Despite regional instability and global inflation, Tajikistan had strong economic growth and record-low inflation in 2022.
Economic activity was bolstered by remittances flows and expanded services and industrial production.
Real GDP expanded by 8% in 2022, following the recovery of 2021.
Tajikistan's prudent monetary policy and appreciation of the exchange rate have enabled the country to attain the lowest inflation rate in the region.
By end-2022, consumer price inflation had dropped to a mere 4.2%, and the trend continued well into the first half of 2023.
Despite rising consumer imports, the external position remained strong thanks to migrant transfers and foreign investments.
International reserves sharply increased and now cover more than nine months of imports.
Tajikistan Finland Double Tax TreatyOctober 2013
The double tax treaty of 2012 between the two countries entered into force on September 5, 2013 applying from January 1, 2014.
According to the tax treaty the tax withholding rate for payments of dividends is 5%/15% depending on the percent of shareholding by the recipient.
The tax withholding rate for interest is 0%/10% and 5% for payment of royalties.
In general double tax treaties between two countries are boosting mutual investments between the countries offering reduced tax withholding rates from payments of dividends, interest and royalties.
The tax treaty often includes an exchange of tax information clause and definition of a permanent establishment for activities carried in the other country.
It also clarifies certain cross border tax issues.
E.g the treaty would define in what country tax is to be paid when a service supplier/consultant from country A provides services in country B.
In some treaties there is a tax credit under certain terms. e.g. an exemption to a consultant from country A of X dollars per each day of staying in country B in order to supply the taxable services.
Tajikistan Switzerland New DTAJune 2010
Tajikistan and Switerland signed on June 23, 2010 a new double tax agreement.
The agreement will contribute to the development of bilateral economic relations between the two countries.
The DTA includes, inter-alia, an extended administrative assistance clause in accordance with the OECD standard and tax withholding rates for payments of dividend, interest and royalties.
The double tax agreement has to be ratified by both coutries.
The date for entry into force is from 1 January of the calendar year following the date of ratification.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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