet or budget;

2) corporations, companies, firms, and other similar entities established in accordance with
the legislation of a foreign state.

Article 20. Resident and Foreign Enterprise

1. A resident enterprise shall be an enterprise founded or with headquarters in the Republic
of Tajikistan (Articles 21 and 22 of this Code).

2. A foreign enterprise shall be an enterprise that is not considered a resident enterprise in
accordance with this article.

Article 21. Place Where an Enterprise Is Founded

The place where an enterprise is founded shall be the place where it obtained state
registration, on in the absence thereof, the ente rprise’s legal address as shown in documents
pertaining to the esta blishment of the enterprise (charter, contract, statute).

Article 22. Headquarters of an Enterprise

The headquarters of an enterprise shall be the actual place where the enterprise is managed,
that is, the place where its executive administ rative body performs its everyday administrative
functions.

Article 23. Permanent Estab lishment of a Nonresident (Foreign Enterprise or
Nonresident Individual)

1. A permanent establishment of a nonresident (foreign enterprise or nonresident individual)
in the Republic of Tajikistan (referred to hereinafter as a “permanent establishment”), except as
otherwise provided in this article, shall be unde rstood to mean a permanent location through which
the nonresident performs all or part of its commerci al activity, including activity carried out through
an authorized person.

2. Specifically, the following shall be considered permanent establishments:

1) any place where activities are performed that are related to the production, processing,
assembly, packing, packaging, or delivery of goods, regardless of the time period such activity is
performed;

2) any administrative location (sp ecifically, a subsidiary, branch, representative office,
bureau, office, agency, factory, workshop, shop, la boratory, store, warehouse) of a nonresident,
regardless of the time period su ch activity is performed;

3) any place where operations are performed, including installations and platforms, drilling
rigs or ships, used in prospecting for natural resources, underground and open-pit mines, oil and/or
gas wells, quarries, land-based or floating derricks and/or wells, regardless of the time period such
activity is performed;

4) any place where operations are performed (including the performance of control,
supervisory, or monitoring activity) that are related to a pipeline, gas pipeline, prospecting for and/or
development of natural resources, and the installation, erection, assembly, adjustment, set-up, and/or
servicing of equipment, regardless of the time period such activity is performed;

5) any other place where operati ons are performed that are related to the operation of
computerized gambling machines (including accesso ries), computer networks and communications
channels, amusement parks, transportation or other infrastructure, regardless of the time period they
are in operation;

6) a permanent base that a nonresident individual uses for commercial activity.

3. A construction site, erection or a ssembly project, the performance of supervisory activity
related to such projects, and th e performance of planning and design work constitute a permanent
establishment, regardless of the time period such work is performed.

In this context a construction site (project) shall be understood to mean, specifically, a place
where activities are performed that are related to the erection and/or reconstruction of real estate
properties, including the construc tion of buildings and structures and/or the performance of
installation work; the construction a nd/or reconstruction of bridges, roads, and canals; the laying of
pipelines; the installation of electrical, technological, or other equipment; and/or the performance of
other similar work.

A construction site (project) shall cease to exist as of the second day following the day on
which the certificate of occupancy (the acceptance certificate for the work performed) is signed and
payment is made in full for the construction work.

4. A nonresident shall also be consid ered to have a permanent establishment in the Republic
of Tajikistan if the nonresident:

1) collects insurance premiums and/ or provides for the insurance or reinsurance of risks in
the Republic of Tajikistan th rough an authorized agent;

2) performs services on the territory of the Republic of Tajikistan continuously for more than
90 calendar days in any consecutive 12-month period ending in the given tax period, through
employees or personnel hired for this purpose;

3) is a participant in a simple pa rtnership (joint operating agreement) formed in accordance
with the legislation of the Republic of Tajikista n and operating on the territory of the Republic of
Tajikistan;

4) holds exhibitions in the Republic of Tajikistan for a fee and/or at which goods are
delivered (sold);

5) on the basis of a contractual re lationship grants a resident or nonresident the right to
represent its interests in the Republic of Tajik istan, and to act and/or conclude contracts
(agreements, accords) on its behalf.

5. Temporary or seasonal interruptions in the performance of activities referred to in this
article shall not result in the liquida tion of a permanent establishment.

6. A nonresident engaged in commer cial activity in the Republic of Tajikistan through an
independent intermediary (a broker and/or other i ndependent agent acting on the basis of an agency,
commission, consignment, or other similar agreem ent) who is not authorized to sign contracts
(agreements) on behalf of the nonresident, shall not be considered to have formed a permanent
establishment.

An independent intermediary shall be understood to mean a person who performs
intermediary duties as part of hi s usual (principal) activities for the purpose of cooperation between
the parties and who is both le gally and economically independe nt of the given nonresident.

7. A subsidiary of a nonresident lega l entity established in accordance with the legislation of
the Republic of Tajikistan shall not be consider ed a permanent establishment of the parent
nonresident enterprise if re lations consistent with the provisions of subitem 5 of item 4 of this article
do not arise between the subsid iary and parent enterprise.

8. A site used in the Republic of Tajikistan for the following purposes shall not be
considered a permanent establishment of a forei gn enterprise in the Republic of Tajikistan
(regardless of who uses it):

1) the storage of goods or articles belonging to the foreig
n enterprise;

2) the purchase of goods or articles, the collection of information for the foreign enterprise;

3) the performance of any other activities of a preparatory or ancilla ry nature in the interests
of the foreign enterprise;

4) the preparation of contracts for signing or the simple signing of contracts on behalf of a
foreign enterprise pertaining to cr edits (loans), the delivery of goods or articles, or the performance
of work (provision of services);

5) the performance of any activitie s referred to in subitems 1) through 4) of this item.

9. A registered representative office of a foreign enterprise that is not a separate legal entity
shall be considered a permanent esta blishment of the foreign enterprise.

10. Dependent personal services (w ork for hire) performed by a nonresident individual shall
not result in the formation of a perm anent establishment of said person.

11. The activities of a nonresident sh all result in the formation of a permanent establishment
in accordance with the provisions of this article re gardless of whether or not it has been registered
with a tax authority.

Article 24. Nonprofit Organizations

1. Nonprofit organizations shall be government bodies in the legislative, executive, and
judicial branches, social and/or religious organizations (associa tions), foundations, institutions,
associations (unions), interstate, intergovern mental, and other organizations engaged in
noncommercial activity, that is, subject legal en tities that are not pursuing the goal of earning a
profit, income, or compensation and do not distribute profit (if profit is earned), income, or
compensation among their partners (founders).

2. The place where a nonprofit or ganization is founded and the headquarters of a nonprofit
organization shall be determined following the pro cedure established for enterprises under Articles
21 and 22 of this Code.

3. A nonprofit organization shall be recognized as a resident or foreign nonprofit
organization following the procedure established for enterprises (Article 20 of this Code).

4. To the extent that a nonprofit organization engages in commercial activity, its assets and
activities directly related to the performance of commercial activity shall also be treated as an
enterprise and shall be subject to separate accounting (separate from its principal activity).

Article 25. Budgetary Organization

A budgetary organization shall be a nonprofit organization that re ceives funding from the
budget for at least 70 percent of its operations , based on a budgetary income and expenditure
estimate.

Article 26. Charitable Organization

1. A charitable organization shall be a nonprofit organization that:

1) is established for the purpose of performing charitable activities;

2) is registered as such following the procedure established by the legislation of the Republic
of Tajikistan and meets the requirements set forth in the Republic of Tajikistan Law “On Charitable
Activity.”

2. A nonprofit organization shall not be considered a charitable organization (regardless of
its legal and organizationa l status or name), if:

1) the nonprofit organization is participating directly or indirectly in an election campaign at
any level by any political party, social organization (movement), or individual; or

2) the receipts or assets of the nonprofit organization are bene fiting or could benefit any
person, with the exception of benefits resulting from the performa nce of its charitable activity or
reasonable payment for property or services.

Article 27. Religious Organization

A religious organization shall be a nonprofit organization established for the purpose of
performing religious activities a nd registered as such following the procedure established by the
legislation.

Article 28. Tax Agent

1. A tax agent shall be any person (a n individual or legal entity) who is not an employee of a
tax authority, who in accordance with this Code or another act of tax legislation has been assigned
duties related the calcula tion of tax, the withholding of tax from a taxpayer (or at the source of
payment), and the transfer of the tax to the appropriate budget.

2. In terms of his rights and respons ibilities, a tax agent shall have the same status as a
taxpayer, except as otherwise provided by this Code.

3. A tax agent shall be required:

1) to calculate the relevant taxes, withhold them from the taxpa yer (or at the source of
payment), and transfer them to the appropria te budgets properly and in a timely manner;

2) to maintain a record of income paid to taxpayers and taxes withheld from them (or at the
source of payment) and transfe rred to the appropriate budgets, including th e maintenance of a
separate record for each taxpayer;

3) to submit to tax authorities doc uments that are required for verification of the proper
calculation, withholding, and payment of taxes; and

4) to perform other duties as assigned by the tax legislation.

4. A tax agent shall bear liability following the procedure established by this Code or other
legislative acts of the Republic of Tajikistan for failure to fulfill or improper fulfillment of the duties
assigned to the agent by the tax legislation.

Article 29. Related Persons

1. Related persons shall be persons who have special relationships that could have a direct
influence on the conditions or economic outcome of transactions between them.

2. Such special relationships shall include, specifically, relationships in which:

1) the persons are founders (partners) of the same enterprise, if each person’s stake is equal
to at least 20 percent;

2) one person directly or indirectly pa rticipates in the other person, which is an enterprise, if
the first person’s stake is e qual to at least 20 percent;

3) one person is subordinate to the other person in an employment relationship or one person
is under the (direct or indirect) control of the other person;

4) the persons are subsidiaries of th e same legal entity or are under the direct or indirect
control of a third party;

5) the persons directly or indirectly control a third party, if the voting rights of each person
account for at least 20 percent of the total;

6) the persons are married to one a nother or have a family relationship (item 48 of Article 34
of this Code).

Article 30. Resident Individuals

1. Individuals shall be considered re sidents for the entire current calendar year if they were
actually in the Republic of Tajikistan for more than 182 days during any consecutive 12-month
period ending in the current cale ndar year, or if they were employed in the civil service of the

Republic of Tajikistan outside the country during the current calendar year, regardless of the
duration of said service in the current calendar year.

2. The following individuals who are citizens of the Republic of Tajikistan, individuals who
have applied for Republic of Tajikistan citizensh ip or for a permanent residence permit without
becoming a citizen of the Republic of Tajikistan, shall be recognized as resident individuals,
regardless of the time they have spent in the Repub lic of Tajikistan and any other criteria specified
by this article:

1) those who have been sent ab road on official business by government authorities of the
Republic of Tajikistan, including employees of diplomatic and consular institutions and
representative offices with equivalent status , trade missions of the Republic of Tajikistan,
international or intergovernmental organizations, as well as family members of said individuals;

2) crew members of means of transp ort belonging to legal entities or citizens of the Republic
of Tajikistan that are engaged in international shipping;

3) military and civilian personnel of military bases, military units, groups, contingents, or
formations deployed outside the Republic of Tajikistan;

4) persons working at facilities that are located outside the Republic of Tajikistan and are the
property of the Republic of Tajik istan or residents or subjects of the Republic of Tajikistan
(including on the basis of concession contracts);

5) students, trainees, and interns who are outside the Republic of Tajikistan for the purpose
of instruction or practical traini ng, for the entire period of their education or practical training;

6) teachers and scientific workers who are outside the Republic of Tajikistan for the purpose
of providing instruction or consultation, or performing scientific work, for the entire period they are
teaching or performing said work.

3. For the purposes of item 1 of this article, the time spent by a foreign individual in the
Republic of Tajikistan shall not be considered the time the person was actually located on the
territory of the Republic of Tajikista n if the person was in the country:

1) in the capacity of a person with di plomatic or consular status (or as a family member of
such a person);

2) in the capacity of an employee of an international organization or in the capacity of a
person employed by the civil service of a foreign state (or as a family member of such a person);

3) exclusively for the purpose of tr aveling from one foreign state to another foreign state
across the territory of the Republic of Tajikistan.

4. A day spent in the Republic of Tajikistan shall be considered any day during which an
individual was actually located on th e territory of the Republic of Tajikistan, regardless of the length
of time spent.

5. An individual who is not a resident of the Republic of Tajikistan in accordance with this
article shall be considered a nonres ident of the Republic of Tajikistan.

6. An individual shall be consid ered a nonresident of the Republic of Tajikistan for the
period from the last day the person was in the Repub lic of Tajikistan in the given tax year until the
end of the given tax year, if said person is a nonresident of the Republic of Tajikistan in the tax year
immediately following.

Article 31. Individual Entrepreneur

1. A resident or nonresident individual shall be considered an individual entrepreneur if he is
engaged in commercial activity (Article 15 of th is Code) on his own behalf, at his own risk, and
assuming his own liability as to property, without the establishment of a legal entity.

2. The performance of commercial activity by an individual in violation of the established
procedure for registration and obtaining a license or other document may not serve as grounds for
recognizing such a person as an individual entrepreneur for the purposes of taxation.

Article 32. Market Prices

1. A market price shall be the pri ce in the free market for goods (work, services) formed as a
result of supply and demand, as well as the intere sts of the parties to a transaction who are not
related persons in accordance w ith Article 29 of this Code, under comparable economic
(commercial) conditions.

2. Except as otherwise provided by this Code, for the purposes of taxation the actual price
specified by the parties to a transac tion (indicated in valid documents) shall be treated as the price of
goods (work, services). Unless a tax authority proves ot herwise, it shall be assumed that this price is
consistent with the market price.

3. When verifying that taxes have been calculated in full, tax authorities shall have the right
to check that the prices used are consistent with market conditions only in the following cases
involving transactions:

1) between related persons;

2) in which there is an exchan ge of goods, work, or services (barter transactions);

3) in which foreign trade (foreign economic) transactions are performed;

4) in which the prices applied by the taxpayer for goods (work, services) within a limited
period of time (not more than 30 calendar days be fore or after the delivery of the goods, work, or
services) deviate by more than 30 percent in either direction from the market price for identical
(similar) goods (work, services).

In those cases described in subitems 3) and 4) of this item, a transaction shall be considered
to have been actually effected at market prices if the taxpayer cannot prove that the transaction was
in fact carried out at prices indicated in valid documents.

4. Only in those cases specified in item 3 of this article shall a tax authority have the right to
issue a decision to assess additional taxes, acco mpanied by the reasons for doing so, taking into
account the market prices for the relevant goods (w ork, services) as determined in accordance with
this article.

5. The market price for goods (w ork, services) shall be determined on the basis of
information about transactions performed with id entical (similar) goods (work, services) that have
been concluded as of the moment the goods (work, services) are delivered, including on the basis of
prices on international and other exchanges.

6. Identical goods shall include goods that have the same basic features, which are
characteristic for them.

When determining whether goods are identical, one shall take into account, among other
things, their physical characteris tics, quality and market reputation, country of origin, and the
producer. Insignificant differences in outward appearance may or may not be taken into account
when determining whether goods are identical.

7. Similar goods shall include goods which are not identical but do have similar
characteristics and are comprised of similar components, which enables them to perform the same
functions and/or to be co mmercially interchangeable.

When determining whether goods are similar, one shall take into account, among other
things, their quality, the existen ce of a trademark, their market reputation, and their country of
origin.

8. When determining the market price for goods (work, services), transactions between
related persons may be taken into account only in the event that their relationship did not influence
the outcome of the transactions in question.

9. The market for goods (work, services ) shall be comprised of the sphere of circulation of
the given goods (work, services) as determined by th e seller’s (purchaser’s) ability realistically to
offer (purchase) the goods (work, se rvices) in an area in close proximity to the seller (purchaser)
within the Republic of Tajikistan or outside its borders, without significant additional costs.

10. When determining the market price for goods, work, or services, one shall take into
account information on prices at the time of delivery of the given goods, work, or services in
operations (transactions) performed with identical (similar) goods, work, or services under
comparable conditions. Specifically, one shall take into account transaction conditions such as the
quantity (volume) of goods delivered, the time frame for the fulfillment of obligations, payment
conditions normally applied in transactions of th e given type, as well as other reasonable conditions
that may have an influence on the price.

Transaction cond itions in the market for identical goods (work or services) (or similar goods,
work, or services, in the absence of identical ones) shall be considered comparable if the difference
between these conditions either does not have a significant influence on the price of these goods
(work or services) or may be taken into account after making certain adjustments.

11. If no transactions have been performed with identical (similar) goods (work or services)
in the respective market for the goods (work, services) or if there is no supply of the given goods
(work, services) in the market, the market price shall be determined on the basis of prices in effect in
relevant transactions with iden tical (similar) goods (work, servi ces) on the date closest to the
delivery date of the aforementioned goods (work, services), but not more than 30 calendar days
before or after the delivery of the goods (work, serv ices). The market price for securities shall be
determined on the basis of stock exchange quotations for identical securities of the same issuer as of
the date closest to the sale or tr ansfer of said securities, provided that the quotations are announced
in accordance with the procedure indicated above.

12. If the provisions of items 1 thr ough 11 of this article cannot be applied, the market price
for goods (work, services) shall be determined in accordance with the procedure established by the
Republic of Tajikistan government based on a repres entation by the Republic of Tajikistan Ministry
of Finance that has been approved by the authorized government body, and when necessary, by
other government bodies of the Republic of Tajikistan. The following methods may be used to
determine the market price in th is case: the expenditure method, th e subsequent sale price method,
and other methods.

13. Transactions involving the exch ange of goods, work, and services (barter transactions)
shall be transactions in accordance with which each of the parties to the exchange delivers goods
(work, services) and acquires goods (work, services). In this case the market prices for the goods
(work, services) delivered (acquired) in the course of these transactions shall be determined in
accordance with the provis ions of this article.

14. Official information sources on market prices for goods (work, services) and exchange
quotations, data bases of nationa l and local government authoritie s, information reported to tax
authorities by taxpayers, as well as other relevant information, shall be used when determining and
recognizing the market price for goods (work, services).

Article 33. Financial Leasing

1. If a lessor leases out depreciabl e tangible property under a financial leasing agreement, for
the purposes of this Code the lessee shall be considered the owner of the property, and lease
payments shall be considered payments on loan s (consisting of the payment of principal and
interest) made to the lessee.

2. The leasing of depreciable tangible property shall constitute financial leasing if it meets
the following conditions:

1) the lease provides for the transf er of ownership upon expiration of the lease period or the
lessee has the right to pu rchase the property upon expiration of the lease period at a fixed price or at
a price determined in accordance with the lease agreement; or

2) the lease period exceeds 75 percent of the service life of the leased property;

3) the estimated residual value of the property upon expiration of the lease period represents
less than 20 percent of it s market value at the beginning of the lease;

4) the present discounted value of the minimum payment for the entire lease period is equal
to 90 percent of the market price of the property at the beginning of the lease or exceeds it; or

5) the leased property has been manufactured to order for the lessee and upon expiration of
the lease the property cannot be used by anyone other than the lessee.

3. Subitem 4 of item 2 of this articl e shall not apply to a lease which begins during the last 25
percent of the property’s service life.

4. For the purposes of this article, the discount rate used to determine the present discounted
value of lease payments shall be equal to the intere st rate indicated in item 3 of Article 93 of this
Code.

5. For the purposes of this articl e, the lease period shall include an additional period by
which the lessee has the right to renew the l ease in accordance with the lease agreement.

Article 34. Definition of Other Terms Used for the Purposes of this Code

1. Assets – property, other tangible assets, cash or property rights comprising the total fixed
and working assets (capital) of an enterprise (p erson); any valuable belonging to a person; an
accounting category that includes the value of a subject’s own property, as well as funds and
reserves intend for the payment (re payment) of debt (liabilities).

2. Arrears – taxes, interest, and penalties payable to the budget that have been assessed and
have not been paid by a deadline, including an extended deadline.

3. Winnings – any type of income in cash and in kind received by taxpayers from contests,
competitions (Olympiads), festivals, lotteries, and drawings, including drawings on deposits and
debt securities.

4. Import of goods – the importation of goods onto the customs territory of the Republic of
Tajikistan based on the release for free circulation customs regime in accordance with the customs
legislation of the Republic of Tajikistan.

5. Fixed assets – tangible assets with a service life of more than one year, which are subject
to depreciation in accordance with Article 153 of this Code.

6. Grant – property provided on an unrequited basis: by states and governments of states;
international and governmental organizations, fo reign nongovernmental social organizations and
foundations whose activities ar e charitable and international in nature and are not in conflict with the
Constitution of the Republic of Tajikistan; by forei gners and stateless persons, to the Republic of
Tajikistan, the Republic of Tajikistan government, le gal entities as well as individuals of the
Republic of Tajikistan for the achievement of certain goals (tasks) that are not in conflict with the
Constitution of the Republic of Tajikistan.

7. Nonresident – a person who is not a resident.

8. Income from sources in the Republic of Tajikistan – this refers to the following t
ypes of
income in cash and/or in kind received by a person (without taking any deductions):

1) income from work for hire in the Republic of Tajikistan;

2) income from the deliver y by the producer of goods produced in the Republic of
Tajikistan, and also from the performance of work and provision of services in the Republic of
Tajikistan;

3) income from commercial activity that may be applied to a permanent establishment of a
nonresident located on the territory of the Republic of Tajikistan, including:

– income that may be applied to the sale of goods of the same or similar type as goods sold
through such a permanent establishment in the Republic of Tajikistan;

– income earned from commercial activ ity in the Republic of Tajikistan, which is of the same
or a similar nature as activity perfor med through such a permanent establishment;

4) income related to the perfor mance of commercial activity in the Republic of Tajikistan
through a permanent establishment: from writing off a taxpayer’s bad debts to creditors; from the
sale of fixed assets included as income in accord ance with item 7 of Article 153 of this Code; from
reimbursement for expenses in accord ance with Article 193 of this Code;

5) income in the form of dividends received from a resident legal entity, as well as income
received as a result of the sale or transfer of a stake in such a legal entity;

6) income in the form of interest received from residents;

7) income in the form of interest received from a nonresid ent person with a permanent
establishment or property located on the territory of the Republic of Tajikistan, if the person’s debt
is related to this permanent establishment or property;

8) a pens ion, if it is paid by a resident;

9) income in the form of royalties received for property located or being used in the Republic
of Tajikistan, or income from the sale or transfer of property referred to in item 38 of this article,
which is located or being used in the Republic of Tajikistan;

10) income received from the leas ing of movable property being used in the Republic of
Tajikistan;

11) income received from real esta te located in the Republic of Tajikistan, including income
from the sale or transfer of a stake in such property;

12) income from th e sale or transfer of shares or a stake in an enterprise, the value of whose
assets is formed for the most part directly or in directly from the value of property located in the
Republic of Tajikistan;

13) other income from the sale or transfer of property by a resident, not related to the
performance of commercial activity;

14) income received from the performance of management, financial, or insurance services,
including reinsurance services, if it is paid by a resident enterprise or a permanent establishment of a
nonresident located on the territory of the Republic of Tajikistan, or if it is received on the basis of
an agreement with such an enterp rise or permanent establishment;

15) income paid in the form of insurance premiums under a risk insurance or reinsurance
agreement in the Republic of Tajikistan;

16) income from telecommunicati ons or transportation services involving international
communications or shipments between the Republic of Tajikistan and other states;

17) income from activity in the Republic of Tajikistan under individual labor agreements
(contracts) or under other agreem ents of a civil-legal nature;

18) honoraria for managers and/or other payments received by members of an executive
management body (board of directors, board, or other similar body) of a resident legal entity,
regardless of where the administrative duties assi gned to such persons are actually performed;

19) supplemental payments provided in connection with residing in the Republic of
Tajikistan;

20) income received by nonresident i ndividuals working in the Republic of Tajikistan, in the
form of reimbursement paid to them (to said person s) on the part of (at the expense of) employers or
persons hiring them for costs incurr ed by these nonresident individuals for material and social goods
or other material benefits, in cluding expenditures on meals, h ousing, enrollment of children at
educational institutions, and expe nditures on leisure activities, including vacation travel for family
members;

21) pension payments provided by resident pension savings funds;

22) income paid to theater and film actors, radio and television employees, musicians, artists,
and athletes in connection with activity in the Republic of Tajikis tan, regardless of the person to
whom the payment of such income is made;

23) winnings paid by residents;

24) income earned from providing independent personal (professional) services in the
Republic of Tajikistan;

25) income in the form of property located in the Republic of Tajikistan that is received free
of charge, including inco me on such property;

26) other income not covered by the preceding subitems earned on th e basis of activity in the
Republic of Tajikistan.

When determining the source of income in accordance with th is item, the place where the
income is paid shall not be taken into consideration.

9. In-kind income – income in the form of the delivery of goods, the performance of work, or
the provision of services.

10. Dividends – any distribution of funds or property by a legal entity among its partners
(shareholders), including: income received by a shareholder (partner) from a legal entity-issuer in
the distribution of annual after-tax profits in proportion to the number of the shareholder’s shares
(the partner’s stake) in the authorized (share, statutory) capital of the legal entity; dividends
(income) received by a shareholder (partner) that are disguised by other payments; income received
by a shareholder (partner) from the distribution of funds or property through the buy-out by the legal
entity-issuer of its shares; and income received by a shareholder (partner) from the distribution of
property in the event of the liquidation of a legal entity, less (in both cases) the value of property
(shares) invested by a founder (partner) as a cont ribution to authorized capital (share capital).
Income received by a shareholder (partner) in the fo rm of a legal entity-issuer’s distribution of its
own shares among shareholders, which (distributi on) does not alter the percentage (stake) of
shareholders’ shares in the share (statutory) capital of the legal entity-issuer, shall not be considered
a dividend.
11. Land for housing construction – this shall refer to land in cities and urban-type
settlements allotted to individuals in accordance w ith the Land Code of the Republic of Tajikistan
for housing construction.

12. Electronic signature of a ta xpayer – a specially encoded means of ensuring the
authenticity, integrity, and authorship of electronic documents.

13. Performance of work – any performance of work for remuneration.

14. Partner – a shareholder, part owne r, or other participant in an enterprise’s assets and
profits.

15. Work – activity the results of which have a tangible form, including construction,
installation, and repair work, scien tific research, and research and development, shall be considered
work.

16. Subsidiary – an enterprise shall be considered a subsidiary if another (parent) enterprise
holds a stake equal to 50 percent or more of the equity (shares) with voting rights in this enterprise.

17. Humanitarian assistance – prope rty provided free of charge to the Republic of Tajikistan
in the person of its subjects in the form of food, consumer goods, hardware, tools, equipment,
medical supplies and medicines, and other items sent from foreign countries and international
organizations to improve the living conditions an d daily life of the population, and also for the
prevention and clean-up of emergencies of a militar y, environmental, natural, industrial, or other
nature, distributed following the procedure estab lished by the Republic of Tajikistan government.

18. Charitable assistance – property given free of charge to individuals for the purpose of
providing them with social suppor t and to nonprofit organizations for the purpose of supporting their
chartered activities.

19. Territory of the Republic of Tajik istan – this shall refer to the customs territory of the
Republic of Tajikistan in accordance with th e definition in the customs legislation.

20. Bad (problem) debt – this shall refer to an amount owed to a taxpayer which the taxpayer
is not able to recover in full due to the insolvency or liquidation of the debtor, or when the reality of
receiving it from the debtor or a third party is unlikely. In any cas e, a debt on which not a single
payment has been made for three years from the da te a payment was supposed to be made shall be
considered a bad (problem) debt.

21. Household plots – this shall refe r to agricultural land allotted to individuals in accordance
with norms established by the La nd Code of the Republic of Tajikistan, including the land area
occupied by structures and courty ards. Household plots shall not include parcels of land allotted
following the established procedure for the establis hment of peasant (owner-operated) farms, and
they shall not include parcels of land provided to individuals under a lease arrangement.

22. Source of payment of income – a legal entity or individual from whom (at whose
expense) a subject (another person) receives income.

23. Authorized government body – a central executive body of the Republic of Tajikistan
that provides for tax control to ensure the fulfillment of tax obligations to the state, as determined by
the Republic of Tajikistan government.

24. Authorized bodies – government bodies of the Republic of Tajikistan, with the exception
of tax authorities, which are au thorized by the Republic of Tajik istan government to perform the
calculation and/or collecti on of other compulsory payments to the budget.

25. Individual’s place of residence – the place where a given individual maintains his
permanent or primary residence. This place may be different from the given individual’s registered
address.

26. Location of a separate subdivision of a legal entity – the place where a given legal entity
does business through a separate subdivision; the place where the separate subdivision is actually
located.

27. Agricultural products – this shall refer to the initial result (product) of the cultivation of
agricultural crops and livestock (including the live animals themselves) that has not undergone
further processing.

28. Goods – any tangible or intangibl e property, including electricity and thermal power, gas,
and water. For purposes of the value-added tax, g oods shall not include intangible property, cash,
and land.

29. Insurance premium (insurance cont ribution) – the amount paid by an insured person to an
insurance institution for assumption by the latter of the obligation to provide restitution for losses
sustained by the insured person or to make an insurance payment (insurance compensation) to the
insured person should certain ev ents occur (insured event).

30. Tax regime – the set of norms established by the tax legisla tion and applied by a taxpayer
in the calculation and payment of all taxes paya ble to the budget as established by this Code.

31. Foreign Economic Activity Commodity Nomenclature – a system of commodity
classification codes adopted in accordance with the International Convention on the Harmonized
Commodity Description and Coding System (t he Foreign Economic Activity Commodity
Nomenclature of the Eurasian Economic Community).

32. Notification – any written messa ge prepared in consideration of the requirements of
Chapter 5 and other provisions of th is Code, sent by tax authorities to taxpayers, tax agents, or other
persons.

33. Family – spouses, children, and parents residing together and maintaining a common
household.

34. Taxpayer Identification Number (TIN) – a number assigned by tax authorities to a legal
entity or individual.

35. Resident – a resident individual, resident enterprise, or re sident nonprofit organization.

36. Re-import of goods – the importation of goods by the person who exported the given
goods, without their further delivery or alteration after export.

37. Re-export of goods – the exportation of goods by the person who imported the given
goods, without their further delive ry or alteration after import.

38. Royalties – payment for the right to use minerals in the process of the extraction of
minerals and processing of industrial by-products ; for the use or the right to use copyrights,
software, patents, sketches and models, trademarks , and other rights associated with them; for the
use or the right to use industria l, commercial, or scientific research equipment; for the use of
technological knowledge; for the use or the right to use motion pictures, video films, audio
recordings, or other recorded media; for providing technical assistan ce in connection with the above;
or for denial of the use of a ny of the aforementioned rights.

39. Export of goods – the exportation of goods from the territory of the Republic of
Tajikistan in accordance wit the customs legi slation of the Republic of Tajikistan.

40. International organization – this shall refer to a subject of international law established
on the basis of an agreement among states or governments of states.

41. Separate subdivision of a legal entity – any geographically separate subdivision of a legal
entity whose location is equipped with fixed workpl aces and that performs some of the functions of
the legal entity. A workplace shall be considered fixe d if it is established for a period of more than
one month.

42. Delivery of goods – transfer of ownership rights to goods, including their sale, exchange,
or presentation as a gift, transfer free of charge or with partial payment, payment of wages in kind,
and other payments in kind, as well as transfer of ownership of mortgaged goods to the mortgage
holder.

43. Transit across the territory of the Republic of Ta jikistan – the shipment of goods under
the control of customs authorities across the terr itory of the Republic of Tajikistan between two
points on the customs frontier of the Republic of Tajikistan.

44. Accrual method – tax acc ounting method under which income and expenditures are
recorded at the time work is performed, services are provided, or goods are shipped (delivered) for
the purpose of their sale and th e receipt of property, regardless of the time of payment.

45. Net profit (net income) – profit (income) remaining after th e deduction of the profit tax
(income tax) from taxable profit (taxable income).

46. Interest – any payment related to a debt obligation, including a tax obligation, including
payments for credits (loans) granted a nd for funds held on deposits (accounts).

47. Hospitality expenses – this shall refer to expenses related to hosting and providing
services for any persons, includi ng those effected for the purpose of establishing or maintaining
mutual cooperation, as well as participants arriving to attend meetings of a board of directors or
auditing commission, or shareholders’ meetings. Hospita lity expenses shall include expenses related
to holding official receptions for said persons, an d providing refreshments (meal services) for them
during negotiations.

48. Relatives –

1) persons recognized as such in accordance with the family legislation of the Republic of
Tajikistan;

2) persons who as a result of long- term guardianship or serving as foster parents have
established a relationship similar to that of relatives.

Guardianship or foster-parent re lationships between persons residing together shall be
equivalent to family relationships. The fact that su ch persons may no longer reside together shall not
be taken into consideration when determining that a relationship similar to that of relatives remains
in place.

49. Provision of services – any activ ity for remuneration that does not entail the delivery of
goods or the performance of work, including:

1) transportation and freight forw arding services, including the transport of gas, oil, and
petroleum products and the delivery of electricity or thermal power;

2) leasing of movable property or real estate;

3) communications services, consumer services, housing and municipal services;

4) services in the area of physical education and spor ts, educational and medical services;

5) advertising services;

6) services related to the updating of technology, data processing services, and data base
management services;

7) services rela ted to the pre-sale preparation of goods;

8) services related to the stor age of goods or other property or security services;

9) other services, but excluding for purposes of the value-added tax the transfer of ownership
rights to cash and leasing arrang ements associated with land, as well as services provided to an
employer in the capacity of an employee.

50. Financial services –

1) the granting, sale, or transfer of credits, credit guarantees and any other security for
money lending transactions, includ ing the management of credits and credit guarantees by a person
who has granted the credit or guarantee;

2) the granting, sale, or transfer of loans (including micro-loans), guarantees on loans
(micro-loans) and any other secu rity for money-lending transactio ns, including the management of
loans (micro-loans) and guarantees on loans (micro-loans) by a person who has granted the loans
(micro-loans) or guarantees;

3) operations related to the management of deposits and accounts, payments, money
transfers, debt obligations, means of payment, and instruments of customers;

4) operations related to the circ ulation of currency, cash, and banknotes that are legal tender
(other than numismatic items);

5) operations related to the circ ulation of stocks, bonds, certificates, bills of exchange,
checks, and other securities (other than services related to their safekeeping);

6) operations involving transactions with derivative instruments, forward contracts, options,
and similar agreements;

7) services relate d to the management of investment funds;

8) insurance and reinsurance operations;

9) financial leasing. For the purposes of this Code financial leasing shall be treated as a
single operation consisting of th e acquisition (delivery and/or im port) of depreciable tangible
property (depreciable fixed assets) and/or its leas ing in accordance with Articles 33 and 192 of this
Code.

A specific list of operations defined by the term “financial services” in accordance with this
item shall be established by the Republic of Tajikis tan Ministry of Finance in consultation with the
National Bank of Tajikistan and the authorized government body.

51. Share interest – the contributi on of property by individuals and legal enti ties to the
establishment of enterprises, with the exception of joint-stock companies.

52. Electronic taxpayer document – a document compiled and transmitted following an
established electronic format, which has been enc oded and certified by an electronic signature, and
which serves as an official reporting document after it has been accepted and its authenticity has
been verified.

53. Insurance payment (insuran ce compensation, insured amount) – the amount paid by an
insurance organization to an insured person under pr operty and liability insurance to cover losses
sustained as a result of insured events.

54. Leasing company – a legal entity that earns more than 50 percent of its income from
leasing operations.

55. Person – an individual or legal en tity in accordance with the Civil Code of the Republic
of Tajikistan. Except as otherwise provided by th is Code, a corporation, company, firm, foundation,
institution, or other entity established in accordance w ith the legislation of a foreign state, as well as
their separate subdivisions (subsidiaries, represen tative offices, permanent establishments, etc.)
established in accordance with th e legislation of a foreign state or the Republic of Tajikistan,
international organizations, their branch offices and representative offices, established and/or
functioning on the territory of the Republic of Tajikistan, for th e purposes of this Code shall be
treated as independent legal entities regardless of whether they have the status of a legal entity in the
foreign state in which they were established.

SECTION II. GENERAL ADMINISTRATIVE PROVISIONS

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 othe rwise provided by this Code.

The rules set forth unde r 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 object s related to taxation;

3) the recording of budget receipts;

4) the recordi ng 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 re sponsible 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 frontie r of the Republic of Tajikistan,
in accordance with this Code and the custom s 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 legislat ion, 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 result s 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 pe rsonal 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 th e procedure established by this Code and other
legislative acts of the Republic of Tajikistan;

7) to reque st the observance of tax secrecy;

8) not to provide informa tion 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 offi cials 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 auth orities 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 right s 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 legi slation 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 th e 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 oblig ations in full in accordance with this Code;

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

4) to allow tax authority officials to exam ine 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 ta x reporting forms, and documents to the appropriate tax
authorities, following the proce dure 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 serv ices, using cash, bank payment cards, and checks
accompanied by the mandatory application of cash regi sters with fiscal memory and the issuance of
a receipt directly to the consum er in accordance with this Code;

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

8) to preserve accounting data, ot her 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 subdiv isions 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 inso lvency (bankruptcy), liquidation, or reorganization no later
than 10 calendar days from the date such a decision is made;

3) regarding a change in their lo cation 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, ex cept as otherwise provided by this Code.

2. Personal participation by a taxpaye r in relations governed by the legislation on taxes shall
not deprive him of the right to ha ve 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 representati ve 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 repr esentatives 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 legislati on of the Republic of Tajikistan shall be recognized as legal
representatives of a taxpayer that is an individual.

Article 41. Actions (Inactio n) 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 (i naction) 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 taxpa yer’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 establishe d 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 respectiv e currencies to the U.S. dollar.

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

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

Income (profit) earned shall be subj ect 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 earn ed illegally and is subject to forfeiture to the state, an amount
equal to the difference between the unlawful inco me or an element (part) thereof and the taxes
previously withheld (paid) in fa vor of the state from said unlawfu l income or an element (part)
thereof shall be subject to transfer to the state budget.

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

1) not to take into account transact ions 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 s ituation if the form of the
transaction is not consis tent with its content.

3. Tax authorities shall have the ri ght to establish (assess) the amount of tax owed using
direct or indirect valu ation 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 es tablished 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 transacti on 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 tr ansaction been effected between unrelated persons. If a taxpayer
applies prices in commercial or financial transac tions with a related party that are different from
those applied between unrelated pe rsons, for purposes of taxation tax authorities shall adjust the
taxpayer’s income by the re sulting price difference.

5. In the event that an individual declares income that is not consistent with expenditures
actually effected on personal cons umption, 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 eff ected 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 accord ance with the provisions of Article 32 of this Code, it shall
recalculate the tax amount, and impose sanc tions 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 authori zed government body that has been approved by the Republic of
Tajikistan Ministry of Finance.

Article 45. Registration of Taxpayers. Proced ure 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 year s of age (referred to
hereinafter in this article as “taxpayer” or “taxpayers”) shall be require d to register with tax
authorities serving the area where the legal entity is located, where its separate subdivisions are
located, where the individual maintain s his place of residence, and also where real estate and means
of transport belonging to him th at are subject to taxation are located, respectively, following the
procedure determined by the authorized govern ment 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 es tate and means of transport which are subject to
taxation, shall be required to regist er as a taxpayer both with the tax authority serving the area where
the legal entity itself is located, and with the one s 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, taki ng into account the provisions of this article, shall
have the right to establish specific requirements for the re gistration 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 w ith tax authorities shall be performed by the tax authority
serving the area where an individual maintains hi s 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 en tity is located within 30 calendar days of its state registration.

5. In the case of a legal entity doing busin ess in the Republic of Tajikistan through a separate
subdivision, a legal entity’s application for regist ration 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 da ys 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 obj ect 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, th e 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 referre d to in subitem 1) of this item – the place (port) of
registry or place of state registra tion, and in the absence of such – the location (place of residence)
of the property owner;

3) for real estate – the actual locati on 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 imme diate 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 auth ority 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 righ t, 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 followi ng documents, which have been certified following
the established procedure: a ce rtificate 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 applica tion, an individual shall simultaneously submit the passport
issued to him as a citizen of the Republic of Taji kistan (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 in formation 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 with in 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 regist ration 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 sh all be required to notify the tax aut hority with which they are registered
of changes to their charter and other foundi ng documents, including those related to the
establishment of new separate subdivisions or th eir 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 enga ge 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 cha nged 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 ta xpayer’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 ot her person authorized by the legislation within 10
calendar days of the submission of such a request.

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

16. When registering a legal enti ty 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 re sidence, each of these persons, including the
aforementioned separate subdivisions, shall be as signed 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 referre d to in this article) and may not be assigned
to another taxpayer (any other indivi dual or legal entity), even in the event of the liquidation of a
given taxpayer that is a legal entity (or a separate subdivision th ereof) 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), a nd 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 rele vant tax authority regarding the assignment of a taxpayer
identification number to an individual who is a citizen of the Repub lic 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 recordi ng 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 sh all 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 (c ontracts, agreements), and in other documents as specified by
this Code. The TIN must be indi cated on letterhead and stamps of legal entitie s and individual
entrepreneurs following the procedure estab lished by the authorized government body in
consultation with the Republic of Tajikistan Ministry of Internal Affairs.

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

19. An instruction on the procedur e 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 unde r the Republic of Tajikistan government.

Article 46. Provisions Specific to the Registra tion 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 servi ng 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 establishm ent shall be required to register with a tax
authority within 30 calendar days of the da te such entrepreneurial activity begins.

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

4. An individual or legal entity, including nonresiden ts, whose activities are treated as a
permanent establishment of a nonresident legal en tity 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 cal endar days of the date a relevant agreement
(contract) is concluded with the partner or with in 10 calendar days of the date such activities
actually begin, for the purpose of the assignmen t 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 whic h a contract (agreement) is concluded:

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

– granting authorities to perf orm actions in the Republic of Tajikistan on its (the
nonresident’s) behalf;

– for the purchase of goods in th e Republic of Tajikistan for the purpose of their onward
delivery;

– as a joint operating agreement (p articipation in a simple partnership) in the Republic of
Tajikistan;

– for the purchase of work (services) for the purpose of d
oing business in the Republic of
Tajikistan;

2) the date on which an individual labo r 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 agre ement (purchase and sale agreement, property leasing
agreement) is concluded indica ting the opening of an office.

In the event that several of the conditions re ferred 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 earni ng 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 govern ment may establish other special requirements for the
registration of nonresident indi viduals and legal entities.

Article 47. Responsibilities of Bodies Perf orming the State Registration of Legal
Entities, Individuals’ Place of Residen ce, and Civil Status Documents; Issuing
Passports to Citizens; and Recording and Registering Property and Property
Transactions

1. Bodies that perform the state regist ration 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 re porting month before the 15
th of the month
following the reporting month.

2. Bodies that issue licenses, certificates, and other similar doc uments to individuals and
legal entities shall be required to notify the approp riate tax authorities serving the area in which they
are located of persons to whom they have issu ed such documents, who have had such documents
revoked, or whose documents have expired, before the 15
th 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 registra tion of individuals based on their place of residence or the
registration of civil status documen ts 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 Ta jikistan, respectively, during the first 15 days of the
reporting month, and such notificati on must be provided before the 15
th 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 sh all 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 bodi es, childcare and medical institutions, social protection
institutions, and other similar inst itutions 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 establishm ent of a guardianship for individuals who have
been found to be incompetent by the courts, of gu ardianship, foster care, and management of the
property of young children, other minor s, 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 declar ed 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 15 th 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 15
th 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 15
th 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 rece ipt 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 re lations among bodies referred to in this article shall be
determined in instructions issued by the aut horized government body and the relevant government
authorities whose functions include those referred to under items 1–7 of this article.

CHAPTER 4. TAX AUDITS AND OTHER FORMS OF CONTROL

Article 48. The Concept and Types of Tax Audits

1. A tax audit shall refer to an inspection by tax authorities of compliance with the tax
legislation of the Republic of Tajikistan. Participants in tax audits shall be tax authority officials
referred to in an official order and the taxpayer.

2. Tax audits shall be performed exclusively by tax authorities in accordance with this Code.

3. Tax audits shall be broken down into the following types:

1) documentary audit;
2) field audit;
3) time-study survey.

4. Documentary audits shall be broken down into the following types:

1) comprehensive audit – an audit of compliance with the tax legislation for all types of
taxes;

2) targeted audit – an audit of compliance with the tax legislation for one type of tax;

3) counter audit – an audit performed with respect to third parties in the event that in the
course of performing tax audits a tax authority needs to obtain a dditional information regarding the
proper tax accounting of transactions by a taxpayer.

5. A field audit shall be performed by tax authorities with respect to individual taxpayers to
determine their observance of indi vidual requirements of the tax legislation of the Republic of
Tajikistan, namely:

1) the registratio n of taxpayers with tax authorities;

2) the proper applica tion of cash registers with fiscal memory;

3) the existence of licenses and other permits;

4) observance of regulations c oncerning the production, bottling (packaging), storage, and
sale of excisable goods.

6. Time-study surveys shall be perf ormed by tax authorities with the aim of determining a
taxpayer’s actual income and act ual expenses related to earning said income. Time-study surveys
shall be performed following the procedure established by the authorized government body.

7. Documentary tax audits, including unscheduled ones, shall be performed by tax authorities
on the basis of requests from law enforcement aut horities exclusively with respect to taxpayers
about whom written information has been received c onfirming that a criminal case has been filed in
connection with evidence of tax-related crimes, in accordance with the legislation of the Republic of
Tajikistan.

8. The performance of a tax audit must not suspend the taxpayer’s activities, except in those
cases established by legislative ac ts of the Republic of Tajikistan.

9. A tax authority shall have the right to audit separate subdivisions of a legal entity
regardless of whether an aud it of the parent legal entity itself is performed.

Article 49. Frequency of Tax Audits

1. Tax audits shall be performed with the following frequency:

1) comprehensive audits shall be performed no more than once a year;

2) targeted audits shall be perfor med no more than once every six months with regard to the
same type of tax.

If a comprehensive audit of a taxpayer has been performed in a tax year, targeted audits shall
not be performed with respect to the same taxpaye r for 12 months from the date the comprehensive
audit was completed.

Payers of the tax paid under th e simplified system and payers of the uniform tax for
producers of agricultural products in accordance with Chapters 41 and 42 of this Code shall be

subject to comprehensive tax audits no more than once every two years, and to targeted audits no
more than once a year.

2. Tax audits focused on specific ta xes shall be performed on the basis of tax periods that
have ended.

3. The restrictions provided for under item 1 of this article shall not apply to the following
cases:

1) when documentary tax audits are conducted in connection with the reorganization or
liquidation of a legal entity and the termination of operation of an individual entrepreneur, and also
in the event of removal from regi stration for the value-added tax on the basis of a taxpayer’s request.
In this case an audit must be initiated no late r than 30 calendar days after the receipt of the
taxpayer’s request;

2) when documentary audits are c onducted in connection with the expiration of a contract for
the use of mineral resources;

3) when counter audits are performed;

4) when targeted audits are conduc ted on the basis of a taxpayer’s request to verify the
correct amount of value-added tax fo r which a refund has been requested;

5) when supplemental audits ar e conducted on the basis of a decision by a body reviewing a
taxpayer’s appeal regarding notif ication of a tax audit report;

6) when unscheduled documentary a udits are conducted in accordance with an order issued
by the first director of the author ized government body (or an authori zed official acting in his place)
with respect to an individual taxpayer, and al so on those grounds provided for under item 7 of
Article 48 of this Code.

Tax authorities may conduct counter audits only on the basis of a separate order issued by
the first director (or an official acting in his place ) permitting the performance of the principal audit.

4. Tax authorities shall be prohibited from performing repeat documentary tax audits of a tax
period that has already been audite d, with the exception of cases in which such an audit (within the
statute of limitations established under Article 86 of this Code) is performed in connection with the
reorganization or liquidation of a legal entity-taxpayer or by a higher-level tax authority (the
authorized government body) provided there are sufficient grounds for doing so, for the purpose of
monitoring the activities of the ta x authority that performed the audit, and also on the basis of
subitem 5) of item 3 of this article or on the basis of a written request from the taxpayer.

In the event that additional taxes are assessed in the co urse of a repeat documentary audit of
a tax period that has alrea dy been audited, the taxpayer shall be exempt from liability in the form of
penalties and interest established by this Code wi th respect to these tax obligations, for the period
from the moment such tax obligations are incurr ed until the additional assessment takes place during
the repeat documentary tax audit. A taxpayer shall not be exempt from the requirement to transfer
the additional tax payments to the appropriate budget in a timely manner (within the established
deadline).

Article 50. Deadlines for the Performance of Tax Audits

1. The deadline for the performance of tax audits specified in orders that are issued must not
exceed 30 business days from the date the order is presented, except as otherwise provided by this
article.

2. When a tax audit is performed of a legal entity that has a separate subdivision, as well as
taxpayers that are registered w ith the Tax Inspectorate for Larg e Taxpayers, the deadline for the
performance of a tax audit may be set by a tax authority at up to 60 business days.

3. The time counted toward the deadline for performance of a tax audit shall be suspended by
the period of time between the moment that a taxpayer receives requests from the tax authority to
provide documents and the taxpayer’s presentation of the documents requested in process of the tax
audit, and also by the period of time required to ob tain information and documents from third parties
at a tax authority’s request.

4. The deadlines for the perfor mance of time-study surveys shall be established in
accordance with the procedure for the performa nce of time-study surveys established by the
authorized government body.

Article 51. Grounds for the Performance of a Tax Audit

1. An order containing the following de tails shall serve as the grounds for the performance of
a tax audit:

1) the date and regist ration number of the order at a tax authority;

2) the name of the tax authority that issued the order;

3) the full name of the taxpayer;

4) the taxpayer identification number;

5) the type of audit;

6) the titles, last names, first names, and patronymics of the persons performing the audit;

7) the deadline for performance of the audit;

8) the tax period being audited in the case of documentary audits.

2. When field audits are called for, the order must indicate the physical area that is to be
inspected, issues that are to be clarified in the co urse of the audit, as well as information specified
under item 1 of this article, with the exception of subitems 3), 4), and 7).

3. When targeted and counter audits are called for, the order shall specify the type of tax
being audited.

4. An order must be signed by the first director of a tax authority or an authorized official
acting in his place and it must be certified by the official stamp and recorded in a special ledger in
accordance with the procedure establis hed by the authorized government body.

5. Only one audit may be performed on the basis of a single order.

Article 52. Beginning of a Tax Audit

1. The moment that a taxpayer (tax ag ent) is presented with an order shall be considered the
beginning of a tax audit.

2. Tax authority officials performing a tax audit shall be required to present a taxpayer (tax
agent) with their official identifi cation and to make an entry to this effect in the Registration Book of
Audits of Economic Entities.

3. A tax authority official performi ng a tax audit, with the exception of field audits, shall
present the taxpayer with the original copy of th e order. A notation shall be made by the taxpayer
(tax agent) in a copy of the order indicating that he has read the order and received a copy.

4. When field audits are performed, the taxpayer shall be presented with the original copy of
the order for review and a copy thereof shall be gi ven to the taxpayer, which has been signed by the
tax authority official performing the audit. A notation shall be made by the taxpayer, along with his
signature, indicating that he has re ad the order and received a copy.

5. A refusal by a taxpayer (tax agen t) to accept an order shall not serve as grounds for
cancellation of a tax audit.

Article 53. Access by Tax Authority Offici als to Grounds or Premises for the
Performance of a Tax Audit

1. A taxpayer shall be required to grant access to tax authority officials performing a tax
audit to grounds or premises (other than residential premises) used to earn income, or to objects of
taxation and objects related to taxation, for inspection purposes.

2. A protocol shall be drawn up in th e event that tax authority officials performing a tax audit
are hindered from gaining access to said grounds or objects of taxation or objects related to taxation,
or to premises (other than residential premises).

3. A protocol shall be signed by th e tax authority officials performing a tax audit and by the
taxpayer (tax agent). In the event of a refusal to sign said protocol, the taxpayer (tax agent) shall be
required to provide a written explanation of the re asons for the refusal. If a taxpayer refuses to
provide a written explanation of the reasons for not signing a prot ocol, the tax authority officials
performing a tax audit shall draw up a report on the taxpayer’s refusal to sign the protocol in the
presence of two witnesses, and the report shall be signed by these officials and the witnesses and
measures shall be undertaken as provided for by this Code.

4. Tax authority officials must carry with them special passes if such passes are required for
access to the grounds or premises of a taxpayer in acco rdance with legislative acts of the Republic of
Tajikistan.

5. A taxpayer shall have the right not to allow access to grounds or premises by tax authority
officials for the performa nce of a tax audit if:

1) there is no order or an order has not been presented or has not been drawn up following
the established procedure;

2) the time period for performing the audit as indicated in the order has not yet arrived or has
expired;

3) the given pe rsons are not mentioned in the order;

4) the documents requested do not pertain to the tax period being audited;

5) the tax authority officials have refused to make an appropriate entry regarding the tax
audit in the Registration Book of Audits of Economic Entities.

6) there are no special passe s as referred to under item 4 of this article.

Article 54. Seizure of Documents

The seizure of documents shall be carried out in accordance with this Code and legislative
acts of the Republic of Tajikistan.

Article 55. Completion of a Tax Audit

1. Upon completion of a tax audit tax authority officials shall draw up a tax audit report
indicating:

1) the location of the tax audit and the date the report was drawn up;

2) the type of audit;

3) the titles, last names, firs t names, and patronymics of the tax authority officials
performing the audit;

4) the last name, first name, and patronymic or the full name of the taxpayer (tax agent);

5) the location and bank details of the taxpayer (tax agent), as well as the taxpayer
identification number;

6) the last names, first names, and patronymics of the manager an d officials of the taxpayer
(tax agent) who are responsible for maintaining tax records and accounting and for the payment of
taxes to the budget;

7) information about previous aud its and measures taken to remedy violations of the tax
legislation of the Republic of Ta jikistan previously identified;

8) the tax period being audited and general informa tion about documents presented by the
taxpayer (tax agent) for performance of the audit;

9) a detailed description of the tax violation with a reference to the relevant provision of the
tax legislation of the Republic of Tajikistan;

10) the results of the tax audit.

2. A tax audit shall be considered completed on the date on which the taxpayer is presented
with a tax audit report or the date on which a tax audit report is sent to him by registered letter with
a return receipt in the event that the taxpayer (tax agent) refuses to accept the tax audit report, but
not later than five business days from the deadline specified in the order.

3. In the event that no violations of the tax legislation are identified upon completion of a tax
audit, a notation to this effect shall be made in the tax audit report.

4. The required copies of documents , calculations performed by a tax authority official, and
other materials obtained in the co urse of a tax audit shall be attached to a tax audit report.

5. At least two copies of a tax aud it report shall be prepared and signed by the tax authority
officials who performed the ta x audit and by the taxpayer.

6. One copy of a tax audit report sha ll be presented to the taxpayer (tax agent). Upon receipt
of a tax audit report a taxpayer (t ax agent) shall be required to make a notation on and sign the other
copy of the report indicating th at he has received a copy.

If a taxpayer (tax agent) has refused to accept a tax audit report, a note to this effect shall be
made on the copy of the tax audit report kept by the tax authority, which shall be confirmed by the
signatures of the tax authority officials who performed the tax audit. In this case the tax audit report
shall be sent to the taxpayer (tax agent) by registered letter with a return receipt.

7. A tax audit report shall be recorded in a special ledger fo r the recording of tax audit
reports and orders, which is maintained at ea ch tax authority and must be numbered, bound, and
sealed with the official stamp of the tax author ity. The form and procedure for maintaining this
special ledger, as well as the procedure for the st orage of tax audit reports, shall be determined by
the authorized government body.

Article 56. Decision Based on Tax Audit Results

1. Upon completion of a tax audit, based on the results reflected in the tax audit report, a tax
authority shall issue a notification under the signature of the first director of the tax authority or a
person serving in his place, indicat ing the amount of taxes, penalties, and interest assessed, which
shall be sent to the taxpayer (tax agent) within 10 business days of the date on which the tax audit is
completed.

2. A tax authority shall register the no tification of the amount of taxes, penalties, and interest
assessed and the tax audit re port under the same number.

3. A notification of the amount of taxes, penalties, and interest assessed must contain the
following information:

1) the date and registration number of the notification and the tax audit report;

2) the last name, first name, and patronymic or full name of the taxpayer;

3) the taxpayer identification number;

4) the amount of taxes assessed, including interest and penalties;

5) a request for payment and the payment deadlines;

6) details regarding the taxes in question (account numbers to which the assessed amounts
should be posted);

7) the deadlines and place for filing an appeal.

4. A taxpayer who has received a notif ication of the amount of taxes, penalties, and interest
assessed must comply with the notification by th e deadlines specified therein, unless the taxpayer
has filed an appeal of th e results of a tax audit.

5. In the event that no violations of the tax legislation are identified upon completion of a tax
audit, the taxpayer shall also receive a notification to this effect.

Article 57. The Concept of In-House Control

In-house control shall refer to control performed directly by a tax authority based on a study
and analysis of tax returns submitted by a taxpayer and other documents. In-house control shall be
performed directly at a tax authority’s offices.

Article 58. Results of In-House Control

1. In-house control shall be performed by authorized officials of a tax authority in
accordance with their official duties, without any speci al decision (order) from the director of the tax
authority.

2. In the event that a tax authority iden tifies errors in tax returns, discovers inconsistencies in
the information contained in tax retu rns, and also if the indicators specified for payers of the tax paid
under the simplified system are exceed ed, a notification shall be sent to the taxpayer to allow for the
independent correction of the errors that have been made, as well as notificat ion of conversion to the
generally established taxation procedure. The additional assessment of taxes arising from errors
identified in the course of in-house control shal l be performed only by the tax authority with which
the taxpayer is registered.

Article 59. Application of Cash Registers with Fiscal Memory

1. On the territory of the Republic of Tajikistan monetary settlements effected with
consumers involving the sale of goods or performa nce of services by means of cash, bank payment

cards, and checks shall be performed with the mandatory application of cash registers with fiscal
memory, and a receipt must be issued to the consumer.

The provision of this item shall not apply to monetary settlements:

1) by individual entrepreneurs (with the exception of those selling excisable goods):

– doing business on the basis of a patent;

– if six months have not passed si nce the date of the taxpayer’s state registration as an
individual entrepreneur (with the exception of one doing busin ess on the basis of a patent)

2) by taxpayers that are related to performing services for the public in which receipts,
tickets, coupons, postal payment stamps, or other re gistered high-security documents equivalent to
checks are issued following forms established by th e Republic of Tajikistan Ministry of Finance;

3) attorneys, physicians, and other persons in free professions as determined by the Republic
of Tajikistan government;

4) individuals who are exempt from the income tax in accordance with subitems 12) and 13)
of Article 141 of this Code and who are engaged in the sale of agricultural goods of their own
production at public markets and at other speciall y designated sites outside permanent premises.

2. The procedure for the application of cash registers with fiscal memory shall be established
by the Republic of Tajikistan government.

3. Cash registers with fiscal memory shall refer to electronic devices with a fiscal memory
unit and/or bank computer systems used for the recording of cash settlements with consumers
involving the sale of goods and performance of services, which provide unalterable monthly
recording and long-term storage of information that is not dependent on power. The authorized
government body, in consultation with the Republic of Tajikistan Ministry of the Economy and
Trade, shall establish a State Registry of Cash Re gisters with Fiscal Memory that are approved for
use on the territory of the Republic of Tajikistan.

4. In the event of a technical malfunction of a cash register with fis cal memory or an electric
power failure, it shall be permitted to use and issue to buyers receipts for goods following the
procedure provided for under subitem 2 of item 1 of this article.

Article 60. Requirements for the Application of Cash Registers with Fiscal Memory

The following requirements shall be established for the application of cash registers with
fiscal memory:

1) prior to being put into operation, cash registers with fiscal memory must be registered
with the tax authority serving the area in which business is to be conducted;

2) a receipt must be pr ovided from a cash register with fiscal memory;

3) tax authorities must have access to a cash register with fiscal memory.

Article 61. Tax Control to Ensure Compliance with the Procedure for the Application
and Use of Cash Registers with Fiscal Memory

Tax authorities:

1) shall monitor compliance with the procedure for the applicatio n and use of cash registers
with fiscal memory;

2) shall use data stored in the fiscal memory units of cash registers with fiscal memory when
conducting tax audits.

Article 62. Control of Excisable Goods

1. Excisable goods shall be subject to sealing with excise stamps following the procedure
and under the conditions determined by the authorized government body.

2. The manufacturers and importer s of excisable goods shall be responsible for applying
excise stamps to excisable goods.

3. Following the procedure establ ished by the authorized government body, a tax authority
shall monitor compliance by the manufacturer of excisable goods with the regulations for the
stamping of certain types of excisable goods.

4. A tax authority shall establish excise posts on the grounds of a taxpayer engaged in the
production of excisable goods, following the proce dure established by the Republic of Tajikistan
government.

5. If imported excisable goods are supposed to be sealed with excise stamps, customs
authorities of the Republic of Tajikistan shall be prohibited from processing these goods under the
release of goods for free circulation, the duty-fr ee shop, the free customs zone, and the free
warehouse customs regimes without the prior app lication of the appropriate excise stamps.

Article 63. Monitoring of Authorized Bodies

Tax authorities shall monitor authorized bodies to ensure the proper calculation, full
collection, and timely transfer of taxes and other compulsory payments to the budget.

CHAPTER 5. CONTACT WITH TAXPAYERS

Article 64. Correspondence with Taxpayers

Any notification or any other document sent by a ta x authority to a taxpayer must be
executed in writing, signed by the dir ector or an authorized official of a tax authorit y, indicating his
last name and initials, and it must be certified by an official stamp and sent or presented to taxpayer
in person. Documents shall be considered to have been properly presented if they are delivered to
the taxpayer’s address by register ed mail with return receipt or presented in person to the taxpayer
or his authorized representative.

Article 65. Validity of Notifications and Other Documents

No notification of a tax assessment or other document prepared in accordance with the tax
legislation shall be considered invalid if:

1) they are consistent with this Code in terms of their content and nature;

2) the person who is being assessed th e tax or to whom the documents pertain is indicated in
a manner that is intelligible to all.

Article 66. Procedure for the Establishment of Obligations

In consideration of Articles 64 and 65 of this Code, no notification of a taxpayer by tax
authorities shall be legally binding for the tax authorities or the taxpayer if it has not been executed
in writing and has not been pres ented to the taxpayer as required.

Article 67. Written Interpretations Regarding Applicatio n of the Tax Legislation

1. A specific taxpayer shall be provide d with a written interpretation of the application of the
tax legislation by the Majlisi Namoyandagon of the Ma jlisi Oli of the Republic of Tajikistan and/or
the Republic of Tajikistan government, and written in terpretations of the application of regulatory
legal acts adopted in accordance with this Code shall be provided by the first director (or an
authorized official acting in his pl ace) of the authorized government body.

2. If a taxpayer has completely and truthfully indicated the nature of all aspects of an
operation pertaining to a given written interpretation, and the operation is performed in all
significant respects in accordance with the description provided in the specific taxpayer’s statement,
a written interpretation that does no t contradict the legislation of the Republic of Tajikistan shall be
legally binding upon the tax authorit ies and the taxpayer with regard to the application of the tax
legislation in force at the time the written interpretation was sent.

CHAPTER 6. PRESENTATION AND CO LLECTION OF INFORMATION

Article 68. Compilation and Storage of Accounting Documentation

1. Any person shall be required to maintain accounting documentation of operations that:

1) could result in tax obligations fo r the given person;

2) could result in obligations for the given person to withhold taxes; or

3) could result in obligations for the given person to provide information in connection with
taxation.

2. Accounting documentation sha ll consist of primary documents, accounting records, and
other documents that are the basis for the identifica tion of objects of taxation and objects related to
taxation, and also for the calcu lation of tax obligations.

3. Taxpayers shall be required to maintain accounting documentation in accordance with
regulatory acts of the Republic of Tajikistan Ministry of Finance and the authorized government
body, and when necessary those of the National Bank of Tajikistan and other authorized government
bodies in accordance with the legisl ation of the Republic of Tajikistan.

Any primary accounting document must contain the following details, at a minimum:

1) the name of the document;

2) the date the document was prepared;

3) the name of the person (official name of a legal entity or la st name and initials of an
individual) for whom (to whom) the document was prepared and issued;

4) the name of the person (official name of a legal entity or la st name and initials of an
individual) on whose behalf (by whom) the document was prepared and issued;

5) the taxpayer identification number of the person who has prepared and issued the
document and the taxpayer identification number of the person for whom the given document was
compiled and to whom it was issued;

6) the content of the economic operation;

7) units of measure of th e economic operation in kind and in monetary terms;

8) the titles of the persons responsible for performance of the economic operation and its
proper documentation and their personal si gnatures and stamps (if available).

Any primary accounting document must be prepared, at a minimum, in two identical copies,
one of which shall remain in the possession of the pe rson who prepared and issued the given
document, and the other of which shall be transm itted to and retained by the person for whom the
given document is intended.

4. If certain accounting and other doc uments of a taxpayer have been prepared in a foreign
language and they are not intelligib le to tax authorities, these documents must be translated by the
taxpayer into the official language at the request of tax authorities.

5. When preparing accounting documen tation in electronic form, a taxpayer shall be required
to furnish hard copies of the given documents in the course of a tax audit at the request of tax
authorities.

6. Persons referred to in item 1 of this article shall be required to retain accounting
documentation for at least three years following the end of the calendar year to which they apply.

Article 69. Separate Accounting and Rules for Main taining Separate Accounting
Records

1. Taxpayers who are engaged in activities for which this Code establishes different taxation
conditions shall be required to maintain separate accounting records of the objects of taxation and
objects related to taxation in c onnection with these activities.

2. Taxpayers shall maintain separate accounting records by performing calculations on the
basis of accounting data taking into consideration the provisions of this Code. These calculations
shall be effected separately for each type of activity.

3. All income and expenditures relati ng to a certain type of activity must be supported by the
relevant accounting documentation.

Article 70. Tax Reporting

1. Tax reporting shall consist of documentation containing information on the calculation of
tax obligations which is submitted by a taxpa yer (tax agent) to tax authorities.

2. Tax reporting shall consist of:

1) tax returns and statements that are to be prepared by a taxpayer for each type of tax;

2) applications for a patent or for permission to apply other tax regimes;

3) applications for a certif icate to operate as an individual entrepreneur;

4) applications for registration as a payer of the value-added tax;

5) applications for a value-added tax refund;

6) applications for permission to apply the provision s of agreements on avoidance of dual
taxation and other international tr eaties concerning taxation issues recognized by the Republic of
Tajikistan;

7) other documentation that is to be prepared and submitted to tax authorities in accordance
with the provisions of this Code.

3. A tax return or tax statement shal l be a written declaration and/or electronic document of a
taxpayer or tax agent submitted to tax authorities following the procedure established by this Code,
which must contain information about objects of taxation and objects related to taxation, and also
about the calculation of tax obligations and other data related to the calculation and payment of
taxes to the budget.

4. In the event of the actual absence of certain data that are supposed to be provided in a tax
return and/or statements, the corresponding attach ments to them as established by the authorized
government body shall not be submitted.

Article 71. Procedure for the Preparation and Submission of Tax Reporting

1. Tax reporting shall be prepared independently by a taxpayer or his representative, or by a
tax agent, following the proce dure and forms established by the authorized government body in
accordance with this Code.

2. Tax reporting shall be prepared in hard copy or in electronic form in the official language.
When preparing tax reporting in electronic form a taxpayer or tax agent shall be required to provide
hard copies of such documents at the request of tax authorities.

3. Tax reporting must be signed by the taxpayer or tax agent (manager and chief accountant),
and must also be certified by the official stamp of the taxpayer or tax agent. When tax reporting is
prepared in electronic form, the el ectronic document must be certified by the electronic signature of
the manager and chief accountant and the electronic stamp of the legal entity. In the event that an
individual taxpayer is absent or incompetent, tax reporting sh all be signed and certified by his
representative.

4. A representative of a taxpay er or tax agent who provides services related to the
preparation of tax reporting shall be required to sign the documents, affix an official stamp to them,
and provide his own taxpayer iden tification number. If tax reporting is prepared by more than one
taxpayer representative, it shall be si gned only by the main representative.

5. When a taxpayer or tax agent prepares tax reporting, including cases in which such
reporting is prepared by a representa tive of a taxpayer, the taxpayer or tax agent shall bear liability
for the accuracy of the data provided in the tax reporting.

6. Tax reporting shall be submitt ed by a taxpayer or tax agent to the appropriate tax
authorities following the procedure and deadlines established by this Code.

7. In the event of the reorganization or liquidation of a taxpayer (legal entity), separate tax
reporting shall be prepared for each reorganized or liquidated taxpayer from the beginning of the tax
period until the date on which the reorganization or liquidation is completed on the basis of a
transfer deed, separation balance sheet, or liquidation balance sheet . These reporting materials shall
be submitted to tax authorities before the relevant information is entered in the state register of legal
entities.

8. Taxpayers and tax agents sha ll have the right to submit tax reporting at their own
discretion:

1) in person;

2) by mail, by regi stered letter with a return receipt;

3) in electronic form, which allows for computer processing of the information, in those
cases established by the authorized government body.

9. The date on which tax reporting is submitted to a tax authority shall be the date on which
the documents are received by the tax authority or the date of notification of delivery of reporting
materials sent by electronic mail.

Tax reporting presented to a post office or other communications organization before
midnight on the last day of the dead line established by this Code shall be considered to have been
submitted on time provided that a notation is made indicating the time and date of acceptance by the
post office or other comm unications organization.

10. Tax reporting shall be accepted without prior in-house control.

Article 72. Time Period for Storage of Tax Reporting

1. Taxpayers and tax agents shall retain tax reporting materials for at least three years
following the end of the calendar year to which they apply.

2. In the event of the reorganiza tion of a taxpayer or tax agent that is a legal entity,
obligations related to retaining tax reporting mate rials for the period the reorganized entity was in
operation (within the time limits established under item 1 of this article) shall be assigned to its legal
successor.

Article 73. Submission of Tax Returns

1. Taxpayers shall be required to submit tax returns to tax authorities in accordance with the
provisions of this Code within the deadlines specified by this Code, and following the form and
procedure established by the authorized government body.

2. Changes and additions to a tax re turn (tax statements) may be made during the three-year
statute of limits provided for by this Code.

3. Changes and additions to a tax return and/or statement shall be made by a taxpayer by
means of the preparation of a supplemental tax retu rn and/or statement for the tax period to which
the given changes and additions apply.

4. Only the amount of the differen ce that has been identified compared to a previously
submitted tax return and/or statement shall be in dicated on the appropriate lines in a supplemental
tax return and/or statement.

5. When a supplemental return and/or statement is submitted prior to the beginning of a tax
audit, taxes identified by the taxpayer shall be paid to the budget without the assessment of any
fines.

Article 74. Submission of Information on Payments or Other Transactions

In those cases and following the procedure established by the instruction on the submission
of information on payments and other transactions to tax authorities, adopted by the authorized
government body in consultation with the Republic of Tajikistan Ministry of Finance and the
National Bank of Tajikistan, a person who effects a payment or other transaction shall be required to
submit the relevant information to tax authorities.

Article 75. Extension of the Deadline for the Submission of Tax Returns

If a taxpayer requests an extension of the deadline for the submission of an income tax or
profit tax return before the expiration of the de adline for its submission, and pays the estimated
amount of tax owed, the deadline for the submission of the return shall be automatically extended by
two months. Extension of the deadline in accordance w ith this article shall not alter the tax payment
deadline and shall not result in a suspension of the accrual of interest in accordance with Article 93
of this Code.

Article 76. Bank Accounts

Banks and other financial and le nding institutions that perform certain banking operations
shall be required:

1) to open settlement or other acc ounts (other than deposit savings accounts for individuals)
for individuals and legal entities only upon presen tation of documents confirming the assignment of
a taxpayer identification number by tax authorities, to notify tax authorities within five days of the
opening of said accounts for taxpayers, and not to perform transactions on the accounts without
indicating the taxpayer identificatio n number in the banking documents;

2) to debit funds from a taxpayer’s settlement or other accounts, including foreign currency
accounts, for the payment of taxes in accordance with the order of priority established by the Civil
Code of the Republic of Tajikistan;

3) on instructions from a taxpayer, to post (transfer) taxes payable to the respective budget to
an account held by the Treasury of the Republic of Ta jikistan Ministry of Finance at a bank or other
financial and lending institution performing cash se rvicing of the budget, no later than the day
following the performance of a transaction debiti ng the funds from the taxpayer’s settlement or
other account;

4) to furnish information to tax authorities in accordance with Article 32 of the Republic of
Tajikistan Law “On Banks and Banking” and provided there is an official order for the performance
of a tax audit, to allow tax aut hority employees to audit transac tions effected on the bank accounts
of the legal entity or individua l being audited, and to verify th e availability of funds on these
accounts.

Article 77. Submission of Information to Tax Authorities

1. For tax control purposes and to achieve its lawful objectives, a tax authority shall have the
right to demand, by sending a written notification, that any person do the following within 10 days
of the date such notification is sent:

1) furnish information indicate d in the notification, including information about another
person, or

2) appear at the place and time i ndicated in the notification for questioning or to present
documents or other data in the possession of said person and indicated in the notification.

2. To achieve a lawful objective related to the performance of tax control, an authorized
official of a tax authority shall have the right, following the procedure established by the legislation
of the Republic of Tajikistan, and in those cases specified under Article 53 of this Code, to enter any

premises without prior notice provided that an official order has been issued, and residential
premises in accordance with authorization granted by a prosecutor.

3. An authorized official of a ta x authority who is in office or residential premises on a
lawful basis in accordance with item 2 of this ar ticle, shall have the right, following the procedure
established by law:

1) to make a copy of any accounting and other documentation related to taxation;

2) to seize accounting and other documentation that appear s to relate to the achievement of
the permitted objective, on the basis of a written confirmation of the seizure;

3) to install me ters or take readings from meters;

4) to seal accounting and other documentation.

If an authorized official of a tax authority uses equipment and materials belonging to another
person for the purposes of obtaining copied passa ges from accounting and other documentation or
copies of such documentation in accordance with th is item, the tax authority must reimburse said
person for the cost of using the equipment and ma terials, and the amount of compensation must be
based on market prices for the use of such equipment and materials. If an authorized official seizes
accounting and other documentation pur suant to the authorities provided for under this item, the tax
authority may make a copy of the accounting and other documentation and must return the originals
as quickly as possible, but no later than 10 days from the date on which they were seized.

In the event of the seizure of acc ounting or other documents, an authorized official must
prepare an official report and pres ent a copy thereof to the taxpayer.

4. This article shall not grant the ri ght of access without official consent to the premises of
diplomatic, consular, or other re presentative offices of foreign states, as well as international
organizations, which enjoy immunity from such inve stigations in accordance with international law.

5. Access to documents or other objects containing any sort of secret shall be carried out in
accordance with the legislation of the Republic of Tajikistan.

6. In the context of this article “l awful objective” shall mean the collection of information for
the purpose of determining a taxpaye r’s obligations to pay a tax, or for the purpose of collecting tax
from a specific person.

7. In the context of this article “au thorized official” shall mean a tax authority employee who
has been appointed by the first dire ctor of the respective tax authority or his deputy to exercise the
rights specified under this article.

CHAPTER 7. TAX OBLIGATION

Article 78. Tax Obligation

1. A tax obligation shall be a responsibility of a taxpayer to pay a certain tax, as well as
penalties and interest th at have been assessed, to the budget given circumstances referred to in this
Code or another act of tax legislation.

2. The grounds on which a tax obliga tion is incurred, changed, or terminated, as well as the
procedure and conditions for the fulfillment of a tax obligation, may be determined only by this
Code or other acts of tax legislation.

3. A tax obligation shall be incu rred by a taxpayer from the moment circumstances arise
which require the payment of tax and penalties and interest assessed in accordance with the
requirements of the tax legislation.

Article 79. Fulfillment of Tax Obligations

1. The fulfillment of tax obligations shall consist of the payment of the amount of taxes owed
and penalties and interest assessed within the esta blished deadlines, regardless of the availability of
funds on accounts and other property held by a taxpayer.

2. The fulfillment of tax obligations shall be performed directly by a taxpayer, except as
otherwise established by this Code or other acts of tax legislation. In those cases specified by this
Code or other acts of tax legislation, liability for the fulfillment of tax obligations shall be assigned
to another responsible person.

3. A unilateral refusal to fulfill tax obligations or a unilateral change in the procedure for
their fulfillment by taxpayers or another res ponsible person shall not be permitted, except as
otherwise provided in the tax legislation.

4. The fulfillment of tax obligations in the event of the bankruptcy of a taxpayer shall be
effected in accordance with the Civil Code of the Republic of Ta jikistan and bankruptcy legislation.

Article 80. Fulfillment of Tax Obligations in the Event of the Liquidation of an
Enterprise (Organization)

1. The tax obligations of an enterp rise (organization) undergoing liquidation shall be fulfilled
by the enterprise’s (organization’s) liquidation commission at the expense of the enterprise’s
(organization’s) funds, including proceeds from th e sale of its property. In this process the
enterprise’s liquidation commission must also fulfill the tax obligations of its separate subdivisions
recognized as enterprises in accordance with Article 19 of this Code, except as other established by
this article. The tax obligations of a separate subdivision of an enterp rise (organization) that is being
liquidated shall be fulfilled directly by the ente rprise (organization), and in the event of the
liquidation of the enterprise (organization) as we ll, by the liquidation commission of the enterprise
(organization).

2. If the funds of an enterprise (organization) undergoing liquidation are insufficient to fulfill
all of its tax obligations , including through the sale of its property to fulfill tax obligations, the
remaining debt owed on tax obligations must be pa id by the partners (founders) of the enterprise
(organization) if in accordance wi th the law, charter, or other founding documents they bear joint
and several liability for the enterprise’s (organization’s) obligations.

Article 81. Fulfillment of Tax Obligations in the Event of the Reorganization of a
Legal Entity

1. The tax obligations of a reorgani zed legal entity shall be fulfilled by its legal successor
(successors) following the procedure established by this article.

2. The legal successor (successors) of a reorganized legal entity shall be responsible for
fulfilling its tax obligations, regardless of whether facts or circumstances related to a failure to fulfill
or improper fulfillment of tax obligations by the reorganized legal entity were known to the legal
successor (successors) before the reorganization is completed. The legal successor (successors) shall
be assigned responsibility for paymen t of all interest and penalties owed in connection with the tax
obligations of the reorganized legal entity.

3. The reorganization of a legal entity shall not alter the deadlines for the fulfillment of the
legal entity’s tax obligations by its legal successor (successors).

4. In the event of the merger of several legal entities, the legal entity that is created as a result
of the merger shall be recognized as their lega l successor with respect to the fulfillment of tax
obligations.

5. In the event that one legal entity is taken over by another legal entity, the legal entity that
effected the takeover shall be rec ognized as the legal successor of the legal entity that was taken
over with respect to the fulf illment of tax obligations.

6. In the event that a legal entity is broken up into several legal entities, the legal entities
created as a result of the breakup shall be recognized as the legal su ccessors of the reorganized legal
entity.

7. If there ar e several legal successors, the responsib ility held by each of them for the
fulfillment of the tax obligations of the reorganized legal entity shall be determined in accordance
with the separation balance sheet or other transfer deed. If the separation balance sheet or transfer
deed does not allow for determination of the respons ibility held by each legal successor of the legal
entity or makes it impossible for one of the legal su ccessors to fulfill the tax obligations in full, the
newly created legal entities shal l bear joint and several liability for the fulfillment of the tax
obligations of the reorganized legal entity or fo r the relevant proportion of said tax obligations.

8. In the event that one legal entity is converted into another legal entity by means of a
change in its organizational-lega l form, the newly created legal entity shall be re cognized as the
legal successor of the reorganized legal entity wi th respect to the fulfillment of tax obligations.

9. In the event that one or several legal entities are spun off from a legal entity, the new legal
entities resulting from the spin-off shall not become legal successors of the reorganized legal entity
with respect to the fulfillment of tax obligations , unless the purpose of the reorganization was to
avoid fulfillment of tax obligations by the reorganized legal entity. If as a re sult of the spin-off of
one or several legal entities from a legal entity the original legal entity-taxpayer is not able to fulfill
its tax obligations in their entirety, the legal enti ties that have been spun off shall fulfill the tax
obligations of the reorganized legal entity on a joint and several basis, in accordance with a decision
by the authorized government body.

Article 82. Fulfillment of Tax Obligations of Deceased, Incompetent, and Missing
Individuals or Persons Who Have B een Declared Dead by the Courts

1. The tax obligations of a deceased individual or a person who has been declared dead by
the courts shall be fulfilled by his heir (heirs) up to the value of the person’s estate and in proportion
to the heirs’ share in the estate as of the date it is received.

2. In the absence of an heir (heirs) or in the event that all of the heirs decline the inheritance,
the tax obligations of a deceased individual or a pe rson who has been declared dead by the courts
shall be terminated.

3. The tax obligations of an indivi dual who has been declared missing, incompetent, or dead
by the courts shall be fulfilled by the person who has been charged with administering the property
of the incompetent or missing person or person w ho has been declared dead by the courts, at the
expense of said property.

4. If the property of an individual who has been declared missing, incompetent, or dead by
the courts is insufficient to fu lfill the tax obligations of the given individual, including accrued
interest and penalties, those tax obligations of the missing or inco mpetent individual or person who
has been declared dead by the courts, including interest and penalties, which have not been fulfilled
due to the fact that the person’s property is insu fficient to do so, shall be written off following the
procedure established under Article 99 of this Code.

5. When a decision is made followi ng the established procedure to overturn a finding that an
individual is missing or incompeten t (in the latter case, when an individual is found to be competent)
or to overturn a relevant court decision declaring a citizen (ind ividual) dead, tax obligations
previously written off in accordance with item 4 of this article shall be reinstated, but interest and
penalties shall not accrue for th e period from the date the individual was declared missing or
incompetent, or a citizen (individual) was declared dead, until the decision is made to overturn the
given ruling.

Article 83. Procedu re for the Fulfillment of Tax Obligations

1. Except as otherwise established by the tax legislation, a taxpayer shall independently
calculate the amount of tax payable for a tax repo rting period, taking into account the tax base, the
tax rate, and tax concessions.

2. In those cases established by this Code or another act of tax legislation, the responsibility
for calculating the amount of tax payable may be assigned to a tax authority or tax agent.

3. Taxes shall be calculated followi ng the procedure established for the relevant tax by this
Code or another act of tax legislation.

4. The amount of tax payable shall be paid (transferred) within the established deadlines by
the taxpayer or another responsible person in ac cordance with this Code or another act of tax
legislation.

CHAPTER 8. ASSESSMENT OF TAXES

Article 84. Assessment of Taxes

1. In the context of this Code the assessment of a tax (tax obligation) shall be understood to
mean the calculation of tax, penalties, and intere st payable for a specific tax period and the entry
thereof by tax authorities in a ta xpayer’s personal tax statements. Assessment shall include adjusted
assessment and planned assessment.

2. Tax authorities shall be authorized to perform an assessment of the tax obligation of each
taxpayer in accordance with this Code on the basis of one or mo re of the following sources of
information:

1) information contained in ta x returns and a taxpayer’s other tax reporting materials;

2) information on payments in accordance with Article 74 of this Code;

3) information on current tax pa yments in accordance with Article 198 and other provisions
of this Code; and

4) tax audit materials a nd other information available to tax authorities.

If a taxpayer does not furnish inform ation necessary for assessment of a tax, tax authorities
shall have the right to assess the tax on the basis of any available information.

3. In cases in which the tax legi slation does not require the payment of a tax to be
accompanied by the filing of a tax return, and also in cases in which tax authorities believe that a
previous tax assessment was performed incorrectl y, a tax authority shall assess the tax and send a
notification to the taxpayer of the tax assessment in accordance with Article 85 of this Code. Tax
authorities may perform the assessment of tax and make changes in previously assessed tax amounts
before expiration of the statute of limitati ons specified in Article 86 of this Code.

4. In the event that collection of a tax entails the completion of a tax return, the completion
of a return indicating th e obligation to pay the ta x should be treated as:

1) assessment of the given tax; and

2) a notification and request to pa y the given tax within the deadline established by this
Code.

5. In the event that taxes are colle cted through withholding at the source of payment, when a
taxpayer does not submit a tax re turn, and tax authorities do not perform the assessment of the
amount of tax payable by a taxpayer on the basis of other information, it shall be considered that tax
authorities have effected the a ssessment of the taxpayer’s tax oblig ation for the year in the amount
of tax withheld from payments received by the ta xpayer for the year, if any, and that they have
notified the taxpayer of th e assessment of the tax.

6. The director of a tax authority shall have the right to perfor m the assessment of a tax and
demand immediate payment of the tax assessed before the date by which the tax is ordinarily to be
paid if such a measure is necessary in order to ensure collection of the tax and there is specific
information indicating that the ta xpayer plans to avoid taxation by l eaving the country, transferring

assets to another person, or taking other measures that could interfere with collection of the tax
unless the tax is assessed immediately.

The assessment of tax in accordance with this item, as with any other assessment of tax
performed by tax authorities in accordance with the rights assigne d to them, if the information
available to them (furnished to them) and used in the assessment of the tax is insufficient or
questionable, may be disputed by the taxpayer, including through the courts.

Article 85. Notification of Tax Assessment and Request for Payment of Tax

A taxpayer shall be notified of the assessment of a tax obligation. The notification of tax
assessment shall indicate:

1) the taxpayer’s last name, first name, and patronymic (or name);

2) the taxpayer identification number;

3) the date of the notification;

4) the object to which the notification applies, and the ta x year (tax period) or tax years (tax
periods) covered by th e notification;

5) the amount of tax assessed, including interest and penalties;

6) a request for pa yment of the tax and the payment deadlines;

7) the place and method of payment of the tax (details in accordance with item 3 of Article
88 of this Code);

8) the basis on which the assessment was performed; and

9) the appeal procedure.

Article 86. Statute of Limitations

1. Tax authorities may assess taxes and revise the amount of assessed tax payable by an
individual or legal entity up to three years following the end of a ta x period, and collect the assessed
(adjusted) amount of tax up to six year s following the end of a tax period.

2. A taxpayer shall have the right to re quest a refund or crediting of tax paid up to three years
following the end of a tax peri od, including the supplemental peri od provided under Chapter 11 of
this Code in excess of this three-year period.

CHAPTER 9. PAYMENT, COLLECT ION, AND REFUND OF TAXES

Article 87. Payment of Taxes

Taxes, penalties, and interest shall be payable within the deadlines specified in this Code and
other regulatory acts on taxes adopt ed on the basis of this Code.

Article 88. Place for Payment of Taxes and Budgets to Which Taxes Are Applied

1. Taxes, penalties, and interest shall be payable:

1) at the place indicated in the notification of tax assessment and request for payment of tax;
or

2) if a notificatio n of tax assessment is not required, at the place indicated in the relevant act
of tax legislation; or

3) if the place is not indicated in the relevant act of tax legi slation, based on an individual
taxpayer’s place of residence or the h eadquarters of a legal entity-taxpayer.

2. Except as otherwise establishe d by the legislation, regardless of the region in which a
taxpayer is doing business in the Republic of Taji kistan, taxes, penalties, and interest shall be
applied to the republican budget and the respect ive local budgets in accordance with the budget
legislation of the Republic of Tajikistan.

3. A taxpayer shall provide annual updating of details (of bank and treasury accounts) to
which the payment of one tax or a nother, penalties, and interest is to be effected for one budget or
another with the tax authority with which the taxpayer is registered.

Article 89. Crediting or Refund of Taxes Paid in Excess of the Required Amount

1. If the amount of tax, penalties, and interest paid exceeds the assessed amount of tax,
penalties, and interest, tax authorities:

1) shall apply the excess amount against the taxpayer’s obligations on other taxes, penalties,
and interest payable to the same bud get without the taxpayer’s consent;

2) shall apply the balance remaining after the actions referred to in subitem 1) of this item
have been performed against obligations on future payments of those taxes which are applied to the
same budget as the remaining balance, with the ta xpayer’s written consent obtained in response to a
relevant written inquiry from tax authorities;

3) in conjunction with the relevant financial authorities, shall refund the excess amount
(balance) to the taxpayer within 30 calendar days of the date the ta xpayer files a written request with
the tax authority with which it is registered, fo llowing the performance of the actions referred to in
subitems 1) and 2) of this item, except as otherwise established by this Code.

2. If the excess amount of tax, penalt ies, and interest paid by a taxpayer is applied against
obligations on other taxes in accord ance with subitem 1) of item 1 of this article, tax authorities
must notify the taxpayer to this effect within th ree days of the date this crediting takes place.

3. If the amount of tax, penalties, and interest (customs payments) actually paid at the time of
the movement (against the movement) of goods and vehicles across the customs frontier of the
Republic of Tajikistan exceeds the amount of tax, penalties, and interest (customs payments)
actually assessed at the tim e of the movement (against the move ment) of goods and vehicles across

the customs frontier of the Republic of Tajikistan, tax authorities shall perform actions referred to
under item 1 of this article afte r receiving confirmation of the ex cess payment from the respective
customs authorities, upon a written request from th e taxpayer, and shall notify the taxpayer and the
respective customs authority of their actions within three days.

4. Excess payments referred to under this article may be earmarked for the payment of debts
owed on taxes, penalties, and interest payable at the time of the movement of goods and vehicles
across the customs frontier of the Republic of Tajikistan, if the excess amount and the debt apply to
the same budget, by agreement betw een the taxpayer and the respective tax and customs authorities.

5. If the excess payment of tax, penalt ies, and interest applies to one budget, and there are tax
obligations to another budget, the crediting or re fund of the excess payment of tax, penalties, and
interest shall be carried out following the proced ure established by the instruction on the crediting or
refund of excess payments of tax, penalties, and interest adopted by the authorized government body
in consultation with the Republic of Tajikistan Ministry of Finance.

Article 90. Change in the Tax Payment Deadline

1. A change in the deadline for the payment of taxes, penalties, and interest (an extension)
shall be a shift in the deadline established by this Code for the payment of taxes, penalties, and
interest, including prepayments, to a later date.

2. An extension shall be grante d only for tax obligations whose payment deadline has
passed.

3. An extension may be granted for one or several taxes.

4. The amount of taxes, penalties, a nd interest for which an extension has been granted shall
not be considered in arrears until the extension period has expired, and measures for the compulsory
collection of taxes, penalties, and interest shall not be applied to this amount, with the exception of
the accrual of interest.

5. An extension shall not exempt a taxpayer from liability in the form of the accrual of
interest on the taxes for which an extension has been granted up to the end of the extension period,
with the exception of those cases indicated in subitems 1) and 2) of item 10 of this article.

6. An extension shall not exempt a taxpayer from the requirement to submit to tax authorities
returns and other established repor ting materials pertaining to the taxes for which an extension has
been granted.

7. The statute of limitations provided for under this Code shall be suspended for the duration
of an extension.

8. Payment of the tax obligations fo r which an extension has been granted shall begin in the
month following the month in which the extension period ends. In this case the taxpayer shall
be
required to pay to the budget the entire amount of current tax obligations at the same time that the
amounts for which an extension ha s been granted are paid off.

9. When making payments to the budget, amounts earmarked for the fulfillment of tax
obligations shall be applied first against the payment of current tax obligations, and the balance shall
be applied against the payment of tax obligati ons for which an extension has been granted.

10. An extension may be granted to a person who has interest in obtaining one (an interested
person), if at least one of th e following grounds is present:

1) this person suffered losses as a re sult of a natural disaster, an industrial accident, or other
force majeure circumstances;

2) this person experienced delays in r eceiving financing from the budget or payment for a
state order fulfilled by this person;

3) this person is engaged in sc ientific research or research and development work;

4) this person works in the de velopment and introduction of innovations, including the
creation of new technologies and the improvement of existing ones, and the creation of new types of
raw materials and supplies.

11. It shall be prohibited to grant a second extension on the payment of taxes, penalties, and
interest without the full payment of taxes, penalties, and interest for which an extension was
previously granted, with the exceptio n of cases in which the grounds referred to in subitems 1) and
2) of item 10 of this article are present.

12. The rules established under this article shall also apply when granting an extension on
the payment of taxes, penalties, and interest in connection with the movement of goods and vehicles
across the customs frontier of the Republic of Tajikistan, except as otherwise provided by the
customs legislation of th e Republic of Tajikistan.

13. A decision to grant an extens ion on national taxes shall be made by the Republic of
Tajikistan government based on a representation from the Republic of Tajikistan Ministry of
Finance, approved by the authorized government body and the Republic of Tajikistan Ministry of
the Economy and Trade.

14. A decision to grant an extensi on on local taxes shall be made by the chairman of the
respective city (region) based on a representation fr om the respective city (region) financial and tax
authorities.

15. In consideration of the requirements of this article, a Regulation on the Procedure and
Time Limits for (Duration of) an Extension on Tax Obligations shall be prepared by the Republic of
Tajikistan government.

Article 91. Order for the Discharge of Tax Obligations

The discharge of tax obligations shall be carried out in the following order:

1) assessed taxes;
2) assessed penalties;
3) accrued interest.

The discharge of debt owed on assessed penalties and assessed taxes shall be effected
consecutively, starting with the earliest debt and ending with the most recent debt.

CHAPTER 10. COMPULSORY COLLECTION OF TAXES

Article 92. Measures to Ensu re Fulfillment of a Tax Obligation Not Met on Time

1. Tax authorities shall ensure fulfillment of a taxpayer’s tax obligation that has not been met
on time using the following measures provided for by this Code:

1) accrual of intere st on the amount of taxes not paid on time;

2) suspension of spending operations on accounts at banks a nd other financial and lending
institutions;

3) attachment of the taxpayer’s property and collection of the am ount owed by the taxpayer.

2. In the event that a taxpayer fails to fulfill obligations to pay tax, penalties, and interest
within the established deadlines, that is, if a taxpayer is in arrears, tax authorities shall notify the
taxpayer of the need to pay the tax within 10 days of the taxpayer’s receipt of the notification, and of
the possibility that measures specified under subitems 2) and 3) of item 1 of this article may be
taken against him in the event of nonpayment of ta x, penalties, and interest. Except as otherwise
provided by this Code, interest sha ll be charged in all cases in which a taxpayer is in arrears and
notification of the taxpayer shall not be required in order to take this action.

3. The rules of this chapter shall ap ply to tax agents following the same procedure as that
established for taxpayers.

4. This chapter shall be applied in compliance with the provisions of the Civil Code of the
Republic of Tajikistan regarding the order of priority for debiting funds from bank accounts.

Article 93. Interest on Underpayment and Overpayment of Taxe
s

1. With the exception of those cases established by this Code, if any tax amount, including a
current payment, has not been paid by the establis hed deadline, that is, there is an underpayment
(arrears), a taxpayer shall be requ ired to pay interest on the amount of the underpayment (arrears)
for the period from the payment deadline to the date on which the amount that was underpaid (in
arrears) is paid.

2. If more than 30 calendar days have passed from the date on which a taxpayer files a
request for a refund of taxes paid in excess of the required amount, that is an overpayment, until the
date on which the overpayment is actually refunded, interest shall be payable to the taxpayer on the
amount of the tax overpayment at the expense of the respective budget for the period from the date
on which a taxpayer files a request for a refund of the overpayment until the date on which the
refund is actually made.

For the purposes of the previous se ntence, in cases in which an overpayment is credited
against another payment, a refund shall be consider ed to have been made on the date the crediting

was performed, or if the overpayment and arrears apply to different budgets, on the date permission
for the crediting is received.

Interest shall not be payable to a taxpayer if a refund is provided within 30 days from the
date the taxpayer files a request for a refund of payments made in excess of the required amount.

3. The interest rate payable in acco rdance with this article shall be established as simple
interest equal to 150 perc ent of the refinancing rate of the National Bank of Tajikistan, determined
for each current quarter in the form of the arithme tic average of refinancing rates for the previous
quarter.

4. Interest shall not accrue on penalties and accrued interest.

5. If a taxpayer has made an overpayment on one type of tax and an underpayment on
another type of tax, no interest sh all be charged on the arrears for the period when the amount of the
arrears was less than the amount of the overpayment , if the overpayment and arrears apply to the
same budget.

6. An instruction on the accrual of interest on tax underpayments and overpayments shall be
adopted by the authorized government body in consulta tion with the Republic of Tajikistan Ministry
of Finance and the National Bank of Tajikistan.

Article 94. Suspension of Spending Operations on a Taxpayer’s Accounts at Banks
and Other Financial and Lending Institutions

1. The suspension of spending operations on a taxpayer’s accounts at banks and other
financial and lending institutions (with the exception of banks’ correspondent accounts) (referred to
hereinafter as “suspensio n of spending operations on bank accounts” ) with respect to a legal entity
and individual entrepreneur shall be effected if at least one of the following cases applies:

1) if the taxpayer fails to submit a tax return within the established deadline and the tax
authority has notified the taxpayer of the need to submit it, and the tax return has not been submitted
within 30 calendar days of the date of such notification;

2) in the event of a failure to pay tax, penalties, and interest within the time period specified
under item 2 of Article 92 of this Code, a tax author ity shall issue another notification of the need to
pay tax, penalties, and interest, and if the tax debt (arrears) is not discharged within 30 calendar days
of the taxpayer’s receipt of the second notification;

3) refusal to grant access to tax author ity officials to perform tax audits and to inspect objects
of taxation and objects related to taxation, except in cases in which they violate the procedure
established by this Code for the pe rformance of tax audits, if 10 calendar days have passed since the
date on which the taxpayer received notification from the tax authority of the need to grant access to
tax authority officials to perform a tax audit, and of the possibility of the application of measures
provided for under this article.

2. If the grounds specified under item 1 of this article are present, the first director (or a
person serving in his place) of th e tax authority with which a taxpaye r is registered shall petition a
court with jurisdiction over th e area in which the taxpayer is located, following the procedure

established by the legislation, to suspend spending operations on the taxpayer’s bank accounts,
accompanied by the simultaneous notification of the ta xpayer of the petition filed with the court.

3. The suspension of spending operations on bank accounts shall a pply to all of a taxpayer’s
spending operations, other than those related to the payment of accrued wages and the discharge of
tax debt.

4. A court decision to suspend spending operations on a taxpayer’s bank accounts shall be
subject to unconditional implementation by banks and institutions performing certain types of
banking operations.

5. A tax authority shall undertake the appropriate measures to implement a court decision to
suspend spending operations on a taxpayer’s bank accounts

6. A tax authority shall repeal the suspension of spending operations on bank accounts no
later than one banking day followi ng elimination of the grounds that served as the reason for the
suspension of spending operations on bank accounts and shall provide information to this effect to
the taxpayer and the interested bank within the same time period.

7. A regulation on the suspension of spending operations on a taxpayer’s accounts at banks
and other financial and lending institutions and on the repeal thereof shall be adopted by the
Republic of Tajikistan government.

Article 95. Attachment of Property

1. Attachment of property as a means of ensuring fulfillment of a tax obligation shall refer to
an action by a tax authority to restrict the ownership rights of a taxpayer (or other responsible
person) with respect to his property.

2. The attachment of property may be full or partial. The full attachment of property shall
refer to a restriction of a taxpaye r’s rights with respect to his prope rty, under which he does not have
the right to determine the disposition of the att ached property, and the possession and use of this
property is allowed with the wri tten permission and under the control of a tax authority. The partial
attachment of property shall refer to a restriction of a taxpayer’s rights with respect to his property
under which the taxpayer enjoys th e independent possession and use of this property, but disposition
of the property is allowed only with the written pe rmission and under the control of a tax authority.

3. A partial attachment may be applied to a taxpayer who has an outstanding tax debt 60
calendar days after expiration of the established payment deadline for at least one type of tax.

A full attachment may be applied afte r the application of a partial attachment and if there is
an outstanding tax debt 120 days after expirati on of the established tax payment deadline.

In the event of a change in the d eadline for the payment of taxes in accordance with Article
90 of this Code, calculation of the aforementioned time periods shall begin on the first day after
expiration of the extended tax payment deadline.

4. A preliminary condition for the atta chment of property shall be the performance of actions
provided for under item 2 of Article 92 of this Code. In order to effect a partial or full attachment of

property, a tax authority shall be required no earlier than 15 calenda r days before the expiration of
the deadlines referred to in item 3 of this article, to notify the taxpayer in writing of its intention to
apply the partial or full attachment procedure against him. The attachment of property may be
effected only after the e xpiration of this 15-day warning period a nd if the tax debt (arrears) has not
been discharged in full during this period. The form for notification of the intention to apply the
partial or full attachment procedure shall be determined by the authorized government body.

5. When a taxpayer’s property is attached, in the event that the taxpayer submits a realistic
financial recovery plan, the ta x authority and the taxpayer may conclude an agreement on the
procedure and deadlines for the re payment of arrears. The agreemen t may call for suspension of the
attachment of certain types of property, or the replacement of full att achment with partial attachment
with respect to all of the property or a portion thereof.

6. Any types of property held by a taxpayer may be attached, with the exception of property
against which collection action may not be taken in accordance with the laws of the Republic of
Tajikistan.

7. Only that property which is n ecessary and sufficient to meet a tax obligation shall be
subject to attachment.

The attachment of propert y shall be effected in the following order:

1) cash, including foreign currenc y, held in the cash department or under the control of
officials (employees) of a taxpayer. Foreign currency that is part of recovered property shall be
transferred to the National Bank of Tajikistan fo r conversion into the domestic currency of the
Republic of Tajikistan no later than the next bank ing day and for transfer to the budget, together
with attached domestic currency, against pa yment of the taxpayer’s tax obligations;

2) property that is not directly involved in the out put of products (goods), specifically
securities, foreign exchange assets, passenge r cars, interior design elements of office
(administrative) and non-manufacturing premises , other highly liquid types of property, etc.;

3) finished products (goods), as we ll as other tangible assets not intended for direct use in
production;

4) raw materials and supplies intende d for direct use in production, as well as machine tools,
equipment, buildings, structures, and other fixe d assets. Machine tools, equipment, buildings,
structures, and other fixed assets of state-owned enterprises and orga nizations shall not be subject to
attachment;

5) other property.

The seizure of property owned by a taxpayer that has been transferred to another person
under a financial leasing arrangemen t or that has been mortgaged shall be prohibited, and it shall be
prohibited to make changes in the terms of the agreement (lease and/or mortgage) from the moment
that a decision is issued to attach such property and until such time as this decision is rescinded.

8. The attachment of a taxpayer’s pr operty shall be carried out on the basis of a petition filed
with the courts by the first director of a tax authority (or his authorized deputy).

9. A court decision to attach property issued in accordance with item 8 of this article shall be
transferred within two business days to the appr opriate tax police unit for execution. Tax authority
employees may participate in the property attachme nt process together with tax police employees.
Prior to the attachment of property the officials carrying out the attachment shall be required to
present the taxpayer (or his representative) with the court decision and documents certifying their
authorities.

10. The attachment of the property of a taxpayer (other responsib le person) shall be carried
out in the presence of witnesses. The tax police un it carrying out the attachment of property shall not
have the right to deny the taxpayer (his legal and/or authorized representative) the opportunity to be
present during the attachment of property. Persons participating in the attachment of property as
witnesses, as well as the taxpayer (h is representative), shall receive an explanation of their rights and
responsibilities.

11. The attachment of property may not be performed at night.

12. A protocol regarding the attach ment of property shall be prepared as part of the
attachment process. The protocol or an inventory attached to it shall contain a description and list of
the property being attached, with a precise indication of the name, quantity, and individual features
of the objects, and their value if possible. All objects that are subject to attachment shall be
presented to the witnesses and th e taxpayer (his representative). The protocol of the property
attachment shall be prepared in triplicate; one co py shall be provided to the tax authority, the second
copy shall be provided to the tax police unit that carried out the property attachment, and the third
copy shall be provided to the taxpayer whose property has been attached.

13. The head of the tax police un it executing a decision to impose a full attachment of
property, in consultation with the di rector of the tax authority that filed the petition with the courts
to impose a full attachment of property, shall dete rmine the place where the property that has been
attached is to be located (stored).

14. A tax police unit may independently provide for the storage of attached property or may
transfer it on a contractual basis to a third party for storage, or in certain cases may leave the
attached property with the taxpayer for storage. In the latter case the taxpayer shall bear liability for
the safekeeping of the attached property.

15. Transactions effected by a taxpaye r (other responsible person) with respect to attached
property in violation of the procedure established under this article shall be considered invalid.

16. On the basis of a written notific ation from a tax authority regarding a court decision to
impose a full attachment on a taxpayer’s property, customs authoritie s shall suspend export
operations involving all of the atta ched property of the given taxpaye r for the period specified in the
written notification from the tax authority.

17. A court decision regarding the attachment of property shall be considered lifted from the
moment the decision is overturned by a higher court, and fulfilled from the moment the tax
obligation is met. A court decisi on shall be suspended from the mo ment a prosecutor files a protest
until such a protest is heard on its merits following the procedure established by law.

18. A regulation on the procedure for the implementation of property attachment, taking into
consideration the requirements of this article, shall be adopted by the Republic of Tajikistan
government.

Article 96. Sale of Attached Property

1. Attached property seized from a taxpayer and property obtained from a debtor of a
taxpayer in accordance with Article 97 of this Code, if it has not be provided in the form of cash,
shall be sold at public auction, the procedure and conditions for wh ich shall be determined by the
Republic of Tajikistan government.

2. Proceeds from the sale of property shall be used to pay taxes, penalties, and interest in
accordance with Article 91 of this C ode, as well as expenses related to its storage and sale, including
those incurred by the tax authority and tax police unit. The balance of funds shall be returned to the
taxpayer within three banking days.

Article 97. Collection of Sums Owed by a Taxpayer

1. The collection of cash from the bank accounts of a taxpayer and its debtors shall be
carried out through legal proceedings.

A tax authority shall have the ri ght to forward to a bank or other financial and lending
institution at which accounts of a taxpayer and/or its debtors have been opened and are serviced, a
court decision regarding the collection of cash from the accounts of a taxpayer and/or its debtors,
which requires the bank and other financial and le nding institutions to effect the direct payment
(bypassing the taxpayer and his acco unts) of any amount available on the accounts of the taxpayer
and/or its debtors to the appropria te budget within 10 days of the date of receipt of the instruction.

2. In the event of the application of item 1 of this article, the collection of a tax debt at the
expense of funds on a taxpayer’s accounts at a bank or other financ ial and lending institution shall
be effected after receipt of the court decision cal ling for the collection of cash from a taxpayer’s
accounts according to the following procedure:

1) the tax authority shall forward th e relevant court decision to a bank or other financial and
lending institution at which a taxpayer’s acc ounts have been opened and are serviced;

2) the collection of a tax debt at the expense of f unds on a taxpayer’s accounts at a bank or
other financial and lending institution shall be eff ected on the basis of a collection order issued by
the respective tax authority;

3) a collection order for the collecti on of a tax debt shall be forwarded to a bank or other
financial and lending institution at which a taxpaye r’s accounts have been opened and are serviced,
and it shall be executed following th e procedure established under subitem 2) of Article 76 of this
Code;

4) a collection or der shall be presented in a form esta blished by regulatory legal acts of the
Republic of Tajikistan, and it must indicate the ta xpayer’s account (accounts) from which the tax
debt is to be collected;

5) in the event of a lack of funds on a taxpayer’s accounts in the domestic currency, the
collection of a tax debt shall be effected from the taxpayer’s foreign currency accounts, applying the
exchange rate of the domestic currency against the foreign currencies established by the National
Bank of Tajikistan as of the collection date;

6) provided that there are suffi cient funds on a taxpayer’s account (accounts), a collection
order for the collection of a tax debt shall be executed by a bank or other financial and lending
institution no later than one business day af ter the day on which the order is received;

7) if there are insufficient funds or no funds on a taxpayer’s account (accounts), a collection
order (orders) shall be executed as funds are posted to this account (these accounts).

3. In the absence of the circumstances referred to under item 2 of this article, the application
of item 1 of this article with re gard to the collection of a tax de bt from the accounts of a taxpayer’s
debtors shall be carried out according to the following procedure:

1) in the absence of funds on a taxpayer’s accounts, the tax author ity with which the taxpayer
is registered shall have the right, within the amount of the tax debt, to collect the funds owed by the
taxpayer from the accounts of the taxpayer’s debtors. In this case the tax authority shall forward to
the debtor and the bank or other financial and lending institution th e relevant court decision and a
notification of collection action agai nst funds on its (the debtor’s) accounts to pay the taxpayer’s tax
debt. Such notification shall mean that there is a ban on payments by the debtor to discharge its debt
to the taxpayer.

No later than 30 calendar days after the date on which notification is received, a debtor shall
be required to submit to the tax authority that se nt the notification a reconciliation statement of
mutual settlements, compiled join tly with the taxpayer as of the date notification is received;

2) a reconciliation statement of mutual settlements be tween a taxpayer and a debtor must
contain the following information:

– the name of the taxpayer and the debtor, and their taxpayer identification numbers;
– the name of the tax authority with which the taxpayer and the debtor are registered;
– the details of the accounts held by the taxpayer and the debtor;
– the amount of the debt owed by the debtor to the taxpayer;
– the legal details, official stamp, and signatures of the taxpayer and the debtor;
– the date on which the reconciliation statement was prepared;

3) on the basis of a reconciliation statement of mutual settlements, the tax authority with
which a taxpayer is registered shall present a collection order to co llect the taxpayer’s tax debt from
the debtor’s account (accounts);

4) a debtor’s bank or other fina ncial and lending institution shall be required to execute a
collection order presented for th e collection of a taxpayer’s tax debt in accordance with the
requirements set forth under item 2 of this article.

Article 98. Liability of Persons Who Have Receive d a Taxpayer’s Assets at Below-
Market Prices

In the event that a taxpayer’s tax obligatio n has remained unmet after the sale of attached
property, a person who has obtained a taxpayer’s assets in the course of a transaction that was not
effected on market terms and that took place within the three years preceding the date on which the
property attachment procedure was applied, shall bear liability for fulfillment of the taxpayer’s tax
obligation in an amount equal to the value of the assets received, less any amount paid by the given
person for these assets.

Article 99. Writing Off Bad Tax Debts

Bad debts on taxes, interest, and penalties shall be written off in accordance with the
procedure established by the Republic of Tajikistan government.

CHAPTER 11. RESOLUTION OF DISPUTES

Article 100. Right to Appeal

1. A taxpayer who disputes a tax audi t report, the assessment of tax, penalties, and interest,
as well as other decisions by a tax authority, may file a petition (appeal) for a reconsideration of said
decisions with the tax authority that took these de cisions, a higher-level tax authority, the authorized
government body, or with the courts. The petition (a ppeal) must outline the arguments and indicate
the documents on which the taxpayer is basing his re quest for a reconsideration of the decisions that
have been made.

The filing of a petition (appeal) wi th any of the aforementioned tax authorities shall not
exclude the taxpayer’s right to file a simultaneous or subsequent appeal with a higher-level tax
authority or with the courts.

2. Appeals (pet itions) by a taxpayer regarding tax aud it reports, the assessment of taxes,
penalties, and interest, as well as other decisions by tax authorities, which are filed with the courts
shall be heard and decided following the procedure established by the civil procedural and economic
procedure legislation of th e Republic of Tajikistan.

Article 101. Procedure and Deadlines for th e Filing and Consideration of an Appeal
with Tax Authorities

1. An appeal of a tax audit report, the assessment of taxes, penalt ies, and fines, as well as
other decisions by a tax authority may be filed wi thin 30 calendar days of the date the taxpayer
received the tax audit report, the notification of th e assessment of taxes, penalties, and fines, or
another decision, or the failure to take (receive) a decision on the me rits of the appeal within the
same time period.

In the event that the deadline for the filing of an app eal is not met for a valid reason, this
deadline may be extended by a hi gher-level tax authority, the authorized government body, or by a
court within the statute of limitati ons established by this Code, at th e request of the person filing the
appeal.

2. An appeal shall be filed in writing.

3. A taxpayer’s appeal shall be reviewed, a decision regarding the appeal shall be made, and
the person who filed the appeal sh all be notified in writing of the decision that has been made no
later than 30 calendar days from the date an appeal is received by a tax authority.

Article 102. Consequences of Filing a Peti tion (Appeal) Regarding the Assessment of
Tax, Penalties, and Interest

Only those tax obligations which are not being disputed by a taxpayer shall be payable and
may be collected in accordance with the procedures established under Chapter 10 of this Code prior
to completion of the review of a petition (appeal) regarding the assessment of tax, penalties, and
interest, as well as other decisi ons, filed with tax authorities or the courts in accordance with
Articles 100 and 101 of this Code. The suspension of payment of all or part of tax obligations in
connection with the review of a taxpayer’s appeal shall not exempt the taxpayer from payment of
interest for the late transfer of taxes to the budget, including interest accrued for the period from the
date the appeal is filed until a decision on the appeal is made.

At the same time, interest shal l accrue only on those taxes which are payable to the budget
based on the results of the review of the appeal.

CHAPTER 12. LIABILITY

Article 103. The Concept of a Tax Offense

A tax offense shall refer to an unlawful action or inaction (in violation of the legislation on
taxes) by an individual or legal entity, the commission of which re sults in liability as established by
law.

Article 104. Circumstances Excluding a Person ’s Liability for Commission of a Tax
Offense

In addition to th ose situations specified by the legislat ion, a person may not be held liable for
the commission of a tax offense in the following cases:

1) a taxpayer or tax agent is carry ing out written instructions and explanations issued by a
tax authority or other government body or their officials within the sc ope of their authority;

2) arrears on other taxes are deduc ted from overpayments on any taxes, including taxes paid
by tax agents;

3) violations of the tax legislation are eliminated by means of the submission of a
supplemental tax return in accordance with item 5 of Article 73 of this Code.

Article 105. Statute of Limitations for Liability for Commission of a Tax Offense

1. A person may not be held liable for the commission of a tax offense if three years have
passed from the day it was committed or from the day following the end of the tax period in which
the offense was committed (statute of limitations).

2. With regard to all tax offenses that are committed, with the exception of those specified
under item 3 of this article, calculation of the statute of limitati ons shall begin on the day a tax
offense is committed.

3. With respect to tax offenses sp ecified under subitems 1) through 4) of item 1 of Article
106 of this Code, calculation of the statute of li mitations for tax offenses shall begin on the day
following the end of the tax period in which the offense was committed.

Article 106. Liabilit y for Violation of the Tax Legislation

1. Individuals and legal entities shall bear liability in accordance with the Republic of
Tajikistan Code on Administrative O ffenses in the following cases:

1) failure to file a tax return on time;

2) underreporting of the amount of tax owed;

3) violation of the rules for calculation of the value-added tax;

4) interference with the performance of a tax audit;

5) violation of the d eadline for registration with a tax authority;

6) failure to indicate a taxpayer identification number or indication of an incorrect taxpayer
identification number in tax returns, customs declarations, and invoices;

7) violation of the procedure fo r the withholding and non-withholding of tax at the source of
payment;

8) opening of settlement and other accounts (other than personal savings deposit accounts in
accordance with Article 76 of this Code) for individuals and legal en tities without the presentation
of documents confirming the account holde r’s taxpayer identification number;

9) violation of the deadline for notification of tax authorities with which one is registered
regarding the opening of settlement and other accounts (other than personal savings deposit accounts
in accordance with Article 76 of this C ode) by an individual or legal entity;

10) failure to submit or failure to submit in a timely manner a reconciliation statement of
mutual settlements to a tax authority;

11) failure to fulfill or failure to fulfill in a timely manner collection orders issued by tax
authorities and presented in accordance with Article 97 of this Code, for the transfer of funds from
accounts of third parties who are de btors of a taxpayer, in accordance with the sequence established
by the Civil Code of the Republic of Tajikista n (including from accounts held by the taxpayer
himself at a bank or other financial and lending in stitution servicing the given taxpayer), to be
applied against a tax debt owed by the taxpayer;

12) unlawful action to hinder access by a tax authority official to the grounds of an enterprise
or to premises;

13) failure to comply with the procedure for the possession, use, and/or disposition of
property that has been at tached by a tax authority;

14) violation of the procedure for the application of cash registers with fiscal memory;

15) failure to provide required information to a tax authority;

16) failure by banks and other financial and lending institutions at which taxpayers hold
accounts to transfer taxes in a timely manner in response to payment orders issued by taxpayers.

2. Individuals shall bear liability in accordance with the Criminal Code of the Republic of
Tajikistan for the commission of crimes in the tax legislation sphere.

SECTION III. STATUS AND STRUCTURE OF TAX AUTHOR ITIES AND TAX POLICE
UNITS OF THE REPUBLIC OF TAJIKISTAN

CHAPTER 13. TAX AUTHORITIES

Article 107. Principal Functions of Tax Authorities

The principal functions of tax authorities shall be:

1) to ensure fulfillment of and co mpliance with the tax legislation and to devise mechanisms
for tax administration with a view to ensuring the transfer of taxes to budgets at all levels in full and
in a timely manner;

2) to participate in the preparation of draft laws and ot her regulatory legal acts pertaining to
taxation, including treaties with other states;

3) to explain to ta xpayers their rights and responsibilities;

4) to notify taxpayers of ch anges in the tax legislation in a timely manner.
Article 108. Legal Basis for the Opera tion of Tax Authorities and Tax Police Units

The legal basis for the operation of tax authorities and tax police units shall be the
Constitution of the Republic of Tajikistan, constitu tional laws, this Code, and other laws of the
Republic of Tajikistan, joint resolu tions of the Majlisi Milli and the Majlisi Namoyandagon of the
Majlisi Oli of the Republic of Tajikistan, resolu tions of the Majlisi Namoyandagon, regulatory legal
acts of the President of the Republic of Tajikistan and the Republic of Tajikistan government, and
international legal acts recognized by the Republic of Tajikistan.

Article 109. Principles of the Operation of Tax Authorities and Tax Police Units

1. Tax authorities and tax police units of the Republic of Tajikistan shall operate on the basis
of the following principles:

1) legality;

2) observance of human and civil rights and freedoms;
3) supervision by a nd accountability to higher-level authorities.

2. Political parties and other pub lic associations pursuing political aims may not be
established or operate within the system of tax authorities and tax police units. Employees of tax
authorities and tax police units ma y not be restricted in their official activities by decisions of
political parties and other public associations.

3. Tax authorities and tax police units shall work in cooperation with other government
bodies, public associations, and citiz ens, as well as tax authorities of other states on the basis of
international treaties and commitments r ecognized by the Republic of Tajikistan.

Article 110. Status and Structure of Tax Authorities of the Republic of Tajikistan

1. Tax authorities of the Republic of Tajikistan (referred to hereinafter as “tax authorities”)
shall consist of the authorized government body a nd its respective territorial subdivisions – tax
administrations for Gorno-Badakhshan Autonomous Ob last, the oblasts and the city of Dushanbe;
tax inspectorates for regions, citi es, and districts within cities; the tax inspectorate for large
taxpayers under the authorized government body, with offices for the oblasts and the city of
Dushanbe (referred to hereinafter as “territorial tax authorities”), and they sh all constitute a common
centralized system of tax authoriti es of the Republic of Tajikistan.

2. The authorized government body shall be a central executive government body that
provides for the practical performance of the f unctions of tax authorities in the Republic of
Tajikistan, and in those cases esta blished by regulatory legal acts, out side the Republic of Tajikistan;
it shall administer the system of tax authorities in the Republic of Tajikistan and it shall be directly
accountable to the Republic of Tajikistan government.

Territorial tax authorities shall be local structural subd ivisions of the authorized government
body and they shall be directly accountable to the respective higher-level tax authorities along a
vertical chain of command.

3. The authorized government body shall be part of the system of central executive
government bodies of the Republic of Tajikistan.

4. The authorized government body and te rritorial tax authorities shall be legal entities, they
shall have independent balance sheets, special accounts at the Treasury under the Republic of
Tajikistan Ministry of Finance and at its local offices, and they shall have official stamps bearing an
image of the State Seal of the Republic of Tajikis tan with their name indicated in the official
language.

5. The directors of tax authori ties for Gorno-Badakhshan Autonomous Oblast, the oblasts
and the city of Dushanbe; tax inspectorates for regi ons, cities, and districts within cities; and the tax
inspectorate for large taxpayers w ith offices for the oblasts and the city of Dushanbe shall provide
for the performance of the tasks assigned to the ta x authorities in the respective regions, and they
shall organize, coordinate, and supervise the ac tivities of the subdivisions under their authority.

6. Tax authorities shall have full powers with regard to state monitoring of the payment of
taxes in full and in a timely manner, with the exce ption of cases in which this Code specifies the
collection of taxes by other authorities.

Article 111. Authorities of the First Director of the Authorized Government Body

The first director of the authorized government body:

1) shall organize the activities of the authorized government body and territorial tax
authorities, as well as other subdivi sions that are part of the system of the authorized government
body, with regard to the performan ce of the functions, tasks, and responsibilities assigned to these
bodies and subdivisions, and he shall bear liability for the results of these activities;

2) shall present proposals to the Republic of Tajikistan government regarding the
appointment and dismissal of his deputies, and th e approval of personnel serving as members of the
board of the authorized government body;

3) in accordance w ith the regulatory legal acts in force in the Republic of Tajikistan on labor
compensation, shall approve staffing tables and spending budgets for the maintenance of tax
authorities and other enterprise s, organizations, and subdivisions under the authority of the
authorized government body which are registered with financial auth orities, with the exception of
tax police units;

4) shall determine the functional re sponsibilities of his deputies; shall approve Regulations
on administrations, independent depa rtments, and other subdivisions of the authorized government
body, with the exception of tax po lice units; and shall issue orders, directives, instructions, and
methodological recommendations in accordan ce with the established procedure;

5) shall appoint and dismiss the first directors of territorial tax authorities;

6) shall determine a list of positions of employees of tax authorities, other enterprises and
organizations under the authority of the author ized government body, with the exception of tax
police units, who are appointed and dismissed by th e first director of the authorized government
body and directors of territo rial tax authorities;

7) shall assign class ranks up through tax authority senior advisor at grade I and special ranks
from major through colone l in the tax police;

8) shall present to the Presiden t of the Republic of Tajikistan a petition regarding the
assignment of special ranks in the tax police senior officer corps and the class ranks of tax authority
general advisor and senior advisor;

9) shall overturn orders, instructions, and directives issu ed by the directors of lower-level tax
authorities and tax police units that contradict this Code and other legislation of the Republic of
Tajikistan;

10) in accordance with the legisla tion in force shall present to government bodies; officials
of enterprises, institutions, and organizations, regard less of their form of ownership; and to public

associations representations and proposals regarding the elimination of circumstances that contribute
to tax crimes and offenses, the consider ation of which shall be compulsory;

11) shall perform other functions established by regulatory legal acts that are in force.

Article 112. Financing and Material and Technical Support for Tax Authorities and
Tax Police Units

1. The financing of expenditures of tax authorities and tax police units shall be provided out
of the republican budget.

2. The procedure and norms for material and technical support pr ovided to tax authorities
and tax police units shall be established by the Republic of Tajikistan government.

3. The property of tax authorities and tax police units shall be under state ownership. Said
property shall not be su bject to privatization.

Article 113. Tax Authority Employee

1. Persons who meet the qualification requirements for holding the relevant positions, as
determined by the authorized government body fo llowing the established procedure, shall be
appointed to positions as employees of tax authorities at all levels.

2. A tax authority employee shall be assigned a class rank following the established
procedure.

3. Class ranks of tax authority employees, a regulation on the procedure for assigning these
ranks, and the amount of supplemental payments for class ranks shall be determined by the Majlisi
Namoyandagon of the Majlisi Oli of the Republic of Tajikistan.

4. Tax authority employees shall be provided with uniforms, the design and standards for the
issuance of which shall be established by the Republic of Tajikistan government.

5. Tax authority employees shall be issued official identification as confirmation of their
authorities, the design of which shall be established by the authorized government body.

Article 114. Service in Tax Authorities

1. Service in tax authorities shall be regulated by the legislation of the Republic of Tajikistan
and this Code.

2. Tax authority employees sha ll undergo certification following the procedure established
by regulatory legal acts.

3. Tax authority employees shall be prohibited from performing other paid work at a another
job in addition to their principal job (other than scientific, creativ e, and teaching work), and from
engaging in entrepreneurial activity.

Article 115. Relations between Tax Authorities and Tax Police Units and Government
Bodies

1. Tax authorities and tax police units shall carry out their lawf ul duties independently of
central and local executive government bodies and law enforcement, financial, and other
government bodies, and shall cooperate with these bodies.

2. Government bodies shall be required to provid e assistance and furnish information at the
request of tax authorities and tax police units w ith the aim of ensuring fulfillment of the tax
legislation and monitoring the paymen t of taxes. These bodies shall be prohibited from interfering in
the activities of tax authorities and tax police unit s except as otherwise established by the legislation.

3. Customs authorities and agencies operati ng under the Social Protection Fund of the
Republic of Tajikistan government shall be requi red to regularly provide tax authorities with
information available to them which is necessary for fulfillment of the tax legislation, following the
established procedure.

Article 116. Transfer of Authoritie s by a Director to Other Persons

The director of a tax authority may transfer to a tax authority official authorities or
responsibilities entrusted to hi m or assigned to him by the legislation, with the exception of
authorities specified under item 2 of Article 120 of this Code.

Article 117. Annual Reports

1. Within six months of the end of each financial year, the authorized government body shall
provide for the publication of a report on the ope ration of the tax system of the Republic of
Tajikistan in the public print media.

2. This report must contain the following information:

1) the amount of taxes collected by tax author ities, with a breakdown by the type of taxes
collected and the region (city) tax inspectorat es at which they were paid (collected);

2) the amount of tax debt (arrears), with a breakdown in accordance with subitem 1 of this
item;

3) expenses incurred by tax authoritie s in the process of collecting taxes;

4) statistical data on tax concessions that were granted a nd extensions on arrears, including
those granted in the course of the financial reporting year;

5) a description of achievements and defici encies in the operation of the tax system;

6) a list of the last names and first names of individuals and the names of legal entities with
tax assessed but still unpaid in an amount in excess of 5,000 times the minimum monthly wage, with
the amount of the arrears indicated as well.

CHAPTER 14. RIGHTS AND RESPONSI BILITIES OF TAX AUTHORITIES

Article 118. Rights of Tax Authorities

1. Except as otherwise provided by this Code, tax authorities shall have the right, in
accordance with the legislation of the Republic of Tajikistan:

1) to perform tax audits in accordance with this Code;

2) to seize documents from a taxpaye r or a tax agent in the performance of tax audits, which
are related to the commission of tax offenses, a nd to prepare a document regarding such actions
following the established procedure;

3) to summon taxpayers or tax agents to appear at the offices of tax authorities on the basis
of a written notification to provide explanations in connection with the payment (withholding and
transfer) by them of taxes or in connection with a tax audit, and also for other purposes related to
their compliance with the tax legislation;

4) to determine the amount of ta xes payable by taxpayers to the budget on the basis of an
estimate (using direct or indirect estimation methods) in those cases and following the procedure
established under item 3 of Article 44 of this Code;

5) in the process of performing tax audits of individuals and legal entities, to inspect all
financial documents, accounting books, reports, estimates, cash, securities, and other assets in hand,
statements, returns, and other documents related to the calculation and payment of taxes; to obtain
from officials and other employees of enterprises (organizations) and from individuals information
and oral and written explanations regarding issues that may arise in the process of said audits;

6) in accordance with item 2 of Article 77 of th is Code, to examine all manufacturing,
warehouse, commercial, and other premises of en terprises and individuals, regardless of their
location, which are used for the purpose of earning income or are related to the maintenance of
objects of taxation, and to perform surveys us ing the time-study method or other methods;

7) to issue directives to managers and other officials of enterprises, as well as individuals,
regarding the elimination of viol ations of the tax legislation and legislation on commercial activity
that are identified, compliance with which shall be mandatory, and to monitor compliance with
them;

8) to impose tax sanctions and pena lties provided for by this Code and the legislation of the
Republic of Tajikistan against enterprises, offici als, and individuals for violations of the tax
legislation;

9) to collect taxes, penalties, and in terest from enterprises, their officials, and individuals in
accordance with this Code, including through the filing of petitions with the courts;

10) to prepare protocols of violations of the tax legislation by officials of enterprises or
individuals and to issue the relevant decisions;

11) in the process of a tax audit, following the procedure established by the authorized
government body in consultation with the Republic of Tajikistan Ministry of Finance, to conduct an
inventory of the taxpayer’s property (other than residential premises);

12) to obtain information, statemen ts, and documents pertaining to the commercial activity
and operations of enterprises and individuals from legal entities and individual entrepreneurs,
exclusively for official purposes;

13) to present to the Republic of Tajikistan government and local representative and
executive government bodies, following the established procedure, proposals re garding the repeal of
their decisions and decisions of lo wer-level bodies that are in conflict with the tax legislation in
force;

14) to petition the courts, following the established procedure, to attach property and collect
funds from accounts of indi viduals and legal entities;

15) provided that circumstances referred to under Articl e 94 of this Code are present, to
suspend spending operations, with the exception of spending operations for the purposes of fulfilling
a tax obligation, of individuals and legal entities on settlement and other accounts, including foreign
currency accounts at banking institutions of the Republic of Tajikistan;

16) in the process of performing ta x audits of banks themselves, to audit the movement of
money on the accounts of bank customers only on the basis of a court decision following the
procedure established by law;

17) to request from banks documen ts confirming the execution of payment orders presented
in accordance with the procedure established by this Code and other regulatory legal acts by
taxpayers and tax agents and coll ection orders (instructions) of tax authorities calling for the
debiting of taxes from the accounts of taxpayers a nd tax agents, as well as documents confirming the
suspension of spending operations on accounts of ta xpayers and tax agents following the procedure
established by this Code;

18) with regard to issues related to the taxation of a taxpayer who is being audited, to obtain
from banks or other financial and lending institu tions information about the existence and numbers
of the taxpayer’s bank accounts, and about the bala nces of funds and movement of funds on these
accounts in compliance with the re quirements established by legislative acts of the Republic of
Tajikistan regarding non-disclosure of informati on constituting a commercial, bank, tax, or other
secret protected by law;

19) to hire (bri ng in) specialists, experts, and translators to perform tax control activities;

20) to call as witnesses persons w ho may be aware of circumstances that are of significance
in the performance of tax control activities;

21) to announce petitions to revoke or suspend licenses to engage in certain activities which
have been issued to indivi duals and legal entities;

22) to set up tax warehouses and excise posts following the procedure established by this
Code;

23) to file petitions with the courts on matters related to compliance (noncompliance) with
the tax legislation by taxpayers and/or tax agents;

24) to draft, approve, and publish regulatory legal acts in accordance with this Code;

25) within the scope of their authority, to issue explanations regarding the incurrence,
fulfillment, and termination of tax obligations;

26) to monitor the proper ap plication of cash registers with fiscal memory;

27) tax authorities shall also have other rights provided for by this Code and other legislative
acts of the Republic of Tajikistan.

2. The rights of tax authorities set forth in this artic le may be exercised by tax police units
only on the basis of a written instruction from first directors of tax authorities or their authorized
deputies.

Article 119. Responsibilities of Tax Authorities

1. Tax authorities shall be required:

1) to comply with the Constitution of the Republic of Tajikistan, this Code, constitutional
laws, and other laws of the Republic of Tajikistan, joint resolutions of the Majlisi Milli and the
Majlisi Namoyandagon of the Majlis i Oli of the Republic of Tajikistan, resolutions of the Majlisi
Namoyandagon, regulatory legal acts of the President of the Republic of Tajikistan and the Republic
of Tajikistan government, and the rights and interests of enterprises, institutions, and organizations,
as well as citizens, which are protected by law;

2) to provide for the implem entation of state tax policy;

3) to provide for the registration of taxpayers in full and in a timely manner, including payers
of the value-added tax, and objects of taxation; to provide for the recording of taxes assessed and
paid, and arrears; and to monito r the proper calculation and paymen t of taxes to the budget in full
and in a timely manner;

4) to compile reports on tax receipts applied to the budget, and to maintain a record of and
compile reports on tax concessions granted, with a breakdown by groups of taxpayers, types of taxes
and concessions, as well as a breakdown by region;

5) to apply and promptly collec t financial and other sanctions, penalties, and interest
provided for by this Code and other legislativ e acts of the Republic of Tajikistan;

6) to conduct audits of taxpayers in accordance with regulatory legal acts;

7) to publish methodological and instru ctional directives on issues that fall within the scope
of their authority, as well as manuals, broc hures, and posters, and to publish guidance and
explanations on these issu es in the mass media;

8) to present a notification to a taxpayer regarding the fulfillment of a tax obligation within
the deadlines and in those cases provided for by this Code;

9) to provide a statement from a taxpayer’s personal account on the status of settlements with
the budget pertaining to the fulfillment of tax obligat ions, within 10 days of the taxpayer’s request;

10) to apply methods to ensure the fulfillment of tax obligations and to collect a taxpayer’s
tax debt in accordan ce with this Code;

11) to furnish taxpayers with a c opy of a tax audit report and the relevant decision by a tax
authority based on the results of a tax audit;

12) to maintain a state register and reco rds of cash registers with fiscal memory;

13) to review letters, appeals, and petitions regarding issues that fall within the jurisdiction
of tax authorities following the established procedure;

14) to furnish information to fi nancial authorities on a monthly basis on taxes actually
received and paid to the budget;

15) to monitor execution of the revenue side of the budget in conjunction with financial
authorities;

16) to collect and analyze informa tion on the fulfillment and violations of tax legislation, to
forecast trends in the development of negative pro cesses related to the taxation of legal entities and
individuals, and to keep the Republic of Tajikistan government informed in this regard;

17) to implement foreign exchange controls in conjunction with other bodies authorized by
the legislation of the Republic of Tajikistan;

18) to credit and/or refund to taxpayers tax overpayments in accordance with the provisions
of Article 89 of this Code;

19) to observe the secrecy of information about taxpayers in a ccordance with the provisions
of Article 123 of this Code;

20) to perform explanatory work regarding the application of ta x legislation; to furnish
taxpayers with tax reporting forms and explain the procedure for filling them out; to provide
explanations, including written explanations, regarding the procedure for the calculation and
payment of taxes;

21) to retain tax reporting materials and other documents, including copies of these
documents issued to taxpayers (receipts, etc.) co nfirming fulfillment by a taxpayer of tax obligations
to pay taxes to the state budget, for six years from the end of a tax year;

22) in the event that facts are di scovered in the course of a tax audit pointing to crimes
related to tax evasion and evasion of other compulsory payments to the budget, which the legislation
places under the jurisdiction of tax police units, as well as signs of other economic offenses and

crimes, to forward to tax police units the relevant materials within 10 business days of approval of
the tax audit report for the implementation of measures in accordance with the legislation of the
Republic of Tajikistan;

23) to monitor the activities of lowe r-level tax authorities and enterprises, institutions, and
organizations under their jurisdiction;

24) to carry out other responsibilit ies provided for by the tax legislation of the Republic of
Tajikistan.

2. The provisions of subitems 3), 4), 5), 6), 8), 9), 10), 11), 12), 14), 15), 17), 18), 20), 21),
22), and 23) of item 1 of this articl e shall not apply to tax police units.

Article 120. Procedure for Exercising the Rights Granted to Tax Authorities

1. The rights of tax authorities specified un der subitems 1), 2), 5), 6), 10), 11), 12), 16), 17),
18), 20), and 26) of item 1 of Article 118 of this Code shall be granted to all tax authority
employees.

2. The rights of tax authorities specified un der subitems 3), 7), 8), 9), 13), 14), 15), 19), 21),
22), 23), 24), and 25) of item 1 of Article 118 of this C ode shall be granted to the first director of the
authorized government body, his first deputy, and au thorized deputies, deputy directors of the tax
department of the authorized gove rnment body, and the first directors of territorial tax authorities
and their deputies.

3. The rights of tax authorities specified under item 1 of Article 118 of this Code and not
listed under items 1 and 2 of this article shall be granted to all tax authority employees who hold the
rank of senior tax inspector or higher.

4. An instruction on the procedure for exercising the rights granted to tax authorities shall be
drafted, approved, and published by the authorized government body.

Article 121. Liability of Tax Authority Officials

1. Tax authority employees shall bear disciplinary, administrative, or criminal liability in
accordance with the legislation of the Republic of Tajikistan for failure to fulfill or improper
fulfillment of their duties; for failure to observe state, official, tax, and commercial secrets and the
secrecy of deposits as establishe d by the legislation; and for abus es of their official position and
other unlawful actions.

2. Damages incurred by a taxpayer as a result of unlawful actions by tax authority employees
shall be subject to restitution following the proce dure established by the Civil Code of the Republic
of Tajikistan.

Article 122. Conflict of Interest

A tax authority employee shall be prohibited from performing his official duties in the
following cases:

1) the tax authority employee is related to a taxpayer;

2) a taxpayer or a relative of the ta xpayer has a direct or indirect financial interest with
respect to the tax authority employee.

Article 123. Secrecy of Information (Tax Secret)

1. Tax authorities, tax agents, and all persons who are or have been employees thereof, shall
be required to maintain the secrecy of any information about taxpayers (with the exception of
information about a taxpayer identification number and other information related to the registration
of taxpayers) obtained by them in the performance of their official duties. Tax authorities and tax
agents shall have the right to disclose such in formation following the procedure established by the
authorized government body, only to the following persons:

1) other tax authority employees in the course and for the purpose of the performance of
their official duties;

2) law enforcement authorities fo r the purpose of performing an inspection of a person who
has committed a tax offense or crime, in accordance with the law;

3) courts in th e course of a review of a case to de termine a taxpayer’s tax obligations or
liability for tax offenses or crim es or other criminal liability;

4) tax authorities of other countr ies in accordance with international treaties recognized by
the Republic of Tajikistan;

5) financial authorities and the Social Protection Fund of the Republic of Tajikistan
government, within the limits necessary for the implementation of legislation on the budget and
social security;

6) customs authorities for purposes re lated to the application of customs legislation, as well
as bodies that have the ri ght to collect taxes in accordance with this Code, for purposes of taxation.

2. Persons who have obtained inform ation in accordance with item 1 of this article shall
preserve the secrecy of information in accordance w ith the provisions of this article, with minimal
exceptions necessary to achieve the purposes for which access to the information is allowed.

3. With the exception of cases in which information is obtained in accordance with items 1
or 4 of this article, a person who obtains inform ation, access to which is regulated by this article,
may not disclose the information and shall be required to return the documents containing
information to tax authorities.

4. Information concerning a taxpayer may be provided to another person with the taxpayer’s
written permission.

CHAPTER 15. TAX POLICE UNITS

Article 124. Tax Police Units

The tax police shall be a law enforcement unit of the authorized government body and its
purpose shall be to increase the e ffectiveness of efforts to prevent tax offenses with the aim of
ensuring the payment of taxes to the budge t in full and in a timely manner.

Article 125. Structure of Tax Police Units

1. Tax police units of the authorized government body shall consist of the Main Tax Police
Administration of the authorized government body; tax police administrations of Gorno-Badakhshan
Autonomous Oblast, the oblasts, and the city of Dushanbe; the tax police administration for the
transportation sector; and tax police offices in the Republic’s cities and regions.

The Main Tax Police Administration shall be subordinate to the authorized government
body, and territorial tax police un its shall be subordinate to higher-level tax police units.

2. The Main Tax Police Administration and its territorial units shall be legal entities, they
shall have official seals bearing an image of the State Seal of the Republic of Tajikistan and stamps
in the official language, and independent balance sh eets, and they shall be serviced from a single
treasury account of the Republic of Tajikistan Ministry of Finance.

3. The Main Tax Police Administra tion of the authorized government body shall be headed
by a chief, who shall serve simultaneously as a deputy director of the authorized government body.

4. A certification commission shall be established within the Main Tax Police
Administration, the composition of wh ich shall be determined by the chief of the Main Tax Police
Administration on the basis of a regulation approved by the Republic of Tajikistan government.

Article 126. Authorities of the Chief of the Main Tax Police Administration

The chief of the Main Tax Police Administration of the authorized government body:

1) shall organize the activities of tax police units at all levels and shall bear liability for the
fulfillment of all tasks and res ponsibilities assigned to them;

2) shall submit proposals regarding the appointment and dismi ssal of his first deputy and
deputies to the board of the authorized government body, and shall determine their functional
responsibilities;

3) shall appoint and dismiss heads of administrations, departments, and other units, as well
as other employees of the Main Tax Police Admini stration; heads of the tax police administrations
of Gorno-Badakhshan Autonomous Oblast, the oblasts, and the city of Dushanbe, and the tax police
administration for the transportation sector; and head s of tax police offices in the Republic’s cities
and regions;

4) in accordance with regulatory legal acts of the Republic of Tajikistan on labor
compensation, shall approve staffing tables and sp ending budgets for the maintenance of tax police
units, which shall be registered with financial authorities;

5) shall approve regulations of administrations and departments of the Main Tax Police
Administration and territorial tax police units, and shall issue orders and approve instructions and
methodological recommendations;

6) shall determine a list of positions of tax police employees who are to be appointed and
dismissed by heads of terri torial tax police units;

7) shall assign special ranks up through the rank of tax police captain;

8) shall overturn orders, instructions, and directives of heads of lower-level tax police units
that contradict this Code;

9) shall exercise other authorities as established by the legislation.

Article 127. Main Tasks of Tax Police Units

1. The main tasks of tax police units shall be:

1) to identify, prevent, and suppress tax crimes and offenses that fall under the jurisdiction of
tax police units, including crimes by ta x authority and tax police officials;

2) to ensure the safe operation of tax authorities and tax police units and to protect their
employees from unlawful interference in the performance of their official duties.

2. Tax police units shall inform the appropriate law enforcement authorities of other
economic offenses and other types of violations discovered in the performance of their main tasks.

Article 128. Rights of Tax Police Units

1. Except as otherwise provided by this Code, the tax police shall be granted the right to do
the following in the performan ce of the tasks assigned to it:

1) to participate in tax audits at the written request of the first director of a tax authority; to
carry out court decisions calling fo r the attachment of property;

2) to inspect identification documents of citizens and officials if there are sufficient grounds
to suspect them of violating the tax legislation;

3) to utilize means of communication and vehicles belonging to enterprises, institutions, and
organizations, or public associations (except means of communicati on and vehicles of diplomatic
missions, consular and other institutions of forei gn states, international organizations, and private
owners) in urgent situations in order to prevent tax crimes, and to pursue and detain persons who
have committed tax crimes or who are suspected of doing so. In these cases tax police units shall
provide restitution to the owners of means of communication and vehicles for losses and expenses
incurred by them;

4) to carry ou t administrative detention in the event of a violation of tax legislation in
accordance with the legislation of the Republic of Tajikistan;

5) if there are sufficient grounds pointing to evidence of a crime related to a tax offense, to
petition the first director of a tax authority to cond uct a tax audit in conjunction with specialists from
the given tax authority or a higher- level tax authority. Such a joint audit shall be carried out on the
basis of a written instruction from the first director of the respective tax au thority. A tax audit report
shall be prepared based on the results of the join t tax audit, and the appropriate decision shall be
adopted by the tax authority on the basis of this re port. Based on the results of this decision and the
tax audit report, a tax police unit shall adopt one of the following decisions within the established
time period:

– in the event that tax offenses are discovered which contain elements of a crime, the
decision shall be made to take the relevant steps to initiate criminal proceedings;

– in the event that tax offenses are discovered which do not contain elements of a crime, the
decision shall be made to refrain from initiating cr iminal proceedings and to transfer (forward) the
audit materials to the tax authority with which the ta xpayer is registered so that it can take measures
provided for by this Code;

6) to maintain a record of persons, objects, and facts that fall within the scope of authority of
the tax police;

7) to store, carry, and use servi ce weapons, and apply special means and physical force, in
accordance with the Republic of Tajikistan Law “On the Police”;

8) to carry out operational investigative measures a nd engage in inquiries and preliminary
investigations for the purpose of identifying and investigating, preventing, and suppressing tax
crimes and offenses, as well as ensuring the safe ope ration of tax authorities, in accordance with the
legislation of the Republic of Tajikistan.

2. The procedure for exercising the rights of tax police units shall be established by the chief
of the Main Tax Police Administration in accordance with the le gislation of the Republic of
Tajikistan.

Article 129. Responsibilities of Tax Police Units

In accordance with the tasks assigned to it, the tax police:

1) shall receive and register st atements, reports, and other information on tax crimes and
offenses and shall carry out their verificat ion following the established procedure;

2) shall ensure the safe operation of tax authorities, protect their employees in the
performance of their official duties, and ensure the safety of its own personnel;

3) shall carry out court decisi ons calling for the attachment of property, other court
decisions, and written instructions from prosecutors and investigators regarding the performance of
actions provided for by law involving cases of violat ion of the tax legislation, within the scope of its
authority;

4) shall provide assistance to prosecutor’s offices, agen cies of the Ministry of Internal
Affairs, security agencies, and other government bodies in identifying other offenses;

5) shall protect state and official secrets, including tax secrets;

6) shall carry out operational investiga tive measures and shall engage in inquiries and
preliminary investigations for th e purpose of identifying and invest igating tax crimes and offenses;

7) shall identify and suppress crim es and other offenses related to nonpayment of taxes, the
concealment or underreporting of profit (income) , the concealment of objects of taxation by
individuals and legal entities, as well as other wa ys of avoiding the payment of taxes, and other
crimes and offenses that cause harm to th e state as a result of nonpayment of taxes.

Article 130. Service in Tax Police Units

1. Citizens of the Republic of Tajikistan who are no younger than 20 years of age and no
older than 35 years of age, who have performed active military service and meet the qualifications
requirements established by the authorized government body, shall be accepted for service in the tax
police. The maximum age indicated in this item shall not apply to the appointment of persons to
serve in management positions within the tax poli ce. A person who has been convicted of a crime
may not be accepted for service in the tax police.

2. A tax police employee shall be assigned a special rank following the established
procedure. Tax police employees shall take an oath. The text of the oath and the procedure for
taking the oath shall be established by the Republic of Tajikistan government.

3. Persons in the military reserves who are appointed to certified personnel positions in the
tax police shall be removed from the reserve rolls following the established procedure and shall be
entered in the special register of tax police units.

4. The procedure for serving in tax police units shall be governed by the Regulation on
Service in Tax Police Units approved by th e Republic of Tajikistan government.

5. A supplemental payment shall be esta blished in addition to the regular salary for service in
mountain regions and areas with harsh climatic c onditions in accordance with the legislation of the
Republic of Tajikistan.

6. When military personnel, member s of the rank-and-file and command staff of internal
affairs authorities, security, and other law enforcement authorities who have military or special
ranks, or class ranks, are transferred to tax police units, their length of service at their previous place
of employment shall count toward their length of service for the purpose of awarding special ranks,
pensions, and supplemental payments for length of service.

7. A common number of working hours shall be established for tax police employees in
accordance with the legislat ion of the Republic of Tajikistan. When necessary, in accordance with
the legislation of the Republic of Tajikistan, tax police employees may be required to work
overtime, as well as at night and on weekends and holidays.

8. Tax police employees shall be gran ted regular annual and additional paid leave, as well as
other types of leave in acco rdance with the Regulation on Service in Tax Police Units.

CHAPTER 16. LEGAL AND SOCIAL PROTECTION FOR EMPLOYEES OF TAX
AUTHORITIES AND TAX POLICE UNITS

Article 131. Legal Protection for Employees of Tax Authorities and Tax Police Units

1. Employees of tax authorities and tax police units shall be representatives of the
government and shall be under the protection of the government. Lawful requests made by them
within the scope of their authority shall be binding upon citizens and officials.

2. Interference in the ability of empl oyees of a tax authority or a tax police unit to perform
their official duties, insults to th eir honor and dignity, threats, resi stance, violence, or attempts to
harm their life, health, and propert y in connection with the performan ce of their official activities,
shall result in liability provided for by the legislation of the Republic of Tajikistan.

3. Protection of the life, health, honor, dignity, and property of family members of
employees of tax authorities a nd tax police units from criminal harm in connection with the
performance by the latter of their official duties shall be provi ded for by this Code and other
legislative and/or regu latory acts of the Republic of Tajikistan.

Article 132. Material, Social, and Personal Security for Employees of Tax Authorities
and Tax Police Units and Their Family Members

1. The state shall guarantee social protection for employees of tax authorities and tax police
units.

2. Material, social, and personal security for employees of tax authorities and their family
members shall be provided under the conditions and following the proced ure and in the amounts
established by the legislation of the Republic of Tajikistan on civil service for civil service
employees.

3. The types and amount of material security, including the types and amount of monetary
allowances, for employees of tax authorities and ta x police units shall be established by the Republic
of Tajikistan government.

4. Legal and social protection for tax police employees shall be provided under the
conditions and following the proced ure and in the amounts established by the legislation of the
Republic of Tajikistan on the police.

5. Pension security (determination of the size of the pension paid to employees who have
been discharged from service in connection with reaching retirement age, illness, or length of
service) for employees of tax police units and thei r families shall be provided in accordance with the
norms and following the procedure established by the Republic of Tajikistan Law “On Pension
Security for Military Personnel.”

PART II. SPECIAL PART

SECTION IV. PERSONAL INCOME TAX (TAX ON INCOME OF INDIVIDUALS)

CHAPTER 17. GENERAL PROVISIONS

Article 133. Taxpayers

Payers of the income tax shall be resident and nonresident individuals who have objects of
taxation in accordance with Article 134 of this Code.

Article 134. Object of Taxation

1. The object of taxation with respec t to the income tax for residents shall be their taxable
income, defined as the difference between gross in come for the calendar year and deductions of
expenses as provided for by th is Code for the given period.

2. A nonresident taxpayer who is doing business in the Republic of Tajikistan through a
permanent establishment shall be subject to th e income tax on taxable income related to the
permanent establishment and defined as the differe nce between gross income for the calendar year
from sources in the Republic of Tajikistan rela ted to the permanent establishment (subitem 3) of
item 8 of Article 34 of this Code ) and the deductions provided for under this Code with respect to
this income for the given period.

3. The gross income of a nonresident not referred to in item 2 of this article shall be subject
to taxation at the source of payment if so speci fied under Article 164 of this Code, without taking
any deductions.

4. A nonresident individual earning income from a source in the Republic of Tajikistan from
work for hire or income from the sale or tr ansfer of property not related to his permanent
establishment in the Republic of Tajikistan shall be subject to the income tax on gross income of this
type for the calendar year, less th e deductions provided for under this Code which relate to this
income for the given period.

Article 135. Gross Income

1. Gross income of a resident taxpayer shall consist of income earned by him from sources in
the Republic of Tajikistan and outside the Republic of Tajikistan.

2. Gross income of a nonresident taxpayer shall consist of income earned by him from
sources in the Republic of Tajikistan.

3. All types of income, both that received in cash and in kind, ot her than income that is
exempt from income tax (profit tax) in accordance with this Code , shall be included in gross
income, including:

1) income earned in the form of wages;
2) income from activity that does not constitute work for hire;
3) any other income;

Article 136. Income Received in the Form of Wages

1. Any payments or benefits, including in kind, received by an individual from work for hire,
shall be considered income received in the form of wages, including income from previous work for
hire received in the form of a pension or in an other form, or income from future work for hire.

2. For the purposes of item 1 of this article, the value of benefits from work for hire shall be
equal to the amount indicated below, minus any payment by the worker for the benefit received:

1) in the case of a loan at a below-market rate, the amount equal to interest that would be
payable at the market rate for loans of this type;

2) in the event of the sale or transfer of goods, work, or services free of charge by an
employer to an employee, the market value of these goods, work, or services;

3) in the event of assistance in obtaining an education for the employee or his dependents
(excluding training programs direct ly related to the employee’s performance of his duties), the cost
of the educational assi stance to the employer;

4) in the event of reimbursement for an employee’s expenses, the amount of the
reimbursement;

5) in the event of the forgiven ess of a debt or obligation owed by an employee to an
employer, the amount of the debt or obligation that is forgiven;

6) in the event of the payment of insurance premiums under life and health insurance
agreements and other similar payments by an empl oyer, the cost of these insurance premiums or
payments made by the employer;

7) in other cases, the market value of the benefit in accordance with Article 32 of this Code.

3. Gross income shall not include reimbursement of business travel expenses in accordance
with norms established in the rele vant regulatory legal acts, as well as reimbursement of business
travel expenses by international organizati ons and their institutions, foundations, and
nongovernmental institutions that ar e nonresidents, at the expense of the funds of these entities.

4. Gross income shall not include payments for hospitality and other similar expenses
(related to making arrangements for parties, housing of guests, et c.) received by an individual.

5. The costs and expenses referred to in item 2 of this article shall include excise taxes,
value-added tax, and any other tax payable by an employer in connection with the transaction in
question.

6. Gross income earned by an individual shall not include the social tax paid by an employer
and this person in accordance with Section IX of this Code.

Article 137. Income from Activity Not Related to Work for Hire

1. The following shall be treated as income from activity not related to work for hire:

1) income from commercial activity, including:

– profit from the sale or transfer of assets used for the purposes of commercial activity, in
accordance with Articl e 194 of this Code;

– income received for agreeing to limit commercial activity or to close an enterprise;

– proceeds earned from the sale of fixed assets and treated as income in accordance with item
7 of Article 153 of this Code;

– compensated deductions in accordance with Article 193 of this Code;

2) income from noncommercial activity, including:

– interest income;
– dividends;
– income from the leasing or rental of property;
– royalties;
– the amount of debt owed by a taxpayer which is forgiven by a creditor;
– profit from the sale or transfer of assets not used in commercial activity;

3) any other income representing an increase in the net value of the taxpayer’s assets, other
than wages.

2. Individual entrepreneurs, with the exception of payers of the value-added tax, may be
subject to the income tax on the basis of a patent or other simplified system, following the procedure
established by the Republic of Ta jikistan government. The patent form of taxation shall not be
applied if individual en trepreneurs are actually hiring personn el for the purpose of performing
commercial activity, regardless of whet her the hiring is documented or not.

3. Individual entrepreneurs who are not payers of the income tax in accordance with item 2
of this article on the basis of a pa tent or other simplified system sha ll be subject to the income tax in
accordance with the provisions of Sections IV a nd VI of this Code. In this case an individual
entrepreneur shall be issued a certificate of regist ration as an individual entrepreneur following the
procedure established by the Re public of Tajikistan government.

Article 138. Adjustment of Gross Income

Dividends and interest earned by individuals and previously taxe d at the source of payment
in the Republic of Tajikistan in accordance with Articles 162 or 163 of this Code shall be excluded
from gross income.

Article 139. Right to Personal Deductions

1. An individual shall have the right to take a deduction equal to the monthly minimum wage
for each month of the tax year. In the case of an individual who is an employee, the deduction shall
be allowed only with respect to wages ear ned at his principal place of employment.

Income earned by an individual that does not exceed 12 times the monthly minimum wage
per year or the monthly minimum wage on average per calendar month shall not be subject to the
income tax.

2. The following individuals sha ll have the right to a deduction equal to 10 times the
minimum monthly wage for each month of the tax year:

1) Heroes of the Soviet Union a nd Heroes of Tajikistan, persons who have been awarded any
of the three degrees of the Order of Glory, as we ll as persons disabled since childhood and persons
with Group I and II disabilities;

2) veterans of the Great Patriotic War and persons with equivalent status, veterans of other
combat operations in defense of the USSR who served as military personnel at military units,
headquarters, and installations and who were part of the active-duty army, former partisans, and
soldier-internationalists;

3) citizens who have suffered from and survived radiation sickness caused by accidents at
nuclear facilities; those who par ticipated in clean-up efforts related to such accidents within
exclusion zones; those who were involved in operati ons or other work at nuclear facilities during the
accident clean-up period.

3. An individual shall have the righ t to deduct the social tax paid in accordance with Chapter
35 of this Code.

4. An individual shall have the righ t to one of the deductions established under items 1 and 2
of this article, whichever is the largest.

Article 140. Income Tax Rates

1. An individual’s taxable income sh all be subject to the income tax at the following rates:

No. Amount of taxable income (monthly average) Tax rate and amount
1. Equal to or less than the monthly mini mum wage Not subject to income tax
(zero rate)
2. Above the monthly minimum wage up to 100
somoni 8 percent on the amount of
taxable income in excess of the
monthly minimum wage
3. Above 100 somoni The amount of tax indicated on
line 2, plus 13 percent on the
amount of taxable income in
excess of 100 somoni

2. For purposes of taxation, both th e amount of taxable income and the amount of deductions
shall be calculated on a cumulative ba sis from the beginning of the year.

Article 141. Exemption

The following types of personal income shall not be subject to the income tax:

1) income from official diplomatic or consular work by a person who is not a citizen of the
Republic of Tajikistan;

2) income earned from work for hi re by a person who is not a resident or citizen of the
Republic of Tajikistan and who is pr esent within the territory of the Republic of Tajikistan for less
than 90 days in a tax year, if this income is paid by a nonresident employer or on behalf of and at the
expense of an employer who is not a resident of the Republic of Tajikistan, and is not paid by a
permanent establishment of a nonresiden t in the Republic of Tajikistan;

3) the value of property received from another individual in the form of a gift or inheritance,
except for income from this property and property received as labor compensation;

4) the value of gifts received from legal entities, as we ll as prizes (winnings) in contests and
competitions, including cash prizes, if:

– the value of the gifts received from legal entities does not exceed 100 times the monthly
minimum wage in a year;

– the value of prizes (winnings) from international contests and competitions does not exceed
500 times the monthly minimum wage in a year;

– the value of prizes (winnings) from domestic contests and competitions does not exceed
100 times the monthly minimum wage in a year;

5) government pensions, government stipends, and government benefits, including payments
and benefits for burial, pregnancy and childbirt h, in connection with a disability (including
temporary disability), and in connect ion with the loss of a breadwinner;

6) child support and alimony, with respect to the persons receiving such payments;

7) one-time payments, material assistance at the expense of the budget, provided in
accordance with the procedure established by regul atory legal acts, as well as humanitarian and
charitable assistance, including that provi ded in the event of natural disasters;

8) income from the sale or transf er by an individual of real property that has been the
taxpayer’s principal place of resi dence for the past five years;

9) income from the sale or transf er by an individual of personal property, other than property
used by the taxpayer for commercial activity;

10) state prizes awarded by the Republic of Tajikistan;

11) insurance payouts received under savings and repayment agreements up to the amount of
payments made against such agreements, when insurance premiums under these agreements have
been paid at the individual’s own expense, and insu rance payouts received as a result of the death of
an insured person;

12) income from the sa le by beekeepers of honey from their own hives;

13) income from the sale of agricultural produce grown (produced) on household plots
without any industr ial processing;

14) cash allowances, cash remune ration, and other payments received in connection with
service (the performance of official duties) by military personnel, members of the rank-and-file and
command staff of the ministries of defense, internal affairs, security, emergency situations, and civil
defense, the Committee for Protection of the State Border, the Main Tax Police Administration, and
the Customs Department of the Ministry of Stat e Revenues and Fees of the Republic of Tajikistan,
the National Guard, as well as reservists called up for training duty or inspections;

15) payments for blood donation;

16) earnings from government bonds and government lotteries of the Republic of Tajikistan;

17) targeted social assistance, benefits and compensation, with the exception of those related
to labor compensation, paid at the expense of the state budget in the amounts and following the
procedure established by regulatory legal acts;

18) restitution for losses sustaine d by a worker as a result of injury or other health
impairment related to the performa nce of his duties on the job, in accordance with the legislation of
the Republic of Tajikistan;

19) the value of special clothi ng and/or uniforms and footwear, means of individual
protection, first aid equipment, soap, disinfectan ts, milk, and other equivalent food products for
therapeutic and preventive-care meals based on norms and within the spheres of activity established
in accordance with regulatory legal acts of the Republic of Tajikistan government;

20) insurance payouts under an empl oyer’s mandatory liability insurance agreements (at the
employer’s expense) for injury (in the event of injury) to an employee’s life and health in the
performance of his duties on the job (official duties);

21) restitution for fi nancial damages awarded under a court ruling;

22) personal income that is exem pt in accordance with other provisions of this Code.

SECTION V. CORPORATE PROFIT TAX

CHAPTER 18. GENERAL PROVISIONS

Article 142. Taxpayers

1. Payers of the corporate profit ta x (referred to hereinafter as the “profit tax”) shall be
resident and foreign enterprises.

2. Any foreign entity that is not an individual shall be treated as an enterprise for the
purposes of this section if it cannot prove that it should be treated as an entity under joint ownership
in accordance with Article 189 of this Code.

Article 143. Object of Taxation

1. The object of taxation for a reside nt enterprise shall be its profits. Profits shall be the
positive difference between a taxpayer’s gross inco me and deductions specified under Chapter 19 of
this Code. For the purposes of th is article gross income shall be defined in accordance with the
provisions of Article 135 of this C ode (including all receipts that lead to an increase in the net value
of a taxpayer’s assets, with the excep tion of receipts that are exempt from the profit tax. In this case
property received as a contribu tion to authorized capital shall not be treated as income.).

2. The object of taxation for a fore ign enterprise doing business in the Republic of Tajikistan
through a permanent establishment sha ll be its profits from this business, that is, its gross income
from sources in the Republic of Tajikistan related to the permanent establishment, less the
deductions provided for under this Code for such income.

3. The types of gross income earned by a foreign enterprises, as specified in Article 164 of
this Code, which are not related to its permanent establishment shall be subject to taxation at the
source of payment without taking de ductions, if the source of income is located in the Republic of
Tajikistan.

4. In cases in which a foreign enterp rise earns income from the sale or transfer of property
not related to its permanent establishment in the Republic of Tajikistan, the object of taxation shall
be its profits from this activity, that is, gross inco me of this type from sources in the Republic of
Tajikistan for the calendar year, less the deductions provided for under this Code and applicable to
this income for the period in question.

Article 144. Tax Rates

1. In consideration of items 2 and 3 of this article, profits of enterprises less losses sustained
in accordance with the provisions of Article 160 of this Code, shall be subject to taxation at the rate
of 25 percent.

2. The types of gross income of a foreign enterprise specified under item 3 of Article 143 of
this Code shall be subject to taxation at the rates indicated in Article 164 of this Code.

3. In those cases specified under item 4 of Article 143 of this C ode, the profits of a foreign
enterprise shall be subject to taxation at the rate of 25 percent.

Article 145. Concessions

The following shall be exempt from the profit tax:

1) religious, charitable, budgetary, intergovernmental, and interstate (international) nonprofit
organizations, with the exception of profits earned by them from commercial activity. Such
organizations must maintain separate accounting reco rds for their principal activity (activity that is
exempt from the profit tax) and commercial activity;

2) unrequited transfers, property received free of charge, membership dues, donations, and
grants received by nonprofit organizations;

3) the National Bank of Tajikistan and its institutions;

4) dividends earned by a resident enterprise from a resident enterprise;

5) enterprises at which the follo wing circumstances exist simultaneously in the tax reporting
year:

a) disabled persons account for at least 50 percent of the employees; and

b) at least 50 percent of the funds spent on labor compensation and other material
remuneration, including in-kind payments, are spent on the needs of disabled persons;

6) new enterprises established in the manufacturing sphere, duri ng the year of their state
registration and starting with the year following their initial state registration, when their founders
make investments in the following amounts to the aut horized capital of these enterprises, taking into
account the minimum investment amounts estab lished by the legislation, for a period of:

– 2 years, if the investments are the equivalent of up to US$500,000;

– 3 years, if the investments are the equivalent of more than US$500,000 and up to
US$2 million;

– 4 years, if the investments are the equivalent of more than US$2 million and up to
US$5 million;

– 5 years, if the investme nts are in excess of the equivalent of US$5 million.

When calculating the amount of time (duration) for which a profit tax exemption (tax
holiday) is granted in accordance with this item, subsequent re-registrations of an enterprise, a
change in the enterprise’s owners hip, a change in its organizational-legal form, and other changes of
this nature shall not be taken into consideration.

SECTION VI. GENERAL PROVISIONS CONCERNING THE PROFIT TAX AND
INCOME TAX

CHAPTER 19. DEDUCTIONS FROM GROSS INCOME

Article 146. Deduction of Expenses Related to Earning Income

1. All expenses effected in a (tax) reporting period (applicable to a reporting period) that are
related to earning the income in question, including expenditures on the payment of taxes specified
by this Code, taking into account the restrictions established under Article 158 of this Code,
expenditures on labor compensation a nd providing material and social benefits for employees that
are subject to the income tax, expenditures on pa yment for raw materials, supplies, and energy,
except expenditures on construction, the purchase of fixed assets and their installation, as well as
other capital expenditures in accordance with Article 195 of this Code, and expenditures that are not
deductible in accordance with Article 147 of this Code and other provisions of this chapter, shall be
deducted from gross income.

2. Deductions shall be taken by a taxpayer provided that the taxpayer has properly prepared
documents confirming the expenses related to earning gross income.

3. In the event that the same expenses are specified under seve ral expenditure items, said
expenses shall be deducted only once when calculating taxable profit (taxable income).

4. Penalties, interest (fines), and charges that have been awarded or recognized and are
related to earning gross income, wh ich are payable (have been paid) at the taxpayer’s expense, shall
be deductible, with the exception of those payable to the budget.

Article 147. Nondeductible Expenses

1. Deductions shall not be allowed for expenses that are not related to commercial activity.
Deductions shall not be allowed for expenditures on the constructi on, operation, and maintenance of
facilities that are not re lated to commercial (princ ipal production) activity.

2. The deductions provided for under this chapter shall not be allowed if they do not meet the
requirements set forth in Article 146 of this Code.

3. No deductions shall be allowed for hospitality and other similar expenses (related to
making arrangements for parties, housing of guests, etc.)

4. Item 3 of this article shall no t apply to a taxpayer whose commercial activity is of an
entertainment nature, if the expenses ar e incurred as part of this activity.

5. Deductions with regard to contribu tions to reserve funds shall be taken only in accordance
with the provisions of Arti cles 150 and 151 of this Code.

6. An individual may not deduct expenditures on personal consumption or expenses related
to his own work for hire.

7. The value of property transferred, work performed, or services provided free of charge (on
a charitable basis) shall not be deductible, with the exception of th e case referred to under Article
148 of this Code.

8. Deductions shall not be allowed fo r expenses related to passenger cars which at any time
during the tax period were at the personal disposal of employees or shareholders (partners of a
taxpayer), including their us e for transporting employees to and from work.

Article 148. Deduction of Charitable Payments

Regardless of the provisions of Article 147 of this Code, deductions of payments to
charitable organizations and for the performance of charitable activity in accordance with items 2
and 3 of Article 17 of this Code shall be permitte d in the amount of the payments actually made, not
to exceed 5 percent of taxable profit (taxable income) determined without including the amount of
the deduction allowed under this article. In the case of charitable payments in the form of property,
the amount of the charitable payment actually made shall be the lesser of two values: the market
value of the property or its production cost.

Article 149. Restriction on Deductions Pertaining to Interest

1. Except as otherwise provided under item 2 of this article, interest actually paid (payable
when the accrual basis is used) for each credit (loan) shall be deducted, but in an amount not to
exceed three times the amount of interest accrued (accruable) using the refinancing rate of the
National Bank of Tajikistan in effect in the tax period. This item shall also apply to interest paid
under financial leasing agreements.

2. In the case of an enterprise in wh ich more than 25 percent of the authorized capital is held
directly or indirectly by nonresiden ts or legal entities that are exempt from th e profit tax, interest
paid on each credit (loan) used during a tax period shall be deducted in accordance with item 1 of
this article, but the maximum amoun t of interest that can be deducted in accordance with item 1 of
this article shall be limited to the following amount:

1) any interest in come earned by the given enterprise, plus

2) 50 percent of the amount received as a result of a reduction in this enterprise’s gross
income (other than interest income) by author ized deductions allowed in accordance with this
chapter, other than deducti ons pertaining to interest.

Article 150. Deducti ons Pertaining to Bad (Problem) Debts

1. Taxpayers shall have the right to take deductions for bad (problem) debts related to the
delivery of goods, the performance of work, and the pr ovision of services, if the income related to
these debts was previously included in gro ss income earned from commercial activity.

2. A deduction of a bad (problem) debt shall be allowed at the point that the debt is written
off in the taxpayer’s accounting records as having no value.

3. Banks, credit unions, and micro- credit deposit institutions that have been set up following
the established procedure shall have the right to deduct contributions to a reserve to cover possible
losses on credits (loans) (referred to hereinafter as in this item as a reserve) in accordance with the
rules for the formation of this reserve and the cl assification of credits (loans) established by the
National Bank of Tajikistan. A deduc tion shall be allowed for contributions to the reserve for all
groups of credits (loans), with the exception of contributions for standard credits (loans). The
authorized deduction shall be equal to 90 percent of the amount determined for contributions for all
groups of credits (loans), with the exception of contributions for standard credits (loans), in
accordance with the following proce dure: the amount of the reserve at the end of the year minus the
amount of the reserve at the beginning of the year , plus the contributions to the reserve during the
year based on bad credits (loans) that have been written off, minus contributions to the reserve
during the year based on credits (loans) actually repaid. An instruc tion on determining the amount of
the authorized deduction shall be approved by th e authorized government body in consultation with
the National Bank of Tajikistan and the Repub lic of Tajikistan Ministry of Finance.

Article 151. Deductions of Contributions to Insurance Reserve Funds

A legal entity operating in the insurance business shall have the right to take deductions for
contributions to insurance reserve funds in accord ance with the procedure and norms established by

the Republic of Tajikistan government on the basis of a proposal from the Republic of Tajikistan
Ministry of Finance and the authorized government body.

Article 152. Deductions Pertaining to Expendi tures on Scientific Research, Planning
and Development, and Experimental Design Work

Deductions shall be taken for expenditures on scientific research, planning and development,
and experimental design work re lated to earning gross income, other than expenditures on the
purchase of fixed assets, their in stallation, and other capital expenses . The basis for the deduction of
these expenses shall be planning and estimate doc umentation, a certificate of work performed, and
other documents confirming the performance of th e relevant scientific research, planning and
development, and experimental design work.

Article 153. Depreciat ion Charges and Deductions for Fixed Assets

1. Depreciation charges for fixed assets used in commercial activity shall be deductible in
accordance with the provis ions of this article.

For the purposes of this Code deprec iation charges for fixed assets and intangible assets not
used in commercial activity (used in noncommercial act ivity) shall not be calculated and shall not be
deductible.

2. Depreciable assets shall not in clude land, works of art, inventory, including unfinished
construction projects and uninstalled equipment, property whose value is deducted in full in the
current year from taxable profit, and other assets not subject to depreciation.

3. Depreciable fixed assets shall be divided into groups with the following depreciation rates:

Group Type of property Maximum depreciation rate
(as a percentage)
1. Automotive and tractor road equipment; special
instruments, tools, and accessories; computers,
peripherals, and data processing equipment;
electronic equipment and means of
communication. 20
2. Trucks, buses, special motor vehicles and tractor
trailers, aircraft. Machinery and equipment for all
branches of industry and foundry production;
forging equipment; construction equipment;
agricultural machinery a nd equipment; passenger
cars; office furniture. 15
3. Trains; marine and river vessels; power
machinery and equipment; thermal engineering
equipment; turbine equipment, electric motors,
and diesel generators. Electric power
transmission equipment; pipelines. 8
4. Buildings, constructions, structures. 7
5. Depreciable assets not elsewhere classified. 10

4. The depreciation charges for each group of fixed assets (referred to hereinafter as a
“group”) shall be calculated by appl ying the depreciation rate indicated under item 3 of this article,
but not in excess of the maximum, to the value balance of the group at the end of the tax year.

5. Depreciation charges for buildings, constructions, and st ructures (referred to hereinafter as
“structures”) shall be applied not for th e group, but for each structure individually.

6. The value balance of a group at the end of a tax year shall be equal to the amount
determined as follows (but not less than zero (not negative)):

1) the value balance of a group at the end of the previous year less the amount of the
depreciation for the previous year , as well as the amounts indicated in items 8 and 9 of this article,
plus

2) the value of fixed assets in accordance with Article 195 of this Code, added to the group
in the course of the tax year, minus

3) proceeds from the sale of fixe d assets in the tax year, established on the basis of the
selling price.

7. If the proceeds from the sale of fixed assets in a certain group during a tax year exceed the
value balance of the group at the end of the year, the surplus amount shall be included as income,
and the value balance of the group shall be equal to zero.

8. If the value balance of a group at the end of the year is equal to less than 50 times the
minimum monthly wage, the amount of the gr oup’s value balance shall be deductible.

9. If all of the fixed assets in a group have been sold, transfer red, or liquidated, the group’s
value balance at the end of the tax year shall be deductible.

10. The value of fixed assets placed under financial leasing (received under financial leasing)
shall be included in the value balance of the relevant group of the lessee.

11. For a lessor the principal, which is considered paid for fixed assets placed under financial
leasing, shall be the proceeds from the sale of such fixed assets for the purposes of subitem 3) of
item 6 of this article, if the fixed assets were incl uded in the value balance of the group prior to their
placement under financial leasing. For the lessee the pr incipal paid to the lessor shall be treated as
the acquisition price of the fixed assets.

12. Accelerated depreciation of groups of fixed assets shall be allowed, applying higher
coefficients, not to exceed 2, to the maximum depreciation rates.

Accelerated depreciation shall be allo wed with respect to fixed assets put into operation after
December 31, 2004. In this case these fixed assets shall form independent groups.

Article 154. Deductions for Expenditures on the Repair of Depreciable Fixed Assets

1. Deductions shall be allowed for each group for expenditures on the repair of fixed assets
included in the given group.

2. A deduction for expenditures in acco rdance with item 1 of this article shall be taken in the
actual amount of these expenditure s, not to exceed 10 percent of the value balance of the group at
the end of the tax year.

3. The amount of actual expenditures on repairs in excess of 10 percent of the value balance
of the group shall be treated as an incr ease in the value balance of the group.

4. In the event of accelerated depr eciation, in order to determine the maximum expenditures
on repairs that are permitted as a deduction, th e amount of the group’s value balance shall be
determined as if the fixed assets were not subj ect to accelerated depreciation, and their depreciation
were calculated on the basis of the rates specif ied under item 3 of Article 153 of this Code.

Article 155. Deductions of Expenditures on Insurance Premiums

Insurance premiums paid by insured persons under insurance agreements shall be deductible,
with the exception of insurance premiums under agreements of a savings and repayment nature.

Article 156. Expenditures on Geological Prospecting Work and Preparations for
the Extraction of Natural Resources

1. Expenditures on geological prospecting work and preparations for the extraction of natural
resources, which are deductible from gross inco me in the form of depreciation charges at the
depreciation rate for fixed assets in Group 2, shall form a separate group.

2. This article shall also apply to expenditures on intangib
le asse ts effected by a taxpayer in
connection with the acquisition of rights to perform geological prospecting work and the
development and extraction of natural resources.

Article 157. Expenditures on Intangible Assets

1. Intangible assets shall include expenditures by individuals and legal entities on intangible
items (intangible property, such as licenses, inven tion patents, trademarks, copyrights, contracts to
use the name of a legal entity, computer programs, and so on) which are used for at least 12 months,
if they have a limited service life.

2. Expenditures on intangible assets that are deductible in the form of depreciation charges at
the depreciation rate for fixed assets in Group 5 shall form a separate group.

3. The value of depreciable inta ngible assets shall not include expenditures on their
acquisition or production if they have already been deducted in calculating the taxp ayer’s taxable
profit.

4. This article shall not apply to in tangible assets referred to under Article 156 of this Code.

Article 158. Restrict ion on Deductions for Taxes and Penalties

Deductions for taxes and penalties shall not be allowed only with respect to:

1) the income tax or profit tax paid on the territory of the Republic of Tajikistan or in other
states;

2) penalties and interest paid (payable) to the budget (state fund) of the Republic of
Tajikistan or to the budget of another state;

3) the minimum business income tax.

Article 159. Losses from the Sale or Transfer of Property Not Used in Commercial
Activity

Losses resulting from the sale or transfer of property (other than property used for
commercial activity, or property the profit from the sale of transfer of which is tax-exempt) shall be
compensated for at the expense of profit earned from the sale or transfer of other property of this
kind. If losses cannot be compensated for in th e same year, they shall be carried over to a
subsequent period for up to three years and shall be compensated for by profit earned from the sale
or transfer of other property of this kind. Losses specified under this article shall not be deductible
from gross income for the purposes of the profit tax or income tax.

Article 160. Carryover of Losses to Another Period

1. With respect to an enterprise, allowable deductions in excess of gross income (loss from
commercial activity) shall be carried over to a subs equent period for up to three years and shall be
covered at the expense of before-tax future profits.

2. With respect to an individual, allowable deductions from gross income from activity that
is not work for hire in excess of said gross inco me may not be deducted from this person’s wages,
but may be carried over to a subsequent period for up to three years and applied against gross
income from activity that is not wo rk for hire in future periods.

CHAPTER 20. WITHHOLDING OF TAX AT THE SOURCE OF PAYMENT

Article 161. Procedure for the Withholding of Tax at the Source of Payment

1. The following persons (tax agen ts) shall be required to withhold tax at sources of
payment:

1) legal entities, as well as thei r separate subdivisions in those cases established by this
Code, which make payments to individuals working for hire;

2) individuals who are individua l entrepreneurs and who make payments to individuals
working for them for hire;

3) individuals an d legal entities who pay pensions, stip ends, and benefits to other persons,
with the exception of government pensions, stipends, and benefits;

4) resident legal entities that pay dividends to individuals and legal entities;

5) individuals and legal entities who pay interest to individuals and legal entities;

6) individuals and legal entities who make payments specified under Article 164 of this
Code;

7) individuals and legal entities who pay winnings on bonds and lotteries and prizes
(winnings, gifts) based on the results of contests and competitions.

2. An individual or legal entity w ho pays income shall be responsible for the withholding of
taxes and their transfer to the budge t. If taxes are not withheld, the person paying the income shall
be required to pay to the budget at his own expense the amount of tax that was not withheld and any
relevant penalties and interest.

3. Individuals and legal entities withhol ding (assessing) tax at the source of payment in
accordance with item 1 of this article, including persons receiving funds for the payment of wages at
banks and other financial and lending instituti ons performing certain types of banking operations,
shall be required:

1) to transfer the taxes withheld (assessed), including the social tax in accordance with
Chapter 35 of this Code, to the budget simultaneously with the rece ipt of the funds for the payment
of wages, and in other cases, within five banki ng days after the end of the month in which the
payments were made;

2) when paying wages, to provide th e individuals earning the income with statements at their
request, indicating their last name, initials, the amount and type of income, as well as the amount of
tax withheld (if tax is being withheld);

3) within 30 days after the end of a tax year, to present to the tax authorities with which they
are registered, on a mandatory basi s, and also to send (present) to individuals and legal entities
earning (who have earned) income in accordance with item 1 of this article, statements at their
request within 10 days, indicating the taxpayer identification number , the person’s name (last name,
first name, and patronymic), the total amount of inco me and the total amount of tax withheld in the
reporting year.

4. An employer who is not the princi pal employer of a taxpayer shall be required to withhold
income tax from wages at the rate of 13 percent without applying the deductions provided for under
Article 139 of this Code.

Article 162. Withholding of Tax on Dividends at the Source of Payment

1. Dividends paid by resident enterprises shall be subject to taxation at the source of payment
at the rate of 12 percent, with the exception of dividends paid to resident enterprises.

2. Dividends that are taxable in accordan ce with item 1 of this article shall not be included in
the recipient’s gross income and shall not be subject to further taxation.

Article 163. Withholding of Tax on Interest at the Source of Payment

1. Interest paid by a resident or permanent establishment of a nonresident, or on behalf of
such an establishment, shall be subject to taxation at the source of payment at the rate of 12 percent
of the amount to be paid, if the income is received from a source in the Republic of Tajikistan in
accordance with Article 34 of this C ode, with the exception of the cases referred to in item 2 of this
article.

2. Interest, incl uding interest under financial leasing agreements, paid to resident banks,
other resident financial and lendi ng institutions (organizations), including resident micro-finance
institutions, and resident leasing companies shall not be subject to taxation at the source of payment.

3. Interest that is taxable in accordance with item 1 of this article shall not be included in an
individual recipient’s gross income and shall not be subject to further taxation after being paid to
said individual.

4. A resident legal entity whose prof its are subject to taxation, in the event that interest is
received that is subject to taxation in accordance with item 1 of this article, shall include in its gross
income the full amount of interest income without deducting the tax that is withheld and shall have
the right to a crediting of this tax withheld at the source of payment, provided that it has documents
confirming the withholding of the ta x at the source of payment.

Article 164. Withholding of Tax on Nonresidents ’ Income at the Source of
Payment

1. A nonresident’s income from a source in the Republic of Tajikistan, as defined in Article
34 of this Code, which is not related to a perman ent establishment of this nonresident located on the
territory of the Republic of Tajikistan, shall be su bject to taxation at the source of payment as gross
income, without taking deductions (with the excep tion of a deduction from the total amount payable
to the nonresident including the value-added tax, equal to the valu e-added tax withheld from this
total, in the event of taxation in accordance with Article 220 of this Code), at the ra tes specified in
item 6 of this article.

2. Payment of income shall be unders tood to mean the transfer of money in cash or noncash
forms, securities, goods, and other property, or the pe rformance of work or the provision of services.

3. Payments made to nonresidents in accordance with item 1 of this article which are related
to the delivery of goods under fore ign trade transactions (related to the importation of goods) onto
the territory of the Republic of Tajikistan shall not be subject to taxation at the source of payment.

4. Taxation of a nonresident’s income at the source of payment shall be effected regardless
of the disposition by the given nonres ident of income earned in the Republic of Tajikistan in favor
of third parties in the Repub lic of Tajikistan and/or its subdivisions in other states.

5. Tax on a nonresident’s income from a source in the Republic of Tajikistan shall be
withheld regardless of the form and location of the payment of the income.

6. In consideration of the provisions of this article, a nonresident’s income from a source in
the Republic of Tajikistan that is not related to a permanent establishment of the nonresident which
is located on the territory of the Republic of Tajikis tan, shall be subject to taxation at the source of
payment as gross income without taking deductions (with the exception of a deduction from the total

amount payable to the nonresident including the value-added tax, equal to the value-added tax
withheld from this total, in the event of taxation in accordance with Article 220 of this Code), at the
following rates:

1) dividends – in accordance with Article 162 of this Code;

2) interest – in accordance with Article 163 of this Code;

3) insurance premiums paid by a resi dent enterprise or resident individual entrepreneur in
accordance with an insurance agreement or risk re insurance agreement – at the rate of 4 percent;

4) payments made by a resident enterprise or resident individual entrepreneur for
telecommunications or transportation services in the case of international communications or
international shipments between the Republic of Ta jikistan and other states, with the exception of
payments for sea freight – at the ra te of 4 percent, and payments for sea freight – at the rate of 6
percent;

5) income in the form of wages, as well as income specified under subitems 8), 17), 18), 19),
20), 21), 22), and 24) of item 8 of Ar ticle 34 of this Code, paid by a resident enterprise or resident
individual entrepreneur – at the rate indicated in item 1 of Article 140 of this Code;

6) income defined under item 8 of Ar ticle 34 of this Code paid by a resident enterprise or
resident individual entrepreneur , with the exception of income:

– referred to in subitems 1), 2), 3), 4), and 5) of this item;

– referred to in subitems 12) , 13), and 26) of item 8 of Article 34 of this Code;

– from the sale or transfer of property referred to in subitem 11) of item 8 of Article 34 of
this Code – at the rate of 15 percent.

7. For the purposes of this arti cle, payments made by a permanent establishment of a
nonresident in the Republic of Tajikistan or on behalf of such an establishment shall be treated as
payments made by a resident enterprise.

Article 165. Submission of Tax Reporting on Withholding of Tax at the Source of
Payment

Tax agents as defined under Article 161 of th is Code shall be required once every six
months, no later than the 15 th of the month following the reporti ng half-year in which an obligation
to withhold tax at the source of payment occurred, to submit to th e tax authorities with they are
registered a statement of the tax withheld at the source of payment, following the form and
procedure established by the authorized government body.

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 pr ofit 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 th e 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 Earn ed 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 establis hed 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 owne r of property or recipient of income (profit).

CHAPTER 22. SPECIAL PROVISIONS REGARDING INTERNATIONAL TREATIES

Article 169. Conditions fo r the Application of an International Treaty

1. The provisions of an international treaty on avoidance of dual taxation and prevention of
evasion of taxes on income and property (capital), to which the Republic of Tajikistan is a party
(referred to hereinafter as an “international treaty” for the pur poses of Articles 169–180 of this
Code) shall apply to persons who ar e residents of one or both of the states that have concluded such
a treaty.

2. The provision of item 1 of this articl e shall not apply to a resident of a state with which an
international treaty has been concluded if this resident is using the provisi ons of the international
treaty in the interests of another person who is not a resident of th e state with which the international
treaty has been concluded.

3. For the purposes of this chapte r the taxation of income depending on the context (content)
of an international treat y shall mean the taxation of profit or income in accordance with this Code.

Article 170. Procedure for the Implementation of International Treaties

The implementation of international treaties shall be effect ed following the procedure
established by the Republic of Ta jikistan Ministry of Finance in consultation with the authorized
government body in accordance with the prov isions of Articles 169–180 of this Code.

Article 171. Methods for Deducting Management and General Administrative
Expenses of a Nonresident Legal Entity for the Purposes of the Taxation
of Income
from Sources in the Republic of Tajikistan

1. If the provisions of an international treaty applicable to the definition of taxable income of
a nonresident legal entity from doing business in the Republic of Tajikistan through a permanent
establishment allow for the deduc tion of management and general administrative expenses incurred
for the purpose of earning such taxable income bot h in the Republic of Tajikistan and abroad, the
amount of such expenses shall be determ ined using one of the following methods:

1) the proportional distribution of expenses method;
2) the direct application of expenses as deductions.

2. A nonresident legal entity shall independently choose one of these methods for the
deduction of management and gene ral administrative expenses.

3. The chosen method for treating management and general administrative expenses as a
deduction for a permanent establishment (including the procedure for calculation of the reference
indicator used in the proportiona l distribution of expenses method) shall be applied on an annual
basis and may be changed only with the a pproval of the respective tax authority.

Article 172. Propor tional Distribution of Expenses Method

1. When using the proportional distribution method, the amount of management and general
administrative expenses referred to in Article 171 of this Code that are treated as deductions for a
permanent establishment shall be defined as th e product of these expenses and the reference
indicator.

2. The reference indicator sha ll be calculated using one of the following methods:

1) the ratio of gross annual inco me earned by a nonresident legal entity from doing business
in the Republic of Tajikis tan through a permanent establishment in the tax year, to the nonresident
legal entity’s total gross annual in come from all business both within the Republic of Tajikistan and
outside the country fo r said tax period;

2) determination of the average of three indicators:

– the ratio of gross annual income earned by a nonresident legal entity from doing business in
the Republic of Tajikistan through a permanent esta blishment in the tax year, to the nonresident
legal entity’s total gross annual in come from all business both within the Republic of Tajikistan and
outside the country fo r said tax period;

– the ratio of the value of fixed a ssets reported in the financial statements of a permanent
establishment in the Republic of Tajikistan as of the end of the tax period to the total value of fixed
assets of the nonresident legal enti ty as a whole both within the Republic of Tajikistan and outside
the country for the same tax period;

– the ratio of the payroll for personnel employed at a permanent establishment in the
Republic of Tajikistan as of the end of the tax pe riod to the total payroll for personnel employed by
the nonresident legal entity as a whole both within the Republic of Tajikistan and outside the
country for the same tax period.

A nonresident le gal entity shall identify independen tly one of the aforementioned methods
for calculation of the reference indicator.

3. The amount of management and ge neral administrative expenses that has been estimated
shall be treated as a deduction for a permanen t establishment only if supporting documents are
available.

4. Supporting documents shall include:

1) a copy of the financial stat ements of the nonresident legal entity which indicate,
depending on the reference indicator identified by the nonresident legal entity:

– the total amount of gross annual income as a whole;

– the total payroll as a whole;

– the original and re sidual value of fixed assets as a whole;

– the total amount of expenses , with an itemized breakdown, including an itemized
breakdown of management and ge neral administrative expenses;

2) a copy of an auditor’s report based on an audit of the financial statements of the
nonresident legal entity (when the financial statements of the given legal entity are audited).

5. A statement of the amount of these expenses that are to be treated as a deduction for a
permanent establishment in the Republic of Tajikista n shall be attached to the corporate income tax
(profit tax) return submitted to the appropriate tax authority of the Republic of Tajikistan.

6. In the event that the financial statements do not indicate the amount of management and
general administrative expenses that are subject to proportional distribution, these expenses shall not
be allowed as deductions for the permanent establishment.

Article 173. Direct Application of Expenses Method

1. When using the direct application method for the management and/or general
administrative expenses of a nonresident, these expenses shall be treated as deductions for a
permanent establishment in the Republic of Tajikis tan if they are determined directly and were
incurred directly for the purpos es of earning income from doing business in the Republic of
Tajikistan through the perm anent establishment.

Said expenses shall be treated as deductions for a permanent establishment only if supporting
documents are available.

2. Supporting documents shall include:

1) accounting records that confirm the expenses incurred by the nonresident legal entity on
the territory of the Republic of Tajikistan for the purposes of earning income from doing business in
the Republic of Tajikistan thr ough the permanent establishment;

2) copies of accounting records th at confirm the expenses incurred by the nonresident legal
entity outside the Republic of Tajikistan for the purposes of earning income from doing business in
the Republic of Tajikistan through the permanent establishment.

Article 174. Procedure for Payment of the Tax on Income of Nonresidents from
Activity in the Republic of Tajikistan No t Leading to the Creation of a Permanent
Establishment

1. The procedure for the payment of tax specified under this article shall apply to income
earned by a nonresident from activity in the Republic of Tajikistan that does not lead to the creation
of a permanent establishment in acco rdance with the provisions of an international treaty, with the
exception of income referred to under Articles 175–178 of this Code, except as otherwise provided
by said articles.

2. A nonresident referred to in item 1 of this article who earns income from sources in the
Republic of Tajikistan shall have the right to apply the tax payment procedure provided for under
this article. In the event that the provisions of th is article do not apply, a tax agent shall be required
to withhold the tax at the sour ce of payment and transfer it to the state budget following the
generally established procedure.

3. A nonresident ear ning income, a tax agent, and a resident bank (referred to hereinafter as a
“bank”) identified by a tax agent, shall conclude an agreement regarding a provisional bank deposit
following the form agreed upon by the parties to th e agreement, taking into account the provisions
of this article.

4. A tax agent shall be required to register an agreement on a provisional bank deposit with
the appropriate tax authority within 10 calendar da ys of the date the agreement is signed, and a copy
of the agreement, as well as a copy of a payment document confirming the transfer of the tax to the
provisional bank deposit, shall be submitted to the appropriate tax authority.

5. The provisions of this article shall extend only to agreements on a provisional bank
deposit that have been registered with the appropriate tax authority. Agreements on a provisional
bank deposit the terms of which do not contradict the provisions of this article shall be subject to
registration.

6. At the time that income is paid to a nonresident, a tax agent shall be required to withhold
tax at the source of payment at the rate specified under Article 164 of this Code, and to transfer the
amount withheld to the bank for posting to the provis ional bank deposit on behalf of the nonresident.

7. In the case of compliance with the terms of an international treaty, in order to obtain a
refund of taxes previously wit hheld, a nonresident shall submit a request to the appropriate tax
authority following the procedure and form es tablished by the authorized government body.

8. Within 15 days of the receipt of a request, a tax authority shall review said request and the
necessary documents and shall make a decision re garding the request, and the nonresident and the
bank shall be informed of this decision.

9. Upon receipt of a request for the re fund of taxes that have been withheld, which has been
certified by a tax authority, a bank shall grant the nonresident who submitted the request the right to
dispose of the funds held on a provisional bank de posit, up to the amount indicated in the request,
plus bank interest that has accrued.

10. In the event that a nonresident doe s not agree with a negative decision by a tax authority,
the nonresident shall have the right within 10 calendar days of the receipt of said decision to file an
appeal with the authorized government body (with th e involvement of a competent authority of the
nonresident’s country of residence, if necessary) by submitting a request for a reconsideration of the
legality of the appli cation of the provisions of an international treaty, accompanied by the
simultaneous notification of the tax authority that its decision is being appealed.

11. In the event that a tax author ity makes a negative decision regarding a request and does
not receive notification from a nonres ident of an appeal of the tax authority’s decision within the 10-
day period established under item 10 of this article, this tax authority shall forward to the bank a
collection order calling for the tr ansfer of the amount indicated in the request and held in a
provisional bank deposit, plus ba nk interest that has accrued, to the budget, accompanied by a
document confirming the refusal to exempt th e nonresident from taxation of its income.

12. A bank shall be required, within one business day of the receipt of documents referred to
in item 11 of this article from a tax authority, to transfer to th e budget the amount of tax held on the
provisional bank deposit, plus ba nk interest that has accrued.

The amount of tax collected in this manner shall be applie d against the nonresident’s
obligations to the budget.

13. Provisional bank deposits shall be opened in the domestic currency or in foreign
currency. In the event that provisional bank deposit s are opened in foreign currency, the taxes and
bank interest shall be transferred to the budget in the domestic currency, converted at the official
exchange rate of the National Bank of Tajikistan at the time the tax is paid.

14. A nonresident and a tax agent sha ll not have the right to dispose of tax funds held on a
provisional bank account until a tax authority makes some sort of decision.

15. In the event of a violation of the terms of an ag reement on a provisional bank deposit and
failure to transfer withheld taxes to the budget in a timely manner, for which the bank is at fault, the
bank shall bear liability in accordance with th e legislation of the Republic of Tajikistan.

16. In the event that it is not possi ble for a bank to meets its obligations to transfer to the
budget taxes held on a provisional bank deposit, the ob ligation to transfer taxes at the source of
payment, bank interest, and penal ties for failure to transfer taxes to the budget in a timely manner
shall be assigned to a tax agent.

17. Tax authorities shall be required to maintain records of taxes:

1) held on provisional bank deposits;

2) paid to [sic] nonresidents who have the right to apply the provisions of international
treaties;

3) transferred to the budget.

Article 175. Procedure for the Application of an International Treaty Regarding
Taxation of Income from Providing Transportation Services in International Shipping
Operations

1. Income from providing transportati on services in international shipping operations, one of
the parties to which is the Republic of Tajikistan, earned by a nonresident legal entity that has the
right to apply the provisions of an international treaty, shall be exempt from taxation without the
submission of a request for the application of the pr ovisions of an international treaty on the basis of
a document confirming the nonresident’s residency, if the given legal entity has a permanent
establishment in the Republic of Tajikistan associated with this activity.

A nonresident legal entity shall be required to maintain separate accounting records of
income earned from providing transportation servi ces in international shipping operations (not
subject to taxation in accordance with an international treaty) and from providing transportation
services on the territory of the Re public of Tajikistan (subject to taxation), and also to report said
income in the profit tax return.

The total amount of taxable profit (taxable income) in the aforementioned return shall be
reduced by the amount of taxable profit (taxable inco me) that is exempt from taxation in accordance
with an international treaty, as calculated on the basis of separate accounting records.

In the event of the unlawful applica tion of the provisions of an international treaty that
results in nonpayment or underpayment of taxes to the budget, the taxpayer shall bear liability in
accordance with legislative acts of the Republic of Tajikistan.

2. The income of a nonresident legal entity that operates means of transport in international
shipping operations, one of the part ies to which is the Republic of Tajikistan, without the creation of
a permanent establishment in the Republic of Ta jikistan, and that has the right to apply the
provisions of an international treaty, shall be exempt from taxation following the procedure
established under Articl e 174 of this Code.

Article 176. Procedure for the Application of an International Treaty Regarding
Taxation of Dividends, Interest, and Royalties

1. A tax agent shall have the right at the moment income is paid to a nonresident in the form
of dividends, interest, an d royalties, to apply the provisions of the relevant international treaty
without requiring the nonresident to submit a request for the application of the provisions of an
international treaty, on the basis of a document confirming residency, if the nonresident is the final
recipient of the income and has the right to ap ply the provisions of an international treaty.

2. A tax agent shall be required to indicate in a statement of tax withheld at the source of
payment, which is submitted to a tax authority, th e amount of income paid (accrued) and the taxes

withheld in accordance with the provisions of international treaties, as well as the tax rates and the
names of the international treaties.

3. In the event of the unlawful app lication of the provisions of an international treaty, which
results in the nonpayment or underpayme nt of taxes to the budget, the tax agent shall bear liability in
accordance with legislative acts of the Republic of Tajikistan.

Article 177. Procedure for the Application of an International Treaty Regarding
Taxation of Net Profit (Net Income) fr om Doing Business through a Permanent
Establishment

1. A nonresident shall have the righ t to apply the provisions of an international treaty
regarding the taxation of net prof it (net income) from doing busine ss in the Republic of Tajikistan
through a permanent establishment without submitting a request for the application of the provisions
of an international treat y, on the basis of a document confirming residency, if the nonresident is the
final recipient of the net profit (net income) and ha s the right to apply the provisions of the relevant
international treaty.

2. A nonresident legal entity shall be required to indicate in a profit tax return the tax rate
and amount of tax on net profit (net income) and the name of the international treaty on the basis of
which the relevant tax rate has been applied.

3. In the event of the unlawful app lication of the provisions of an international treaty, which
results in the nonpayment or underpayme nt of taxes to the budget, the taxpayer shall bear liability in
accordance with legislative acts of the Republic of Tajikistan.

Article 178. Procedure for the Application of an Internatio nal Treaty Regarding
Taxation of Other Income from Sources in the Republic of Tajikistan

1. A nonresident who earns income from sources in the Republic of Tajikistan, with the
exception of cases referred to in Articles 174–177 of this Code, shall have the right to file a request
with the tax authority where the ta x agent is registered for the application of the provisions of an
international treaty following the form establis hed by the authorized government body, before the
income is paid.

2. A tax authority shall review a request within 10 calendar days, and if the information
contained in the request is accu rate, shall certify the request.

3. In the event of the unlawful applic ation of the provisions of an international treaty, the tax
authority shall issue a denial to the nonresident, indicating the reasons for doing so.

4. In the event that a nonresident does not agree with a negative decision by a tax authority,
the nonresident shall have the right to file an appeal with the authorized government body (with the
involvement of a competent authority of the nonres ident’s country of residence, if necessary) by
submitting a request for a reconsideration of the lega lity of the application of the provisions of an
international treaty.

Article 179. General Requirements for the Submis sion of a Request for Application of
the Provisions of an International Treaty

A request for the application of the provisions of an international treaty, following the form
established by the authorized government body, sha ll be accepted by a tax authority provided that
the following requirements are met:

1) submission of the following with the request:

– copies of contracts (agreements) fo r the performance of work (provision of services) or for
other purposes;

– copies of charter documents;

– a breakdown of income from provi ding transportation services in international shipping
operations and on the territory of the Republic of Tajikistan;

– a certificate of work performed, when a nonresident performs various types of work; a
certificate of occupancy when construction work is performed; and an invoice or payment document
confirming the receipt of income for services provided;

2) submission by a tax agent of accounting documents confirming the amount of income
accrued and/or paid and taxes withheld;

3) confirmation of the applicant’s residency by a competent or authorized body of the
applicant’s home country, with which the Republic of Tajikistan has concluded an international
treaty (on the form used for the request, or with a document confir ming residency attached). For the
purposes of this article and Ar ticles 174–178 of this Code, a nonresid ent who has the right to apply
the provisions of a relevant in ternational treaty, in the event of a change in the nonresident’s
registration data in its country of residence, shall be required to submit a document confirming
residency which takes into account the modified data following the procedure established by said
articles;

4) diplomatic or consular authentication, following the procedure established by the
legislation of the Republic of Tajikistan or an international treaty to which the Republic of
Tajikistan is a party, of the si gnature and seal of the body that has certified the nonresident’s
residency (document confirming residency).

Article 180. Certificate of Taxe s Withheld and Paid in the Republic of Tajikistan

At the request of a nonresident, a tax authority shall issue a certificate of the amount of
income received from sources in the Republic of Tajikistan and the taxes withheld, following the
form and procedure established by the authorized government body.

CHAPTER 23. TAX ACCOUNTING RULES

Article 181. Tax Period (Year)

The tax period (year) shall be a calendar year.

Article 182. Procedure for the Accounting of Income and Expenditures

1. A taxpayer shall be required to maintain accurate and timely accounting records of income
and expenditures on the basis of documented data and to apply income and expenditures to the
appropriate reporting period in which the income was earned or the expenditures were made,
depending on the accounting method used in accordan ce with this chapter for the proper recording
of taxable income (profit). The accounting method used by a taxpayer shall be understood to mean
all aspects of the timing and procedure for the reco rding of receipts and expenses, such as cash basis
or accrual accounting, and the method used to record production expenses and other capital
expenses.

2. A taxpayer shall be required to ma intain accounting records of all transactions related to
its operations, which allow one to dete rmine their beginning, progression, and end.

3. Except as otherwise established in th is article, taxable income (profit) must be calculated
according to the same accounting method that the ta xpayer uses for its regular accounting records,
with the necessary adjustments to comply with the requirements of this Code.

4. Except as otherwise established in this article, a taxpayer may maintain accounting records
for tax purposes on a cash basis or an accrual basis, provided that the taxpayer applies the same
method throughout the tax year.

5. A taxpayer must maintain acc ounting records on an accrual basis in the tax year if:

1) its turnover in the previous year exceed ed 5 times the volume of operations established for
registration for value-added tax purposes; or

2) it is required to maintain double-entry accounting record s in accordance with the
regulatory legal acts in force.

A taxpayer that is required to maintain accounting records on an accrual basis for the first
time in accordance with the provisions of this item must maintain accounting records on an accrual
basis in all subseque nt years as well.

6. Banks, credit unions, and micro- credit deposit institutions shall be required to maintain
accounting records on an accrual basis from the time that they begin operation.

Micro-loan institutions and micro-loan funds shall maintain accounting records for taxation
purposes on a cash basis from the time that they begi n operation, regardless of the provisions of this
article.

7. For an individual, the require ment regarding accrual accounting shall apply only to
income and deductions related to commercial activity.

8. In the event of a change in the accounting method used by a taxpayer, adjustments in the
accounting of income, expenditures, and other elements that affect the tax amount must be made in
the year that the accounting method is changed, so that none of these elements are omitted or
counted twice.

9. In the case of payers of the value-added tax, income and expenditures shall be recorded
without the value-added tax, except in cases of expenditures for which a value-added tax credit is
not allowed.

Article 183. Principles of Cash Basis Accounting of Income and Expenditures

A taxpayer who performs cash basis accounting must record income as of the date it is
received and deduct expenses as of the date they are effected in accordance with Articles 184 and
185 of this Code.

Article 184. The Moment Income Is Rece ived in Certain Cases When Cash Basis
Accounting Is Used

1. If a taxpayer receives money, the moment income is received shall be the moment that
cash funds are received, and in the case of a noncash payment, the moment money is posted to the
taxpayer’s bank account or to another account whic h the taxpayer controls or from which the
taxpayer has the right to receive said funds.

2. In the event of the cancellati on or discharge of a taxpayer’s financial obligation, and
specifically in the event of a mutual netting of obligations, the moment income is received shall be
the moment the obligation is canceled or discharged.

Article 185. The Moment Expenses Are Effected in Certain Cases When Cash Basis
Accounting Is Used

1. The moment that expenses are eff ected shall be the moment a taxpayer actually effects the
expense, except as otherwise provided in this article.

2. If a taxpayer makes a monetary pa yment, the moment expenses are effected shall be the
moment cash is paid, and in the event of a noncash payment, it shall be the moment a bank receives
an instruction from the taxpayer to transfer funds (assuming that funds are available on accounts at
the bank).

3. In the event of the cancellation or discharge of a financial obligation to a taxpayer, and
specifically in the event of a mutual netting of obligations, the moment expenses are effected shall
be the moment the obligation is canceled or discharged.

4. When interest is paid on a debt obligation or when payments are made for the leasing of
property, if the term of the debt obligation or th e leasing agreement covers several tax periods, the
amount of interest paid (leasing payments made) actually deductible for the tax period shall be the
amount of interest (leasing paym ents) due for the given period.

Article 186. Principles of Accrual Accounting of Income and Expenditures

A taxpayer who performs accrual accounting must record income and expenses, respectively,
at the moment the right to receive income is ac quired or an obligation to effect a payment is
incurred, regardless of the time the income is actua lly received or a payment is actually made in
accordance with Articles 187 and 187 of this Code.

Article 187. The Moment Income Is Received When Accrual Accounting Is Used

1. The right to receive income shall be considered to be acquired if the amount in question is
payable unconditionally to the taxpa yer or the taxpayer has performed all of its obligations under a
transaction or agreement.

2. If a taxpayer performs work or provides services, the right to receive income shall be
considered to be acquired at the moment of the fi nal completion of work or services specified in a
transaction or agreement.

If a transaction or agreement calls for the performance of work or services in stages, the right
to receive income shall be considered to be acqui red with respect to each stage at the time of the
final completion of a particular stage of work or services, except as provided under Article 190 of
this Code.

3. If a taxpayer receives income or has the right to receive income in the form of interest or
income from the leasing of property, the right to receive income shall be considered to be acquired
at the moment the term of the debt obligation or leasing agreement expires. If the term of a debt
obligation or leasing agreement c overs several tax periods, income shall be distributed among these
tax periods in the order in which it is accrued.

Article 188. The Moment Expenses Are Effect ed When Accrual Accounting Is Used

1. The moment expenses which rela te to a transaction (agreement) are effected shall be
considered the moment at which all of the fo llowing conditions are met, except as otherwise
provided in this article:

1) a taxpayer unequivocally recognizes a fi nancial obligation;

2) there is a sufficiently precise assessment of the size of the financial obligation;

3) all of the parties to the transaction or agreement have actually fulfilled all of their
obligations under the transaction or agreement and the amounts in question are subject to
unconditional payment.

2. In connection with the provisions ou tlined in item 1 of this article, a financial obligation
shall mean an obligation assumed by a taxpayer in accordance with a transaction (agreement) for the
purposes of the fulfillment of which another party to the transaction (agreement) will have to
provide the taxpayer with the income in question (security in question) in cash or in another form.

3. In the case of the payment of interest on a debt obligation or making payments for leased
property, the moment expenses are e ffected shall be considered the moment at which the term of the
debt obligation or leasing agreemen t expires. If the term of a debt obligation or leasing agreement
covers several tax periods, the expense shall be distributed among these tax periods in the order in
which it is accrued.

Article 189. Joint Ownership

In the event of an agreement (both written and oral) regarding the joint ownership of
property or joint commercial activity, or another type of agreement that calls for at least two owners,
but without the establishment of a legal entity, income and deductions under the agreement shall
apply to each owner and they shall be subject to taxation in accordance with their stake in the
operation.

Article 190. Income and Deductions on Long-Term Contracts

1. In the event that a taxpay er applies accrual accounting, income and deductions in
connection with long-term contracts shall be refl ected for each tax year in accordance with the
extent to which the contracts have actually been carried out.

2. The extent to which a contract has been carried out shall be determined by comparing
expenses incurred during the tax year against the total estimated expenses provided for under the
given contract.

3. “Long-term contract” shall be understood to mean a contract for manufacturing,
installation, or construction, or fo r the performance of auxiliary services, which is not completed
within the tax year during wh ich the work specified under th e contract was begun, with the
exception of contracts which, according to estimates, should be completed within six months of the
date the work specified under the contract was started.

Article 191. Procedure for Inventory Accounting

1. Inventory accounting for tax purposes shall be performed exclusively in accordance with
the accounting regulations in force, which have been prepared on the basis of the Republic of
Tajikistan legislation on accounting.

2. In inventory accounting a taxpayer sh all be required to reflect in the tax records the value
of goods that the taxpayer has produced or purch ased, which is determined, respectively, on the
basis of production expenses (produ ction costs) or purchase price. Specifically, a taxpayer shall be
required to include in the cost of these goods expenses associated wi th their storage and transport.

3. In inventory accounting a taxpaye r shall have the right to estimate the cost of goods or
products that are defective, obsolet e, or no longer in fashion, which fo r these or other similar reasons
cannot be sold at a price that is greater than the costs associat ed with their production (purchase
price), based on the price at which they could be sold.

4. In the case of goods for which a taxpayer does not maintain separate accounting records,
the taxpayer shall have the right to use one of the three following methods for inventory accounting:

1) the FIFO method, according to which in a reporting period goods that are part of the
inventory at the beginning of the reporting period are assumed to be sold (used) first, followed by
goods produced (purchased) during th e reporting period in the order of their production (purchase);

2) the LIFO method, according to which goods that were produced (purchased) last are
assumed to be sold (used) first in the reporting period;

3) a valuation method based on the average production cost.

Article 192. Accounting of Financial Leasing

1. In cases in which a lessor is the owner of depreciable tangible property before the
beginning of a financial leasing arrangement, the tr ansaction shall be treated as the sale of the
property by the lessor and its purchase by the lessee.

2. Depreciable tangible property that is leased out under a financial leasing agreement shall
be recorded on the lessee’s balance sheet during the period that the financial leasing agreement is in
force, which shall give the lessee the right to take deductions related to the leased object
(specifically, depreciation and repair expenses).

Article 193. Compensated Deductions and Reduction in Reserve
s

1. If compensation is provided for expenses, losses, and problem debts previously taken as
deductions, the amount received shall be treated as income for the tax period in which the
compensation was provided.

2. If there is a reduction in reserves for which a deduction was previously taken in
accordance with item 3 of Article 150 and Article 151 of this Code, the amount of the reduction
shall be treated as income.

Article 194. Profit and Loss from the Sale or Transfer of Assets

1. Profit from the sale or transfer of assets shall be the positive difference between receipts
from the sale or transfer and th e value of the assets defined in accordance with Article 195 of this
Code. When assets are transferred on an unrequited basis or at a discounted price, the profit of the
person providing the assets shall be defined as th e positive difference between the market price of
the property being transferred in th is manner and its value as determined in accordance with Article
195 of this Code.

2. Losses from the sale or transfer of assets shall be the negative difference between receipts
from the sale or transfer and th e value of the assets defined in accordance with Article 195 of this
Code.

3. Items 1 and 2 of this article sh all not apply to assets that are depreciable by groups, nor
shall they apply to inventory.

Article 195. Value of Assets

1. The value of assets shall include expenses related to their purchase, production,
construction, assembly and installation, as well as ot her expenses that increase their value, with the
exception of expenses which a taxpayer ha s the right to take as deductions.

2. If only part of an asset is sold or transferred, the value of the asset at the time of its sale or
transfer shall be distributed between the remaining and sold or transferred parts.

Article 196. Nonrecognition of Profit or Loss

1. No profit or loss shall be taken into account when determining taxable income (profit) in
the event of:

1) the transfer of assets between spouses;

2) the transfer of assets be tween former spouses in the process of a divorce; or

3) the unintentional destruction of an asset or its alienation accompanied by the reinvestment
of the proceeds (for example, insurance compensa tion received for the unintentional destruction of
an asset) in an analogous asset or an asset of the same type before the end of the second year
following the year in which the a sset was destroyed or alienated.

2. The value of a replacement asset re ferred to under subitem 3) of item 1 of this article shall
be determined taking into account (a t the level of) the value of the replaced asset at the time of its
destruction or alienation, with an increase in the value of the replacement asset by the positive
difference between the taxpayer’s expenditures on re investment and the amount of the proceeds in
accordance with subitem 3) of item 1 of this article.

3. The value of an asset acquired as a result of a transaction in which profit is not taken into
account for tax purposes in accordance with subitems 1) and 2) of item 1 of this article shall be the
value of the asset for the party transf erring it as of the transaction date.

4. This article shall not apply to a ssets that are depreciable by groups, with the exception of
subitems 1) and 2) of item 1 of this article, whic h shall apply in cases in which all assets in the
group are transferred at the same time.
CHAPTER 24. ADMINISTRATIVE PROVISIONS

Article 197. Filing of a Return

1. An income tax or profit tax return shall be filed with tax authorities before April 1 of the
year following the reporting year by th e following taxpayers, respectively:

1) resident legal entities;

2) resident individuals who earn income not subject to taxation at the source of payment in
the Republic of Tajikistan, with the exception of income earned from individual entrepreneurial
activity on the basis of a patent th at has been obtained in accordance with Article 137 of this Code;

3) resident individuals who hol d funds on accounts with foreign banks located outside the
Republic of Tajikistan, as well as those earning income outside the Republic of Tajikistan;

4) persons who are responsible for f iling an income tax return and property status return in
accordance with the laws of the Republic of Tajikistan. The proce dure and deadlines for filing, as
well as the form of the returns to be filed by th ese persons, shall be determined by the Republic of
Tajikistan government;

5) nonresident legal entities and i ndividuals earning income from sources in the Republic of
Tajikistan that is subject to taxation but is not taxed at the source of payment.

2. In the event that a taxpayer terminates commercial activity in the Republic of Tajikistan,
said taxpayer shall file a tax return with the appropriate tax authority within 30 days.

3. In the event of the liquidation of a legal entity, the liquidation commission or the taxpayer
shall send written notification to this effect to the tax authority without delay. The liquidation
commission shall be required to submit a tax return to the appropriate tax authority in accordance
with item 7 of Article 71 of this Code.

4. An individual who is not require d to submit a tax return may submit a tax return with a
request for a recalcula tion of tax or a refund.

Article 198. Current Tax Payments (Prepayments)

1. Legal entities that are not payers of the tax under the simplified system shall be required to
make monthly current payments to the budget no later than the 15 th of the month. The amount of
each current monthly payment for the 12-month peri od beginning each April 15 must be equal to 1
percent of gross income for the reporting month in accordance with Article 321 of this Code, which
shall be applied against (recorded as) payment of the minimum business income tax. If one-twelfth
of the amount of profit tax for the previous year, multiplied by a coefficient of 1.1, is greater than
the 1 percent of gross in come for the reporting month referred to above, the difference between the
one-twelfth of the amount of prof it tax for the previous year, multiplied by a coefficient of 1.1, and
the 1 percent of gross income for the reporting month paid to the budget and recorded as the
minimum business income tax, shall be payable as cu rrent profit tax payments within the same time
period.

Other individuals and legal entitie s engaged in commercial activity, with the exception of
resident individuals who are subject to the income tax on the basis of a patent or other simplified
system in accordance with item 2 of Article 137 of this Code, and legal entities that are payers of the
tax under the simplified system, sha ll be required to make current payments to the budget for the
quarter just ended no later than April 15, July 15, and October 15 of the current year, and January 15
of the following year. For legal entities the amount of each quarterly current payment for the 12-
month period beginning each April 15 must be equa l to 1 percent of gross income for the reporting
quarter in accordance with Article 321 of this C ode, which shall be applied against (recorded as)
payment of the minimum business income tax. If one-fourth of the amount of profit tax for the
previous year, multiplied by a coefficient of 1.1, is gr eater than the 1 percent of gross income for the
reporting quarter referred to above, the difference between the one-fourth of th e amount of profit tax
for the previous year, multiplied by a coefficient of 1.1, and the 1 percent of gross income for the
reporting quarter paid to the budge t and recorded as the minimum business income tax, shall be
payable as current profit tax paymen ts within the same time period.

2. The amount of current tax payments may be defined as the product of a taxpayer’s gross
income (without deductions) for the current month ( quarter) and the coefficient that represents the
proportion of the annual amount of the given tax in the taxpayer’s gross income (without
deductions) for the previous year. Fo r taxpayers that are legal entities, a coefficient shall be applied
that is derived from the total annual amount of taxes owed by the taxpayer against the minimum
business income tax and the corporate profit tax, taki ng into account any credit that has been applied
in accordance with Article 323 of this Code. A ta xpayer may choose to apply throughout the entire
year one of the two possible methods for determin ing the amount of current tax payments identified
in items 1 and 2 of this article

3. Current tax payments shall be applied against the amount of tax due from a taxpayer for a
tax year. Any amount by which current tax payments on the profit tax exceed the obligations under
this tax shall be applied against obligations und er the minimum business income tax for the same
year, and any balance remaining (a fter obligations under the minimum business income tax) shall be
applied against obligations under other taxes or shall be refunded to the taxpayer in accordance with
Article 89 of this Code.

4. Interest shall be charged for curr ent tax payments that are not made in a timely manner in
accordance with Articl e 93 of this Code.

Article 199. Payment of Tax Based on the Results for a Year

Taxpayers shall effect a final settlement and pay the tax owed no later than April 10 of the
year following the tax reporting year.

SECTION VII. VALUE-ADDED TAX

CHAPTER 25. GENERAL PROVISIONS

Article 200. The Concept of the Value-Added Tax

The value-added tax, referred to hereinafter as the VAT, shall be a form of transferring to the
budget a portion of the value added in the process of the production and circulation of goods, work,
and services on the territ ory of the Republic of Tajikistan, as we ll as a portion of the value of all
taxable goods imported onto the te rritory of the Republic of Tajikistan. The value-added tax, which
is an indirect tax, shall be paya ble at all stages of the production and circulation of goods and the
performance of work and the prov ision of services. The amount of VAT payable on taxable turnover
shall be defined as the difference between the amount of tax assessed on such turnover and the
amount of tax to be credited in accordance with VAT tax invoices that are presented pursuant to the
provisions of this section.

The amount of VAT payable on taxabl e imports shall be defined as the product of taxable
imports and the VAT rate.

CHAPTER 26. TAXPAYERS

Article 201. Taxpayers

1. A person who is registered or require d to register as a payer of the VAT shall be a payer of
the VAT.

2. A registered person shall become a payer of the VAT from the moment the registration
enters into force. An unregistered person who is re quired to file an application for registration shall
be a payer of the VAT from the beginning of the reporting period following the period in which the
obligation to file an applicati on for registration takes effect.

3. In addition to persons who are payers of the VAT in accordance with item 1 of this article,
all persons who are engaged in th e taxable importation of goods into the Republic of Tajikistan shall
be considered payers of the VAT with respect to such imports.

4. A resident person who performs wo rk or provides services that are subject to taxation in
accordance with Article 220 of this Code, without registering for VAT purposes, shall be a payer of
the VAT with respect to such goods or services.

5. Joint commercial activity performe d by two or more persons, without the establishment of
a legal entity, on the basis of a jo int operating agreement in accordan ce with the Civil Code of the
Republic of Tajikistan or without a written agreem ent, as a result of which the volume of taxable
transactions during the preceding period of not more than 12 consecutive (one after the other) full
calendar months exceeded the minimum level establis hed under item 1 of Article 202 of this Code,
shall be subject to registration fo r VAT purposes. One of the persons participating in such activity
shall be subject to registration as a payer of the VAT with respect to transactions carried out in the
course of the joint opera tions with the tax authority serving the area in which the joint activity is
performed.

6. The performance of joint commerci al activity without the establishment of a legal entity
shall be subject to registration for VAT purposes re gardless of the volume of taxable transactions if
at least one of the participants in the joint operati ons is a payer of the VAT. In this case one of the
persons who are payers of the VAT shall be subj ect to registration as a payer of the VAT with
respect to transactions carried out in the course of the joint operations with the tax authority at which
its original (principal) registration for the VAT took place.

Article 202. Requirement to File an Application for Registration

1. A person who is engaged in comme rcial activity and whose volume of taxable transactions
in the preceding period of not more than 12 cons ecutive (one after the other) full calendar months
exceeded 48,000 somoni shall be required to file an application for registration for VAT purposes
with the tax authority with which it is registered in accordance with Articles 45 and 46 of this Code,
except as otherwise provided by this Code or other acts of the tax legislation, no later than 30 days
after the end of this period.

2. For the purposes of this article, the delivery of goods, the performance of work, and the
provision of services by a nonresiden t shall be taken into account when determining the total value
of taxable transactions only if they are pe rformed through a permanent establishment of the
nonresident in the Re public of Tajikistan.

3. A legal successor of a taxpayer who is carrying on the taxpayer’s business shall be
required to file an application for registration for purposes of th e value-added tax within 30 days
after assuming the rights of legal successor.

Article 203. Voluntary Registration

A person who is not required to register for VAT purposes may voluntarily file an
application with tax au thorities for such registration. An individual who is not engaged in
commercial activity may not regi ster as a payer of the VAT.

Article 204. Registration

1. A person filing an application fo r registration for VAT purposes shall be required to do so
following the procedure and form estab lished by the authorized government body.

2. When a person engaged in taxable transactions files an appl ication for registration for
VAT purposes, the tax authority shall be required to enter said person in the register of VAT payers
and issue a certificate of regist ration for the value-added tax w ithin 10 days of the date the
application is filed, indicating in the certificate the taxpayer’s full name (or last name and first
name) and other relevant information about the taxpaye r, the certificate’s date of issue, the date on
which the registration enters into force, and the taxpayer identification number.

The form used for the certificate of registration for the value-added tax shall be a registered
high-security form and shall be issu ed to a taxpayer free of charge.

The certificate of registration for the value-added tax shall be kept on file with the payer of
the value-added tax and in the event of the cancel lation of registration for VAT purposes it shall be
returned to the appropriate tax authority within 10 days of the date the cancellation of registration
for VAT purposes enters into force.

The form of the certificate and the procedure for the issuance and revocation of a certificate
of registration for the value-added tax shall be established by the authorized government body.

3. Registration shall enter into force on one of the foll owing dates, whichever occurs first:

1) in the case of mandatory regist ration, on the first day of the reporting period following the
month in which the obligation to file an application for registration arises;

2) in the event of voluntary regist ration, on the first day of the reporting period following the
month in which the applicati on for registration is filed;

3) on the date indicated by a taxpayer in an application for registration;

4) in the case of a legal successor, as of the date the rights of legal successor are assumed.

4. Tax authorities shall be required to open and maintain a register of payers of the VAT
following the procedure established by the author ized government body, and it must contain detailed
information about all persons who are registered for VAT purposes.

The authorized government body shall maintain a national register of payers of the VAT for
accounting and control purposes.

5. If a person is required to regist er for VAT purposes and has not filed an application for
registration, tax authorities shall register the taxpayer at their own initiative and shall send the
relevant documentati on to the taxpayer.

6. As of the date the registrati on for VAT purposes enters into force, a person who has
registered for VAT purposes shall be required to prepare VAT invoices for its own taxable

transactions and to indicate its taxpayer identification number on al l VAT invoices and on all returns
and official letters sent to tax authorities.

7. At the request of a payer of the value-added tax, the authorized government body may
treat its separate subdivisions as inde pendent payers of the value-added tax.

Article 205. Cancellation of Registration

1. A taxpayer may submit a request for cancellation of its registration for VAT purposes at
any time after 24 months have passed since the entry into force of the most recent registration for
VAT purposes if the total value of the taxpayer’s taxable transactions over the 12 consecutive (one
after the other) full calendar months preceding th e filing of the request was not more than 48,000
somoni. Cancellation of registration for VAT purposes shall enter into force on the first day of the
tax period following the period (month) in which the person filed the request with tax authorities for
cancellation of registration.

2. In the event of the liquidation of a legal entity that is a payer of the value-added tax, this
person shall be removed from registration for th e value-added tax (that is, the cancellation of
registration for VAT purposes with re spect to this person shall enter into force) as of the day this
person is removed from the state register of taxpayers.

In the event of the death of an i ndividual, cancellation of registration for VAT purposes with
respect to this person shall enter into force as of the person’s date of death as officially confirmed by
the appropriate government body.

3. If a person’s registration for VAT purposes is cancelled, tax authorities shall be required
to remove the person’s name (last name, first name ) and other information about the person from the
register of VAT payers and to ta ke actions to remove this person from the national register of VAT
payers, and also to revoke the certificate of registration for the value-added tax that was issued,
following the procedure establishe d by the authorized government body.

4. Cancellation of registration fo r VAT purposes in accordance with this Code shall be
carried out following the procedure established by the authorized government body.

CHAPTER 27. OBJECTS OF TAXATION

Article 206. Objects of Taxation

1. Objects of taxation with respect to the value-added tax shall be taxable transactions and
taxable imports.

2. Taxable transactions shall be deliveries of goods, the performance of work, and the
provision of services, other than deliveries of goods, the performan ce of work, and the provision of
services that are exempt from the value-added tax, which are performed as part of a person’s
commercial activity, if they are considered to be performed on the territory of the Republic of
Tajikistan in accordance with Articles 218 or 219 of this Code. Taxable transactions shall not
include the provision of services or performance of work outside the Republic of Tajikistan in
accordance with Articl e 219 of this Code.

3. If a taxpayer purchases goods (work, services) accompanied by payment of the VAT and
receives (or has the right to re ceive) the corresponding amount as a credit, the use of said goods
(work, services) or the results of the use of the goods (work, services) for noncommercial activity
shall be considered a taxable transaction.

4. The delivery of goods, the perf ormance of work, and the provision of services by a
taxpayer for the taxpayer’s own employees, includ ing on an unrequited basis, shall be a taxable
transaction.

5. The delivery of goods, the performa nce of work, and the provision of services, unless they
are exempt from the VAT according to the provisions of this Code, by one separate subdivision for
another separate subdivision of the same legal entity, which are independent payers of the value-
added tax in accordance with item 7 of Article 204 of this Code, as well as the delivery of goods, the
performance of work, and the provision of servic es to other outside persons, shall be taxable
transactions.

6. Regardless of the other provis ions of this article, the delivery of goods by a person who
has purchased these goods as a result of a transa ction subject to the VAT, but who did not have the
right to a VAT credit in the purchase of these goods according to Article 226 of this Code, shall not
be treated as a taxable transaction. If a credit wa s partially disallowed in the purchase of goods, the
size of the taxable transaction sh all be reduced in proportion to th e amount of the credit that was
disallowed.

7. The value of packaging (packing ma terial) that is to be returned under the conditions and
within the time periods specified in an agreemen t (contract) for the delivery of goods shall not be
included in the taxable amount, with the exception of retail sales. Retail merchants may reduce the
amount of taxable turnover by the am ount indicated as paid by them as reimbursement for the return
of packaging (packing material) by customers.

8. If the registration of a taxpaye r is cancelled, goods remaining in the taxpayer’s possession
at the time of cancellation shall be treated as deliver ed as part of a taxable transaction performed at
that moment.

9. In the case of the production of goods, performance of work, and provision of services
using raw materials and supplies furnished by the customer, when the customer remains the owner
of the raw materials, supplies, and products of their processing, the taxable transaction for the
processor (producer, service provide r) shall be the services (work) involved in the processing of the
raw materials and supplies into goods (work, services).

10. Taxable imports shall be goods imported onto the territory of the Republic of Tajikistan
(with the exception of those exempt from the value- added tax in accordance with Article 211 of this
Code), which are supposed to be declared in accord ance with the customs legislation of the Republic
of Tajikistan.

Article 207. Sale or Transfer of an Enterprise

1. The sale or transfer of an entir e enterprise under a single transaction as a property complex
or an independently operating s ubdivision of an enterprise by one VAT taxpayer to another VAT
taxpayer shall not be consid ered a taxable transaction.

2. In the case referred to under item 1 of this article, the buyer or recipient shall assume the
rights and responsibilities of the se ller, as set forth in this section, which are associated with the
enterprise or the independently operating subdivision of an enterp rise that has been sold or
transferred.

3. This article shall apply only in the event that the selling (transferring) and receiving
parties provide written notification to tax authoritie s of the decision to apply the provisions of this
article no later than 30 calendar da ys after the sale (transfer).

CHAPTER 28. DEFINITION OF TAXABL E TURNOVER AND TAXABLE IMPORTS

Article 208. Value of a Taxable Transaction

1. The value of a taxable transaction shall be determined on the basis of the amount (the
value, including in kind) which th e taxpayer receives or has the righ t to receive from a customer or
any other person, including any duties, taxes, and/or other fees, but not including the VAT and retail
sales tax.

2. If a taxpayer receives or has the right to receive goods, work, or services in exchange for a
taxable transaction, the value of the taxable transaction shall include the market value of these
goods, work, or services (including any duties, taxes, or other fees), but not including the VAT and
retail sales tax.

3. In the event that a taxpayer doe s not receive or does not have the right to receive any
values in exchange for a taxable tr ansaction, the value of the taxable transaction shall be equal to the
market value of the goods delivered, the work performed, or services provided by the taxpayer in the
process of said taxable transacti on (including any duties, taxes, or other fees), but not including the
VAT and retail sales tax.

4. In the case of the consumption or use of goods (work or services) for noncommercial
purposes as set forth in item 3 of Article 206 of this Code, and also in the case of deliveries of goods
(performance of work or provision of services) fo r one’s own employees as set forth in item 4 of
Article 206 of this Code, the amount of a taxable tr ansaction shall be equal to the market price of
these goods, work, or services (including any duties, taxes, or other fees), but not including the VAT
and retail sales tax.

5. When goods are delivered under an arrangement calling for payment in installments, the
value of the taxable transaction sh all be determined in accordance with item 1 of this article, taking
into account all of the payments to be made under the installment plan as specified by the terms of
the agreement, including a financ ial leasing agreement, with the exception of interest payments.

6. When property is (goods are) mort gaged, the value of this taxable transaction on the part
of the mortgagor shall be determined on the basis of the amount of borrowed funds received against
the security of the given propert y (goods), not including the value- added tax (that is, not including
the value-added tax in the value of the mortgaged property (goods) or in the amount of borrowed
funds).

7. When wholesale and retail trade enterprises and procurement enterprises that are taxpayers
with respect to the VAT purchase goods from pe rsons who are not payers of the VAT, and these
taxpayers subsequently deliver the goods to anothe r party, the value of the taxable transaction shall
be considered to be equal to the positive differe nce between the value of the delivery of these goods,
not including the VAT, and the value of thei r acquisition from the non-payer of the VAT.

In the event of a negative difference, the value of the taxable transaction for purposes of
calculating the VAT shall be assumed to be equal to zero.

Article 209. Adjustment of Taxable Turnover

1. This article shall apply to a taxpayer’s taxable transactions in the following cases:

1) cancellation of a transaction;

2) a change in the nature of a transaction;

3) a change in the agreed-upon compensation for a tran saction both due to a drop in prices
and for any other reason; or

4) the full or partial return of goods to the taxpayer (refusal to accept work or services
performed by the taxpayer).

2. If as a result of the occurrence of one of the events re ferred to in item 1 of this article the
taxpayer:

1) presents a VAT invoice in which the VAT amount indicated is incorrect; or

2) has indicated the incorrect VAT amount in a VAT return,

An adjustment shall be made in acco rdance with item 2 of Article 225 or item 8 of Article
226 of this Code.

3. An adjustment of a taxable transaction shall be made on the basis of a supplemental VAT
invoice or other documents confirming the occurrence of situations referred to in item 1 of this
article after the completion of th e original taxable transaction.

Article 210. Value of Taxable Imports

1. The value of taxable imports shall be the customs value of goods as determined in
accordance with the customs legislat ion of the Republic of Tajikistan, plus the amount of duties and
taxes payable on the importation of goods into the Republic of Tajikistan, but not including the
VAT.

2. In the case of services that are treated as part of the importation of goods according to item
2 of Article 222 of this Code, their value not including the VAT shall be added to the value
indicated in item 1 of this article.

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. A ccordingly, 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 ac cordance 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 th e 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 perfor mance of religious and ceremonial se rvices by a religious organization;

5) the provision of medical serv ices, 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 highe r 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 w ho have the appropriate state licenses (permits) to
engage in the given activ ities, which have been issued in acco rdance with the procedure established
by regulatory legal acts of th e 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 perfor mance of work, and the provision of services produced
(performed, provided) directly by penitentiary in stitutions of the Republic of Tajikistan or state
enterprises that are part of the penitentia ry system of the Republic of Tajikistan;

9) the delivery of newspapers, magazines, fiction, ch ildren’s literature, scientific and
technical books and textbooks, as well as the pe rformance 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 specializ ed advertising nature;

10) the delivery of children’s goods (clothing and footwear, h eadwear, socks and hosiery)
based on a list established by the Re public of Tajikistan government;

11) the delivery of specialized produc ts 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 (organizati ons) providing such services shall be established by the
Republic of Tajikistan government.

3. The delivery of primary alumin um, 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 fore ign 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 a nd uncut) diamonds, sapphires, emeralds, rubies,
alexandrites, pearls, and spinel by the Republic of Tajikistan Mini stry 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 orga nizations 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 a nd 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 th e 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 invest ment 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 Tajikista n, are not used or are
sold by the enterprise to another pe rson 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 impleme ntation 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 stat es, governments of foreign states, or
international organizations;

7) imports of goods for the constr uction of high-priority projects. A list of such goods and
high-priority projects shall be established by the Re public of Tajikistan government;

8) imports (with the exception of excisable goods) of basic types of raw materials, supplies,
energy resources, and equipment ba sed on a list and in quantities established by the Republic of
Tajikistan government, effected directly by the Ta jik Aluminum Plant for the production of primary
aluminum;

9) imports of specialized produc ts 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 co nsumption during international flights, shall be
exempt from the VAT. International shipments sh all be understood to mean freight and passenger
transport, the point of departure a nd point of destination of which (o r one of these points) is located
outside the Republic of Tajikistan.

2. For the purposes of this arti cle, 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 th e 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 th e 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 performan ce 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 tran sit 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 trav el 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 cu stoms regime, the tax shall
be applied in full;

2) when goods are placed under th e re-import customs regime, the taxpayer shall pay the
amount of taxes from which the taxpayer was exem pt 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 z one, 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 ont o the customs territory of the
Republic of Tajikistan with a subseq uent refund of the tax that has been paid when the processing
products are exported from the customs terr itory 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 fo llowing 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 cu stoms territory of the Republic of Tajikistan customs regime,
there shall be a full or partial exemption from pa yment 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 th e 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 th at have been paid shall be refunded (credited) by
tax authorities of the Republic of Tajikistan fo llowing 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 Tajikis tan 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 ha ve 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 connectio n with failure to meet the deadlines established by the customs
legislation for the mandatory export of fore ign 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 legisl ation 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 sha ll be subject to taxation following the generally
established (nonconcessional) proced ure. 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 cust oms legislation of the Republic of Tajikistan, a taxpayer shall
pay the taxes as well as interest accrued on the amount in question.

CHAPTER 30. TRANSACTIONS SUBJECT TO TAXATION AT THE ZERO RATE

Article 214. Taxation of Exports of Goods

1. Exports of goods, other than raw cotton, cotton fiber, and primary aluminum, shall be
subject to the value-adde d tax at the zero rate.

2. In the event of a failure to pr ovide confirmation of the export of goods in accordance with
Article 215 of this Code within 30 calendar days from the date of the notation made by the customs
authority that released the goods under the export regime, or in the event of the export of goods
under the export via electric power lines regime or using the incomplete periodic declaration
procedure, from the date of the notation made by the customs authority that performed the customs
processing, deliveries of said goods shall be subj ect to the value-added tax at a positive rate
indicated in item 1 of Ar ticle 224 of this Code.

Article 215. Confirmation of the Export of Goods

1. Documents confirming the export of goods shall include:

1) an agreement (contract) for the delivery of exported goods;

2) a freight customs declarati on bearing notations made by the customs authority that
released the goods under the export regime, or in the event of the export of goods under the export
via electric power lines regime or using the incomplete periodic declaration procedure, a complete
customs declaration bearing notations made by th e customs authority that performed the customs
processing;

3) copies of shipping documents bearing the notation of a cust oms authority located at a
point of entry on the customs fron tier of the Republic of Tajikistan.

In the event of the export of g oods under the export via electric power lines regime, an
acceptance certificate for the goods shall also be presented.

2. Documents confirming the expor t of goods to members states of the Commonwealth of
Independent States, which share a common border with the Republic of Tajikistan, shall include the
documents referred to under item 1 of this article, as well as a copy of a freight customs declaration
prepared in the country of import of the goods be ing exported from the customs territory of the
Republic of Tajikistan under the export regime.

In accordance with an international treaty, the authorized government body may establish a
different procedure for confirmation of exports of goods to members states of the Commonwealth of
Independent States.

3. In the event of the further export of goods that were previously exported outside the
customs territory of the Republic of Tajikistan under the processing outside the customs territory
regime, or products of their proces sing, confirmation of the export shall be performed in accordance
with items 1 and 2 of this article, and also on the basis of the following documents:

1) a freight customs declaration, in accordance with which the processing regime is replaced
with the export regime;

2) a freight customs declaration prepared under the processing of goods outside the customs
territory regime;

3) a copy of a freight customs declaration prepared for the importation of goods onto the
territory of a foreign state under the processing of goods on the cust oms territory regime (processing
of goods under customs control), ce rtified by the customs authority that performed the customs
processing;

4) a copy of a freight customs declaration prepared under the e xport regime when goods or
products of their processing are exported from th e territory of the state in which they were
processed, and certified by the customs authority that performed the customs processing.

4. Upon presentation of documents confirming the export of goods to the tax authority with
which a taxpayer is registered, within 180 calendar days of the da te of the notation by the customs
authority referred to in subitem 2) of item 1 of this article, a taxpayer shall have the right to obtain a
refund of the tax assessed in accordance with item 2 of Article 214 of this Code. Otherwise, a
taxpayer shall not have the right to a refund of the tax assessed in accordance with item 2 of Article
214 of this Code.

5. A regulation on the procedure and deadlines for confirma tion of the export of goods,
taking into account the requirements of this article, shall be appr oved by the Republic of Tajikistan
government based on a representation from the authorized government body.

Article 216. Deliveries of Gold , Precious Metals and Stones to the National Bank of
Tajikistan and the State Valuables Repo sitory under the Republic of Tajikistan
Ministry of Finance

Deliveries of gold, silver, platinum , palladium (rhodium, iridium, ruthenium, osmium) to the
National Bank of Tajikistan, as well as deliveries of gold, silv er, platinum, palladium (rhodium,
iridium, ruthenium, osmium), natural (cut a nd uncut) diamonds, sapphires, emeralds, rubies,
alexandrites, pearls, and spinel to the Republic of Tajikistan Ministry of Finance for the State
Valuables Repository shall be taxed at the zero rate.

CHAPTER 31. TIME AND PLACE OF THE PERFORMANCE OF A TAXABLE
TRANSACTION AND SPECIAL RULES

Article 217. Time of the Performance of a Taxable Transaction

1. Except as otherwise provided by this article, a taxable transaction shall take place at the
time a VAT invoice is presented for the given transaction.

2. If a VAT invoice is not presented within five days of the deadlines specified under this
item, item 1 of this article sh all not apply, and a taxable tr ansaction shall take place:

1) at the time of the acceptance, sa le, or transfer of goods, the performance of work, or the
provision of services; or

2) in the case of the delivery of goods which entails the shipment of the goods, at the time
they are shipped.

3. When payment is made before the time indicated in subitems 1) or 2) of item 2 of this
article, if a VAT invoice is not pres ented within five days after paymen t, items 1 and 2 of this article
shall not apply and the taxable transaction sh all take place at the time payment is made.

4. For the purposes of item 3 of this article, and with the exception of those cases specified in
item 5 of this article, if two or more payments are made for a taxable transaction, each payment shall
be treated as being made for a separate transaction in the am ount of the payment.

5. If services are provided on a regular or ongoing basis, the provision of services shall be
treated as taking place e ach time at the point that a VAT invoice (invoice for payment) is presented
in connection with any part of the transaction, or if payment is made earlier, at the time payment is
made for any part of the transaction.

In any case, regardless of the other pr ovisions of this article, for the purposes of this item a
VAT invoice (invoice for payment) must be pres ented for each month no later than the 10 th of the
month immediately following the reporting month. If an invoice (invoice for payment) is not
presented within the specified deadline, the provision of services shall be treated as occurring on the
last day of the reporting month.

6. In the event of the application of item 3 of Article 206 of this Code, the moment a taxable
transaction is performed shall be the moment at which the goods, work, or services start being
consumed or used.

7. In those cases referred to under it em 4 of Article 206 of this Code, the moment a taxable
transaction is completed shall be the moment that goods are delivered, work is performed, or
services are provided for employees.

8. The moment a taxable transaction involving the delivery of elec tricity, thermal power, gas,
or water is completed shall be determined in accord ance with the rules in effect with respect to the
provision of services on a regular or ongoing basis.

9. With respect to taxpayers perf orming cash basis accounting for the purposes of the profit
tax, a taxable transaction shall ta ke place at the moment funds are received for the goods delivered
(goods to be delivered), for the work performed (wor k to be performed), or for the service provided
(to be provided).

Article 218. Place of the Delivery of Goods

1. If the conditions of delivery call for the transport of goods, delivery shall occur at the
place where the transport of the goods begins. In other cases the delivery of goods shall occur at the
place of their transfer.

2. The delivery of electricity, th ermal power, and gas shall occur at the place where the
goods are received. In the event of the export of these goods from the Republic of Tajikistan, it shall
be considered that delivery occu rs in the Republic of Tajikistan.

Article 219. Place of the Performance of Work or Provision of Services

1. For the purposes of this section, the place where work is performed or services are
provided shall be:

1) the location of real property, if th e work (service) is related directly to this property;

2) the place where the work (service) is actually performed, if it is related to movable
property;

3) the place where services are actually performed, if they are pr ovided in the sphere of
culture, the arts, education, physical education and sports, or in another similar sphere of activity;

4) the place where transportation actua lly occurs, if the work (service) is related to this
transportation. For the purposes of Article 212 of this Code, such a transaction related to the
performance of work or provision of services by a taxpayer outside the Republic of Tajikistan shall
be treated as being performed on the te rritory of the Republic of Tajikistan;

5) the location of a permanent establishment of a purchaser of services, with which
(permanent establishment) these services are most closely related.

The provisions of this item shall apply to the following services:

– transfer of ownership or assignmen t of patents, licenses, trademarks, copyrights, or other
similar rights;

– performance of consulting, legal, accounting, engineering, or advertising services, as well
as data processing and other similar services;

– performance of personnel and staffing services;

– leasing of movable property (w ith the exception of means of transport of transportation
enterprises);

– performance of the services of an agent who hires a person (an enterprise or an individual)
on behalf of a principal party to a contract for the performance of services specified under this
subitem;

6) the place where commercial activity is carried out by a person performing work or
providing services.

2. In the application of item 1 of this article, a place where work is performed or services are
provided that is referred to under more than one sub item of item 1 of this article shall be determined
on the basis of whichever subitem appears first.

Article 220. Reverse Taxation

1. If a person who is not a reside nt and has not been registered for VAT purposes in the
Republic of Tajikistan provides services or perf orms work on the territory of the Republic of
Tajikistan for a tax agent referred to in item 2 of th is article, then for the purposes of this section
said performance of work or provision of services shall be subject to taxation in accordance with
this article.

2. For the purposes of this article a tax agent shall be any person registered in the Republic of
Tajikistan for VAT purposes, and any resident legal entity.

3. In the event of the application of item 1 of this article, a tax agent shall withhold tax from
the amount payable to a nonresiden t. The tax amount shall be determined by applying a positive tax
rate in accordance with the provision s of item 1 of Article 224 of this Code to the amount payable to
the nonresident after th e withholding of tax.

4. If a tax agent is registered for VAT purposes, the tax withheld shall be subject to inclusion
in the VAT return for the month in which the tran saction was performed, as an amount payable (as
an amount assessed). This shall grant the tax agent the right to credit this VAT amount according to
the provisions of Artic le 226 of this Code.

5. If a tax agent is not registered for VAT purposes, he shall be required to pay the withheld
tax to the budget following the pro cedure established by the authorized government body within five
days of the day payment is made to a nonresident.

6. In the event of the importation of property belonging to a nonresident for leasing to a tax
agent, when collecting the VAT from lease paymen ts in accordance with this article, with the
consent of the nonresident owner, a tax agent may re quest a credit of the VAT paid on the import. In
this case the tax agent shall be treated as the taxpayer and shall bear liability for payment of the
VAT at the time of the subsequent deliv ery of the property (excluding its export).

Article 221. Time of Import

The importation of goods shall take place at the moment the goods are subject to customs
duty in accordance with the customs legislation of the Republic of Tajikistan. If goods are exempt
from the customs duty, the importation of the goods shall take place at the moment when the
customs duty would have been paid if the goods were not exempt from the duty.

Article 222. Combined Transactions

1. The delivery of goods, the performance of work, or the provision of services that are of an
ancillary nature with respect to the principal deli very of goods, performance of work, or provision of
services shall be treated as part of the principal delivery of goods, performance of work, or provision
of services.

2. The performance of work or the provision of services that are of an ancillary nature with
respect to the importation of goods shall be part of the importation of goods.

3. A taxable transaction that include s independent elements, one or more of which entails the
separate delivery of goods, provision of services, or performance of work that are exempt from the
VAT shall be treated as consisting of separate transactions. A transaction that is exempt from the
VAT and includes independent elem ents, one or more of which entails the separate delivery of
goods, provision of services, or perfor mance of work that are subject to the VAT, shall be treated as
consisting of separate transactions.

Article 223. Transactions Performed by an Agent

1. The delivery of goods, the performance of work, or the provision of services by a person
who is acting as an agent (a tr ustee) of another person (a prin cipal), on behalf of and on the
instruction of this other person (principal), shall be treated as a transaction performed by the
principal.

2. Item 1 of this article shall not apply to services provided by an agent to a principal.

3. Item 1 of this article shall not apply to the delivery of goods to the Republic of Tajikistan
by a resident agent of a person who is not a resident and is not registered as a payer of the VAT in
the Republic of Tajikistan. In this case the delivery shall be treated as being performed by the agent
for VAT purposes.

CHAPTER 32. PROCEDURE FOR ASSESS MENT AND PAYMENT OF THE TAX

Article 224. Value-Added Tax Rates and Procedure for Calcula
ting the Tax

1. The value-added tax rate shall be 20 percent of taxable turnover, with the exception of
exports, and/or 20 percent of taxable imports.

Taxable transactions referred to in Chapter 30 of this Code shall be taxed at the zero rate.

2. Taxable turnover shall consist of the total value of taxable transactions in the reporting
period (both those taxed at a positive rate and those taxed at the zero rate).

3. The amount of tax assessed on taxable turnover shall be defined as the product of taxable
turnover and the appropriate tax rate a ccording to item 1 of this article.

4. The amount of tax assessed on taxable imports shall be defined as the product of taxable
imports according to Article 210 of th is Code and the appropriate tax rate according to item 1 of this
article.

5. Assessment of the value-added tax shall mean the performance of actions specified under
items 3 and/or 4 of this article.

Article 225. Value-Added Tax Payable to the Budget on Taxable Turnover

1. The amount of value-added tax payable to the budget on taxable turnover for a reporting
period in accordance with Article 217 of this Code shall be defined as the difference between the
amount of tax assessed on taxable turnover in accord ance with Article 224 of this Code, taking into
account (adding in) the tax amount assessed in accord ance with item 4 of Article 220 of this Code,
and the tax amount to be credited in acco rdance with Article 226 of this Code.

2. In those cases specified under Ar ticle 209 of this Code, when the amount of VAT payable
exceeds the amount actually shown by a taxpayer in the VAT return, the excess shall be treated as
VAT that is payable for the repor ting period in which an event refe rred to under Article 220 of this
Code occurred, and it shall be added to the am ount payable for the reporting period in accordance
with item 1 of this article.

Article 226. Value-Added Tax to be Credited when Determining Payments to the
Budget

1. Except as otherwise provided by this article, the amount of value-added tax to be credited
shall be the amount of tax payabl e (paid) by a taxpayer on the basis of VAT invoices presented to
him, taking into account the timing of a taxable transaction involving:

1) the importation of goods during the reporting period pursuant to Article 221 of this Code;
and

2) taxable transactions that entail de liveries of goods, the performance of work, or the
provision of services and are treate d as taking place in the reporting period pursuant to Article 217
of this Code.

A crediting of the value-added tax shall be allowed only in the event that the goods, work, or
services referred to under subitems 1) and 2) of th is article are used or are supposed to be used for
purposes of commercial activity by the taxpayer, even if these goods, work, or services are not
included in production costs. In or der to effect a crediting of value-added tax on imports of goods,
the value-added tax must have actually been paid to the budget.

2. The amount of value-added tax th at may be credited in accordance with item 1 of this
article shall be:

1) the amount of tax payable to supp liers on the basis of invoices which are presented and in
which the value-added tax is identified separately;

2) the amount of tax indicated in a freight customs declaration prepared in accordance with
the customs legislation of the Republic of Tajik istan, which has been paid to the budget of the
Republic of Tajikistan following the established procedure and is not refundable in accordance with
the conditions of the customs regime;

3) the amount of tax to be include d in a value-added tax return in accordance with Article
220 of this Code (reverse taxation);

4) the amount of tax indicat ed in a ticket issued for rail or air travel;

5) the amount of tax indicated in documents used by a supplier of municipal services,
settlements for which are effected through banks.

3. The value-added tax that is pa yable to suppliers of goods imported into the Republic of
Tajikistan, with respect to which a different export and import procedure applies in accordance with
an international treaty, shall be credited followi ng the procedure established by the Republic of
Tajikistan government.

4. The value-added tax shall be credited in the same tax period in which goods (work,
services) are received, following the procedure established under item 2 of this article.

In the event that the value-added tax is assessed in acco rdance with Article 220 of this Code,
the assessed tax shall be credited in the same tax period in which the transaction was completed.

In the case of taxpayers referred to in item 9 of Article 217 of this Code, the value-added tax,
taking into account the provisions of this article, shall be credited in the same tax period in which
taxpayers actually made payment, that is, the time that a credit is applied shall be determined on a
cash basis.

5. In cases of VAT that is pa yable (paid) by a taxpayer on the basis of VAT invoices
presented to him for imports of goods and taxable transactions, which are intended in part for the
taxpayer’s commercial activity and in part for other purposes, the VAT shall be credited on the basis
of the proportion of their use in commercial activity (if it is possible to determine the proportion of
the earmarked use of goods (work, services) acqu ired through imports and under other taxable
transactions directly within the tax period in which they were received).

6. The crediting of VAT that has been paid (is payable) shall not be allowed in the case of:

1) passenger cars, with the exception of those offered for sale or rent by a person for whom
the sale or rental of automobiles is a principal commercial activity;

2) entertainment and hospitality expenses, expenditures on charitable activities or for other
social purposes;

3) VAT invoices in which the VAT amount due on the given taxable transactions is not
identified (not indicated) as a separate amount in accordance with Arti cle 231 of this Code.

7. In the event that a taxpayer has taxable transactions and transactions that are exempt from
the value-added tax, the VAT amount to be credited shall be the value-added tax figure determined
in accordance with Article 228 of this Code. If a taxpayer has only exempt turnover, no crediting
shall be allowed. Item 5 of this ar ticle shall apply before this item applies, taking into consideration
the provisions of Artic le 227 of this Code.

8. In those cases described in Article 209 of this Code, when the VAT indicated in an invoice
or in a VAT return exceeds the VAT payable by a taxpayer, the excess amount may be credited to
the taxpayer (that is, the taxpayer’s tax obligations may be reduced by the excess amount) for the
reporting period in which the case referred to in item 1 of Article 209 of this Code occurred.

Article 227. Adjustment of Value-Added Tax Amounts Applied as a Credit

1. Value-added tax that was previously applied as a credit shall be excluded from the
subsequent amount of value-added tax to be taken as a credit in the following cases:

1) with regard to goods (work, services) used for purposes of noncommercial activity;

2) with regard to goods, including fi xed assets, in the event of their damage or loss (with the
exception of cases arising as a resu lt of emergency situations). Damage or loss of goods as a result
of emergency situations must be confirmed by a finding from the appropriate government agency
for emergency situations, produced no later than 30 calendar days from the date of the occurrence of
the emergency situations and presented to the ap propriate tax authority within the same time limit;

3) in the case of failure to comply with the provisions establishe d under Article 231 of this
Code.

2. For the purposes of this Code dama ge to goods (property) shall mean a deterioration in all
or certain qualities (properties) of the goods (property) as a result of which the given goods
(property) cannot be used for purposes of taxable turnover.

Loss of goods (property) shall be understood to mean an event as a result of which goods
(property) are destroyed and/or lost. Loss of goods (property) sust ained by a taxpayer within the
limits of normal wear and tear established by regula tory legal acts of the Republic of Tajikistan shall
not be considered loss in this context.

3. In the event of a change in the value of goods (work, servic es) received in those cases
referred to under item 1 of Article 209 of this Code, a corresponding adjustment shall be made in the
amount of value-added tax that was previously applied as a credit.

4. An adjustment in the amount of value-added tax applied as a credit shall be made in the
same tax period in which the circumstances referred to in items 1 and 3 of this article occurred.

Article 228. Procedure for Crediting Value-Added Tax Given Turnovers That Are
Exempt from the Value-Added Tax (Exempt Turnovers)

1. The value-added tax that is payable to suppliers and on imports with respect to goods
(work, services) used for purposes of exempt turnovers shall not be taken as a credit.

2. If there are both taxable and exempt turnovers, the value-added tax amount, determined
using the proportional or separate method at the taxpayer’s discretion, shall be applied as a credit.

The chosen method for determining th e amount of value-added tax to be applied as a credit
may not be changed during a tax year.

A taxpayer shall provide the respective tax authority with which it is registered as a payer of
the VAT with written notificati on of the crediting method that has been chosen before the
submission of the first VAT return. A taxpayer sh all provide the respective tax authority with
written notice of a planned change in the credit ing method 15 calendar days before the beginning of
a new tax year.

Article 229. Proportional Method

Under the proportional method, the amount of value-added tax to be applied as a credit shall
be determined on the basis of the proportion of taxable turnover in total turnover.

Article 230. Separate Method

1. When determining the amount of value-added tax to be applied as a credit under the
separate method, a payer of the value-added tax shall maintain separate accounting records of
expenditures and value-added tax paid on goods (wor k, services) used for purposes of taxable and
exempt turnover.

2. In the case of expenditures for wh ich it is not possible to break down the value-added tax
on the basis of separate accounting, the amount of value-added tax to be applied as a credit shall be
determined on the basis of the proportional met hod in accordance with Article 229 of this Code.

Article 231. Value-Added Tax Invoices

1. Except as otherwise provided under item 5 of this article, a pe rson who is registered as a
payer of the value-added tax and who performs a taxa ble transaction shall be required as of the date
his registration for VAT purposes en ters into force to present a VAT invoice to the recipient of
goods, work, or services. A person who is not regist ered for VAT purposes shall not have the right
to present VAT invoices.

2. A VAT invoice shall be a docum ent that serves as the grounds for applying VAT as a
credit in accordance with Article 226 of this Code , which has been filled out according to the form
established by the authorized government body a nd which contains the following information:

1) the name (last name, first name) of the taxpayer and purchaser (customer), as well as the
trading name of the taxpayer if it is different from the legal name;

2) the taxpayer identification nu mbers of the taxpayer and the purchaser (customer);

3) the number and date of issue of the certificate of registration for the VAT;

4) the name of the goods ship ped, the work performed, or the services provided;

5) the amount of the taxable transaction;

6) the amount of excise tax on excisable goods;

7) the amount of VAT owed on the given taxable transaction;

8) the date of issue of the VAT invoice;

9) the ordinal number of the VAT invoice.

An invoice shall be prepared (written up) in triplicate. The first copy of the prepared invoice
shall be issued to the purchaser (recipient, customer) of the goods (w ork, services), the second shall

remain in the accounting records of the taxpayer (the person who wrote up the VAT invoice), and
the third copy shall be submitted to the appropriate tax authority together with the VAT return. The
preparation (writing up) of a VAT invoice shall be recorded in a ledger for recording VAT invoices
written up and received by a taxpaye r. The form of this ledger and the procedure for maintaining it
shall be determined by the authorized government body.

3. A taxpayer shall be required to present a VAT invoice to a purchaser of goods (customer
for whom work, services are performed) at the time of delivery or not more than five days after
delivery.

A VAT invoice shall be certified by the signatures of the manager and chief accountant of
the supplier or by other duly author ized officials of the supplier.

4. Except as otherwise provided under this item, the size of a taxable transaction shall be
indicated separately in an invoice for each type of goods (work, services).

The total size of a taxable transact ion may be indicated if a document is attached to the
invoice which contains a list of th e goods (work, services) delivered. In this case the invoice must
contain a reference to the number and date of th e attached document, as well as the name of the
document.

5. VAT invoices shall be written up only when taxable transactions are performed. If the
delivery of goods and the performance of work and/or provision of services are exempt from the
VAT in accordance with the provisions of this section, no VAT tax invoices shall be written up.

6. A VAT invoice for export transactions must include:

1) a notation indicating that the invoice pertains to an export transaction;
2) the country and point of destination of the exports;
3) the VAT rate applicable to th e export transaction.

7. Preparation of an invoice shall not be required in the following cases:

1) settlements for municipal serv ices and communications services provided to the public,
which are effected through banks using primary documents that serve as the basis for accounting
records;

2) passenger tr avel in which tickets are issued;

3) when goods (work, services) are provided which are exempt from the value-added tax.

8. In the case of retail deliveries of goods and the performance of work or provision of
services to purchasers who are not payers of th e VAT, a receipt or simplified invoice may be issued
in place of a VAT invoice, following the form es tablished by the authorized government body, or a
receipt from a cash register with fiscal memory may be issued.

9. An instruction on the procedur e for the writing up and presentation of invoices (for the
VAT and excise taxes) shall be issued by the authorized government body.

Article 232. Preparation of Supplemental Invoices in the Event of an Adjustment in
Taxable Turnover

1. In the event of an adjustment in the size of taxable turnover, a supplemental invoice shall
be prepared, which shall indicate:

1) the ordinal number and date of preparation of the supplemental invoice;

2) the ordinal number and date of preparation of the invoice for which the supplemental
invoice is being prepared (to which it applies);

3) the name, address, and TIN of the supplier and recipient of the goods (work, services);

4) the size of the adjustment in taxable turnover, not in cluding the value-added tax;

5) the amount of value-added tax.

2. A supplemental invoice shall be prepared by the supplier of the goods (work, services) and
shall be confirmed by the recipient of said goods (work, services).

Article 233. Special Rules

Determination of the amount of VA T payable in the case of gambling, lotteries, services
provided by travel agents, consignment sales, sale s of second-hand (used) goods, and other types of
activities in which direct determination of the tax base and other aspects of taxation on the basis of
the general rules is difficult, sh all be performed following the pro cedure established by the Republic
of Tajikistan government.

CHAPTER 33. ADMINISTRATIVE AND FINAL PROVISIONS

Article 234. Submission of Returns and Payment of the Value-Added Tax

1. Every taxpayer shall be required:

1) to submit a value-added tax return for each reporting period to the appropriate tax
authority;

2) to pay tax to the budget for each reporting period no later than the deadline established for
the submission of the VAT return.

2. Except as otherwise provided under this section, a value-added tax return shall be
submitted for each reporting period not later than the 15 th of the month following the reporting
period.

Third copies of VAT invoices wr itten up by the given taxpayer during the reporting period,
and copies of VAT invoices received by the given taxpayer for goods (work, services) purchased
during the reporting period, shall be submitte d at the same time as the return.

3. When registration is performed retroactively, that is, when registration is back-dated, in
accordance with subitem 3) of item 3 of Article 204 of this Code, a taxpayer shall be required to pay
the VAT on taxable transactions effected from the moment the registration enters into force, and
shall have the right to a crediting of taxes paid following the procedure established for taxpayers. In
addition, the relevant transactions must be recorded in the first return submitted by the taxpayer, and
such transactions shall be treated as having ta ken place during the month for which the return is
being filed. In this case the taxpa yer shall have the right to present VAT invoices for transactions
that are recorded in the return.

4. Items 1 and 2 of this article sha ll not apply to a person who is a taxpayer only with respect
to the importation of goods in accordance w ith item 3 of Article 201 of this Code.

5. Except as otherwise established by this Code, VAT on taxable imports shall be assessed
and collected by customs authorities in accordance w ith this Code and the customs legislation of the
Republic of Tajikistan following the procedure provided for the payment of customs charges.

Article 235. Reporting (Tax) Period for the Value-Added Tax

The reporting (tax) period for the value-added tax shall be a calendar month.

Article 236. Transactions with the Budget in the Event That the Amount of Tax to be
Credited Exceeds the Amount of Tax Assessed for a Reporting Period

1. In the case of a taxpayer at least 70 percent of whose taxable turnover for a reporting
period is subject to taxation at th e zero rate, the amount of tax to be applied as a credit in excess of
the amount of tax assessed for the reporting peri od shall be refunded from the respective budget by a
financial authority, in conjunction wi th the tax authority, within 30 calendar days of the moment the
tax authority receives a request from the taxpay er for a refund of said excess, which has been
submitted by a payer of the value-added tax following the form established by the authorized
government body.

A refund of tax to be applied as a credit in excess of the amount of ta x assessed for the
reporting period shall be car ried out on the basis of:

1) the value-added tax return for the tax period, submitted according to the established
procedure;

2) documents required for confirmation of exports of goods in accordance with Article 215
of this Code;

3) a finding by a tax authority on the validity of the value-added tax amounts for which a
refund has been requested.

2. Value-added tax shall be re funded by carrying out the following sequence of actions:

1) crediting the value-added tax ag ainst outstanding debt owed by a payer of the value-added
tax on other taxes, including debt owed on th e value-added tax for previous tax periods;

2) applying a credit against the value-added tax payable for imports of goods;

3) transferring the money remaining after the actions specified under subitems 1) and 2) of
this item have been carried out to the ba nk account of the payer of the value-added tax.

3. With respect to other taxpayers not covered by item 1 of this article, the amount of tax to
be applied as a credit in excess of the amount assessed for the tax pe riod shall be carried over to the
six following reporting periods and shall be credited against tax obligations for these periods, and
also against debt owed by the payer of the value-added tax on other taxes, including the value-added
tax, for previous tax periods. Any balance remain ing from the excess shall be refunded from the
budget within 30 days of the end of this six-month period.

4. In all cases in which a tax aut hority discovers that certain amounts were refunded to a
taxpayer in error, the tax authority may demand the return of th ese funds following the procedure
established for the collection of taxes.

5. The procedure for refunding taxes to be applied as a credit in excess of the tax amount
assessed for a reporting period shall be established by the Republic of Tajikistan government, taking
into account the provisions of this article.

Article 237. Refund of Value-Added Tax Paid on Goods (Work, Services)
Purchased at the Expense of Proceeds from a Grant or Credit (Loan)

1. A refund of value-added tax paid to suppliers of goods (work, services) purchased at the
expense of proceeds from a grant or credit (loan) shall be effected from the respective budget by a
financial authority, in conjunction with a tax authority, within 30 cal endar days of the moment a tax
authority receives a request from a grant recipi ent (credit recipient) for a VAT refund, if the
following conditions are met simultaneously:

1) the grant or credit (loan), the proceeds from which are being used (or an amount up to the
proceeds from which is being used) to purchase goods (work, services), has been provided through
foreign states, governments of foreign st ates, or international organizations;

2) the goods (work, services) are be ing purchased exclusively for the purposes for which the
grant or credit (loa n) was provided;

3) the delivery of goods, the performance of work, or the provisi on of services is being
carried out in accordance with an agreement (contrac t) concluded with the grant recipient or credit
recipient, or with a responsible party designated by the grant recipi ent or credit recipient for the
fulfillment of the objectives of the grant or credit (loan).

2. A refund of the value-added tax in accordance with this article shall be provided to the
grant recipient or credit recipient following the procedure provided for under item 2 of Article 236
of this Code, on the basis of documents confir ming payment of the value-added tax out of the
proceeds from the grant or credit (loan).

A list of documents confirming paym ent of the value-added tax out of the proceeds from a
grant or credit (loan) sh all be established by the authorized government body.

3. The procedure for refunding the value-added tax paid on goods (work, services) purchased
at the expense of (up to the amount of) proceeds fr om a grant or credit (loan), taking into account
the provisions of this article, shall be established by the Repu blic of Tajikistan government.

Article 238. Refund of Value-Added Tax to Diplomatic, Consular, and Equivalent
Representative Offices, as well as Members of their Staff Accredited in the Republic of
Tajikistan

1. A refund of value-added tax sha ll be provided to diplomatic, consular, and equivalent
representative offices, as well as members of thei r staff accredited in the Republic of Tajikistan, on
the condition that such a refund is provided for on a reciprocal basis b
y international treaties to
which the Republic of Tajikistan is a party.

Value-added tax paid by diploma tic, consular, and equivalent representative offices to
suppliers on goods (work, services) intended for official use by diplomatic, consular, and equivalent
representative offices, and also for the personal use of diplomatic, administrative-technical, and
service personnel of these repres entative offices, including family members residing with them,
shall be refundable.

2. A refund of value-added tax to dipl omatic, consular, and equivalent representative offices,
as well as members of their staff accredited in th e Republic of Tajikistan, shall be effected on the
basis of combined statements (registers) prepar ed by these diplomatic, consular, and equivalent
representative offices, and certified copies of documents (invoices, receipts, etc.) confirming the fact
that the value-added tax has been paid.

Combined statements (registers) shall be filled out following the form established by the
authorized government body and shall be submitt ed by diplomatic, consular, and equivalent
representative offices to the Republ ic of Tajikistan Ministry of Foreign Affairs for confirmation of
the exchange of notes regarding observance of the principle of reciprocity in granting concessions
on indirect taxes (the value-adde d tax and excise tax) in accordan ce with the provisions of an
international treaty. Following conf irmation, the combined statements (registers) shall be transferred
to a tax authority identified by the authorized government body so that the refund can be made.

If the value-added tax amounts are not identified under a separate line in documents attached
to combined statements (registers), a tax refund may be allowed only if confirmation is provided
from the supplier of the goods (work, services) that the value-added tax was included in the invoice.

3. A refund of value-added tax to dipl omatic, consular, and equivalent representative offices,
as well as members of their staff accredited in the Republic of Tajikistan, shall be provided from the
respective budget by a financial authority within 30 calendar days of the receipt of combined
statements (registers) by the authorized governme nt body from the Republic of Tajikistan Ministry
of Foreign Affairs.

The value-added tax amounts to be refunded from the budget shall be transferred to the
appropriate accounts of diplom atic, consular, and equivalent representative offices.

4. The procedure for refunding the va lue-added tax to diplomatic, consular, and equivalent
representative offices, as well as members of th eir staff accredited in the Republic of Tajikistan,

shall be determined by the Republic of Tajikistan government taking into account the provisions of
this article.

SECTION VIII. EXCISES

CHAPTER 34. EXCISES

Article 239. The Concept of Excises (Excise Tax)

1. An excise (excise tax) shall be an indirect tax that is included in the selling price of
excisable goods.

2. The production of excisable goods on the territory of the Republic of Tajikistan and/or the
importation of excisable goods shall be subject to excise taxes, with the exception of cases in which
they are exempt from this tax.

Article 240. Taxpayers

1. Except as otherwise provided under this section, payers of excise taxes shall be all
individuals and legal ent ities engaged in the production of excisable goods on the territory of the
Republic of Tajikistan and/or th e importation of excisable goods.

2. In the case of excisable goods produced on the territory of the Republic of Tajikistan from
raw materials supplied by the customer (customer-s upplied raw materials), the payer of excise taxes
shall be the manufacturer, who shall be required to transfer to the customer the excisable goods
(finished products) produced from the customer’s raw materials at a selling price that includes the
excise tax in accordance with this Code, as if the customer-supplied raw materials belonged to the
manufacturer.

3. Payers of excise taxes shall also be persons:

1) who are engaged in the delivery (transfer) of confiscated, unclaimed excisable goods, as
well as excisable goods that have been bequeathed to the state and transferred to the state on an
unrequited basis on the territory of the Republic of Tajikistan;

2) who are responsible for the damage or loss of excisable goods.

4. Taking into account the provisions of this article, nonresident legal entities and their
separate subdivisions shall also be payers of excise taxes.

Article 241. Object of Taxation

The following taxable transactions shall be the object of taxation:

1) in the case of excisable goods produced on the territory of the Republic of Tajikistan, the
release of excisable goods outsi de the production premises (workshop) shall be a taxable
transaction, including:

a) the delivery of exci sable goods, other than deliveries for export;

b) the transfer of excisable goods for processing on the basis of customer-supplied raw
materials;

c) the delivery (transfer) of excisa ble goods that are the product of processing of customer-
supplied raw materials and supplies, including excisable customer-supplied raw materials and
supplies;

d) the contribution of exci sable goods to the statutory fund (authorized capital);

e) the use of excisable goods when making payments in kind;

f) the shipment (release) of excisa ble goods by a manufacturer to its separate subdivisions;

g) the use by a manufacturer of excisable goods it has produced for its own production
needs;

2) in the case of imports, the importation of excisable goods onto the territory of the
Republic of Tajikistan in accordance with the customs legislation shall be a taxable transaction;

3) the delivery (transfer) of c onfiscated and/or unclaimed excisable goods, excisable goods
bequeathed to the state, and excisable goods tran sferred to the state on an unrequited basis;

4) the damage or loss of excisable goods.

Article 242. Calculation of the Excise Tax and the Amount of a Taxable Transaction

1. Items 2–4 of this article shall apply in cases in which calculation of the excise tax is based
on the value of excisable goods and the excise tax rate, expressed as a percen tage of the value (ad
valorem rate). When the ad valorem excise tax rate is applied, the excise tax shall be calculated by
multiplying the value of the excisable goods in a ccordance with items 2–4 of this article by the
established ad valorem rate. In other cases, the excise tax shall be calculated by multiplying the
excise tax rate, expressed as a fixed amount (specific rate) per unit of measure of the goods in
physical terms, by the appropriate number of units of excisable goods in physical terms.

2. In the case of excisable goods produced on the territory of the Republic of Tajikistan, the
amount of a taxable transaction sh all be determined on the basis of the remuneration received or
receivable by a taxpayer from a customer or othe r person, with the exception of the value-added tax
and excise tax amount, as well as the retail sales tax, but in an amount that is not less than the
market price (less the VAT and excise tax, as well as the retail sales tax). In the case of excisable
goods that a taxpayer sells on a retail basis, the amount of a taxable transaction shall be determined
on the basis of the market price (less the VAT a nd excise tax, as well as the retail sales tax).

3. In the case of imports, the amount of a taxable transaction shall be the customs value of
the excisable goods, determined in accordance with the customs legislation of the Republic of
Tajikistan (but in an amount that is not less than th e market price, less the VAT and excise tax), plus
the amount of duties and taxes payable at the time of importation of the goods into the Republic of
Tajikistan, with the exception of th e value-added tax and excise tax.

4. The price of packaging, with the exception of packaging that is returned, shall be taken
into account when determining th e amount of a taxable transaction.

Article 243. Time That a Taxable Transaction Is Performed

1. Except as otherwise provided under this article, in the case of excisable goods produced
on the territory of the Republic of Tajikistan, a taxable transaction shal l take place at the time goods
are released outside the producti on premises, including the manufacturer’s delivery of excisable
goods it has produced through a networ k of its own separate subdivisions, and when excisable goods
produced from customer-supplied raw materials ar e transferred to a contractor (processor).

When excisable goods are manufactured from customer-supplied goods, the date on which a
transaction is performed shall be the day on whic h the manufactured excisable goods are transferred
to the customer or a person specified by the customer.

2. When excisable goods are used for one’s own production needs, the date on which a
transaction is performed shall be the day on which said goods are transferred for this use.

3. In the case of damage to excisa ble products, the date on which a transaction is performed
shall be the day on which a certificate is prepared regarding the write-off of the damaged excisable
products or the day on which a decision is made regarding their further use in the production
process.

In the case of the loss of excisabl e goods, the date on which a transaction is performed shall
be the day on which the loss of the excisable goods occurred.

4. In the case of the importation of excisable goods, a taxable transaction shall take place at
the time the importation is completed pursuant to the customs legislation.

Article 244. Exemption

1. The following shall be exempt from the payment of excise tax:

1) alcoholic beverages produced by an individual and used for the individual’s own
consumption based on a list and within the limits established by the Republic of Tajikistan
government;

2) the importation of one liter of al coholic beverages or one carton (200 units) of cigarettes
by an individual for his own consumption, and also for persons entering the Republic of Tajikistan
by motor vehicle, the contents of the fuel tank;

3) goods in transit acros s the territory of the Republic of Tajikistan;

4) the temporary importation of goods onto the territory of the Republic of Tajikistan, with
the exception of goods in tended for re-export;

5) imported goods intended for re-export, which are guaranteed by security following the
procedure provided for by the customs legislation;

6) excisable goods, other than alcohol and tobacco products, imported as humanitarian
assistance, as well as those imported for the purpo se of their unrequited transfer to charitable
organizations to aid in dealing wi th the aftereffects of natural disasters, accidents, and catastrophes,
and for unrequited transfer to government bodies of the Republic of Tajikistan;

7) exports of excisable goods, if such exports meet the requirements established under
Article 245 of this Code.

2. The excise tax exemptions specifi ed under subitems 3)–6) of item 1 of this article shall
apply only in cases in which the conditions ar e met for exemption from customs duty under the
respective regimes in accordance with the customs legislation of the Republic of Tajikistan. In these
cases, if for the purposes of co llecting customs duty imports fall under the customs duty refund
regime or if the payment of customs duty is requi red in the event of a violation of the exemption
conditions, the same regime shall appl y to the collection of excise tax.

Article 245. Confirmation of the Export of Excisable Goods

1. When excisable goods are delivered for export, the following documents must be
submitted by the taxpayer to the tax authority with which the taxpayer is registered for confirmation
of the validity of the exemption in accordance with Article 244 of this Code, within 30 calendar
days of the date of the notation made by the cu stoms authority that released the excisable goods
under the export regime:

1) the agreement (contract) for delivery of the excisable goods being exported;

2) the freight customs declaration or a copy thereof, certifie d by a customs authority, with
notations by the customs authority that released the excisable goods under the export regime, and in
the case of the export of excisabl e goods under the export via the ma in pipeline system regime or
application of the incomplete periodic declaration procedure, a complete freight customs declaration
with notations by the customs authority that performed the customs processing;

3) copies of shipping documents w ith the notation of the customs authority located at the
point of entry on the customs frontier of the Republic of Tajikistan, and in the case of the export of
excisable goods under the export via the main pipe line system regime, an acceptance certificate for
the goods;

4) payment documents and bank stat ements confirming the actual posting of proceeds from
the sale of excisable goods to the taxpayer’s acco unts in the Republic of Tajikistan, which have been
opened in accordance with the legisl ation of the Republic of Tajikistan.

2. When excisable goods are e xported to member states of the Commonwealth of
Independent States, a copy of the freight customs declaration prepar ed in the country of import of
the excisable goods exported from the customs te rritory of the Republic of Tajikistan under the
export regime shall also be submitted.

3. In the event that a delivery of excisable goods for export is not confirmed in accordance
with items 1 and 2 of this article, said deliver y shall be subject to the excise tax following the
procedure established unde r this section for the delivery of ex cisable goods on the territory of the
Republic of Tajikistan.

4. When a taxpayer submits documents confirming the export of excisable goods to the tax
authority with which the taxpayer is registered, within 180 calendar days of the date of the notation
made by a customs authority referred to in item 1 of this article, the taxpayer shall be entitled to a
refund of the tax assessed in accordance with item 3 of this article. Otherwise, the taxpayer shall not
be entitled to a refund of the tax assessed in accordance with item 3 of this article.

Article 246. Crediting of Excise Tax for Production Resources

1. A person purchasing excisable goods (raw materials) and using these goods for the
production of other excisable goods, wh ich are subject to taxation, shall have the right to a tax credit
in the amount of the excise tax paid at the time of the purchase of the goods (raw materials) or to a
refund of the excise tax paid on the given goods (raw materials).

The provisions of this item sh all also apply when excisable goods manufactured from
customer-supplied excisable goods (raw materials) are transferred, on the condition that there is
confirmation of the payment of the excise tax by the owner of the customer-supplied excisable
goods (raw materials).

2. A crediting or refund of excise tax paid for excisable goods used for medical purposes by
medical institutions and pharmacies, as well as ph armaceutical enterprises in the production of
medicines, shall be permitted in accordance wi th the procedure and norms established by the
Republic of Tajikistan Ministry of Health in co nsultation with the authorized government body and
the Republic of Tajikistan Ministry of Finance.

3. A crediting or refund of excise tax pursuant to this article shall be allowed only upon
submission of an invoice confirming the payment of excise tax at the time of the purchase of
excisable goods (raw materials) or on the condition of confirmation of the payment of excise tax by
the owner of the customer-supplied excisable goo ds (raw materials), or in the case of the
importation of raw materials, upon submission of th e relevant documentation. The excise tax shall
be refunded to a taxpayer from the respective budget by a financial authority, in conjunction with a
tax authority, within 30 calendar days following the filing of the documents with the tax authority. A
list of documents confirming the payment of exci se tax shall be established by the authorized
government body.

4. In accordance w ith this article, the crediting or re fund of tax (taking into account the
provisions of this Code) shall be performed with respect to the amount of excise tax determined on
the basis of the volume (quantity, value) of the ac tual use in the tax period of excisable goods (raw
materials) purchased (supplied by the customer) for the production of other excisable goods, for
medical purposes by medical institutions and pharm acies, and also by pharmaceutical enterprises in
the production of medicines.

Article 247. Tax Rates and List of Excisable Goods

1. In accordance with the foreign economic activity commodity nomenclature, the Republic
of Tajikistan government shall identify a list of excisable goods and shall establish excise tax rates
for them.

2. Excisable goods shall be:

1) spirits, nonalcoholic and alcoholic beverages;

2) processed tobacco and industrial tobacco substitutes;

3) mineral-based fuel, petroleu m and refined petroleum products; bituminous substances;
mineral waxes;

4) new tires and rubber pneuma tic tire casings, reconditioned or used tires and rubber
pneumatic tire casings; solid or semi-pneumatic ti res and tire casings, rubber tire treads and rim
strips;

5) passenger cars and other motor vehicles intended for transporting people;

6) jewelry made of gold, platinum, or silver.

3. Excise tax rates may be establishe d as a percentage of the value of the excisable goods (ad
valorem rates) and/or as a fixe d (absolute) amount per unit of measure of the excisable goods in
physical terms.

4. Excise tax rates for alcohol pr oducts shall be set in accordance with items 1–3 of this
article depending on the type of product or depe nding on the product’s content of absolute (100-
percent) alcohol.

Article 248. Payment of Excise Taxes

1. In the case of the production of excisable goods, excise taxes shall be payable on taxable
transactions that take pla ce within each reporting (tax) period, no later than the 10 th of the month
following the reporting period.

2. The reporting (tax) pe riod for excise tax shall be a calendar month.

3. A taxpayer shall not have th e right to move goods beyond the limits of the production
premises without payment of the excise tax on th ese goods, with the exception of the tax warehouse
regime.

4. In the case of the importati on of goods, excise tax shall be collected by a customs
authority following the same procedure as customs duties.

Article 249. Tax Regime with Respect to Alcohol and Tobacco Products

1. The storage, transport, and release beyond the limits of the production premises
(workshop) of excisable alcohol a nd/or tobacco products produced on the territory of the Republic
of Tajikistan in accordance with subitem 1) of Artic le 241 of this Code (referred to hereinafter as
“release”) shall be carried out under the conditions of the tax warehouse regime.

2. During the period that alcohol and/or tobacco products are under the tax warehouse
regime, said products shall not be considered to have been released beyond the limits of the

production premises (workshop) and no obligation to pay excise tax shall arise in connection with
these products.

3. The importation of excisable alc ohol and/or tobacco products onto the territory of the
Republic of Tajikistan under the release of goods fo r free circulation regime shall be permitted by
customs authorities only after prior application of excise stamps to these products following the
procedure established by the authorized government body. The importer of excisable alcohol and/or
tobacco products shall be responsible for the applica tion of excise stamps to these products. In order
to obtain excise stamps, excisable alcohol and/or tobacco products imported into the Republic of
Tajikistan must be declared under the customs warehouse regime in accordance with the customs
legislation of the Republic of Tajikistan.

4. The declaration of excisable al cohol and/or tobacco products under the release of goods
for free circulation customs regime may be perform ed in batches in proportion to the volume of
excisable alcohol and/or tobacco products to which excise stamps have been applied and the amount
of customs payments that have been paid as es tablished by the tax and customs legislation of the
Republic of Tajikistan.

5. For tax control purposes, an impor ter of excisable alcohol and/or tobacco products shall
submit to the tax authority with which it is regist ered, within the deadline established under item 1
of Article 248 of this Code, and following the pr ocedure and form established by the authorized
government body, a report on the release of stamped excisable alcohol and/or tobacco products in
accordance with Article 241 of this C ode, with copies of invoices prepared for its customers or other
documents pertaining to the release of the products attached to the report.

6. The sale of alcohol and/or tob acco products that are exempt from the excise tax in
accordance with subitems 1) and 2) of item 1 of Article 244 of this Code on the territory of the
Republic of Tajikistan shall be prohibited.

Article 250. Tax Warehouse Regime

1. The tax warehouse regime shall be understood to mean a set of tax control measures and
actions performed by tax authorities with respect to alcohol and/or tobacco products from the
moment their manufacturing is completed and/or they arrive at a warehouse (referred to hereinafter
as a “tax warehouse”) until the moment they are released.

2. The tax warehouse regime sha ll apply to grounds on which production premises used by a
taxpayer for the manufacturing of alcohol and/or t obacco products are located (which are directly
occupied by such premises), as well as specially established tax warehouses for the storage of such
products which are located outside these grounds. The storage of said products prior to their release
in accordance with item 1 of Article 249 of this Code at other sites, with the exception of tax
warehouses and means of transport in the shippi ng (transportation) process, shall be prohibited.

3. The moment that excisable alcohol and/or tobacco products are released from the grounds
on which production premises used by a taxpayer fo r the manufacturing of these products are
located (which are directly occupied by such premises), or from a tax warehouse, shall be
considered the moment that the tax wa rehouse regime is no longer in force.

4. Alcohol and/or tobacco products that are under the tax warehouse regime shall be stored
under the supervision of customs authority empl oyees in specially designated and equipped
premises (tax warehouses), which may be located both on and off the ground
s on which the
production premises used by a taxpayer for the manufacturing of alcohol a nd/or tobacco products
are located.

5. Tax warehouses shall be estab lished by taxpayers with the appropriate permit issued by
the authorized government body. The procedure for issuing permits for the establishment of tax
warehouses, the procedure for their functioning, as well as the range of tax control measures
applicable to such tax warehouses, shall be de termined by the Republic of Tajikistan government.

6. When alcohol and/or tobacco products ar e located at tax warehouses, the only operations
that may be performed with them are those re lated to ensuring their safekeeping, as well as
preparing them for release and tran sport (including the application of excise stamps to the alcohol
and/or tobacco products).

7. Following the procedure and under the conditions determined by the Republic of
Tajikistan government, tax authorities shall establish excise posts at enterprises manufacturing
alcohol and tobacco products for the purpose of monitoring production volumes and shipments of
the aforementioned excisable products a nd the excise taxes assessed on them.

Article 251. Damage and Loss of Excisable Goods

1. In the event of the damage or loss of excisable goods manufactured in and/or imported
into the Republic of Tajikistan, exci se tax shall be paid in full, with the exception of cases arising as
a result of emergency situations confirmed followi ng the procedure established under subitem 2) of
item 1 of Article 227 of this Code.

2. For the purposes of this article, damage or loss of excisable goods shall be understood to
mean events described under item 2 of Article 227 of this Code.

Article 252. Place of Payment of Excise Tax

1. Excise tax payments shall be made at the place where the payer of the excise tax is
registered, with the exception of those cases referred to in item 2 of this article.

2. Payers of the excise tax that have separate subdivisions shall pay the excise tax based on
the location of the separate subdivisions followi ng the procedure established under Article 253 of
this Code if these separate subdivisions are en gaged in the manufacturing of excisable alcohol
and/or tobacco products a nd/or their bottling and/or packing (pack aging) and further release for sale.

Article 253. Procedure for Calculation and Payment of the Excise Tax by
Taxpayers for Separate Subdivisions

1. Payers of the excise tax referred to under item 2 of Article 252 of this Code that have
separate subdivisions shall be required to regist er the separate subdivisions with tax authorities
serving the area in which the subdivi sions are located and to notify the tax authority with which they
are registered themselves of the regi stration of the separate subdivisions.

2. The amount of excise tax payable for a separate subdivision shall be determined on the
basis of an excise tax statement for the separate subdivision, prepared for each separate subdivision
following the form and in accordance with the pr ocedure established by the authorized government
body.

3. Transactions that are subject to the excise tax and have been performed by separate
subdivisions during the tax period shall be reported in the excise tax statement for separate
subdivisions.

4. Payers of the excise tax shall be required to submit a statement of excise taxes payable for
their separate subdivisions to the tax authority with which the payers themselves are registered and
copies of the statements to the tax authorities se rving the area in which the separate subdivisions are
located, within the deadlines specifi ed under Article 248 of this Code.

5. Payment of the excise tax for sepa rate subdivisions shall be effected by a legal entity that
is a payer of the excise tax from its own settlem ent account or the separate subdivisions shall be
responsible for payment of the exci se tax within the deadlines specified under Article 248 of this
Code.

Article 254. Submission of a Return

1. In those cases mentioned in item 1 of Article 248 of this Code, a taxpayer shall be
required to submit a return in accordance with the procedure and following the form established by
the authorized government body, within the deadlines established for payment of the tax, indicating
the taxable transactions for the reporting period.

2. Payers of the excise tax referred to under item 2 of Article 252 of this Code shall submit
excise tax statements for separate subdivi sions at the same time as the return.

3. A payer of the excise tax shall submit a request for a credit mentioned in Article 246 of
this Code together with a return indicating paym ent of the tax. A person who is not a payer of the
excise tax shall submit a special application for a refund, which may be filed at any time within one
year of the date that the right to a refund arises.

The form and procedure for the completion and submission of a request for a refund and a
special request for a refund shall be esta blished by the authorized government body.

Article 255. Refund of Excise Tax in the Case of Re-Export

1. In the case of goods that are imported for the purpose of their further export (that is, in the
case of the re-export of goods), exci se tax shall be paid at the time of the importation of the goods
and shall then be refunded by the fi nancial authorities to which the excise tax was paid at the time of
import, in conjunction with the re spective customs authorities, in accordance with the actual volume
of the re-exported goods. The refund shall be prov ided following the established procedure within
30 days of the submission of a written request.

2. Item 1 of this article shall not apply to goods whose importation is exempt from the excise
tax in accordance with subitem 5) of item 1 of Article 244 of this Code.

Article 256. Excise Stamps

1. The Republic of Tajikistan government shall identify excisable goods, both domestic and
imported, which require excise stamps. The importa tion and/or sale of such excisable goods without
excise stamps shall be prohibited. Tax authorities shall have the right to seize such excisable goods
that are offered for sale without excise stamps following the established procedure.

2. Excise stamps shall be regist ered high-security documents with a certain degree of
protection. The procedure for their manufacture and circulation shall be determined by the Republic
of Tajikistan government.

The procedure for the application of excise stamps to excisable products shall be established
by the authorized government body.

3. Except as otherwise provided under th is item, in the event of the damage or loss of excise
stamps the excise tax shall be paid in the am ount of the declared list of excisable products.

Calculation of the excise tax based on damaged or lost excise stamps (including those that
have been stolen) intended for the stamping of alcohol or tobacco products in accordance with the
provisions of this Code shall be performed on the ba sis of the established rates applicable to the unit
volume of the container (package, packaging) indicated on the stamp.

In the event that a stamp does not indicate the unit volume of the container (package,
packaging), calculation of the excise tax based on damaged or lost excise stamps shall be performed
on the basis of the largest unit vo lume of the container (package, packaging) in which the product
was bottled (packed, packaged) during the tax pe riod preceding the period in which the excise
stamps were damaged or lost.

In the event of the damage or loss of excise stamps, the excise tax shall not be paid in the
following cases:

1) the damage or loss of excise stamps occurred as a result of emergency situations
confirmed following the procedure established under subitem 2) of item 1 of Article 227 of this
Code;

2) the damaged excise stamps have been accepted by tax authorities on the basis of a
certificate of removal for destruction.

Article 257. Excise Tax Invoices

1. Except as otherwise provided under item 3 of this article, a taxpayer performing the
delivery of excisable goods, includ ing those that are imported, shall be required to write up and
present to the recipient of the goods an excise ta x invoice in accordance with instructions from the
authorized government body.

2. An excise ta x invoice shall be an invoice that has b een prepared following the form and in
accordance with the procedure established by the authorized government body, and that contains
information specified under item 2 of Article 231 of this Code.

3. In the case of the retail delivery of excisable goods, an
excise tax invoice may be used that
is based on a simplified form established by the authorized government body.

SECTION IX. SOCIAL TAX

CHAPTER 35. SOCIAL TAX

Article 258. The Concept and Role of the Social Tax

The social tax shall be a compulsory payment which for the purposes of providing social
insurance is to be paid by payers of the social tax in accordance with the rates established by this
Code, which are applied to wages or anot her tax base pursuant to this chapter.

Article 259. Taxpayers

1. Payers of the social tax in accordance with this section shall be:

1) individuals and legal entities that are employers, including perm anent establishments of
nonresidents, and that pay wages to resident indi viduals working for hire in the Republic of
Tajikistan;

2) individuals and legal entities, includi ng permanent establishmen ts of nonresidents, that
pay for the services of resident individuals provided in the Repub lic of Tajikistan on the basis of
contracts of a civil-le gal nature or without such contracts, in the course of their commercial activity;

3) individuals receiving payments referred to under subitems 1) and 2) of this item;

4) resident individuals engaged in individual entrepre neurial activity on the territory of the
Republic of Tajikistan, including those mentioned in items 2 and 3 of Article 137 of this Code.

2. The payers referred to under subitems 1) and 2) of item 1 of this article shall be referred to
hereinafter in this chapter as insured parties, and the payers referred to under subitem 3) of item 1 of
this article shall be referr ed to as insured persons.

3. At the request of a legal entity, its separa te subdivisions may be treated by tax authorities
as independent payers of the social tax.

Article 260. Object of Taxation

1. The object of taxation in the cases referred to under subitem 1) of item 1 of Article 259 of
this Code shall be the wages payable to hired em ployees as determined in accordance with Article
136 of this Code. The object of taxation in the cases referred to under subitem 2) of item 1 of Article
259 of this Code shall be the amount of payments to individuals as determined in accordance with
Article 136 of this Code, as if these individuals were employees.

2. For payers referred to under s ubitem 4) of item 1 of Article 259 of this Code who are
subject to the income tax in accordance with item 2 of Article 137 of this Code, the object of
taxation shall be income from commercial activ ity declared independently by them for social
insurance purposes (to determine th e amount of social tax), but not less than the income established

for social insurance purposes for taxpayers in this category by the Republic of Tajikistan
government.

3. For payers referred to under s ubitem 4) of item 1 of Article 259 of this Code who are
subject to the income tax in accordance with item 3 of Article 137 of this Code, the object of
taxation shall be taxable income from commercial activity determined in accordance with Sections
IV and VI of this Code.

Article 261. Exemption

The following shall be exempt from paym ent of the tax (shall not be included in the object of
taxation):

1) income earned by persons who are employed by diplomatic and/or consular institutions
and are not citizens of the Republic of Tajikistan;

2) temporary disability payments pr ovided at the expense of budget funds allocated for social
insurance.

Article 262. Tax Rates

1. A rate of 25 percent shall be applied for the social tax payable to the budget by insured
parties and a rate of 1 percent shall be applie d for the social tax payable by insured persons.

2. The social tax rate for individuals referred to under subitem 4) of item 1 of Article 259 of
this Code shall be equal to 20 percent.

Article 263. Procedure for Determination and Payment of the Tax

1. The amount of social tax payable to the budget shall be determined by multiplying the
objects of taxation in accordance w ith Article 260 of this Code by the appropriate tax rates as
established under Articl e 262 of this Code.

2. In those cases referred to under subitems 1), 2), and 3) of item 1 of Article 259 of this
Code, the social tax shall be withheld and tr ansferred to the budget following the procedure
established under Article 161 of this Code with respect to employee wages.

3. Payers referred to under item 2 of Article 260 of this Code shall pay the social tax at the
same time as a patent fee is paid to the budget, or before the end of each month for which a patent
fee is paid.

4. Payers referred to under item 3 of Article 260 of this Code shall make current (advance)
social tax payments within the deadlines established in the sec ond paragraph of item 1 of Article
198 of this Code in the following amount: 1) one-f ourth of the tax amount for the previous tax
period, determined in accordance with a return fi led before April 1 of the year following the
reporting year with the appropria te tax authorities, multiplied by a coefficient of 1.1, or 2) as
determined in accordance with item 2 of Article 198 of this Code.

SECTION X. LAND TAX

CHAPTER 36. LAND TAX

Article 264. Taxpayers

The land tax shall be paid by landhol ders who have been allotted parcels of land for tenure
on an indefinite basis, for limited-time te nure, or for lifetime inheritable tenure.

Article 265. Object of Taxation

1. The land tax shall be established taking into consideration the quality and location of the
parcel of land, the land registry appraisal of the land, the nature of its use, and the environmental
aspects of the parcel of land.

2. The grounds for determining the land tax, taking into consideration the provisions of item
1 of this article, shall be the land registry documentation of the landholder.

In the event that the area of land actually in use is greater than the area of land as indicated in
the taxpayer’s land registry documentation, the area of land actually in use shall be applied for
taxation purposes.

3. The amount of land tax shall not depend on the results of the landholder’s economic
activities and shall be established in the form of stable payments per unit of land area per year.

Article 266. Land Tax Rates for Land in Cities and Urban-Type Settlements

1. The land tax rates for land in cities and urban-type settlement s shall be established as
follows:

1) 400 somoni per hectare in the city of Dushanbe;

2) 300 somoni per hectare in the cities of Khudzhand, Kurgantyube, and Kulyab;

3) 200 somoni per hectare in citi es under republican and oblast jurisdiction and the city of
Khorog;

4) 150 somoni per hectare in other cities and urban-type settlements.

Agricultural land and land covered with woods and sh rubbery in cities and urban-type
settlements shall be taxed on the basis of land regist ry zones pursuant to Articles 267 or 308 of this
Code.

With the exception of land exempt fr om the tax, taxable area shall include all allocated land,
including land occupied by structur es and buildings, plots necessary for their maintenance, public
health protection zones surrounding installa tions, and industrial and other zones.

2. Land used for housing construction by individuals in cities and urban-type settlements
shall be subject to taxation as follows:

1) the area of each parcel of land allocated to a landholder under a separate (independent)
title shall be treated separately for purposes of taxation, with the exception of cases in which these
parcels of land are contiguous. For taxation purpos es, the area of contiguous parcels of land
allocated to the same landholder on the basis of di fferent (several) titles shall be combined, and
these contiguous parcels of land shal l be treated as a single parcel;

2) the amount of land tax shall be calculated as follows, depending on the size of the parcel
of land allocated to the landholder:

a) up to 800 square meters – at the rates established under item 1 of this article;

b) over 800 square meters and up to 2,000 square meters – the amount of tax calculated
according to subitem a) above, plus an amount calcu lated at 2 times the tax rate established under
item 1 of this article for the ar ea in excess of 800 square meters;

c) over 2,000 square meters – th e amount of tax calculated according to subitem b) above,
plus an amount calculated at 5 time s the tax rate established under item 1 of this article for the area
in excess of 2,000 square meters.

Article 267. Land Tax Rates for Land Outside Cities and Urban-Type Settlements

1. The average tax rates per hectare of land based on land registry zones and types of land
shall be established as follows (in somoni):

Type of land

Name of land registry
zone

Arable land and perennial
plantings:
irrigated/dry

Pastures and hayfields

Roads, streets, public buildings, forests,
squares, canals,
irrigations ditches,
and reservoirs

Other land not used in the
production of agricultural
products

Sogdi 30.0/5.5 4.0 12.0 3.75
Gissar 32.0/13.0 4.0 9.0 2.75
Rasht 26.0/19.0 4.0 6.0 1.25
Kulyab 33.0/15.5 4.0 9.0 2.75
Vakhsh 46.5/11.5 4.0 13.0 4.25
Gorno-Badakhshan
Autonomous Oblast (not
including Murgab zone)

9.0/4.0 2.0 6.0 1.25

2. The average la nd tax rates within the land registry zones for the Republic’s regions shall
be determined following the es tablished procedure by the Republic of Tajikistan government based
on a representation from the Republic of Tajikistan State Land Use Committee.

3. Household plots shall be subject to taxation as follows:

1) the area of each household plot allocated to a landholder under a separate (independent)
title shall be treated separately for purposes of taxation, with the exception of cases in which these
household plots are contiguous. For taxation purpos es, the area of contiguous household plots
allocated to the same landholder on the basis of di fferent (several) titles shall be combined, and
these contiguous household pl ots shall be treated as a single household plot;

2) the amount of land tax shall be calculated as follows, depending on the size of the
household plot allocated to the landholder:

a) when the size of the household pl ot is within the norms established by the Land Code of
the Republic of Tajikistan, the rates established under item 1 of this article shall apply;

b) when the size of the househol d plot exceeds the norms established by the Land Code of
the Republic of Tajikistan, the amount of tax calcu lated in accordance with subitem a) above shall
apply, plus an amount calculated at 2 times the tax rate established under item 1 of this article for
the area in excess of the norms established by the Land Code of the Republic of Tajikistan.

Article 268. General Proce dure for Calculation and Payment of the Land Tax

1. The land tax shall be calculated by multiplying the object of taxation (the area of a parcel
of land) by the appropriate land tax rates for each parcel of land individually.

The land tax rates for the coming budget year shall be indexed to the rates in effect in the
current budget year, based on a figure of 0.7 percenta ge point for each percentage point of inflation
taken into account in the compilation of the State Budge t for the coming budget year.

2. The land tax shall be calculated starting with the month following the month in which a
taxpayer acquires tenure or lifetime inheritable tenure with respect to a parcel of land.

3. In the event of the termination of tenure or lifetime inheritable tenure with respect to a
parcel of land, the land tax shall be calculated fo r the actual number of months of tenure of the
parcel of land, including the month in which said rights are terminated.

4. In the event that land in a populat ion center (a parcel of land) is reclassified from one
settlement category to another in the course of a tax year, the land tax for the current year shall be
collected from taxpayers at th e rates previously established for these population centers (land
categories), and in the following year it shall be collected at the rates established for the new
settlement category.

5. In the event that a population cente r is dissolved and its territory is included as part of
another population center, the new rate shall apply on the territory of the dissolved population center
as of January 1 of the year following the year in which the population center was dissolved.

Article 269. Procedure for Submission of a Tax Statement

1. Taxpayers, with the exception of individuals, shall submit a statement of the land tax
owed by them for the current year to tax authorities serving the area in which the parcel of land is
located, on an annual basis no later than March 1 of the current year. The form and procedure for the
aforementioned statement shall be established by the authorized government body.

2. A statement of land tax payable by individuals shall be prepared by tax authorities serving
the area in which the parcel of land is located. The form and procedure for the aforementioned
statement shall be established by the authorized government body.

An individual shall be notified by the appropriate tax authorities of his land tax obligations
no later than June 1 of the curren t year. The form of notification of land tax obligations shall be
established by the authorized government body.

3. A tax statement for newly allocated parcels of land shall be submitted within 30 calendar
days of the date of their allocation.

4. Tax authorities shall maintain a register of payers of the land tax and shall monitor the
correct and timely calculation and payment of the land tax.

Article 270. Deadlines for Payment of the Land Tax

1. The land tax due for the current tax year shall be paid on the basis of a statement
submitted by taxpayers in accordance with Arti cle 269 of this Code, with the exception of
individuals:

1) for land referred to under Artic le 266 of this Code, no later than March 15, June 15, and
September 15 of the current year in an amount equa l to at least 25 percent of the tax due for the
year, and no later than December 15 of the current year in an amount equal to the remaining balance
of the annual amount;

2) for land referred to under Artic le 267 of this Code, no later than March 15 in an amount
equal to at least 15 percen t, no later than June 15 in an amount equal to at least 20 percent, no later
than September 15 in an amount equal to at leas t 25 percent, and December 15 in an amount equal
to the remaining balance of the annual amount.

2. The land tax due for the current tax year shall be paid by individuals on the basis of a
notification provided to them by th e appropriate tax authorities for land referred to in Articles 266
and 267 of this Code, no later June 15 in an amount equal to at least 33 percent, no later than
September 15 in an amount equal to at least 33 per cent, and December 15 of the current year in an
amount equal to the remaining balance of the annual amount.

If for any reason notification of land tax ob ligations is not provided to an individual before
June 1 of the current year, said individual shall be required on his own to inform the tax authority
serving the area in which the parcel of land is loca ted to this effect and to pay the entire amount of
land tax for the current tax year no later than Decem ber 15 of the current year (taking into account
cumulative payments that have been made in accordance with the earlier payment deadlines).

Article 271. Land Tax Concessions

The following shall be exempt from the land tax:

1) the grounds of nature preserves, national and forest parks, and botanical gardens in
accordance with a list of these organizations and the size of their grounds established by the
Republic of Tajikistan government;

2) land used by budgetary organizations and the National Bank of Tajikistan and its branch
offices for the performance of the objectives, tasks, and functions set forth in the charter documents
of these organizations and institutions;

3) land held by organizations and o ccupied by buildings used by them that are protected by
the state as historical, cultural, and architectural monuments, based on a list of organizations and in
accordance with the size of parcels of land established by the Republic of Tajikistan government;

4) disturbed land (in need of restoration) which has been obtained for use in accordance with
a finding issued by the Republic of Tajikistan St ate Land Use Committee in consultation with the
authorized government body, and land that is in the agricultural development stage during the year it
is obtained for use (for development) and for five years immediately following the year the land was
obtained (the year development was initiated);

5) land occupied by the surveillance zone along the state border;

6) public land in population cent ers and land used for municipal services, including
cemeteries, with the exception of such land used for commercial activity;

7) land covered by glaciers, landslides, rivers, and lakes;

8) land in the free state reserve;

9) land occupied by public highways and railroads, as well as land occupied by public water
supply facilities and hyd raulic structures;

10) land allocated to support th e operation of government executive and administrative
bodies, and also to provide for the defense and secu rity of the Republic of Tajikistan, in accordance
with the location and size of such parcels of land as established by the Republic of Tajikistan
government;

11) household plots and land for hous ing construction allocated to veterans of the Great
Patriotic War and persons with equivalent status;

12) household plots allocated to citi zens arriving (being resettled) from other regions of the
Republic of Tajikistan for permanent residence in regions identified by the Republic of Tajikistan
government, in the year they are allocated a nd for a period of 3 calendar years immediately
following the year in whic h the land is allocated;

13) household plots and land for hous ing construction allocated to teachers working in rural
areas at general education institutions for the period they are employed at such institutions;

14) land used directly for scientific and educational purposes, and also for testing varieties of
agricultural crops by scientific organizations, experimental and scientific-testing farms, scientific
research institutions, and educationa l institutions specializing in agriculture and forestry, within the

land size specifications and based on a list of landholders determined by the Republic of Tajikistan
government;

15) household plots and land for housing construction allocated to disabled persons in all
categories in the absence of an able-bodied family member;

16) household plots allocated to pers ons referred to under subitem 14) of Article 141 of this
Code and their family members, as well as office rs, warrant officers, and military personnel serving
beyond the regular tour of duty, and female military personnel, who have been discharged (retired)
due to age, health, or as a result of a reduction in force, who have served for more than 20 years,
within the norms established by the Land Code of the Republic of Tajikistan;

17) land allocated to enterprises and organizations if disabled persons account for at least 50
percent of their employees.

SECTION XI. TAX ON USER S OF MINERAL RESOURCES

CHAPTER 37. GENERAL PROVISIONS

Article 272. Relations Regulated by this Section

1. This section shall define specific provisions related to the fulfillment of tax obligations
arising under mineral use contract s and it shall establish the procedure for the calculation and
payment of special charges for users of minera l resources, including bonuses (signing, commercial
discovery, and extraction bonuses) and royalties.

2. Individuals and legal entities engaged in the impl ementation (execution) of mineral use
contracts in the Republic of Tajik istan, in addition to the payment of special charges for users of
mineral resources, shall be taxpayers with respect to other taxes established by this Code if they
meet the requirements specified by this Code for the payers of other taxes.

3. All types of bonuses and royaltie s shall be deducted (shall be deductions) for purposes of
the profit tax (income tax for individual entrepreneurs).

Article 273. Payers

The payers of special charges for users of mineral resources (referred to hereinafter as
“special charges”) shall be indi viduals and legal entities engaged in mineral use operations in the
Republic of Tajikistan (referred to hereinafter as “users of mineral resources”), including the
extraction of minerals resulti ng from industrial processing.

Article 274. Establishmen t of a Tax Regime in Mineral Use Contracts

1. The tax regime established for a user of mineral resources shall be specified only in a
mineral use contract (referred to hereinafter as a “contract”) concl uded between the user of mineral
resources and a competent authority authorized by the Republic of Tajikistan government (referred
to hereinafter as a “competent authority”), fo llowing the procedure determined by the Republic of
Tajikistan government.

2. The tax regime established under a contract must be consistent with the requirements of
the tax legislation of the Republic of Tajikistan as of the date the contract is concluded (signed).

3. The inclusion of issues pertaining to the payment of taxes and special charges in licenses
and other documents related to mineral use, with the exception of mineral use contracts, shall be
prohibited.

4. In cases in which mineral use is carried out under the same contract by several taxpayers,
the tax regime established under the contra ct shall be the same for all of them.

In this case, with respect to activities performed under such a contract, for taxation purposes
the taxpayers shall be considered a single taxpayer and they shall be required to maintain a single set
of consolidated accounting record s and to pay all taxes and special charges established in the
contract in accordance with the tax le gislation of the Republic of Tajikistan.

5. Users of mineral resources perf orming operations under more than one contract may not
combine income and expenses arising from the implementation of different contracts for the
purposes of determining taxes and special charges. There must be separate accounting of income
and expenses for each contract, and a separate stat ement of taxes and special charges must also be
prepared.

6. The provisions of item 5 of this ar ticle shall not apply to cases in which users of mineral
resources perform operations under more than one c ontract and all of these contracts have been
concluded for the extraction of commonly-occurring minerals and/or ground water, provided that all
of these contracts do not also provide for the extraction of other types of minerals.

7. A user of mineral resources sha ll be required to maintain separate accounting records for
the calculation of tax obligations in accordance with the tax regime provided for under the contract,
and for the calculation of tax obligations related to activity that falls outside the scope of the given
contract (not related to mineral use).

8. The provisions of item 7 of this ar ticle pertaining to separate accounting shall not apply to
cases in which a user of mineral resources, in addition to the activities under contracts for the
extraction of commonly-occurring minerals and/or ground water, also performs activities that fall
outside the scope of the given contra cts (not related to mineral use).

9. In the case of the commercial processing of mineral by-products not specified in a
contract, a user of mineral resources shall pay ro yalties on them in accordance with the provisions of
Chapter 39 of this Code.

Article 275. Tax Regime for Transactio ns Not Pertaining to Mineral Use

The fulfillment of tax obligations related to activity performed within the scope of a contract
shall not exempt a user of mineral resources from the fulfillment of tax obligations provided for
under this Code for the performance of activity that falls outside the scope of the given contract (not
related to mineral use) in accordan ce with the tax legislation in force on the date such obligations
arise (not related to mineral use).

Article 276. Stability of the Tax Regime

1. The tax regime established under a contract that has been concluded in accordance with
the established procedure and has undergone a mandatory tax evaluation shall remain unchanged
until the end of the period of validity of the given contract, with the exception of the case referred to
under item 2 of this article.

2. In the event that changes are made to the legislation after the date on which a contract is
signed, which make it impossible to comply with th e original terms of the contract, the user of
mineral resources and representa tives of a competent authority, the authorized government body,
and the Republic of Tajikistan Ministry of Fi nance may make changes or amendments to the
contract which are necessary in orde r to restore the economic interests of the parties to their status as
of the moment the contract was signed. The give n changes or amendments to the terms of the
contract shall be made within 60 days of the da te of written notification sent by the authorized
government body or user of mineral resources to the other party.

3. In the event of the elimination of certain types of taxes and special charges specified under
a contract, a user of mineral resources shall continue to pay them to the budget following the
procedure and in the amounts established under the c ontract until the relevant changes are made to
the contract for the purposes and following the pro cedure provided for under item 2 of this article.

Article 277. Taxation of Assignment of Rights

Income earned from the assignment of rights provided for under a contract shall be subject to
taxation following the procedure established by this Code.

Article 278. Tax Evaluation

1. A tax evaluation shall be a special evaluation that consists of an analysis and assessment
of a draft contract concluded be tween a user of mineral resources and a competent authority, which
is performed for the purpose of determining the tax regime, including the establishment of special
charges for users of mineral resources in acco rdance with the legislation of the Republic of
Tajikistan.

2. Prior to being concluded (signed) , all contracts between a user of mineral resources and a
competent authority (the contracting parties) mu st undergo a mandatory tax evaluation following the
procedure and within the time frame determined by the Republic of Tajikistan government. This
provision shall also apply to amendments and a dditions to previously concluded contracts.

3. In the event of a change in the tax legislation between the date that a tax evaluation is
performed and the date that a contract is signed, the tax regime must be brought into conformity
with the given changes and another tax evaluation must be performed.

4. The tax regime established in accordance with the results of a tax evaluation must be
included in the final text of a contra ct without any changes or revisions.

CHAPTER 38. BONUSES

Article 279. General Provisions Regarding Bonuses

1. Bonuses shall be fixed payments by users of mineral resources and they shall be paid in
monetary form in the amounts and following the pro cedure established in the mineral use contract.

2. Based on the individual conditions involved in the use of mineral resources, users of
mineral resources shall pay the following types of bonuses:

1) signing bonus;
2) commercial discovery bonus;
3) extraction bonus.

3. One or several types of bonuses may be established depending on the economic
effectiveness of the contracts being concluded.

Article 280. Signing Bonus

A signing bonus shall be a one-time fixed payment by a user of mineral resources for the
right to engage in activities rela ted to the use of mineral resources on a contracted territory and it
shall be established at the time the contract is concluded following the procedure established by
regulatory legal acts of th e Republic of Tajikistan.

Article 281. Procedure for th e Establishment of a Signing Bonus, the Amount and
Deadline for Payment of a Signing Bonus

1. The initial amounts of signing bonuses shall be determined by a competent authority,
including on the basis of holding a tender, in consultation with the Republic of Tajikistan Ministry
of Finance and the authorized government body.

2. The final amount of a signing bonus shall be established in a contract, depending on the
economic value of the deposits (territories) being turned over for mining operations, but it must not
be less than the initial amounts.

3. The deadline for payment of a signing bonus shall be established by the contract, but it
shall be no later than 30 calendar days fr om the date the contract is concluded.

Article 282. Tax Return

A signing bonus return shall be subm itted by a user of mineral resources to the tax authority
with which it is registered before the 15 th of the month following the month in which the payment
deadline occurs.

Article 283. Commercial Discovery Bonus

1. A commercial discovery bonus shall be a payment for each commercial discovery on a
contracted territory, including the discovery of minerals in the course of additional prospecting at
deposits which leads to an increase in the rec overable reserves originally identified, with the
exception of those cases indicate d in item 2 of this article.

2. A commercial discovery bonus sha ll not be established under contracts for the prospecting
of mineral deposits that do not provide for the subseque nt extraction of minerals.

3. A commercial discovery shall mean reserves of a certain type of mineral that are
discovered within the boundaries of a contracted territory, which have been confirmed in accordance
with the established proce dure and the extraction of wh ich is economically viable.

Article 284. Procedure for Calculation of a Commercial Discovery Bonus and the
Size of a Commercial Discovery Bonus

1. The procedure for the calculation of a commercial discovery bonus shall be determined by
the Republic of Tajikistan government.

2. The size of a commercial discovery bonus shall be established under the contract.

Article 285. Tax Return and Payment Deadline

A commercial discovery bonus return shall be submitted by a user of mineral resources to
the tax authority with which it is registered no later than 30 calendar days following the date on
which the commercial discovery is confirmed in accordance with the established procedure, and a
commercial discovery bonus shall be paid no later than this deadline.

Article 286. Extraction Bonus

An extraction bonus shall be a fixe d payment and shall be paid periodically by a user of
mineral resources, when certain extraction volumes specified under the contract are reached.

Article 287. Procedure for the Calculation of an Extraction Bonus, the Amount and
Deadline for Payment of an Extraction Bonus

1. The procedure for the calculation of an extraction bonus based on groups of minerals shall
be determined by the Republic of Tajikistan government.

2. The size of extraction bonuses shall be established under the mineral use contract.

3. An extraction bonus shall be paid no later than the 20 th of the month following the month
in which each of the extraction levels specified in the contract is reached.

Article 288. Tax Return

1. An extraction bonus return shall be submitted by a user of mineral resources to the tax
authority with which it is registered no later th an the deadline established for the payment of the
extraction bonus.

2. The form of tax returns fo r a signing bonus, a commercial discovery bonus, and an
extraction bonus and the procedure for filling th em out shall be established by the authorized
government body in consultation with a competent authority.

CHAPTER 39. ROYALTIES

Article 289. General Provisions Regarding Royalties

1. Royalties shall be a charge paid by a user of mineral resources separately for each type
(for all types) of minerals extr acted on the territory of the Republic of Tajikistan, regardless of
whether they are delivered (shipped) to buyers (recipients) or used for one’s own needs.

2. Royalties established in a mineral use contract shall be paid in monetary form, with the
exception of those cases provided fo r under item 3 of this article.

3. In the course of operations be ing performed under a contract, the monetary form for the
payment of royalties may be replaced temporarily, in full or in part, by in-kind payment equivalent
to the monetary form, by a decision of the Re public of Tajikistan government, on the basis of a
supplemental agreement between the user of mine ral resources and a competent authority. When a
supplemental agreement regarding the in-kind payment of royalties is concluded (signed), the
provisions specified under Article 29 5 of this Code must be observed.

Article 290. Payers

Payers of royalties shall be users of mineral resources engaged in the extraction of minerals,
including the extracti on of minerals resulting from industria l processing, regardless of whether their
delivery (shipment) occurred in the reporting period.

Article 291. Proce dure for the Establishment of Royalties

1. The amount of royalties shall be determined in accordance with the object of taxation, the
calculation base, and the rate.

2. For calculating royalties:

1) the object of taxation for all types of minerals shall be the volume of minerals extracted or
the volume of the initial commercial product obtain ed from minerals actually extracted, calculated
in the respective physical units of measure.

In this case the initial commercial product may be:

a) the minerals themselves:

– petroleum, natural gas, and gas condensate;
– coal and oil shale;
– commercial-grade ores;
– ground water, including water that has gone through primary treatment;
– mica, asbestos, raw mate rials for the production of building materials;
– nonmetallic raw materials for metallurgy;

b) precious metals and/or ch emically pure metals in sand, ore, and concentrate;

c) concentrates of ferrous, nonferr ous, rare, and radioactive metals, mining and chemical raw
materials;

d) precious stones, uncut semi-precious stones and piezo-optic raw materials that have gone
through primary processing;

e) for other types of minerals – mineral raw materials that have gone through primary
processing;

2) the base for the calculation of royalties shall be the value of minerals determined in
accordance with Articl e 292 of this Code;

3) the royalty rate shall be established in each contract individually for each type (all types)
of mineral(s), with the excepti on of commonly-occurring minerals and ground water, based on the
economic effectiveness of the pr oject, following the procedure de termined by the Republic of
Tajikistan government and taking into considerat ion the provisions of items 3, 4, and 5 of this
article. The minimum royalty rate for any type of mineral must be no less than 0.5 percent.

3. Royalty rates for hydrocarbons shall be established on a sliding (graduated) scale as a
percentage, determined in accordance with the extraction volume in physical units of measure
and/or the value of the extraction volume, based on one of the following two methods:

1) based on the volume of cumulative extraction and/or the value of cumulative extraction of
hydrocarbons for the entire period of ope ration specified in the contract;

2) based on the volume of cumula tive extraction and/or the value of cumulative extraction
for each individual year of operation under the contract.

4. Royalty rates for solid minera ls, including gold, silver, platinum, and other precious
metals and precious stones, shall be established as a fixed percentage for the entire period that the
contract is in force.

5. The royalty rates for commonly-o ccurring minerals and ground water shall be the same for
all users of mineral resources and shall be established by the Republic of Tajikistan government as a
percentage.

Royalties for commonly-occurring minerals and ground water shall be paid by users of
mineral resources regardless of whet her they are supplied to consumers or used for one’s own needs,
with the exception of the cases cited below in this item.

Royalties shall not be paid:

1) by individuals for ground water ex tracted on parcels of land allocated to them on a tenure
or lifetime inheritable tenur e basis, on the condition that this wa ter is not supplied to other parties
and is not used for production or industrial needs in the performance of commercial activity;

2) by government institutions extracting ground water for their own operating needs;

3) by users of mineral resources when they pump incidentally extracted ground water back
into the ground to mainta in reservoir pressure.

6. In the event that several types of minerals are extracted under the same contract, royalties
shall be established and paid for each type of mineral.

7. The size of royalties payable to the budget shall be defined as the sum of the products of
the value of each of the minerals extracted by a user of mineral resources in a tax period and the
respective royalty rates.

Article 292. Procedure for Determining the Value of Minerals Extracted

1. For the purpose of calculating the size of royalties payable to the budget, the value of
minerals extracted by a user of mineral resour ces during a tax period, with the exception of gold,
silver, and platinum, shall be determined on the basi s of the weighted average delivery price in the
tax period of the minerals extracted or the initia l commercial product obtained from the minerals,
not including indirect taxes.

2. The value of gold, silver, and pl atinum extracted during a tax period shall be calculated on
the basis of the average price of these metals during the tax period on the London Metal Exchange,
following the procedure established by the author ized government body in consultation with the
Republic of Tajikistan Ministry of Finance.

Article 293. Pr ocedure for Payment of Royalties

1. The tax (reporting) period for the determination and payment of royalties shall be a
calendar month.

2. A royalty return (statement) shall be submitted by a user of mineral resources, following
the form and according to the procedure established by the authorized government body in
consultation with a competent authority, to the tax au thority with which it is registered before the
10
th of the month following the reporting period.

3. Royalties on all types of minerals shall be paid no later than the 15 th of the month
following the reporting period.

Article 294. Determination of the Value of Minerals Extracted in th e Absence of
Sales (Deliveries)

1. In the event that there are no sa les of an initial commercial product in a tax period, the
weighted average selling price (not including indirect taxes) of the commercial product in the last
period in which a sale (delivery) occurred shall be taken as the weighted average selling price (not
including indirect taxes) for the purpose of calcula ting the value of the minerals extracted, with the
exception of gold, silver, platinum, and commonly-occurring minerals and ground water.

2. In the event that there have been no sales at all of an initial commercial product, with the
exception gold, silver, and platinum , actual expenditures on the extractio n of minerals shall be taken
as the weighted average selling price for the pur pose of calculating the value of the minerals
extracted in the tax period.

In this case the user of mineral resources shall be required to make a subsequent adjustment
in the amount of royalties assessed in the tax pe riod in which the first sale occurs, based on the
actual selling price of the initial commercial product.

3. In the event that commonly-occurri ng minerals are not sold in a tax period, or if they are
used entirely for one’s own needs, actual expend itures by the user of mineral resources on their
extraction and primary processing, plus a standard profit rate equal to 10 percent of the
aforementioned expenditures, shall be taken as th e weighted average selling price of the initial
commercial product.

In the event that ground water is used as a main component in goods produced and/or
services provided, actual expend itures by the user of mineral resources on its extraction and primary
processing, plus a standard profit ra te equal to 10 percent of the aforementioned expenditures, shall
be taken as the weighted average selling price of the initial co mmercial product in the tax period.

Article 295. Procedure for the Establishment and Payment of In-Kind Royalties

1. In the event that a supplemental agreement to a contract is concluded for the payment of
royalties in kind, a legal and tax evaluation of the agreement shall be required before it is signed.

2. The in-kind payment of royalties must be equivalent to the mo netary royalties established
in the contract.

3. In the event that in-kind paymen t of royalties is established, the supplemental agreement
must indicate:

1) the recipient on behalf of the state of the portion of production output applicable to
royalties (referred to hereinafter as the “recipient”);

2) the location and terms of delivery.

4. The deadlines for the transfer of products by the user of mineral resources as payment of
royalties which are specified in supplemental agreements must be consistent with the payment
deadlines for monetary royalties esta blished in the mineral use contract.

In this case the user of mineral re source shall transfer products to the recipient no later than
the deadline for the payment of royalties established under the mineral use contract.

5. The recipient shall transfer to th e budget the monetary royalties calculated by the user of
mineral resources in accordance w ith the terms of the contract within the deadline for the payment
of monetary royalties established under the mine ral use contract, and shall independently monitor
the timely transfer in full of the corresponding quantity of products in kind by the user of mineral
resources to said recipient.

6. Following the form and in accordance with the procedure established by the authorized
government body, a user of mineral resources and a recipient shall submit reporting documents to a
tax authority regarding the payment of royalties in kind within the deadlines established by the
contract.

7. A recipient shall bear liability in accordance with the legislation of the Republic of
Tajikistan for violation of the deadlines for the tran sfer of funds to the budget for products received
as payment of royalties and for failing to provi de for the transfer of these funds in full.

SECTION XII. HIGHWAY USER TAX

CHAPTER 40. HIGHWAY USER TAX

Article 296. Taxpayers

Payers of the higher user tax shall be payers of the VAT that are legal entities:

1) resident enterprises;

2) foreign enterprises engaged in commercial activity in the Republic of Tajikistan through
their permanent establishments.

Article 297. Object of Taxation

The object of taxation shall be deliveries of goods, the perf ormance of work, and the
provision of services that are subj ect to the VAT, including those taxe d at the zero rate. Deliveries of
goods, the performance of work, and the provision of services that are exempt from the VAT shall
not be an object of taxation.

When goods are imported that are subject to the VAT, they sh all not be subject to the
highway user tax.

Article 298. Tax Concessions

This tax shall not apply to:

1) budgetary organizations and government executive and administrative bodies, including
the National Bank of Tajikistan and its branch offices;

2) religious asso ciations and organizations and ethnic-cultural societies, with the exception
of commercial activity performed by them.

Article 299. Tax Rate

The tax rate shall be set at 2 percent of the tax base.

The tax rate for trade, procurement, and distribution enterprises shall be set at 0.5 percent of
the tax base.

Article 300. Tax Base

The tax base shall be calculated following the procedure established for determining taxable
turnover with respect to the VAT in accordance w ith Article 208 of this Code, and it shall not
include transactions that are exempt from the VAT.

Article 301. Procedure and Deadlines for Payment of the Tax

The tax period, payment deadlines, and procedure for the submission of a return shall be
same as those for the value-added tax.

SECTION XIII. TAX PAYABLE UNDER THE SIMPLIFIED SYSTEM

CHAPTER 41. TAX PAYABLE UNDER THE SIMPLIFIED SYSTEM

Article 302. Payers

Payers of the tax payable under the simplified system shall be enterprises whose gross
income at the beginning of the ta x year, not including the VAT and retail sales tax, does not exceed
3 times the limit established by this Code for th e purposes of registration as a payer of the VAT,
with the exception of those ente rprises that are engaged in the production of excisable goods or the
delivery of cotton fiber and primary aluminum, are users of mineral resources, have separate
subdivisions, or are insurers, investment funds, professional participants in the securities market, or
lending institutions.

Article 303. Object of Taxation

1. The object of taxation shall be gross income earned during the reporting period, less the
deductions provided for under this Code, with the ex ception of deductions that are considered wages
in accordance with Article 136 of this Code (net gross income). Gross income shall be calculated on
a cash basis as the sum of earnings received from th e delivery of goods (work, services), the selling
price of property supplied duri ng the reporting period, and nonsales income as part of commercial
activity, less the VAT and retail sales tax. Gross income and deductions shall be subject to
confirmation on the basis of the relevant income and expenditure documents prepared following the
established procedure.

2. Enterprises that are subject to ta xation under the simplified system shall not be payers of
the corporate profit tax and the minimum business income tax.

3. The aforementioned taxpayers shall be tax agents with respect to the income tax payable
by their employees, and with respect to the social tax they shall simultaneously be taxpayers and tax
agents.

4. Payers of the tax payable under the simplified system shall maintain simple accounting
records of income and expenditures and reporting documents based on the simplified system
following the procedure determined by the Repub lic of Tajikistan Ministry of Finance in
consultation with the authorized government body.

5. Concessions provided for under Ar ticle 145 of this Code shall be applicable for the
purposes of this section.

Article 304. Tax Rate

The tax rate shall be set at 12 percent of the object of taxation.

Article 305. Procedure for Application of the Simplified Taxation System

1. The tax (reporting) period for enterprises using the simplified taxation system shall be a
quarter.

2. An enterprise sh all submit to a tax authority before the 15 th of the month following the tax
reporting period a return i ndicating the amount of tax payable and sh all pay the tax that is due within
this same deadline.

3. A taxpayer referred to under Article 302 of this Code shall have the right to change over to
the general system of taxation. Such a change may be made only as of January 1 of any year. In this
case a taxpayer must notify the tax authority with which it is registered of the changeover to the
general system of taxation before January 15 of the year in which the change is to take place.

A taxpayer that has made the cha nge to the general system of taxation in accordance with
this item may change back to paying tax in accord ance with this chapter no sooner than two calendar
years from the date of the most recent ch ange to the general system of taxation.

SECTION XIV. UNIFORM TAX FOR PR ODUCERS OF AGRICULTURAL PRODUCTS

CHAPTER 42. UNIFORM TAX FOR PROD UCERS OF AGRICULTURAL PRODUCTS

Article 306. Taxpayers

1. Payers of the uniform tax for producers of agricultural products (referred to hereinafter as
the “uniform tax for agricultural producers”) shall be legal entities and peasant (owner-operated)
farms established on the basis of farming partners hips and/or production cooperatives for which land
is the main means of production (referred to hereinafter as “agricultural producers”).

The uniform tax for agricultural producers shall not apply to the raising and delivery of
animals (in the agricultural sector ) if one of the following conditions is present: 1) more than 50
percent of the main feed base (according to feed unit norms established by the Republic of
Tajikistan government) of the livestock is provided by outside feed deliveries (not from products
obtained from the agricultural producer’s own land) ; 2) the average annual number of standard
livestock units, in accordance with the coefficients fo r the conversion of livestock into standard units
established by the Republic of Ta jikistan government, per hectare of the agricultural producer’s land
exceeds the norms established by the Republic of Tajikistan government.

2. The uniform tax for agricultural pr oducers shall apply only to that part of the activities of
agricultural producers which is re lated to the production and supply of agricultural products
(agricultural activity).

3. In the event that agricultural producers are engaged in other, non-agricultural activities,
they shall be subject to taxation following the generally established procedure as provided under this
Code and shall maintain separate accounting reco rds of income and expenditures related to their
agricultural and non-ag ricultural activities.

The value of agricultural products produced by an agricultural producer and used by the
producer as raw material for further processing shall be determined on the basis of the market price
of the given agri cultural products.

Article 307. Object of Taxation

1. The object of taxation shall be the area of land held by an agricultural producer.

2. The amount of the uniform tax sh all not depend on the results of an agricultural producer’s
economic activities, except in th e case specified under item 7 of this article, and it shall be
established in the form of stable payments per unit of land area on a yearly basis.

3. With respect to activity that is subject to the uniform tax (agricultural activity),
agricultural producers shall be exempt from payment of the following taxes:

– the value-added tax on deliveries of agricultural products grown on land subject to the
uniform tax;

– the highway user tax on deliveries of agricultural products grown on land subject to the
uniform tax;

– the corporate profit tax;

– the minimum business income tax;

– the land tax;

– tax paid under the simplified system.

4. The amount of uniform tax shall be defined as the product of the area of agricultural land
held by an agricultural producer and the established uniform tax rates.

5. Income earned by a member of an unincorporated peasant (owner-operated) farm in
connection with the agricultural activ ity of the peasant (owner-operated) farm that is subject to the
uniform tax for agricultura l producers shall be exempt from the income tax.

6. A member of an unincorporated p easant (owner-operated) farm shall be subject to social
insurance and shall pay the social tax to the budget on income that is exempt from the income tax in
accordance with item 5 of this ar ticle, following the procedure and in amounts not less than those
established by the Republic of Tajikistan government for individua l entrepreneurs working on the
basis of a patent that has been purchased, in accordance with it em 2 of Article 260 and item 2 of
Article 262 of this Code. The soci al tax shall be paid by such an agricultural producer within the
deadlines established under Article 310 of this Code for the payment of the uniform tax.

7. In the event of natural disasters or catastrophes, the rates applicable to the uniform tax for
agricultural producers may be lowere d in a certain area or for certain taxpayers by a decision of the
Republic of Tajikistan government.

Article 308. Uniform Tax Rates

1. The rates applicable to the uniform tax for agricultural producers shall be set at four times
the land tax rates provided for under Article 267 of this Code.

2. With respect to land actually used for the cultivation of raw cotton, the rates applicable to
the uniform tax for agricultural producers shall be se t at half the rates specified under item 1 of this
article. Information on the area of land actually used for the cultivation of raw cotton shall be
provided by a taxpayer to the tax aut hority with which it is registered before June 1 of the reporting
(tax) year.

Article 309. Proce dure for Submission of a Tax Statement

1. An agricultural producer shall submit to the tax authority serving the area where it is
located (with which it is register ed) a statement of the amount of uniform tax for agricultural
producers due in the current year and a statement of the amount of social tax due in the current year
following the form and in accordance with the pr ocedure established by the authorized government
body.

2. Agricultural producers engaged in ac tivities that fall outside the scope of those subject to
the uniform tax for agricultural producers (that is, activities that fall outside the scope of the
production and delivery of agricult ural products) shall submit tax reporting materials to the tax
authority serving the area where it is located (w ith which it is registered) following the forms and
according to the procedure and deadlines establishe d in accordance with the provisions of this Code.

Agricultural producers engaged in activities that are subject to taxation only with respect to
the uniform tax for agricultural producers shall not submit the tax reporting materials referred to
above.

3. Agricultural producers of raw co tton shall submit a revised statement of the amount of
uniform tax for agricultura l producers due in the curre nt year to the appropriate tax authority before
June 1 of the current year. The payment of the am ount of tax due as of June 15 shall take into
account an adjustment of the tax payment made as of March 15 of the current year.

Article 310. Deadlines for Payment of the Uniform Tax

The uniform tax for agricultural producers for the current tax year shall be paid in the
amount and within the deadlines established under subitem 2) of item 1 of Article 270 of this Code.

SECTION XV. SALES TAX (ON COTTO N 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 (refe rred to hereinafter as the
“sales tax”) shall be legal ent ities and individuals engaged in the delivery of cotton fiber and
primary aluminum produced in the Republic of Ta jikistan (referred to hereinafter as “taxable
goods”) to the domestic and foreign markets.

Article 312. Object of Taxation

The object of taxation shall be the va lue of taxable goods delivered, pledged as security, sold
under futures (forward) contracts, and provided as customer-supplie d raw materials, and the export
of taxable goods outside the Republic of Tajik istan (referred to hereinafter as “taxable
transactions”).

Article 313. Tax Base

1. The value of taxable goods sold (d elivered), calculated on the basis of the price of the
taxable goods in effect on the date a taxable tran saction takes place, taking into account the quality,
type, and grade, in the respectiv e international (regional) commodity exchange identified by the
Republic of Tajikistan government, shall be used to determine the tax base.

2. Legal entities and individuals enga ged in the resale of taxable goods shall pay the sales tax
in the form of the difference betw een the tax amounts calculated on th e 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 th e amount of tax shall be determined as a percentage of
the exchange price of the taxabl e goods in the following amounts:

1) 10 percent for cotton fiber;
2) 3 percent for primary aluminum.

Article 315. Procedure fo r 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 th e date a taxable transaction take s 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 i ndicated 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 a nd on the date of sale, and the volume of the taxable transaction.

3. If the seller does not have an exchange price on the da y of sale, the tax shall be calculated
on the basis of available data on th e 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 th e 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 Fi ber 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 th e 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 co tton 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 appl ied 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 dome stic 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 main tain separate accounting records of expenditures
and sales tax on cotton fiber and primary alumi num 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 am ount of VAT that is payable on domestic deliveries of
processing products and the correspo nding amount of sales tax is negative, the sales tax that has
been paid shall not be reimbur sed (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.

SECTION XVI. MINIMUM BUSINESS INCOME TAX

CHAPTER 44. MINIMUM BUSINESS INCOME TAX

Article 318. Taxpayers

1. Payers of the minimum business income tax shall be:

1) resident enterprises;

2) foreign enterprises engaged in commercial activity in the Republic of Tajikistan through
their permanent establishments.

2. Taxpayers referred to under this artic le shall be referred to as enterprises in this chapter.

Article 319. Object of Taxation

The object of taxation shall be gross income (excluding the value-added tax that has been
assessed and the sales tax) received (receivable) during the reporting period.

Article 320. Tax Concessions

Enterprises that are exempt from the prof it tax in accordance with Article 145 and other
provisions of this Code shall not be subject to this tax.

Article 321. Tax Rate and Procedure for Transferrin g the Tax to the Budget

1. The minimum business income ta x rate shall be equal to 1 percent of the object of
taxation.

2. The tax period for the mini mum business income tax shall be a calendar year.

3. Final settlements with the budget with respect to the minimum business income tax based
on the results for a tax year shall be effected no later than April 10 of the year following the tax
year.

Article 322. Minimum Business Income Tax Return

1. The annual minimum business in come tax return for a tax reporting year shall be
submitted before April 1 of the year following the tax reporting year.

2. The form and procedure for the submission of minimum business income tax returns shall
be established by the authorized government body.

Article 323. Crediting of the Corporate Profit Tax Against Payment of the
Minimum Business Income Tax

The corporate profit tax assessed for a tax reporting period shall be applied as a credit
against the minimum business income tax assessed for the same tax period. If the profit tax amount
is less than the minimum business income tax amount , the profit tax shall not be paid. If the profit
tax amount exceeds the minimum business income tax amount, the profit tax shall be payable to the

budget in the amount by which the profit tax exceeds the minimum business income tax. In any
case, the minimum business income tax sh all be payable to the budget in full.

SECTION XVII. LOCAL TAXES

CHAPTER 45. GENERAL PROVISIONS

Article 324. General Provisions

1. Local Councils of Peoples Deputie s shall establish local taxes in the area under their
jurisdiction as provided for under Article 6 of this Code and on the basis of the provisions of this
Code.

2. The provisions of the General Part of this Code shall apply with respect to local taxes.

3. Local Councils of People’s Deputies shall have the right within the limits of the local tax
rates provided for under this Code to differentiate the levels of rates for various categories of
taxpayers and/or objects of taxation, to exclude certain categorie s of persons from the group of
taxpayers, and/or to exclude certain elements from the tax base, except as otherwise provided under
this Code.

4. Decisions of local Councils of Pe ople’s Deputies regarding local taxes must be consistent
with the provisions of this Code and shall be subj ect to official publication in periodicals that are
available to the general public and are distributed within the respective territory, and they shall enter
into force in accordance with item 2 of Article 2 of this Code.

5. Instructions on the application of local taxes shall be issued by the chairmen of the
respective cities and regions in consultation with the authorized government body and the Republic
of Tajikistan Ministry of Finance.

CHAPTER 46. REAL ESTATE TAX

Article 325. Taxpayers

Payers of the real estate tax shall be individuals and legal entities that own real estate or
persons who have possession of real estate that is an object of taxation in accordance with Article
326 of this Code.

Article 326. Object of Taxation

The following types of property shall be recognized as objects of taxation: residential
buildings, apartments, summer home s, garages, and other buildings, constructions, and structures
(referred to hereinafter as “real estate”).

Article 327. Tax Base

1. The tax base shall be the area of all of the floors of a piece of real estate, adjusted by
coefficients in accordance with the provisions of this article.

2. The area under the first floor of a piece of real estate shall be determined in accordance
with an exterior measurement of the dimensions of the real estate or, if it is not possible to obtain an
exterior measurement of the dimensions of the re al estate, based on the total usable area of the
interior premises of the piece of real estate, multiplied by a coefficient of 1.25.

3. If a piece of real estate has a basement, it shall be taken into account when determining the
tax base only in the event that the height betwee n the basement floor and the ceiling is at least 2
meters. When calculating the tax base, the area of such basement space shall be treated as equal to
50 percent of the area determined in acco rdance with item 2 of this article.

4. If a piece of real estate has an atti c, it shall be taken into account when determining the tax
base only in the event that the hei ght between the attic floor and the lowest point of the ceiling is at
least 2 meters. When calculating the tax base, the area of such attic space shall be treated as equal to
50 percent of the area determined in acco rdance with item 2 of this article.

5. When calculating the tax base, the area of the second and third floors of a piece of real
estate shall be treated as equal to 100 percent of the area determined in accordance with item 2 of
this article.

6. When calculating the tax base, the area of the fourth and fifth floors of a piece of real
estate shall be treated as equal to 90 percent of the area determined in accordance with item 2 of this
article.

7. When calculating the tax base, the area of the sixth and higher floors of a piece of real
estate shall be treated as equal to 80 percent of the area determined in accordance with item 2 of this
article.

8. If the height between the floor and the lowest point of the ceili ng on any of the floors of a
piece of real estate is in the range of 4 to 6 meters, when calcula ting the tax base the area of this
floor shall be treated as equal to 150 percent of the area determined in accordance with item 2 of this
article, adjusted by the floor coe fficients expressed as a percentage in accordance with items 3–7 of
this article.

9. If the height between the floor and the lowest point of the ceili ng on any of the floors of a
piece of real estate is greater than 6 meters, when calculating the tax base the area of this floor shall
be treated as equal to 200 percent of the area dete rmined in accordance with item 2 of this article,
adjusted by the floor coefficients expressed as a percentage in accordance with items 3–7 of this
article.

10. The size (dimensions) of a piece of real estate shall be determined on the basis of the
relevant technical or other documentation for this property or on the basis of a measurement taken
by the tax authority serving the area in which th e property is located, in accordance with the
procedure established by the authorized governme nt body in consultation with the Republic of
Tajikistan State Committee for Ar chitecture and Construction.

11. When calculating the tax base fo r individuals, the area of free-standing nonresidential
premises (garages, sheds, and the like) shall be treated as equal to 50–70 percent, and the area of
premises for housing animals shall be treated as e qual to 20–50 percent of the area determined in
accordance with items 1 –10 of this article.

Article 328. Concessions

Real estate that is owned by (on the balance sheet of) a budgetary organization and is used
directly by said budgetary organization for the perfor mance of its chartered tasks, and has not been
leased to or placed in the possessi on of another person (with the excepti on of leasing or transfer to a
budgetary organization), shall no t be subject to this tax.

Article 329. Tax Rate

1. The real estate tax rate shall be se t in the range of 10 times to 50 times the land tax rates in
accordance with Article 266 and 267 of this Code.

2. For the purposes of the real esta te tax, the land tax rates for the Murgab Zone shall be
treated as being equal to the average land tax rates for Gorno-Badakhshan Autonomous Oblast.

Article 330. Procedure for Calculation and Payment of the Tax

1. The amount of real estate ta x payable by individuals shall be calculated by the tax
authorities serving the area in wh ich the real estate is located, following the procedure and form
established by the authorized government body, on the ba sis of a real estate data base set up by tax
authorities.

On the basis of real estate data as of January 1 of the current year, legal entities shall
independently calculate the amount of real estate tax for the current calendar year following the
procedure and the form esta blished by the authorized gov ernment body, shall submit said
calculation to the tax authority serving the area in wh ich the real estate is located, and shall pay the
amount of real estate tax due for the current calendar year before April 1 of the current year.

The amount of real estate tax due shall be calculated as the product of the tax base,
determined in accordance with Article 327 of this C ode, and the tax rate in accordance with Article
329 of this Code.

2. The amount of real estate tax payable by individuals shall be calculated on the basis of
real estate data as of January 1 of the current year.

3. The amount of real estate tax due shall be determined only for finished construction
projects that are actually in use, even if they have not been placed on the respective state register and
the corresponding technical or other documen tation has not been prepared for them.

4. Tax authorities shall notify individuals of the amount of real estate tax that has been
assessed following the form and the procedure established by the authorized government body
before July 1 of the current year.

5. The amount of real estate tax paya ble by individuals that has been assessed for the current
tax year and is indicated in a notice from a tax authority must be paid to the budget before October 1
of the current year.

6. If a notice of the amount of real estate tax assessed does not reach an individual before
July 1 of the current year for any reason, the indivi dual shall be required on his own to notify the tax
authority serving the area in which the real estate is located in order to obtain a tax assessment
notice from the tax authority, and to pay the amount of tax due within the deadline established under
item 5 of this article.

CHAPTER 47. TAX ON OWNERS OF MOTOR VEHICLES

Article 331. Taxpayers

A taxpayer shall be any person who owns a motor vehicle that is subject to registration in the
Republic of Tajikistan at offices of the State Automobile Inspectorate under the Republic of
Tajikistan Ministry of Internal Affairs.

Article 332. Object of Taxation

1. The object of taxation shall be any motor vehicle listed in group 87 (under codes 8702–
8705 and 8711) of the foreign economic activity commodity nomenclature.

2. Failure to register motor vehicles with offices of the State Automobile Inspectorate under
the Republic of Tajikistan Ministry of Internal A ffairs, which are subject to registration in the
Republic of Tajikistan, as well as the inoperabili ty or non-operation for other reasons of motor
vehicles that have gone through said registrati on (are registered), shall not be grounds for
nonpayment of the tax owed by owners of said motor vehicles. Only motor vehicles that have been
removed from registration with offices of the St ate Automobile Inspectorate under the Republic of
Tajikistan Ministry of Internal Affairs following the procedure and on the grounds established by
the relevant regulatory legal acts shal l be excluded from objects of taxation.

Article 333. Exemption from Payment of the Tax

The following shall be exempt from the tax:

1) machinery and mechanisms mounted on caterpillar tracks;

2) grain harvesters and specia l combines with engines, including cotton harvesters;

3) buses and trolleybuses used by public transport enterprises for transporting passengers in
cities;

4) motorized wheelchairs and moto r vehicles with manual controls belonging to disabled
persons.

Article 334. Tax Base

The tax base shall be the engi ne capacity of a motor vehicle expressed in horsepower.

Article 335. Tax Rates

Tax rates shall be differentiated by types of motor vehicles and shall be set as follows per
year (per horsepower of engine capacity):

Name of object of taxation Tax as a percentage of the minimum
monthly wage in effect on the day the tax is paid
Motorcycles and motor scooters
Passenger cars
Buses (up to 12 seats)
Buses (13–30 seats)
Buses (more than 30 seats)
Trucks and other motor vehicles with a
carrying capacity of up to 10 metric tons
Trucks (with a carrying capacity of 10 to 20
metric tons)
Trucks (with a carryi ng capacity of 20 to 40
metric tons)
Trucks (with a carrying capacity of more than
40 metric tons)
1.0 percent
2.0 percent
2.5 percent
3.0 percent
3.5 percent
4.0 percent

4.5 percent

5.0 percent

5.5 percent

Article 336. Procedure for Payment of the Tax

1. The tax shall be payable to the appropriate local budget based on the location of the motor
vehicle’s registration no later than the deadlines established for the registration, re-registration, or
annual technical inspection of motor vehicles. The deadlines for the annual technical inspection of
motor vehicles shall be established by the St ate Automobile Inspectorate under the Republic of
Tajikistan Ministry of Internal Affairs in consultation with the authorized government body and the
Republic of Tajikistan Ministry of Finance. Violation of the payment deadline shall be grounds for
the assessment of interest following the procedure and in the amounts established under this Code.
In the event of the re-registration of a motor vehicle, the tax shall no t be paid if the previous owner
paid the tax for the given year.

2. Registration, re-registration, and technical inspections shall not be performed without the
presentation of documents confirming payment of the tax for the current year. A taxpayer shall not
have the right to operate a motor vehicle without payment of the tax on owners of motor vehicles for
the current year.

3. In the absence of a document confirming performance of an annual technical inspection,
the State Automobile Inspectorate under the Republic of Tajikistan Ministry of Internal Affairs must
request documents from owne rs of motor vehicles confirming payment of the tax.

4. A statement of the amount of tax payable for the current year shall be submitted by legal
entities to the tax authority with which they are re gistered before April 1 of the current year. The
form of the statement of assessed tax shall be established by the authorized government body. Tax
authorities shall maintain a reco rd of motor vehicles with a breakdown by legal entities that are
owners of motor vehicles and the amount of tax assessed on them following the form and procedure
established by the authorized government body.

5. Each year, before April 1 of the year following the reporting year, the State Automobile
Inspectorate under the Republic of Tajikistan Ministry of Internal Affairs shall submit to the
authorized government body a report on the motor vehicles registered with State Automobile
Inspectorate offices as of December 31 of the repo rting year, on the number of motor vehicles that
have gone through the annual technica l inspection, and the amount of tax paid for the reporting year,
following the form and the procedure established by the authorized government body in consultation
with the Republic of Tajikistan Ministry of Internal Affairs.

6. The authorized government body and territorial tax authorities shall monitor taxpayers, as
well as offices of the State Automobile Inspecto rate under the Republic of Tajikistan Ministry of
Internal Affairs, to ensure that the tax on owners of motor vehicles is paid in full and in a timely
manner.

CHAPTER 48. RETAIL SALES TAX

Article 337. Taxpayers

Payers of the retail sales tax (referred to herein after in this chapter as the “tax”) shall be
individuals and legal en tities 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 estab lishments, on the territory of a city (region).

For the purposes of this chapter, th e 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 fr ee (market) prices, and the retail price of goods
shall be the free (market) pr ice, plus the tax amount.

Article 341. Tax Period

The tax period shall be a calendar quarter.

Article 342. Procedure for Determ ination 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 cas h 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 qua rterly retail sales tax return.

2. The value of goods sold through re tail outlets for a specific taxpayer or group (category)
of taxpayers of the same type ma y also be determined on the basis of a time-study survey performed
by the respective tax authorities following th e 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, th e 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 befo re 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 aut hority before the 15 th 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 curre nt tax year is made pursuant to an agreement between the
respective local tax authority and a taxpayer that wa s 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 cha nge in the basic parameters of ope rations and if a taxpayer wishes
to conclude a similar agreement for the year follo wing 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 eac h tax period of the coming year a sum equal to
one-fourth of the annual tax amount for the prev ious 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 th e opportunity to conclude such an agreement and
an agreement that has been concluded may not be ch anged 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 tw o calendar years following the year in which the last time-study
survey was performed.

TABLE OF CONTENTS
TAX CODE OF THE REPUBLIC OF TAJIKISTAN

PART I. GENERAL PART 1
SECTION I. GENERAL PROVISIONS 1
CHAPTER 1. TAX SYSTEM OF THE REPUBLIC OF TAJIKISTAN 1
Article 1. Relations Regulated by this Code 1
Article 2. The Tax Legislation of the Republic of Tajikistan and its Force 1
Article 3. The Tax System of the Republic of Tajikistan 4
Article 4. Legal Basis of Taxation 4
Article 5. Tax 5
Article 6. Taxes of the Republic of Tajikistan 5
Article 7. Procedure for the Establishment, Modification, and Repeal of
Taxes 6
CHAPTER 2. DEFINITION OF TERMS USED IN THIS CODE 6
Article 8. Taxpayers (General Definition) 6
Article 9. Object of Taxation and/ or Object Related to Taxation 6
Article 10. Tax Base 7
Article 11. Tax Rate 7
Article 12. Tax Period 7
Article 13. Payment Deadline 7
Article 14. Tax Concessions 7
Article 15. Commercial and Noncommercial Activity 8
Article 16. Work for Hire 9
Article 17. Charitable Activity 9
Article 18. Religious Activity 10
Article 19. Enterprises 10
Article 20. Resident and Foreign Enterprise 11
Article 21. Place Where an Enterprise Is Founded 11
Article 22. Headquarters of an Enterprise 11
Article 23.

Permanent Establishment of a N onresident (Foreign Enterprise
or Nonresident Individual) 11
Article 24. Nonprofit Organizations 14
Article 25. Budgetary Organization 14
Article 26. Charitable Organization 14
Article 27. Religious Organization 15
Article 28. Tax Agent 15
Article 29. Related Persons 16
Article 30. Resident Individuals 16
Article 31. Individual Entrepreneur 18
Article 32. Market Prices 18
Article 33. Financial Leasing 20
Article 34. Definition of Other Terms Us ed for the Purposes of this Code 21
SECTION II. GENERAL ADMINISTRATIVE PROVISIONS 30
CHAPTER 3. GENERAL PROVISIONS 30
Article 35. Procedure for the Application of Administrative Provisions 30

Article 36.

Tax Control to Ensure that Payments to the Budget Are Made in
Full and in a Timely Manner 31
Article 37. Rights of Taxpayers, As surance and Protection Thereof 31
Article 38. Responsibilities of a Taxpayer 33
Article 39. Right to Representation in Relations Governed by the
Legislation on Taxes 34
Article 40. Taxpayer’s Legal Representative 34
Article 41. Actions (Inaction) of a Legal Entity’s Legal Representatives 34
Article 42. Taxpayer’s Aut horized Representative 35
Article 43. Currency Used for Purposes of Taxation 35
Article 44.

Measures to Combat Tax Evasi on and Alternative Methods of
Taxation 35
Article 45. Registration of Taxpaye rs. Procedure for Registration, Re-
Registration, and Removal from Registration. Taxpayer
Identification Number 37
Article 46. Provisions Specific to the Registration of Nonresident
Individuals and Legal Entities 41
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 42
CHAPTER 4. TAX AUDITS AND OTHER FORMS OF CONTROL 44
Article 48. The Concept and Types of Tax Audits 44
Article 49. Frequency of Tax Audits 45
Article 50. Deadlines for the Performance of Tax Audits 47
Article 51. Grounds for the Performance of a Tax Audit 47
Article 52. Beginning of a Tax Audit 48
Article 53.

Access by Tax Authority Official s to Grounds or Premises for
the Performance of a Tax Audit 49
Article 54. Seizure of Documents 49
Article 55. Completion of a Tax Audit 50
Article 56. Decision Based on Tax Audit Results 51
Article 57. The Concept of In-House Control 52
Article 58. Results of In-House Control 52
Article 59. Application of Cash Registers with Fiscal Memory 52
Article 60.

Requirements for the Application of Cash Registers with Fiscal
Memory 53
Article 61.

Tax Control to Ensure Complian ce with the Procedure for the
Application and Use of Cash Registers with Fiscal Memory 54
Article 62. Control of Excisable Goods 54
Article 63. Monitoring of Authorized Bodies 54
CHAPTER 5. CONTACT WITH TAXPAYERS 54
Article 64. Correspondence with Taxpayers 54
Article 65. Validity of Notifications and Other Documents 55
Article 66. Procedure for the Es tablishment of Obligations 55
Article 67. Written Interpretations Re garding Application of the Tax 55

Legislation
CHAPTER 6. PRESENTATION AND COLLECTION OF
INFORMATION 55
Article 68. Compilation and Storag e of Accounting Documentation 55
Article 69.

Separate Accounting and Rules for Maintaining Separate
Accounting Records 57
Article 70. Tax Reporting 57
Article 71. Procedure for the Preparation and Submission of Tax Reporting 58
Article 72. Time Period for Storage of Tax Reporting 59
Article 73. Submission of Tax Returns 59
Article 74. Submission of Information on Payments or Other Transactions 60
Article 75. Extension of the Deadline for the Submission of Tax Returns 60
Article 76. Bank Accounts 60
Article 77. Submission of Information to Tax Authorities 61
CHAPTER 7. TAX OBLIGATION 62
Article 78. Tax Obligation 62
Article 79. Fulfillment of Tax Obligations 63
Article 80.

Fulfillment of Tax Obligations in the Event of the Liquidation of
an Enterprise (Organization) 63
Article 81.

Fulfillment of Tax Obligations in the Event of the
Reorganization of a Legal Entity 64
Article 82. Fulfillment of Tax Obliga tions of Deceased, Incompetent, and
Missing Individuals or Persons W ho Have Been Declared Dead
by the Courts 65
Article 83. Procedure for the Fu lfillment of Tax Obligations 65
CHAPTER 8. ASSESSMENT OF TAXES 66
Article 84. Assessment of Taxes 66
Article 85. Notification of Tax Assessment and Request for Payment of Tax 67
Article 86. Statute of Limitations 68
CHAPTER 9. PAYMENT, COLLECTION, AND REFUND OF TAXES 68
Article 87. Payment of Taxes 68
Article 88. Place for Payment of Taxes and Budgets to Which Taxes Are
Applied 68
Article 89. Crediting or Refund of Ta xes Paid in Excess of the Required
Amount 69
Article 90. Change in the Tax Payment Deadline 70
Article 91. Order for the Disc harge of Tax Obligations 71
CHAPTER 10. COMPULSORY COLLECTION OF TAXES 72
Article 92. Measures to Ensure Fulfillment of a Tax Obligation Not Met on
Time 72
Article 93. Interest on Underpayme nt and Overpayment of Taxes 72
Article 94. Suspension of Spending Operations on a Taxpayer’s Accounts at
Banks and Other Financial and Lending Institutions 73
Article 95. Attachment of Property 74
Article 96. Sale of Attached Property 77
Article 97. Collection of Sums Owed by a Taxpayer 78

Article 98. Liability of Persons Who Have Received a Taxpayer’s Assets at
Below-Market Prices 80
Article 99. Writing Off Bad Tax Debts 80
CHAPTER 11. RESOLUTION OF DISPUTES 80
Article 100. Right to Appeal 80
Article 101.

Procedure and Deadlines for the Filing and Consideration of an
Appeal with Tax Authorities 80
Article 102.

Consequences of Filing a Petition (Appeal) Regarding the
Assessment of Tax, Penalties, and Interest 81
CHAPTER 12. LIABILITY 81
Article 103. The Concept of a Tax Offense 81
Article 104.

Circumstances Excluding a Pers on’s Liability for Commission
of a Tax Offense 81
Article 105.

Statute of Limitations for Liab ility for Commission of a Tax
Offense 82
Article 106. Liability for Violat ion of the Tax Legislation 82
SECTION III.

STATUS AND STRUCTURE OF TAX AUTHORITIES
AND TAX POLICE UNITS OF THE REPUBLIC OF
TAJIKISTAN 83
CHAPTER 13. TAX AUTHORITIES

83
Article 107. Principal Functions of Tax Authorities 83
Article 108.

Legal Basis for the Operation of Tax Authorities and Tax Police
Units 84
Article 109.

Principles of the Operation of Tax Authorities and Tax Police
Units 84
Article 110.

Status and Structure of Tax Authorities of the Republic of
Tajikistan 85
Article 111. Authorities of the First Director of the Authorized Government
Body 86
Article 112.

Financing and Material a nd Technical Support for Tax
Authorities and Tax Police Units 87
Article 113. Tax Authority Employee 87
Article 114. Service in Tax Authorities 87
Article 115.

Relations between Tax Authorities and Tax Police Units and
Government Bodies 88
Article 116. Transfer of Authoritie s by a Director to Other Persons 88
Article 117. Annual Reports 88
CHAPTER 14. RIGHTS AND RESPONSIBILITIES OF TAX
AUTHORITIES 89
Article 118. Rights of Tax Authorities 89
Article 119. Responsibilities of Tax Authorities 91
Article 120. Procedure for Exercising th e Rights Granted to Tax Authorities 94
Article 121. Liability of Tax Authority Officials 94
Article 122. Conflict of Interest 94
Article 123. Secrecy of Information (Tax Secret) 95

CHAPTER 15. TAX POLICE UNITS 96
Article 124. Tax Police Units 96
Article 125. Structure of Tax Police Units 96
Article 126. Authorities of the Chief of the Main Tax Police Administration 96
Article 127. Main Tasks of Tax Police Units 97
Article 128. Rights of Tax Police Units 97
Article 129. Responsibilities of Tax Police Units 99
Article 130. Service in Tax Police Units 99
CHAPTER 16.

LEGAL AND SOCIAL PROT ECTION FOR EMPLOYEES
OF TAX AUTHORITIES AND TAX POLICE UNITS 100
Article 131. Legal Protection for Employees of Tax Authorities and Tax
Police Units 100
Article 132.

Material, Social, and Personal Security for Employees of Tax
Authorities and Tax Police Units and Their Family Members 101
PART II. SPECIAL PART 101
SECTION IV. PERSONAL INCOME TAX (TAX ON INCOME OF
INDIVIDUALS) 101
CHAPTER 17. GENERAL PROVISIONS

101
Article 133. Taxpayers 101
Article 134. Object of Taxation 102
Article 135. Gross Income 102
Article 136. Income Received in the Form of Wages 102
Article 137. Income from Activity Not Related to Work for Hire 104
Article 138. Adjustment of Gross Income 104
Article 139. Right to Personal Deductions 105
Article 140. Income Tax Rates 105
Article 141. Exemption 106
SECTION V. CORPORATE PROFIT TAX 108
CHAPTER 18. GENERAL PROVISIONS 108
Article 142. Taxpayers 108
Article 143. Object of Taxation 108
Article 144. Tax Rates 109
Article 145. Concessions 109
SECTION VI.

GENERAL PROVISIONS CONCERNING THE PROFIT
TAX AND INCOME TAX 110
CHAPTER 19. DEDUCTIONS FROM GROSS INCOME 110
Article 146. Deduction of Expenses Related to Earning Income 110
Article 147. Nondeductible Expenses 111
Article 148. Deduction of Charitable Payments 111
Article 149. Restriction on Deductio ns Pertaining to Interest 112
Article 150. Deductions Pertaining to Bad (Problem) Debts 112
Article 151. Deductions of Contributi ons to Insurance Reserve Funds 113
Article 152.

Deductions Pertaining to Expend itures on Scientific Research,
Planning and Development, a nd Experimental Design Work 113
Article 153. Depreciation Charges and Deductions for Fixed Assets 113

Article 154.

Deductions for Expenditures on the Repair of Depreciable Fixed
Assets 115
Article 155. Deductions of Expend itures on Insurance Premiums 115
Article 156. Expenditures on Geological Prospecting Work and Preparations
for the Extraction of Natural Resources 116
Article 157. Expenditures on Intangible Assets 116
Article 158. Restriction on Deductio ns for Taxes and Penalties 116
Article 159. Losses from the Sale or Transfer of Property Not Used in
Commercial Activity 116
Article 160. Carryover of Losses to Another Period 117
CHAPTER 20. WITHHOLDING OF TAX AT THE SOURCE OF
PAYMENT 117
Article 161. Procedure for the Withholdi ng of Tax at the Source of Payment 117
Article 162. Withholding of Tax on Dividends at the Source of Payment 118
Article 163. Withholding of Tax on Interest at the Source of Payment 118
Article 164.

Withholding of Tax on Nonresidents’ Income at the Source of
Payment 119
Article 165.

Submission of Tax Reporting on Withholding of Tax at the
Source of Payment 121
CHAPTER 21. INTERNATIONAL TAXATION 121
Article 166. Taxation of Net Profit of a Permanent Establishment of a
Foreign Legal Entity 121
Article 167. Foreign Tax Credit 121
Article 168. Income Earned in Count ries with Concessional Taxation 121
CHAPTER 22. SPECIAL PROVISIONS RE GARDING INTERNATIONAL
TREATIES 122
Article 169. Conditions for the Appli cation of an International Treaty 122
Article 170. Procedure for the Implem entation of International Treaties 122
Article 171.

Methods for Deducting Management and General
Administrative Expenses of a Nonresident Legal Entity for the
Purposes of the Taxation of Income from Sources in the
Republic of Tajikistan 122
Article 172. Proportional Distri bution of Expenses Method 123
Article 173. Direct Application of Expenses Method 124
Article 174.

Procedure for Payment of the Tax on Income of Nonresidents
from Activity in the Republic of Tajikistan Not Leading to the
Creation of a Permanent Establishment 125
Article 175.

Procedure for the Application of an International Treaty
Regarding Taxation of Income from Providing Transportation
Services in International Shipping Operations 127
Article 176.

Procedure for the Application of an International Treaty
Regarding Taxation of Divide nds, Interest, and Royalties 128
Article 177. Procedure for the Application of an International Treaty
Regarding Taxation of Net Profit (Net Income) from Doing
Business through a Permanent Establishment 128
Article 178.

Procedure for the Application of an International Treaty
Regarding Taxation of Other Income from Sources in the 129

Republic of Tajikistan
Article 179. General Requirements for the Submission of a Request for
Application of the Provisions of an International Treaty 129
Article 180. Certificate of Taxes Wit hheld and Paid in the Republic of
Tajikistan 130
CHAPTER 23. TAX ACCOUNTING RULES 130
Article 181. Tax Period (Year) 130
Article 182. Procedure for the Accounting of Income and Expenditures 130
Article 183. Principles of Cash Basis Accounting of Income and
Expenditures 131
Article 184. The Moment Income Is R eceived in Certain Cases When Cash
Basis Accounting Is Used 132
Article 185. The Moment Expenses Ar e Effected in Certain Cases When
Cash Basis Accounting Is Used 132
Article 186. Principles of Accrual Ac counting of Income and Expenditures 132
Article 187. The Moment Income Is Received When Accrual Accounting Is
Used 132
Article 188. The Moment Expenses Ar e Effected When Accrual Accounting
Is Used 133
Article 189. Joint Ownership 134
Article 190. Income and Deducti ons on Long-Term Contracts 134
Article 191. Procedure for Inventory Accounting 134
Article 192. Accounting of Financial Leasing 135
Article 193. Compensated Deductions and Reduction in Reserves 135
Article 194. Profit and Loss from the Sale or Transfer of Assets 135
Article 195. Value of Assets 136
Article 196. Nonrecognition of Profit or Loss 136
CHAPTER 24. ADMINISTRATIVE PROVISIONS 137
Article 197. Filing of a Return 137
Article 198. Current Tax Payments (Prepayments) 137
Article 199. Payment of Tax Based on the Results for a Year 139
SECTION VII. VALUE-ADDED TAX 139
CHAPTER 25. GENERAL PROVISIONS 139
Article 200. The Concept of the Value-Added Tax 139
CHAPTER 26. TAXPAYERS 139
Article 201. Taxpayers 139
Article 202. Requirement to File an Application for Registration 140
Article 203. Voluntary Registration 140
Article 204. Registration 140
Article 205. Cancellation of Registration 142
CHAPTER 27. OBJECTS OF TAXATION 142
Article 206. Objects of Taxation 142
Article 207. Sale or Transfer of an Enterprise 144
CHAPTER 28. DEFINITION OF TAXABLE TURNOVER AND
TAXABLE IMPORTS 144
Article 208. Value of a Taxable Transaction 144

Article 209. Adjustment of Taxable Turnover 145
Article 210. Value of Taxable Imports 146
CHAPTER 29. TAX CONCESSIONS 146
Article 211. Tax Exemption 146
Article 212. Taxation of International and Transit Shipments 149
Article 213. Provisions Specific to Taxation Involving the Movement of
Goods Across the Customs Frontier of the Republic of
Tajikistan 150
CHAPTER 30. TRANSACTIONS SUBJECT TO TAXATION AT THE
ZERO RATE 152
Article 214. Taxation of Exports of Goods 152
Article 215. Confirmation of the Export of Goods 152
Article 216.

Deliveries of Gold, Precious Meta ls and Stones to the National
Bank of Tajikistan and the Stat e Valuables Repository under the
Republic of Tajikistan Ministry of Finance 154
CHAPTER 31.

TIME AND PLACE OF THE PERFORMANCE OF A
TAXABLE TRANSACTIO N AND SPECIAL RULES 154
Article 217. Time of the Performance of a Taxable Transaction 154
Article 218. Place of the Delivery of Goods 155
Article 219. Place of the Performance of Work or Provision of Services 155
Article 220. Reverse Taxation 156
Article 221. Time of Import 157
Article 222. Combined Transactions 157
Article 223. Transactions Performed by an Agent 158
CHAPTER 32.

PROCEDURE FOR ASSESSM ENT AND PAYMENT OF
THE TAX 158
Article 224. Value-Added Tax Rates and Procedure for Calculating the Tax 158
Article 225. Value-Added Tax Payable to the Budget on Taxable Turnover 158
Article 226. Value-Added Tax to be Credited when Determining Payments to
the Budget 159
Article 227. Adjustment of Value-A dded Tax Amounts Applied as a Credit 161
Article 228.

Procedure for Crediting Value-A dded Tax Given Turnovers That
Are Exempt from the Value-Added Tax (Exempt Turnovers) 161
Article 229. Proportional Method 162
Article 230. Separate Method 162
Article 231. Value-Added Tax Invoices 162
Article 232.

Preparation of Supplemental I nvoices in the Event of an
Adjustment in Taxable Turnover 164
Article 233. Special Rules 165
CHAPTER 33. ADMINISTRATIVE AND FINAL PROVISIONS 165
Article 234. Submission of Returns and Payment of the Value-Added Tax 165
Article 235. Reporting (Tax) Period for the Value-Added Tax 166
Article 236. Transactions with the Bu dget in the Event That the Amount of
Tax to be Credited Exceeds the Amount of Tax Assessed for a
Reporting Period 166
Article 237. Refund of Va lue-Added Tax Paid on Goods (Work, Services) 167

Purchased at the Expense of Proceeds from a Grant or Credit
(Loan)
Article 238.

Refund of Value-Added Tax to Diplomatic, Consular, and
Equivalent Representative Offices , as well as Members of their
Staff Accredited in the Republic of Tajikistan 168
SECTION VIII. EXCISES 169
CHAPTER 34. EXCISES 169
Article 239. The Concept of Excises (Excise Tax) 169
Article 240. Taxpayers 169
Article 241. Object of Taxation 170
Article 242. Calculation of the Exci se Tax and the Amount of a Taxable
Transaction 170
Article 243. Time That a Taxable Transaction Is Performed 171
Article 244. Exemption 172
Article 245. Confirmation of th e Export of Excisable Goods 173
Article 246. Crediting of Excise Tax for Production Resources 174
Article 247. Tax Rates and List of Excisable Goods 174
Article 248. Payment of Excise Taxes 175
Article 249. Tax Regime with Respec t to Alcohol and Tobacco Products 175
Article 250. Tax Warehouse Regime 176
Article 251. Damage and Loss of Excisable Goods 177
Article 252. Place of Payment of Excise Tax 178
Article 253. Procedure for Calculation and Payment of the Excise Tax by
Taxpayers for Separate Subdivisions 178
Article 254. Submission of a Return 178
Article 255. Refund of Excise Ta x in the Case of Re-Export 179
Article 256. Excise Stamps 179
Article 257. Excise Tax Invoices 180
SECTION IX. SOCIAL TAX 180
CHAPTER 35. SOCIAL TAX 180
Article 258. The Concept and Role of the Social Tax 180
Article 259. Taxpayers 181
Article 260. Object of Taxation 181
Article 261. Exemption 182
Article 262. Tax Rates 182
Article 263. Procedure for Determination and Payment of the Tax 182
SECTION X. LAND TAX 183
CHAPTER 36. LAND TAX 183
Article 264. Taxpayers 183
Article 265. Object of Taxation 183
Article 266. Land Tax Rates for Land in Cities and Urban-Type Settlements 183
Article 267.

Land Tax Rates for Land Outside Cities and Urban-Type
Settlements 184
Article 268. General Procedure for Calculation and Payment of the Land Tax 185
Article 269. Procedure for Submission of a Tax Statement 186
Article 270. Deadlines for Payment of the Land Tax 186

Article 271. Land Tax Concessions 187
SECTION XI. TAX ON USERS OF MINERAL RESOURCES 189
CHAPTER 37. GENERAL PROVISIONS 189
Article 272. Relations Regulated by this Section 189
Article 273. Payers 189
Article 274. Establishment of a Tax Regime in Mineral Use Contracts 189
Article 275. Tax Regime for Transacti ons Not Pertaining to Mineral Use 190
Article 276. Stability of the Tax Regime 191
Article 277. Taxation of Assignment of Rights 191
Article 278. Tax Evaluation 191
CHAPTER 38. BONUSES 192
Article 279. General Provisions Regarding Bonuses 192
Article 280. Signing Bonus 192
Article 281. Procedure for the Establ ishment of a Signing Bonus, the Amount
and Deadline for Payment of a Signing Bonus 192
Article 282. Tax Return 193
Article 283. Commercial Discovery Bonus 193
Article 284. Procedure for Calculati on of a Commercial Discovery Bonus
and the Size of a Commercial Discovery Bonus 193
Article 285. Tax Return and Payment Deadline 193
Article 286. Extraction Bonus 193
Article 287. Procedure for the Calcul ation of an Extraction Bonus, the
Amount and Deadline for Payment of an Extraction Bonus 194
Article 288. Tax Return 194
CHAPTER 39. ROYALTIES 194
Article 289. General Provisions Regarding Royalties 194
Article 290. Payers 195
Article 291. Procedure for the Establishment of Royalties 195
Article 292. Procedure for Determining the Value of Minerals Extracted 197
Article 293. Procedure for Payment of Royalties 197
Article 294. Determination of the Value of Minerals Extracted in the
Absence of Sales (Deliveries) 197
Article 295. Procedure for the Esta blishment and Payment of In-Kind
Royalties 198
SECTION XII. HIGHWAY USER TAX 199
CHAPTER 40. HIGHWAY USER TAX 199
Article 296. Taxpayers 199
Article 297. Object of Taxation 199
Article 298. Tax Concessions 199
Article 299. Tax Rate 200
Article 300. Tax Base 200
Article 301. Procedure and Deadlin es for Payment of the Tax 200
SECTION XIII. TAX PAYABLE UNDER TH E SIMPLIFIED SYSTEM 200
CHAPTER 41. TAX PAYABLE UNDER TH E SIMPLIFIED SYSTEM 200
Article 302. Payers 200
Article 303. Object of Taxation 200

Article 304. Tax Rate 201
Article 305. Procedure for Application of the Simplified Taxation System 201
SECTION XIV.

UNIFORM TAX FOR PRODUCERS OF
AGRICULTURAL PRODUCTS 202
CHAPTER 42.

UNIFORM TAX FOR PRODUCERS OF
AGRICULTURAL PRODUCTS 202
Article 306. Taxpayers 202
Article 307. Object of Taxation 202
Article 308. Uniform Tax Rates 203
Article 309. Procedure for Submission of a Tax Statement 204
Article 310. Deadlines for Payment of the Uniform Tax 204
SECTION XV.

SALES TAX (ON COTTO N FIBER AND PRIMARY
ALUMINUM) 204
CHAPTER 43. SALES TAX (ON COTTO N FIBER AND PRIMARY
ALUMINUM) 204
Article 311. Payers of the Tax 204
Article 312. Object of Taxation 205
Article 313. Tax Base 205
Article 314. Tax Rates 205
Article 315. Procedure for Calculation of the Tax and Payment Deadlines 205
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 206
Article 317. Monitoring Payment of the Tax 207
SECTION XVI. MINIMUM BUSINESS INCOME TAX 207
CHAPTER 44. MINIMUM BUSINESS INCOME TAX 207
Article 318. Taxpayers 207
Article 319. Object of Taxation 207
Article 320. Tax Concessions 207
Article 321. Tax Rate and Procedure for Transferring the Tax to the Budget 207
Article 322. Minimum Business Income Tax Return 208
Article 323. Crediting of the Corporat e Profit Tax Against Payment of the
Minimum Business Income Tax 208
SECTION XVII. LOCAL TAXES 208
CHAPTER 45. GENERAL PROVISIONS 208
Article 324. General Provisions 208
CHAPTER 46. REAL ESTATE TAX 209
Article 325. Taxpayers 209
Article 326. Object of Taxation 209
Article 327. Tax Base 209
Article 328. Concessions 210
Article 329. Tax Rate 210
Article 330. Procedure for Calculation and Payment of the Tax 211
CHAPTER 47. TAX ON OWNERS OF MOTOR VEHICLES 212
Article 331. Taxpayers 212

Article 332. Object of Taxation 212
Article 333. Exemption from Payment of the Tax 212
Article 334. Tax Base 212
Article 335. Tax Rates 212
Article 336. Procedure for Payment of the Tax 213
CHAPTER 48. RETAIL SALES TAX 214
Article 337. Taxpayers 214
Article 338. Object of Taxation 214
Article 339. Tax Base 214
Article 340. Tax Rate 214
Article 341. Tax Period 215
Article 342.

Procedure for Determination of the Tax Base, Calculation of the
Tax, Submission of a Return, and Payment of the Tax 215