Baku, Azerbaijan, Feb. 4
Tajikistan’s government has singled out a number of prospect sectors of the country’s economy for attracting investments, namely, hydropower industry; agriculture and processing of agricultural products; mining and chemical industry; light industry; transport; financial sector;
Tourism, Trend reports referring to Tajinvest state unitary enterprise.
More than 70 investment incentives are provided for the creation of a favorable investment environment, as well as attracting investments in the country by legislative and regulatory acts in the Republic of Tajikistan. Investment incentives are divided into fiscal (such as tax rebates) and non-fiscal incentives (such as grants, soft credits, measures to improve the business environment).
Import of agricultural equipment is exempted from VAT and customs duties.
Activities related to the delivery or export of cotton fiber, cotton yarn and raw cotton are exempted from VAT.
Import of goods for own needs by newly created enterprises engaged in the full cycle of processing cotton-fiber into final products is exempted from such taxes as:
-value-added tax at zero rate;
from payment of income tax;
from payment of real estate tax up to 12 years.
Value added tax is established at a rate of 10 percent for the import of wheat, the delivery of wheat and the final result of its processing (flour or bran).
The poultry products and enterprises engaged in the production of combined fodder for birds and animals and operating with the involvement of foreign capital in the amount of not less than 16 million US dollars are exempted for up to 12 years from payment of:
value added tax;
real estate tax;
-customs duties for the import of goods for the needs of enterprises.
Import of goods directly for own needs by newly created enterprises involved in the industrial processing of leather, wool, raw silk and other agricultural raw materials into final products is exempted for a period of up to 5 years from payment of: -customs duties; -value added tax; -profit tax.
The enterprises engaged in the full cycle of processing cotton fiber into the final product are exempted for up to 12 years from payment of: -profit tax; -real estate tax;
-customs duties for the import of goods for own needs of the enterprise.
Delivery, including for export, of the following goods is exempted from value added tax:
-precious metals and stones; -jewelry from precious metals and stones; -primary aluminum; -metal concentrates; -commercial ore;
-ferrous and non-ferrous scrap metals; -other metals produced in the Republic of Tajikistan.
Import of production and manufacturing equipment and components for the creation of a full production cycle are exempted from payment of: -customs duty; -value added tax.
The zero rate of import customs duty for the import of goods originating from the member states of the Eurasian Economic Community and Ukraine.
The lowered rate of the import customs duty at a rate of fifty percent of the approved rates is valid for the import of goods originating from the least developed countries.
For the construction of a hydroelectric power plant, the investor and the general contractor are fully or partially exempted from payment of: -value added tax; -road tax;
-profit tax (tax payable on a simplified system); -vehicle tax; -real estate tax;
-social tax in respect of foreign citizens directly engaged in the construction of HPP.
Import of goods for the construction of hydroelectric power plants, which are especially important objects, is exempted from customs duties.
When constructing a hydroelectric power plant, the investor and the general contractor are fully or partially exempted from paying the state duty for the registration of prospectuses of non-state securities carried out in connection with the construction of a hydroelectric power plant.
Newly established enterprises operating in the field of tourism are exempted from payment of profit tax for a period of 5 years.
Import of equipment and building materials for tourist facilities is exempted from the payment of value added tax and customs duties.
The activities of securities market entities in Tajikistan are exempt from payment of profit tax and value added tax for a period of 5 years.
Investors receiving income from circulation of securities on the stock exchange of Tajikistan are exempted from income tax and tax on dividends for a period of 5 years.
Import of medicines, medical, pharmaceutical equipment and medical instruments is exempted from VAT and customs duties.
Legislation of the Republic of Tajikistan guarantees equal rights to both domestic and foreign investors, and protects their property from nationalization and requisition. Investors have open access to the real sectors of the economy, and also have the right to carry out exploration, processing and exploitation of the natural resources of the Republic of Tajikistan.
Moreover, investors are guaranteed the right to freely transfer abroad income and salaries in foreign currency, obtained legally from investment and production activities. In case if the subsequent legislation of the Republic of Tajikistan will lead to an increase of the aggregate tax burden to the investor's activity, then within ten years they are given a guarantee of applying the legislation that was in effect at the time of registration of the enterprise.
When carrying out reinvesting, the investors fully make use of legal protection, guarantees and privileges established by the legislation of the Republic of Tajikistan.
The investment agreement may specify a special regime of implementation of the investment project and provide the investor with certain privileges, not stipulated by the legislation of the Republic of Tajikistan. The Government of the Republic of Tajikistan guarantees compliance with and implementation of the provisions of the investment agreement by all government bodies responsible for implementing the investment agreement.
One of the effective incentives for the attraction of investments is the creation and operation of free economic zones.
For the purpose of provision of favourable conditions for attracting foreign investments and support of the private sector, four free economic zones were created in Tajikistan:
Dangara FEZ, with a total area of 521 hectares (Khatlon region),
Sughd FEZ, with a total area of 320 hectares (Sughd province),
Pyanj FEZ, with a total area of 401 hectares (Khatlon region)
Ishkoshim FEZ, with a total area of 200 hectares (GBAO).
Currently about 70 entities operate in free economic zones, which are exempted from all types of taxation, except for income and social taxes. During the activity of free economic zones, investments worth $160 million were attracted to the economy of Tajikistan.
In accordance with the legislation of the republic, the import of production and construction equipment into the territory of free economic zones is carried out without levying customs duties and taxes.
Taxes and customs duties are not levied and economic prohibitions and restrictions are not applied, when exporting goods from the territory of the free economic zone outside the Republic of Tajikistan.
The annual rent for one square meter of the land plot is $1.