The Ministry of Economic Development and Trade of the Republic of Tajikistan informs the citizens of the country that the Agency for Innovation and Digital Technologies under the President of the Republic of Tajikistan has initiated a pilot project in the field of taxation of individual entrepreneurs.
At the current stage of the economic development of the Republic of Tajikistan, when the National Development Strategy of the Republic of Tajikistan for the period up to 2030 identifies the improvement of the tax system, the development of entrepreneurship, and the expansion of the digital economy as priority areas, the implementation of this pilot project represents an important and timely step.
The Ministry of Economic Development and Trade of the Republic of Tajikistan, explaining the essence of this initiative, emphasizes that the project is being implemented in the interests of the population and entrepreneurs and is aimed at achieving the following main objectives:
Creating favorable conditions for the activities of individual entrepreneurs;
Simplifying taxation procedures and reducing the volume of paperwork;
Promoting the development of cashless payments and the digital economy.
With the implementation of this pilot project, individuals who are actually engaged in entrepreneurial activities but have not yet been registered as individual entrepreneurs will be integrated into the formal sector of the economy.
Main Advantages of the Project for Entrepreneurs and Citizens
Within the framework of the pilot project, the tax rate for individual entrepreneurs has been reduced by half — from the previous 6 percent to 3 percent. This decision will allow entrepreneurs to allocate a larger share of their income toward expanding their activities, improving the quality of services provided, and creating new jobs.
The new system is digital and automated in nature. Entrepreneurs are relieved from the need to complete complicated tax declarations, perform manual calculations, and repeatedly apply to tax authorities. Tax calculation is carried out automatically on the basis of actual transactions conducted through electronic wallets.
One of the project’s innovations is the refund of 1 percent of the tax amount to the buyer’s (payer’s) account.
Information on newly registered individual entrepreneurs is entered into the Unified State Register of Legal Entities and Individual Entrepreneurs. The certificate confirming state registration is provided electronically through the taxpayer’s personal account.
Which Transactions ARE NOT SUBJECT TO TAXATION
Taking into account the possibility of misunderstandings among citizens, the Ministry of Economic Development and Trade informs that this pilot project does not apply to ordinary transactions between citizens, namely: transfers of funds between family members, transfers between relatives, transfers between citizens that are not commercial in nature, friendly assistance, gifts, and family compensations are not subject to taxation.
Only transactions that clearly demonstrate signs of entrepreneurial activity are recognized as commercial transactions — for example, if more than 80 payments from different individuals are received to one person’s account within one month.
The pilot project on the taxation of individual entrepreneurs does not represent an additional burden on the population, but rather a new incentive within the country’s tax system.
In this regard, users of electronic wallets are encouraged to actively use electronic payment instruments without any concerns or apprehension.
