Investment climate

Thanks to efforts of the Government of the Republic of Tajikistan,there is created favorable conditions for attraction of foreign investments, supports of market structures and development of commercial, financial and bank system in the country.
There was taken essential step towards deepening of economic reforms, reconstruction of national economy, strengthening and development of international contacts and integration into world economy.
There are liberalized foreign trade, pricing and currency transactions. There is functioning universal commodity-raw stock exchange and interbank currency market.
Now there is preparation works for entry of the Republic into the World Trade Organization.
Republic of Tajikistan laws «About foreign investments into Republic Tajikistan», «About foreign trade activities», «About Joint-stock companies», «About concessions» provide protection of the rights, interests,property of foreign investors and create a strong legal basis for implementation of commercial activity, stimulate participation of foreign investors in privatization of objects of national economy on equal rights with citizens of Tajikistan.
For foreigners and enterprises with foreign investments the rights to carry out any kinds of activity which has been not forbidden by the legislation of the Republic of Tajikistan, reinvest profit are given and also rights of land use, including its rent. Also, it gives the rights independently to fix the prices for production made by them, to define an order of its sale and to choose suppliers of production, to obtain safety stock and other stocks, to carry out investigation, development and operation of natural resources of an economic zone of the Republic of Tajikistan.
The Republic of Tajikistan laws protect foreign investors and the enterprises with foreign investments from nationalization, requisition and other violent acts.
Export of goods (works, services) in republic is taxed on VAT under the zero rates (except for export to the countries which do not apply in relation to the Republic of Tajikistan of the similar mechanism of taxation).
During implementation of reinvestment, foreign investors use in full legal protection, guarantees and the privileges established by legislation of the Republic of Tajikistan. In case the subsequent legislation of the Republic of Tajikistan will lead to increase in cumulative tax loading to activity of foreign investor and enterprises with foreign investments then during 10 years are given to them a guarantee of application of the legislation operating at the moment of registration of the enterprise.
The taken measures by Government of the Republic of Tajikistan give the chance wide attraction of foreign investments into various branches of national economy.
Tax and Customs Code, accepted in 2004 provide exemption of VAT and customs duties payment for industrial-process equipment and add-in products, imported by enterprises with foreign investments into Tajikistan for formation and replenishment ofstatutory fund of enterprise.
According to the operating Tax Code, the created enterprises with the foreign investments, occupied in sphere of production of goods on the stipulation that paid share of the foreign investor in statutory fund exceeds 30 % and volume of foreign investments makes from 100 thousand USDup to 5 million USD, thenwill be given preferential tax mode. That is, such enterprises are exempted from profit tax from 2 till 5 years from the moment of getting ofbalance profit. The given privileges not linked with enterprises which are working with investigation and use of natural resources.
In its turn, taking into account sustainable development of national economy branches, the certain measures for improvement of investment climate were taken by Republic of Tajikistan’s Government last years. In particular, taking into account development of power and industrial branches for the purpose of creation favorable conditions for foreign investors the Republic of Tajikistan’ Law «About modification and additions and in Tax Code of the Republic of Tajikistan» from December 26, 2005 №114 had been brought a number of additions and changes in the Tax Code of Republic Tajikistan.
According to the given Law the Tax Code is added new chapters 49 and 50 where is provided the favorabletaxation forconstruction of hydro power plants and also enterprises occupied with a full cycle of processing of lint cottoninto end production (from a cotton yarn up to cotton apparel).
Also,for purposes ofaccelerated construction of objects which promotes development of tourism, creation of full cycle of processing of cotton lint into end production there was accepted governmental order of the Republic of Tajikistan dated on February 15, 2006 № 80 «About delay for payment of taxes in connection with construction of objects in Dushanbe city».
The investment legislation of the Republic of Tajikistan is directed on activation, stimulation and state support of investments by means of fair, equal legal regime and provision of protection of investor’s rights in territory of the country.