The Tax Code prescribes a calendar year as the tax year.
Annual CIT declarations are due by 1 April in the year following the tax year-end.
Taxpayers are required to submit their estimated calculation of monthly advance payments of CIT.
Payment of tax
With respect to CIT, advance payments are due every 15th day of the month. Payment of any outstanding CIT liabilities is required not later than 10 April following the reporting tax period.
The settlement of minimum income tax should be made by 10 April following the reporting tax period in cases where it exceeds CIT liability.
Fines and interest penalties
The fine for failure to file a tax return ranges from a minimum amount of 1 calculation index (CI), which is currently TJS 40, to a maximum fine of 100 CI, or TJS 4,000. The amount of the fine depends on the taxpayer’s category and should be assessed based on each ten days of delay. In the absence of tax returns, the tax authorities are entitled to assess taxes based on any information available.
Fines may be assessed in the amount of 10% to 20% of the understated tax liabilities. In severe cases, a violation may be considered a criminal offence.
A fine for failure to withhold and remit tax may be assessed in the amount of 3 to 200 CI (approximately TJS 120 to TJS 8,000) of the tax not withheld.
Interest penalties may apply to late tax payments in the amount of 0.08% of the underpaid tax amount for each day of tax underpayment.
Tax audit process
Tajikistan tax authorities have the right to conduct regular tax audits (once per year for planned tax audits). Generally, there are two types of audits:
- Planned tax audits. Planned tax audits are conducted according to the list of entities that fall under tax audit, published by the competent authority.
- Unplanned tax audits. Reorganisation or liquidation of a legal entity, the expiration of the contract on subsoil use, validation of the VAT amount that is charged for a return, etc., may trigger an unplanned tax audit.
Documentary tax audits may be further subdivided into comprehensive (i.e. covering all taxes), thematic (covering only specific type of taxes), or cross-check (covering only transactions with a particular counterparty). Comprehensive and thematic audits may be conducted once a year.
The first planned documentary tax audit of a small business, implementing the simplified tax system, can be carried out only after 24 full calendar months from the date of its registration.
The tax authority sends or presents a notice of a tax audit to a taxpayer no later than ten working days before the start of the documentary tax audit unless otherwise provided in the Tax Code.
The period of tax audits, specified in issued orders, shall not exceed 30 working days from the date of receipt of the order, unless otherwise provided in the Tax Code.
Statute of limitations
Taxpayers are allowed to make changes to prior period tax returns within the statute of limitations (three years). No fines should apply to corrections in this case.
Topics of focus for tax authorities
The tax authorities are currently paying particular attention to deals involving sale of shares and participation interests.