Topic: Tax law of the Topic: Tax law of the Republic of TajikistanRepublic of Tajikistan

Tax system of RT on transition economy

Stages of formation of Tajik Tax system

Tax structure of Republic of Tajikistan

Tax system of RT on Tax system of RT on transition economytransition economyA transition economy or

transitional economy is an economy which is changing from a centrally planned economy to a free market

Transition economies undergo economic liberalization, where market forces set prices rather than a central planning organization. In addition to this trade barriers are removed, there is a push to privatize state-owned businesses and resources, and a financial sector is created to facilitate macroeconomic stabilization and the movement of private capital

2. Stages of Formation of 2. Stages of Formation of Tajik Tax systemTajik Tax system1) 1991-1997 – stage of formation of

Tax Law2) 1998-2004 – Adopting of Tax code

and improvement of Tax system3) 2005-2012 - Adopting of the new

Tax code and improvement of Tax system

4) 2012 - Adopting of the new Tax code according President’s requirements

Challenges of 1Challenges of 1stst formationformationDifficulties of Tax administration (more

then 40 Taxes)Shortage of professional tax inspectorsTax law was not so clear to understandHigh level of corruptionHigh Level of shadow economyBusiness was not so developed in this

period

Challenges of 2Challenges of 2stst formation formation Tax code articles were not so clearHigh level of corruption in Tax

AuthorityTax system has just a fiscal nature Tax code could not stimulate

business, investmentsDifficulties of administrating of some

taxesTax administration is weak

Challenges of 3Challenges of 3rdrd formationformationWeak of AdministrationTax system has just a fiscal

nature Tax system could not stimulate

investments, businessA lot of indirect Taxes in Tax

systemConflict among some articles

3. Tax structure of the Republic 3. Tax structure of the Republic of Tajikistanof Tajikistan

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

National taxes shall National taxes shall includeinclude• 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: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.

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

Structure of Tax revenue (%)Structure of Tax revenue (%)