Draft Tax Code amendments: new VAT and simplified regime thresholds

By Resolution No. 441 of 26 June 2026 the Government of the Republic of Tajikistan approved the draft Law on Amendments and Additions to the Tax Code and submitted it to the Majlisi Namoyandagon, the lower house of parliament. The draft touches several dozen articles of the Code. Below are the changes that matter to most companies.

VAT registration threshold: 3 million somoni

At present a person becomes a VAT payer once its total income for a period of no more than 12 full consecutive calendar months exceeds 1 million somoni (Article 245(1) of the Tax Code). The draft replaces this figure with 3 million somoni.

Simplified regime: up to 7 million somoni and new rates

The income limit for the simplified regime would rise from 1 million to 7 million somoni (Article 374(1)). Under the proposed wording of Article 380, rates depend on total income for 12 calendar months:

Taxpayers with income between 3 million and 7 million somoni would have to calculate the tax only on income minus allowed deductions (proposed Article 374(4)). The switch takes place from the first day of the month following the month in which gross income reached or exceeded 3 million somoni (proposed Article 375(5)).

For simplified-regime taxpayers with income above 3 million somoni the draft lists an exemption from income tax only. VAT is not in that list (proposed Article 374(6)).

Who would lose access to the simplified regime

The list of those who may not use the simplified regime (Article 375(2)) would be extended. The draft names, among others:

• branches and representative offices of foreign persons;
• consulting, audit and marketing services;
• construction of residential and non-residential buildings;
• financial leasing;
• production and sale of medicines;
• security companies;
• markets and large shopping centres, including leased ones;
• state unitary enterprises;
• transport and logistics services organising passenger and cargo carriage;
• catering, retail and service outlets where the total area of their real estate exceeds 100 square metres.

The first item matters for companies with foreign ownership: if the draft is adopted as it stands, a branch or representative office of a foreign person will not be able to use the simplified regime.

Corporate income tax: rate for producers of goods

Since 1 January 2026 the corporate income tax rate for the production of goods has been 18% (Article 397(13)). The draft proposes 15%. At the same time, production of goods connected with the extraction of natural resources, or with the processing of natural resources extracted in Tajikistan (the draft mentions cement and antimony), would move to the 20% rate (amendments to Article 183(4)).

E-commerce: a separate regime

The draft adds a chapter on the taxation of e-commerce. The regime applies on application. The conditions include settlements through bank accounts and consent for the tax authorities to access information on them. The tax rate is 3% of the tax base: gross income from e-commerce in the taxpayer’s own goods, or income from services for supplying other persons’ goods. The return is filed monthly, no later than the 15th of the following month, and the annual return and balance sheet by 1 April of the following year.

Remote services of foreign persons

Another new chapter deals with the taxation of remote services provided by foreign persons. Where such services are provided to legal entities of Tajikistan and to permanent establishments of foreign legal entities, the buyers are treated as tax agents. This chapter would enter into force on 1 January 2029.

When the changes take effect

Under Article 2 of the draft, the law enters into force one month after its official publication. We do not know when parliament will consider the draft. We will update this article once the law is adopted.

What businesses should do now

• Do not change your accounting in advance: until the law is adopted, the current thresholds and rates apply.
• Calculate your income for the last 12 months and see which group the company would fall into under the new thresholds.
• Check whether your activity is on the extended list of exclusions from the simplified regime.
• Branches and representative offices of foreign companies should assess working under the general tax regime in advance.

The current rules are described in our articles on the simplified regime and the VAT rate from 2027.

Questions and answers

ROMB Accounting teamProvisions checked against the official Adlia legal database.

This article is for information only and reflects the law as of the publication date. Before making decisions, check the current wording of the law or contact us for advice.