Tajikistan - Establishing an OfficeTajikistan-Establishing-an-Office
It is difficult to obtain reliable and detailed information about Tajik companies. U.S. companies wishing to establish a presence in Tajikistan are encouraged to contact the U.S. Embassy in Dushanbe for guidance. The U.S. Embassy website is https://tj.usembassy.gov/. We strongly advise interested U.S. companies to retain legal counsel to assist with the business registration process. The U.S. Embassy economic section can provide contact information for international and Tajik consulting companies that offer professional legal advice on business registration, licensing, and business operations in Tajikistan.
The first step in setting up an office is to establish a legal presence. Tajik law provides three options for establishing a legal presence: (i) a representative office, (ii) a branch office, and/or (iii) a legal entity established under the laws of Tajikistan. A representative office may perform informational and liaison functions of the company. It can open a bank account, rent an office, and provide visa support, but it cannot engage in trade and commercial activities. Branch offices maintain a close connection with the parent company. Branch offices may perform any function, including representational functions. Representative and branch offices are not separate legal entities; therefore, the parent company may be held liable. The 2010 Law (with amendments in 2012), “On State Registration of Legal Entities and Individual Entrepreneurs,” establishes a relatively simplified state registration process for individual entrepreneurs and legal entities including foreign businesses.
The U.S. Embassy highly recommends that businesses solicit experienced and well-established legal counsel when registering a company. The Tax Committee of the Government of Tajikistan organizes official registration of legal entities. The Department of State Registration of Legal Entities and Individual Entrepreneurs is responsible for Single Window state registration. More information can be found on the website of the Tax Committee of the Government of Tajikistan (www.andoz.tj) The 2013 Tax Code was designed with technical assistance and over 3,000 comments from international experts. The final version of 2013 Tax Code featured some reforms benefiting companies working in Tajikistan, but still requires compliance with many complicated and cumbersome elements and procedures. The Tax Committee’s current strategy is focused on value-added tax (VAT) administrative capacity and promotion of a simplified general tax regime.
The World Bank is currently implementing a USD 18 million modernization program with the State Tax Committee. The modernization will promote the use of online filing and taxpayer administration automation to prevent corruption. Predatory nature of tax policy in Tajikistan remains one of the biggest obstacles and one of the most time consuming regulatory tasks for foreign investors in Tajikistan. The Tax Committee’s efforts to meet Tajikistan’s budget revenue targets result in arbitrary tax collections, audits and penalties. Requests for pre-payment of taxes also widely implemented. In total there are eight national and three local taxes, including:
Income Tax,
Profit Tax,
Value Added Tax (VAT) (several versions applied in different sectors)
Excise Taxes (several versions applied in different sectors),
Social Tax, Taxes on natural resource use (royalties),
Tax on road use,
Tax on cotton and aluminum sales;
Transportation Tax,
Property Tax,
Land Tax,
Building Tax.
According to the Tax Code, certain business categories enjoy simplified administrative burdens. Individuals, small scale businesses, agricultural producers, and gambling companies are also able to use simplified taxation procedures. The Tax Code also defines customs tariffs for imported and exported goods.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The first step in setting up an office is to establish a legal presence. Tajik law provides three options for establishing a legal presence: (i) a representative office, (ii) a branch office, and/or (iii) a legal entity established under the laws of Tajikistan. A representative office may perform informational and liaison functions of the company. It can open a bank account, rent an office, and provide visa support, but it cannot engage in trade and commercial activities. Branch offices maintain a close connection with the parent company. Branch offices may perform any function, including representational functions. Representative and branch offices are not separate legal entities; therefore, the parent company may be held liable. The 2010 Law (with amendments in 2012), “On State Registration of Legal Entities and Individual Entrepreneurs,” establishes a relatively simplified state registration process for individual entrepreneurs and legal entities including foreign businesses.
The U.S. Embassy highly recommends that businesses solicit experienced and well-established legal counsel when registering a company. The Tax Committee of the Government of Tajikistan organizes official registration of legal entities. The Department of State Registration of Legal Entities and Individual Entrepreneurs is responsible for Single Window state registration. More information can be found on the website of the Tax Committee of the Government of Tajikistan (www.andoz.tj) The 2013 Tax Code was designed with technical assistance and over 3,000 comments from international experts. The final version of 2013 Tax Code featured some reforms benefiting companies working in Tajikistan, but still requires compliance with many complicated and cumbersome elements and procedures. The Tax Committee’s current strategy is focused on value-added tax (VAT) administrative capacity and promotion of a simplified general tax regime.
The World Bank is currently implementing a USD 18 million modernization program with the State Tax Committee. The modernization will promote the use of online filing and taxpayer administration automation to prevent corruption. Predatory nature of tax policy in Tajikistan remains one of the biggest obstacles and one of the most time consuming regulatory tasks for foreign investors in Tajikistan. The Tax Committee’s efforts to meet Tajikistan’s budget revenue targets result in arbitrary tax collections, audits and penalties. Requests for pre-payment of taxes also widely implemented. In total there are eight national and three local taxes, including:
Income Tax,
Profit Tax,
Value Added Tax (VAT) (several versions applied in different sectors)
Excise Taxes (several versions applied in different sectors),
Social Tax, Taxes on natural resource use (royalties),
Tax on road use,
Tax on cotton and aluminum sales;
Transportation Tax,
Property Tax,
Land Tax,
Building Tax.
According to the Tax Code, certain business categories enjoy simplified administrative burdens. Individuals, small scale businesses, agricultural producers, and gambling companies are also able to use simplified taxation procedures. The Tax Code also defines customs tariffs for imported and exported goods.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.