Tajikistan legal and accounting and tax considerations in 2024

1. Tajikistan companies incur a corporate tax rate of 18%, with businesses operating in the transportation, telecommunications, service, and banking industries paying a rate of 20%. An additional 8% tax rate applies to the net profit of non-resident entities;
2. Annual audited financial statements and corporate tax return is submitted to the Tajikistan Taxation Office. Audits are not required unless requested by a company shareholder;
3. Resident companies and individuals settle their tax liabilities either by monthly payments, third party withholdings, or a combination of both;
4. Tajikistan’s many double tax treaties minimize withholding tax for service fees, dividends, interest, royalties, and branch profits;
5. An individual is considered tax resident if he is present in Tajikistan for at least 183 days per year;
6. Tajikistan has concluded at least 20 double taxation treaties with different international jurisdictions including China, Belgium, UAE, Switzerland, Spain and Germany among others;
7. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis.

Legal and compliance

Healy Consultants Compliance Department guides our Client through legal and tax obligations.

1. The minimum amount of paid up capital to be invested in a foreign-owned company is US$105. This capital must be paid within the first 12 months of incorporation;
2. All business entities must submit annual audited financial statements by March 31^st of each year;
3. A Tajikistan company secretary is not required when forming a Tajikistan resident company; however, we recommend one be appointed to ensure compliance with the corporation act;
4. Law No. 260 and No. 508 are the key legal pieces governing foreign investment, with No. 260 ensuring the equal rights of foreign investors, including the right to repatriate profit without restriction and to receive compensation at market value for all ‘nationalized’ property. Law No. 508 governs the requirements for state registration of legal entities, including the necessity to register with both the State Registration of Legal Entities and Individual Entrepreneurs and the Agency for Social Protection. In the event that Tajikistan investment laws are changed, current law allows investors a 5-year period by which they may operate under the old laws;
5. The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.
6. Unfortunately, all shareholder and director information must be officially translated into Tajik language, notarized and attested by the embassy in their country of origin or Apostilized. Most of our Clients request we translate all company documents into Tajikistan and vice versa. There is an additional cost of US$80 per page of documents;