World Bank Document€¦ · Ease of Doing Business in Tajikistan Region Europe & Central Asia Income Category Low income Population 8,921,343 City Covered Dushanbe DB 2019 Rank 190

Economy Profile

Tajikistan

TajikistanDoing Business 2019

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Economy Profile of Tajikistan

Doing Business 2019 Indicators(in order of appearance in the document)

Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the qualitycontrol and safety mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of theelectricity supply and the transparency of tariffs

Registering property Procedures, time and cost to transfer a property and the quality of the land administrationsystem

Getting credit Movable collateral laws and credit information systems

Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance

Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations aswell as post-filing processes

Trading across borders Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of thelegal framework for insolvency

Labor market regulation Flexibility in employment regulation and aspects of job quality


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About Doing Business

The project provides objective measures of business regulations and their enforcement across 190 economies and selectedcities at the subnational and regional level.

Doing Business

The project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applyingto them through their life cycle.

Doing Business

captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitativeindicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. alsomeasures features of labor market regulation. Although does not present rankings of economies on the labor marketregulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it doespresent the data for these indicators.

Doing Business

Doing BusinessDoing Business

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves

as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.Doing Business

In addition, offers detailed , which exhaustively cover business regulation and reform in different cities andregions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improveperformance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or regionand with the 190 economies that has ranked.

Doing Business subnational reports

Doing Business

The first report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator setsand 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies thathave a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, theRussian Federation and the United States) where also collected data for the second largest business city. The data for these11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback fromgovernments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improvingthe regulatory environment for business around the world.

Doing Business

Doing Business

More about (PDF, 5MB)Doing Business


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http://www.doingbusiness.org/en/reports/subnational-reports

http://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB19-Chapters/DB19-About-Doing-Business.pdf

Ease of Doing Business in

TajikistanRegion Europe & Central Asia

Income Category Low income

Population 8,921,343

City Covered Dushanbe

DB 2019 Rank190 1

126

DB 2019 Ease of doing business score0 100

57.11

DB 2019 Ease of Doing Business Score

0 10077.89: Kazakhstan (Rank: 28)

77.37: Russian Federation (Rank: 31)

73.54: Moldova (Rank: 47)

72.34: Regional Average (Europe & Central Asia)

68.33: Kyrgyz Republic (Rank: 70)

57.11: Tajikistan (Rank: 126)

Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economiesin the sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100represents the best performance. The ease of doing business ranking ranges from 1 to 190.

Doing Business

Rankings on Doing Business topics - Tajikistan

Startinga

Business

Dealingwith

ConstructionPermits

GettingElectricity

RegisteringProperty

GettingCredit

ProtectingMinorityInvestors

PayingTaxes

TradingacrossBorders

EnforcingContracts

ResolvingInsolvency

1

28

55

82

109

136

163

190

Rank

60

135

173

91

124

38

136148

61

146

Ease of Doing Business Score on Doing Business topics - Tajikistan

Startinga

Business

Dealingwith

ConstructionPermits

GettingElectricity

RegisteringProperty

GettingCredit

ProtectingMinorityInvestors

PayingTaxes

TradingacrossBorders

EnforcingContracts

ResolvingInsolvency

0

20

40

60

80

100

Scor

e

90.70

61.26

34.74

63.86

40.00

66.6761.35 59.06 62.56

30.90


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Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limitedliability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, uses a standardized business that is 100% domestically owned, hasstart-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers twotypes of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and theother by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting abusiness. These scores are the simple average of the scores for each of the component indicators.

Doing Business

The most recent round of data collection for the project was completed in May 2018. .See the methodology for more information

What the indicators measure

Procedures to legally start and formally operatea company (number)

Preregistration (for example, name verification orreservation, notarization)

•

Registration in the economy’s largest businesscity

•

Postregistration (for example, social securityregistration, company seal)

•

Obtaining approval from spouse to start abusiness or to leave the home to register thecompany

•

Obtaining any gender specific document forcompany registration and operation or nationalidentification card

•

Time required to complete each procedure(calendar days)

Does not include time spent gatheringinformation

•

Each procedure starts on a separate day (2procedures cannot start on the same day)

•

Procedures fully completed online are recordedas ½ day

•

Procedure is considered completed once finaldocument is received

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No prior contact with officials•Cost required to complete each procedure (% ofincome per capita)

Official costs only, no bribes•No professional fees unless services required bylaw or commonly used in practice

•

Paid-in minimum capital (% of income percapita)

• Funds deposited in a bank or with third partybefore registration or up to 3 months afterincorporation

Case study assumptions

To make the data comparable across economies, several assumptions about thebusiness and the procedures are used. It is assumed that any required information isreadily available and that the entrepreneur will pay no bribes.

The business:

- Is a limited liability company (or its legal equivalent). If there is more than one typeof limited liability company in the economy, the most common among domestic firmsis chosen. Information on the most common form is obtained from incorporationlawyers or the statistical office.- Operates in the economy’s largest business city. For 11 economies the data arealso collected for the second largest business city.- The entire office space is approximately 929 square meters (10,000 square feet).- Is 100% domestically owned and has five owners, none of whom is a legal entity;has a start-up capital of 10 times income per capita and has a turnover of at least100 times income per capita.- Performs general industrial or commercial activities, such as the production or saleof goods or services to the public. The business does not perform foreign tradeactivities and does not handle products subject to a special tax regime, for example,liquor or tobacco. It does not use heavily polluting production processes.- Leases the commercial plant or offices and is not a proprietor of real estate and theamount of the annual lease for the office space is equivalent to the income percapita.- Does not qualify for investment incentives or any special benefits.- Has at least 10 and up to 50 employees one month after the commencement ofoperations, all of whom are domestic nationals.- Has a company deed that is 10 pages long.

The owners:

- Have reached the legal age of majority. If there is no legal age of majority, they areassumed to be 30 years old.- Are sane, competent, in good health and have no criminal record.- Are married and the marriage is monogamous and registered with the authorities.- Where the answer differs according to the legal system applicable to the woman orman in question (as may be the case in economies where there is legal plurality), theanswer used will be the one that applies to the majority of the population.


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http://www.doingbusiness.org/en/methodology/starting-a-business

Starting a Business - Tajikistan

Figure – Starting a Business in Tajikistan and comparator economies – Ranking and Score

DB 2019 Starting a Business Score

0 100




92.96: Kazakhstan (Rank: 36)



Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scoresare the simple average of the scores for each of the component indicators.

Standardized Company

Legal form Private Limited Liability Company

Paid-in minimum capital requirement TJS 0


Indicator Tajikistan Europe &Central Asia

OECD highincome

Best RegulatoryPerformance

Procedure – Men (number) 4 5.2 4.9 1 (New Zealand)

Time – Men (days) 11 12.9 9.3 0.5 (New Zealand)

Cost – Men (% of income per capita) 18.0 4.6 3.1 0.0 (Slovenia)

Procedure – Women (number) 4 5.2 4.9 1 (New Zealand)

Time – Women (days) 11 12.9 9.3 0.5 (New Zealand)

Cost – Women (% of income per capita) 18.0 4.6 3.1 0.0 (Slovenia)

Paid-in min. capital (% of income per capita) 0.0 2.3 8.6 0.0 (117 Economies)


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Figure – Starting a Business in Tajikistan – Procedure, Time and Cost

This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.*

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men andwomen, the graph shows the time for women. For more information on methodology, see the website( ). For details on the procedures reflected here, see the summary below.

Doing Businesshttp://doingbusiness.org/en/methodology

Procedures (number)1 2 3 4

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http://doingbusiness.org/en/methodology

Details – Starting a Business in Tajikistan – Procedure, Time and Cost

Takes place simultaneously with previous procedure.

No. Procedures Time to Complete Associated Costs

1 Pay and obtain receipt confirming the payment of the registration fee: AmonatbankAgency

The registration fees need to be paid in the office of Amonatbank located underthe legal address of LLC.

The proof of payment of the (1) company registration fee and (2) printing of theRegistration Extract should be submitted to the one stop shop as part of thedocuments for registering a company.

1 day included in procedure2

2 Register the company with the State Registration of Legal Entities andIndividual Entrepreneurs (“one stop shop”) and obtain state registrationcertificate, Statistics Code and Tax Identification Number (TIN)

: Tax AuthorityAgencyIn accordance with Article 5 of the Law of RT #508 "On State Registration ofLegal Entities and Individual Entrepreneurs" dated May 19, 2009 the Taxauthority is responsible for registration of legal entities.The following documents should be submitted for registration at the one-stopshop:

- application;- decision on establishment Company in Tajikistan;- copy of ID document and Tax Clearance Certificate of each shareholder, whenshareholders are fisical persons;- copy of certificates of registration of shareholders and Tax ClearanceCertificate, when shareholders are legal entities- copy of ID document of applicant;- copy of document confirming legal adress of the company;- proof of payment of state duty.In practice, registration body asks for additional documents which are notstipulated by the Law.

In accordance with Article 10 of Law of RT 3508 the registration should becompleted within five working days from the moment of submission ofdocuments. Since the amendments to the Law of the Republic of Tajikistan "OnState Registration of Legal Entities and Individual Entrepreneurs", uponregistration, entrepreneurs obtain a single registration number, a TIN, a statisticcode and the SIN (Social Protection and Pension number).

According to the Article 4.5.1) of the Law on State Duty, the amount of state dutylevied upon registration of an LLC is equal to 25 calculation indexes. Accordingto Article 6.2 of the Law on State Registration of Legal Entities and IndividualEntrepreneurs, the amount of state duty levied for the extract summarizinginformation about the registered entity is equal to 2 calculation indexes.

Article 23 of the Law on State Budget for 2018 (adopted on November 16, 2017and enforced on January 1, 2018) has established the calculation index inamount of 50 somoni, keeping it at the same level as in 2017. The calculation offees is therefore (25 * TJS 50 + 2 * TJS 50) = TJS 1,350.

5 days TJS 1,250 State duty+ TJS 100 (fee for theextract summarizinginformation about theregistered entity)

3 Make a company seal: SealmakerAgency

The company seal is required for companies to perform its regular activities andenter in legal relationships – all contracts and agreements, together with anyother documents that should have legal force, should be stamped by thecompany’s seal. While the use of corporate seal is not mandated by law, inpractice the seal stamp is needed to sign agreements, issue invoices, etc.

2 days TJS 70

4 Obtain SIN (insurance identification number) at the Agency for SocialProtection and Pension

: Agency for Social Protection and PensionAgencyOnce a business is registered with the “one stop shop” it has to obtain a SIN atthe Agency for Social Protection and Pension. Legal entities must register withthe Social Fund within 30 days of state registration.

3 days no charge


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Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting allrequired notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing withConstruction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength ofquality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round ofdata collection was completed in May 2018. See the methodology for more information


Procedures to legally build a warehouse(number)

Submitting all relevant documents and obtainingall necessary clearances, licenses, permits andcertificates

•

Submitting all required notifications and receivingall necessary inspections

•

Obtaining utility connections for water andsewerage

•

Registering and selling the warehouse after itscompletion

•



•

Each procedure starts on a separate day—though procedures that can be fully completedonline are an exception to this rule

•


•

No prior contact with officials•Cost required to complete each procedure (% ofincome per capita)

Official costs only, no bribes•Building quality control index (0-15)

Quality of building regulations (0-2)•Quality control before construction (0-1)•Quality control during construction (0-3)•Quality control after construction (0-3)•Liability and insurance regimes (0-2)•Professional certifications (0-4)•


To make the data comparable across economies, several assumptions about theconstruction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

- Is a limited liability company (or its legal equivalent) and operates in the economy’slargest business city. For 11 economies the data are also collected for the secondlargest business city.- Is 100% domestically and privately owned; has five owners, none of whom is alegal entity. Has a licensed architect and a licensed engineer, both registered withthe local association of architects or engineers. BuildCo is not assumed to have anyother employees who are technical or licensed experts, such as geological ortopographical experts.- Owns the land on which the warehouse will be built and will sell the warehouseupon its completion.

The warehouse:

- Will be used for general storage activities, such as storage of books or stationery.- Will have two stories, both above ground, with a total constructed area ofapproximately 1,300.6 square meters (14,000 square feet). Each floor will be 3meters (9 feet, 10 inches) high and will be located on a land plot of approximately929 square meters (10,000 square feet) that is 100% owned by BuildCo, and thewarehouse is valued at 50 times income per capita.- Will have complete architectural and technical plans prepared by a licensedarchitect. If preparation of the plans requires such steps as obtaining furtherdocumentation or getting prior approvals from external agencies, these are countedas procedures.- Will take 30 weeks to construct (excluding all delays due to administrative andregulatory requirements).

The water and sewerage connections:

- Will be 150 meters (492 feet) from the existing water source and sewer tap. If thereis no water delivery infrastructure in the economy, a borehole will be dug. If there isno sewerage infrastructure, a septic tank in the smallest size available will beinstalled or built.- Will have an average water use of 662 liters (175 gallons) a day and an averagewastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300gallons) a day.- Will have a constant level of water demand and wastewater flow throughout theyear; will be 1 inch in diameter for the water connection and 4 inches in diameter forthe sewerage connection.


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http://www.doingbusiness.org/en/methodology/dealing-with-construction-permits

Dealing with Construction Permits - Tajikistan

Figure – Dealing with Construction Permits in Tajikistan and comparator economies – Ranking and Score

DB 2019 Dealing with Construction Permits Score

0 100







Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing withconstruction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Tajikistan – Procedure, Time and Cost




Procedures (number)1 * 2 * 3 * 4 * 5 * 6 * 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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Time (days) Cost (% of warehouse value)

Standardized Warehouse

Estimated value of warehouse TJS 394,395.20



OECD highincome


Procedures (number) 25 16.0 12.7 None in 2017/18

Time (days) 182 170.1 153.1 None in 2017/18

Cost (% of warehouse value) 2.0 4.0 1.5 None in 2017/18

Building quality control index (0-15) 12.0 12.0 11.5 15.0 (3 Economies)


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Figure – Dealing with Construction Permits in Tajikistan and comparator economies – Measure of Quality

Tajikistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia

0

5

10

15

Inde

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12.013.0

11.012.0

14.0

12.0

Details – Dealing with Construction Permits in Tajikistan – Procedure, Time and Cost


1 Request and obtain project design permit: Local Authority-Hukumat of DushanbeAgency

BuildCo has to apply to Hukumat (Municipality) of Dushanbe city for allocation ofland plot for building a warehouse. The Hukumat coordinates the land allocationprocess with the Department of Architecture and Construction of Dushanbe Citywhich prepares the project design permit. The Department of Architecture andConstruction of Dushanbe City sends the project design permit back to Hukumat.At this point, BuildCo will need to coordinate/receive approvals from all theagencies that must approve the project at later stages (for example, electricitycompany, water company, fire safety, etc.).

30 days no charge

2 Request and obtain environmental project clearance from theEnvironmental Protection Agency

: Environmental Protection AgencyAgencyBuildCo must obtain a permit for air pollutant emissions and waste disposal afterenvironmental clearance has been obtained. Although official tariffs have beenadopted and collected, they are not published, disclosed in full to applicants, orregistered with the Ministry of Justice as required by law.

The statutory time limit is 30 days. The applicable legislation is the Order of theState Environmental Review, approved by the Gov. Resolution №697 from3.12.2012.

30 days TJS 200

3 Request and obtain technical conditions for water connection from theWater and Sewerage Agency

: Dushanbe Water and Sewerage CompanyAgencyWhile the Assignment is being prepared technical conditions for water connectionhave to be obtained. Water services are requested in writing by filling out theapplication form.

10 days no charge

4 Request and obtain Architecture Planning Assignment: Chief Architect of the City of DushanbeAgency

According to the regulations, construction companies must obtain thearchitectural planning assignment ("Assignment") at this stage. A site visit mightbe required to prepare the Assignment. However, in most of the cases norepresentative of a construction company has to be present during the site visit.

Documents which have to be submitted to obtain the Assignment are:• The Act on the Selection of the Land Plot and the Decision on the Project• Assignment for the project put together by a project design firm hired by theclient and the client himself

10 days TJS 1,000

5 Request and obtain project clearance from State Sanitary Hygienic Serviceunder the Ministry of Health

: State Sanitary Hygienic Service (Ministry of Health)AgencyAlthough official tariffs have been adopted and collected, they are not published,disclosed in full to applicants, or registered with the Ministry of Justice asrequired by law.

The applicable legislation is Articles 9, 13, 25, and 26 of the Regulation of theGovernment on the Order of Registration, Drawing and Issuing of SanitaryHygienic Conclusion, No. 139 (dated March 31, 2004).

10 days TJS 150

6 Request and obtain project clearance from the Dushanbe Water andSewerage Agency

: Dushanbe Water and Sewerage AgencyAgencyThe applicable legislation is the Rules of connection to utilities and publicservices, approved by the Resolution of the Government of the Republic ofTajikistan on June 3, 2014, №354.

10 days TJS 100


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7 Request and obtain fire safety project clearance from the State Anti-FireAgency under the Ministry of Domestic Affairs

: State Anti-Fire Agency (Ministry of Domestic Affairs)AgencyThe approval is granted with technical requirements to be complied with.Although official tariffs have been adopted and collected, they are not published,disclosed in full to applicants, or registered with the Ministry of Justice asrequired by law.

The applicable legislation is the Law № 363 "On Fire Safety" as of 20 March2009.

7 days TJS 150

8 Request and obtain approval of project design drawings by Constructionand Architecture Department

: Construction and Architecture Department under State Committee onConstruction and ArchitectureAgency

Approval is granted in the form of a Consolidated Expert Approval of the Project.

The tariffs have been approved by the State Committee on Construction andArchitecture under the Government in June 14, 2007 under which payment forthe expertise is calculated based on the design estimate. In our case, it iscalculated as 15% of the design project cost, which is assumed to beapproximately 10% of the value of the warehouse.

The applicable legislation is the Code of Norms and Rules of the Republic ofTajikistan, Structure and the Order of Development, Concordance and Approvalof Project Estimates on Construction of Buildings, registered in the Ministry ofJustice, No. 199 (dated April 25, 2006); Valuation of Works on Holding StateExpertise of Design Estimates, on Major and Current Repairs of ObjectsIrrespective the Sources of Finance and Forms of Enterprise Property, approvedby the Chairman of the Committee on Architecture and Construction under theGovernment (dated September 20, 2002).

Government Resolution #282 on May 6, 2009 changed the statutory time limit to20 working days for constructions over 1,000 cubic meters. However, in practiceit takes more than stipulated time limit.

30 days TJS 5,916

9 Request and obtain final project clearance from the Construction andArchitecture Department

: Construction and Architecture Department under State Committee onConstruction and ArchitectureAgency

On June 14, 2007 a new normative legal act "Prices for State Expertise andProject Design Estimates" was approved upon which the rate of 0.11% is appliedon the project design value. The project design value in our case is 10% ofoverall construction cost. The Construction and Architecture Department of theState Committee on Construction and Architecture, after considering all theclearances from the above agencies, issues a permit for the start of constructionwork.

The applicable legislation is the Regulation of the Government of Republic ofTajikistan, Provision on Agencies Involved in State Construction Inspection, No.553 (dated December 25, 1997); Articles 1.1, 2.6, 2.7, and 2.9 of the Regulationof the Chairman of Dushanbe City, On Applying a Simple Mechanism ofReceiving and Reviewing of Applications Submitted by Legal Entities andPhysical Persons with Regard to Construction, Architecture, and Land Allocation;The order of administrative procedures related to the construction activities inTajikistan, validated by the Government Resolution №282 from 6.05.2009.

20 days TJS 43

10 Receive a periodic inspection from the Sanitary Hygienic Service: Sanitary Hygienic ServiceAgency

Periodic inspections occur during construction at the discretion of the authorityand without prior notice. BuildCo does not request these inspections.

The applicable legislation is Regulation of the Government of Republic ofTajikistan on Approving the Order of Registration, Drawing and Issuing ofSanitary Hygienic Conclusion, No. 139 (dated March 31, 2004); Provision onState Sanitary Hygienic Services of Republic of Tajikistan, Regulation of theGovernment of Republic of Tajikistan, Provision on Agencies Involved in StateConstruction Inspection, No. 553 (dated December 25, 1997).

1 day no charge

11 Receive a periodic inspection from the Fire Safety Agency: Fire Safety AgencyAgency

Periodic inspections occur during construction at the discretion of the authorityand without prior notice. BuildCo does not request these inspections.

The applicable legislation is the Law on Fire Safety, No. 995 (dated July 21,1994), Regulation on State Fire Control, dated December 1, 1995; Regulation ofthe Government of RT, Provision on Agencies Involved in State ConstructionInspection, No. 553, dated December 25, 1997.

1 day no charge


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12 Receive a periodic inspection from the Ministry of EnvironmentalProtection

: Ministry of Environmental ProtectionAgencyPeriodic inspections occur during construction at the discretion of the authorityand without prior notice. BuildCo does not request these inspections.

1 day no charge

13 Receive foundation works inspection from the State ArchitectureInspection - Dushanbe City

: State Architecture Inspection - Dushanbe CityAgencyThe applicable legislation is the Regulation of the Chairman of Dushanbe City onApplying a Simple Mechanism of Receiving and Reviewing of ApplicationsSubmitted by Legal Entities and Physical Persons with Regard to Construction,Architecture, and Land Allocation.

Law No .194, as of June 28, 2006 “On Inspections of Business Entities inRepublic of Tajikistan” was amended through List of Inspection Authorities,approved by Resolution (№38/оп) as of 23 May 2008 and registered in Ministryof Justice №426. According to these changes, if an inspection is conducted byone controlling entity (district, city, province or national level) then the otherentities of the same controlling authority are not allowed to inspect the samebusiness within the next two years.

The State Architecture Inspection of Dushanbe inspects the construction processin every major milestone, including foundations, structure, plumbing works androofing works. Once the construction permit the state architecture andconstruction inspection authority registers the newly issued permit forconstruction in the register of new building objects. It also opens a journal ofplanned inspection for the object, which is synchronized with the constructionschedule.

1 day no charge

14 Receive structure works inspection from the State Architecture Inspection -Dushanbe City

: State Architecture Inspection - Dushanbe CityAgencyThe State Architecture Inspection of Dushanbe inspects the construction processin every major milestone, including foundations, structure, plumbing works androofing works. Once the construction permit the state architecture andconstruction inspection authority registers the newly issued permit forconstruction in the register of new building objects. It also opens a journal ofplanned inspection for the object, which is synchronized with the constructionschedule.

1 day no charge

15 Receive plumbing works inspection from the State Architecture Inspection- Dushanbe City


1 day no charge

16 Receive roofing works inspection from the State Architecture Inspection -Dushanbe City


1 day no charge

17 Receive a periodic inspection from the Labor Authority: Labor AuthorityAgency

There is no legal basis for the inspection by this agency, but it occurs in practice.

1 day no charge

18 Request water and sewage connection: Dushanbe Water and Sewerage CompanyAgency

BuildCo has to request water and sewage connection from the Water andSewerage Agency. This procedure is regulated by the Decree of the Governmentof Tajikistan # 354 on "Rules of connection to utilities and public services" fromJune 3, 2014, №354.

1 day no charge

19 Receive inspection for water and sewage connection: Dushanbe Water and Sewerage CompanyAgency

Periodic inspections may occur several times at the discretion of inspectingbodies. There is no legal fee, though there is a penalty for violations.

1 day no charge


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20 Obtain water and sewage connection: Dushanbe Water and Sewerage CompanyAgency

The applicable legislation is Code of Norms and Rules of the Republic ofTajikistan, Structure and the Order of Development, Concordance and Approvalof Project Documents with Regard to Construction of Buildings and Erections,No. 199 (dated April 25, 2006); Water Code of the Republic of Tajikistan No. 34(dated November 29, 2000).

29 days no charge

21 Request and receive a decision by Working Commission: Working CommissionAgency

The Working Commission includes representatives from the customer (BuildCo),general contractors and subcontractors and the general designer.

The applicable legislation is the Regulation of Construction and ArchitectureCommittee under the Government of the Republic of Tajikistan on ApprovingCode of Rules and Norms of the Republic of Tajikistan (dated January 3, 2001);Basic Provisions of Putting into Operation of constructed objects, No. 1 (datedJanuary 4, 2002).

15 days no charge

22 Receive inspection by the State Acceptance Commission: State Acceptance CommissionAgency

1 day no charge

23 Obtain decision of the State Acceptance Commission / final decision of theMayor

: State Acceptance CommissionAgencyThe Chairman of the State Acceptance Commission acts as the representative ofthe city. The decision of the mayor is made based on the commission’s decision.The State Acceptance Commission includes representatives from the city, therayon, the customer (the builder), general contractors and subcontractors, thegeneral designer, the senior architect of the city, the Fire and Sanitary Station,the electric power agency, the Environment Ministry, the water agency, and otherinterested state agencies.

The applicable legislation is the Regulation of the Committee on Architecture andConstruction under the Government of the Government of the Republic ofTajikistan on Approving Code of Norms and Rules (dated January 3, 2004);Basic Provisions of Putting constructed objects into Operation, No. 1 (datedJanuary 4, 2002); and Articles 1.1., 2.6., 2.7., and 2.9 of the Regulation of theChairman of Dushanbe City on Applying of a Simple Mechanism of Receivingand Reviewing of Applications Submitted by Legal Entities and Physical Personswith Regard to Construction, Architecture and Land Allocation, No. 264 (datedJune 12, 2006).

Law No. 380 “On Architecture, Urban Construction and Construction Activities”as of March 2008, introduced two time frames for obtaining the final decision ofthe State Acceptance Commission. Depending on the type of the construction itshould take 30 days for commercial buildings and 10 days for residentialbuildings.

30 days no charge

24 Obtain approval of the Bureau on Technical Inventory (BTI) on acceptanceof building and issuance of technical passport

: Bureau on Technical Inventory (BTI)AgencyThe price list for the technical passport is approved by the Ministry of EconomicDevelopment and Trade of the Republic of Tajikistan on the November 12, 1999,N3/1-382 and approved by the State Company “TajikUtilityServices” on the 26thof November 1999, N262/4 and implemented on the January 1, 2000.

According to the price list, the calculation is computed according to the surfacearea, number of rooms and additional work completed based on worker hours.

15 days TJS 312

25 Register the building: State Committee on LandAgency

Registration of constructions is completed by the Bureau of Technical Inventory.Required documents for submission are the Act on the Allocation of Land for theConstruction and the Construction Acceptance Act.

According to the law, after registration at the Bureau of Technical Inventory anotary issues a certificate certifying the right to property. This certificate is issuedfor immovable property newly constructed. The following documents are requiredto submit to the notary:- Land allocation permit for construction- Decision of the local authorities on the acceptance of the constructed object asfinished- Acceptance act- Note of registration at the Bureau of Technical Inventory.

The cost of the certificate is 2 calculation indices.

1 day TJS 24


Page 14

Details – Dealing with Construction Permits in Tajikistan – Measure of Quality

Answer Score

Building quality control index (0-15) 12.0

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online;Free of charge;In official gazette.

1.0

Which requirements for obtaining a building permit are clearly specified in the buildingregulations or on any accessible website, brochure or pamphlet? (0-1)

List of requireddocuments; Feesto be paid;Requiredpreapprovals.

1.0

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are incompliance with existing building regulations? (0-1)

Licensedarchitect;Licensedengineer.

1.0

Quality control during construction index (0-3) 2.0

What types of inspections (if any) are required by law to be carried out during construction?(0-2)

Inspections by in-house engineer;Inspections atvarious phases.

1.0

Do legally mandated inspections occur in practice during construction? (0-1) Mandatoryinspections arealways done inpractice.

1.0

Quality control after construction index (0-3) 3.0

Is there a final inspection required by law to verify that the building was built in accordancewith the approved plans and regulations? (0-2)

Yes, finalinspection isdone bygovernmentagency; Yes, in-house engineersubmits report forfinal inspection.

2.0

Do legally mandated final inspections occur in practice? (0-1) Final inspectionalways occurs inpractice.

1.0

Liability and insurance regimes index (0-2) 0.0

Which parties (if any) are held liable by law for structural flaws or problems in the buildingonce it is in use (Latent Defect Liability or Decennial Liability)? (0-1)

No party is heldliable under thelaw.

0.0

Which parties (if any) are required by law to obtain an insurance policy to cover possiblestructural flaws or problems in the building once it is in use (Latent Defect Liability Insuranceor Decennial Insurance)? (0-1)

No party isrequired by lawto obtaininsurance .

0.0

Professional certifications index (0-4) 4.0

What are the qualification requirements for the professional responsible for verifying that thearchitectural plans or drawings are in compliance with existing building regulations? (0-2)

Minimum numberof years ofexperience;University degreein architecture orengineering;Passing acertificationexam.

2.0


Page 15

What are the qualification requirements for the professional who supervises the constructionon the ground? (0-2)

Minimum numberof years ofexperience;University degreein engineering,construction orconstructionmanagement;Passing acertificationexam.

2.0


Page 16

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newlyconstructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency oftariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018.

.See the methodology

for more information


Procedures to obtain an electricity connection(number)

Submitting all relevant documents and obtainingall necessary clearances and permits

•

Completing all required notifications andreceiving all necessary inspections

•

Obtaining external installation works and possiblypurchasing material for these works

•

Concluding any necessary supply contract andobtaining final supply

•


Is at least 1 calendar day•Each procedure starts on a separate day•Does not include time spent gatheringinformation

•

Reflects the time spent in practice, with littlefollow-up and no prior contact with officials

•

Cost required to complete each procedure (% ofincome per capita)

Official costs only, no bribes•Value added tax excluded•

The reliability of supply and transparency oftariffs index (0-8)

Duration and frequency of power outages (0–3)•Tools to monitor power outages (0–1)•Tools to restore power supply (0–1)•Regulatory monitoring of utilities’ performance(0–1)

•

Financial deterrents limiting outages (0–1)•Transparency and accessibility of tariffs (0–1)•

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercialwarehouse in case study

•

*Note: measures the price ofelectricity, but it is not included in the ease of doingbusiness score nor the ranking on the ease ofgetting electricity.

Doing Business


To make the data comparable across economies, several assumptions about thewarehouse, the electricity connection and the monthly consumption are used.

The warehouse:

- Is owned by a local entrepreneur and is used for storage of goods.- Is located in the economy’s largest business city. For 11 economies the data arealso collected for the second largest business city.- Is located in an area where similar warehouses are typically located and is in anarea with no physical constraints. For example, the property is not near a railway.- Is a new construction and is being connected to electricity for the first time.- Has two stories with a total surface area of approximately 1,300.6 square meters(14,000 square feet). The plot of land on which it is built is 929 square meters(10,000 square feet).

The electricity connection:

- Is a permanent one with a three-phase, four-wire Y connection with a subscribedcapacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1kilowatt (kW).- Has a length of 150 meters. The connection is to either the low- or medium-voltagedistribution network and is either overhead or underground, whichever is morecommon in the area where the warehouse is located and requires works that involvethe crossing of a 10-meter road (such as by excavation or overhead lines) but are allcarried out on public land. There is no crossing of other owners’ private propertybecause the warehouse has access to a road.- Does not require work to install the internal wiring of the warehouse. This hasalready been completed up to and including the customer’s service panel orswitchboard and the meter base.

The monthly consumption:

- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and thatthere are no electricity cuts (assumed for simplicity reasons) and the monthly energyconsumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.- If multiple electricity suppliers exist, the warehouse is served by the cheapestsupplier.- Tariffs effective in January of the current year are used for calculation of the price ofelectricity for the warehouse. Although January has 31 days, for calculationpurposes only 30 days are used.


Page 17

http://www.doingbusiness.org/en/methodology/getting-electricity

http://www.doingbusiness.org/en/methodology/getting-electricity

Getting Electricity - Tajikistan

Figure – Getting Electricity in Tajikistan and comparator economies – Ranking and Score

DB 2019 Getting Electricity Score

0 100







Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores arethe simple average of the scores for all the component indicators except the price of electricity.

Standardized Connection

Price of electricity (US cents per kWh) 6.4

Name of utility Shabakhoi Barki Shari Dushanbe



OECD highincome


Procedures (number) 9 5.3 4.5 3 (25 Economies)

Time (days) 133 110.3 77.2 18 (3 Economies)

Cost (% of income per capita) 893 325.1 64.2 0.0 (3 Economies)

Reliability of supply and transparency of tariffindex (0-8)

0 5.5 7.5 8.0 (27 Economies)


Page 18

Figure – Getting Electricity in Tajikistan – Procedure, Time and Cost




Procedures (number)1 2 3 4 5 * 6 7 8 9

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120Ti

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Figure – Getting Electricity in Tajikistan and comparator economies – Measure of Quality


0

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Page 19


Details – Getting Electricity in Tajikistan – Procedure, Time and Cost


1 Submit application and await technical conditions: Barki Tojik/Dushanbe City Electrical GridAgency

The customer submits the application for an electricity connection to the CityElectric Grid (Shabakhoi Barki Sahri Dushanbe) stating the amount of power tobe consumed and area where the building is located. The City Electric Grid afteranalyzing the application passes its Technical Proposal to JSHC Barki Tojik.Documents attached to the application: copy of owner’s passport and the permitfrom Hukumat. JSHC Barki Tojik prepares technical conditionsTechnical conditions include the point of connection, allowed load, connectionvoltage and calculation of the connection fee. Five copies of the technicalconditions are prepared and are submitted to the applicant, Dushanbe CityElectric Grid, archive at State Agency at the Energy Supervision and JSHC BarkiTojik.

30 calendar days TJS 0

2 Obtain external inspection and approval of technical conditions: State Agency for Energy SupervisionAgency

State Agency for Energy Supervision inspects the site before the externalconnection works can start. In some cases inspection does not take place,however, in other cases it does.


3 Obtain project design of connection and await its approval: Project design organizationAgency

Once the technical conditions are ready and approved by the State Agency forEnergy Supervision, the electrical engineer develops the project design ofconnection. The project design must be reviewed and cleared by severalagencies, such as the Dushanbe City Electrical Grid "Shabakahoi Barki shahriDushanbe", Ministry of Transport and Communications, Water Agency, State FireServices, State Construction and Architecture Agency and others. A total of 12agencies.

24 calendar days TJS 6,500

4 Obtain excavation permit from Ministry of Transport: Ministry of TransportAgency

If the building is located on the outskirts of the city near big roads the excavationpermit has to be obtained at the Ministry of Transport.


5 Await completion of external works by private electrical contractor: Electrical ContractorAgency

Once the plan is approved an electrical contractor hired by the customer cancomplete external connection works according to the technical conditions. At theend of the works the following documents are prepared by the electricalcontractor: documentation on the running of the 10 kV cable (акт работ попрокладке кабеля 10 кВ), documentation on the testing of the transformer(протокол испытания трансформатора), documentation on the testing of 10 kVcable (протокол испытания кабеля 10 кВ) etc. The electrical contractor alsoinstalls a meter.

Once the external connection works are finished the completed by the electricalcontractor high voltage side of the connection up to the meter point is theresponsibility of the utility for maintenance purposes and from the meter point upto the building is the responsibility of the customer.

35 calendar days USD 8,000

6 Await and receive inspection of meter: Tajik Agency for StandardsAgency

Once the meter is installed the Tajik Agency for Standards checks whether themeter is installed in compliance with the technical rules.

4 calendar days USD 0

7 Await and receive inspection of completed works by State EnergySupervision Service

: State Energy SupervisionAgencyOnce the external connection works are completed the State Agency for EnergySupervision also inspects whether the completed works (internal and external)are in line with the technical conditions and whether the laboratory testing andmeasurements are in order.


8 Await and receive second inspection of completed works by Barki Tochik: Barki TochikAgency

Once the external connection works are completed Dushanbe City Electric Gridsinspects whether the completed works (internal and external) are in line with thetechnical conditions and whether the laboratory testing and measurements are inorder. They prepare specifications of any faults in an inspection report and give atime limit for fixing the faults.



Page 20


9 Sign supply contract and await final connection: Dushanbe City Electrical GridAgency

Once the faults are fixed a visit by an inspector from the State Agency for Energysupervision is requested by the electrical contractor so that the inspector canissue an order to turn on the substation. Once the order is issued by the Agency,the customer submits it to Dushanbe City Electrical Grid (диспетчерскаяслужба). The power is turned on and electricity starts flowing.

After normal functioning of the substation on at least 50% of the load aninspector from the Dushanbe City Electrical Grid fills out an acceptance report(акт приемки учета) where he specifies the type and the number of the meterand the transformer and records the first reading of the meter. Once the report isready the customer concludes a supply contract with the Dushanbe CityElectrical Grid.

22 calendar days USD 20


Page 21

Details – Getting Electricity in Tajikistan – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariffindex.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Answer

Reliability of supply and transparency of tariff index (0-8) 0

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) ..

System average interruption frequency index (SAIFI) ..

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 0

Does the distribution utility use automated tools to restore service? No

Regulatory monitoring (0-1) 0

Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability ofsupply?

No

Financial deterrents aimed at limiting outages (0-1) 0

Does the utility either pay compensation to customers or face fines by the regulator (or both) if outagesexceed a certain cap?

No

Communication of tariffs and tariff changes (0-1) 1

Are effective tariffs available online? Yes

Link to the website, if available online http://www.ams.tj/index.php?option=com_content&view=article&id=22&Itemid=22&lang=ru

Are customers notified of a change in tariff ahead of the billing cycle? Yes


Page 22

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants topurchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the landadministration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparencyof information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection forthe project was completed in May 2018. .See the methodology for more information


Procedures to legally transfer title onimmovable property (number)

Preregistration procedures (for example,checking for liens, notarizing sales agreement,paying property transfer taxes)

•

Registration procedures in the economy's largestbusiness city.

•

Postregistration procedures (for example, fillingtitle with municipality)

•



•

Each procedure starts on a separate day -though procedures that can be fully completedonline are an exception to this rule

•


•

No prior contact with officials•Cost required to complete each procedure (% ofproperty value)

Official costs only (such as administrative fees,duties and taxes).

•

Value Added Tax, Capital Gains Tax and illicitpayments are excluded

•

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)•Transparency of information index (0–6)•Geographic coverage index (0–8)•Land dispute resolution index (0–8)•Equal access to property rights index (-2–0)•


To make the data comparable across economies, several assumptions about theparties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

- Are limited liability companies (or the legal equivalent).- Are located in the periurban area of the economy’s largest business city. For 11economies the data are also collected for the second largest business city.- Are 100% domestically and privately owned.- Have 50 employees each, all of whom are nationals.- Perform general commercial activities.

The property (fully owned by the seller):

- Has a value of 50 times income per capita, which equals the sale price.- Is fully owned by the seller.- Has no mortgages attached and has been under the same ownership for the past10 years.- Is registered in the land registry or cadastre, or both, and is free of title disputes.- Is located in a periurban commercial zone, and no rezoning is required.- Consists of land and a building. The land area is 557.4 square meters (6,000square feet). A two-story warehouse of 929 square meters (10,000 square feet) islocated on the land. The warehouse is 10 years old, is in good condition, has noheating system and complies with all safety standards, building codes and legalrequirements. The property, consisting of land and building, will be transferred in itsentirety.- Will not be subject to renovations or additional construction following the purchase.- Has no trees, natural water sources, natural reserves or historical monuments ofany kind.- Will not be used for special purposes, and no special permits, such as forresidential use, industrial plants, waste storage or certain types of agriculturalactivities, are required.- Has no occupants, and no other party holds a legal interest in it.


Page 23

http://www.doingbusiness.org/en/methodology/registering-property

Registering Property - Tajikistan

Figure – Registering Property in Tajikistan and comparator economies – Ranking and Score

DB 2019 Registering Property Score

0 100







Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. Thesescores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Tajikistan – Procedure, Time and Cost




Procedures (number)1 * 2 3 4 5

0

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30

35

Tim

e (d

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(% o

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lue)

Time (days) Cost (% of property value)


OECD highincome


Procedures (number) 5 5.3 4.7 1 (4 Economies)

Time (days) 36 20.3 20.1 1 (New Zealand)

Cost (% of property value) 2.9 2.6 4.2 0.0 (Saudi Arabia)

Quality of the land administration index (0-30) 7.5 19.6 23.0 None in 2017/18


Page 24


Figure – Registering Property in Tajikistan and comparator economies – Measure of Quality


0

5

10

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Inde

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7.5

17.0

24.022.0

26.0

19.6

Details – Registering Property in Tajikistan – Procedure, Time and Cost


1 Obtain the non-encumbrance certificate from the Bureau of TechnicalInventory (BTI)

: State Unitary Enterprise "Real Estate Registration" (SUE).AgencyThe vendor prepares documents confirming the ownership rights for the buildingsand documents confirming absence of bans, arrest and mortgage on the propertyto be sold. Among ownership documents for the building is a SUE certificate,which provides technical characteristics of the building and its inventory cost, aswell as information on encumbrance. It is issued for 3 months. The currentcertificate is taken to the SUE, where there is a database with all plots of land.The certificate is to be updated with the most recent information on an actual sizeof the land/immovable property, on changes made (i.e. additional buildingsconstructed, or any changes made to the immovable property), includingadditional obligations and characteristics. The updated certificate is returned tothe vendor. If the building is a new construction, an inspection is likely to beconducted at this stage. The certificate is required for notarization of salepurchase agreement by notary.

2 days TJS 100.2

2 Obtain the tax clearance certificate from the Ministry of State Revenue andDuties

: Tax Committee under the Government of the Republic of TajikistanAgencyThe vendor obtains a certificate (spravka) to show that all taxes have been paid,and makes any necessary payments in arrears. It is required for protection of thebuyer from the unforeseen tax burdens related to the property being acquiredand also for the notary to confirm the absence of any tax arrears.

1 day no charge

3 Prepare and notarize the sale purchase agreement: Public NotaryAgency

It is mandatory for the notary to notarize the sale purchase agreement.

Documentation requirements:• Identification documents of buyer and seller, including document conforming taxID (either ID certificate or a passport with a tax ID stamp) of each of the partyinvolved• Documents confirming the seller’s ownership rights for the property• SUE Certificate providing characteristics of the building and its inventory cost(including information on encumbrances – bans, arrests, mortgages.)• Certificate from the Tax inspection confirming absence of tax debts• Rights confirming documents for the land plot where the building is located• Original foundations documents of the agreement parties i.e. charters,foundation agreements and documents on registration• Documents evidencing authorities of the agreement signatories such as Powerof Attorney, Extract from the Minutes of the General Meeting of Shareholders orOrder on appointment of the CEO etc.

2 days TJS 11,248; (40% ofthe calculation indexapplied on eachsquare meter of theproperty lot (50Somoni x 0.4=20Somoni per squaremeter of the land plotonly) + 100 Somoni(registration fee))

4 Register the property rights for the building at the State Unitary Enterprise: State Unitary Enterprise "Real Estate Registration" (SUE)Agency

The purchaser goes to the SUE in order to register the building and the propertyrights transfer. A note is made in the registry book and the inventory cards ofSUE on the basis of the purchase agreement. Thus, a new entry is made in theSUE database.

2 days TJS 157; (97 Somoni(Registration fee) +60 Somoni(Certificate))


Page 25


5 Register the land use rights with the State Land Use Committee: State Land Use CommitteeAgency

Parties prepare documents confirming land use rights for the land plot where thebuilding is located, including current land use certificate and other documentsconfirming the rights for the land. An application is submitted to the State LandUse Committee in order to receive the new land use certificate.

It can take up to one month to re-register the rights on land use to the newowner. According to the Land Code, land rights are automatically transferred withthe rights to the building, however, the purchaser still needs to make a visit to theState Land Use Committee affiliate, where the old land use certificate iscancelled and a new certificate is issued.

The Rules adopted by governmental Decree No. 374 on July 02, 2009 governthe issuance of the certificate. The Rules provide that before issuing a new LandUse Certificate the State Land Use Committee should give its permission forreplacement of the old Land Use Certificate. The Committee issues itspermission upon receipt of documents outlined in the Rules. However, the Rulesare silent regarding the time-frame within which such permission should beprovided. In practice both procedures jointly often take more than 30 days.

30 days TJS 28.84; (28.84Somoni (for newLand Use Certificate))


Page 26

Details – Registering Property in Tajikistan – Measure of Quality

Answer Score

Reliability of infrastructure index (0-8) 0.0

What is the institution in charge of immovable property registration? State SubsidiaryEnterprise"Registration ofImmovableProperty" inDushanbe

In what format are the majority of title or deed records kept in the largest business city—in apaper format or in a computerized format (scanned or fully digital)?

Paper 0.0

Is there an electronic database for checking for encumbrances (liens, mortgages, restrictionsand the like)?

No 0.0

Institution in charge of the plans showing legal boundaries in the largest business city: LandAdministrationCommittee ofDushanbe

In what format are the majority of maps of land plots kept in the largest business city—in apaper format or in a computerized format (scanned or fully digital)?

Paper 0.0

Is there an electronic database for recording boundaries, checking plans and providingcadastral information (geographic information system)?

No 0.0

Is the information recorded by the immovable property registration agency and the cadastralor mapping agency kept in a single database, in different but linked databases or in separatedatabases?

Separatedatabases

0.0

Do the immovable property registration agency and cadastral or mapping agency use thesame identification number for properties?

No 0.0

Transparency of information index (0–6) 1.0

Who is able to obtain information on land ownership at the agency in charge of immovableproperty registration in the largest business city?

Onlyintermediariesand interestedparties

0.0

Is the list of documents that are required to complete any type of property transaction madepublicly available–and if so, how?

Yes, on publicboards

0.5

Link for online access:

Is the applicable fee schedule for any property transaction at the agency in charge ofimmovable property registration in the largest business city made publicly available–and ifso, how?

Yes, on publicboards

0.5


Does the agency in charge of immovable property registration commit to delivering a legallybinding document that proves property ownership within a specific time frame–and if so, howdoes it communicate the service standard?

No 0.0


Is there a specific and separate mechanism for filing complaints about a problem thatoccurred at the agency in charge of immovable property registration?

No 0.0

Contact information:

Are there publicly available official statistics tracking the number of transactions at theimmovable property registration agency?

No 0.0

Number of property transfers in the largest business city in 2017:

Who is able to consult maps of land plots in the largest business city? Onlyintermediariesand interestedparties

0.0

Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?

Yes, in person 0.0


Page 27


Does the cadastral or mapping agency commit to delivering an updated map within aspecific time frame—and if so, how does it communicate the service standard?

No 0.0


Is there a specific and separate mechanism for filing complaints about a problem thatoccurred at the cadastral or mapping agency?

No 0.0

Contact information:

Geographic coverage index (0–8) 0.0

Are all privately held land plots in the economy formally registered at the immovable propertyregistry?

No 0.0

Are all privately held land plots in the largest business city formally registered at theimmovable property registry?

No 0.0

Are all privately held land plots in the economy mapped? No 0.0

Are all privately held land plots in the largest business city mapped? No 0.0

Land dispute resolution index (0–8) 6.5

Does the law require that all property sale transactions be registered at the immovableproperty registry to make them opposable to third parties?

Yes 1.5

Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5

Is there a specific compensation mechanism to cover for losses incurred by parties whoengaged in good faith in a property transaction based on erroneous information certified bythe immovable property registry?

Yes 0.5

Does the legal system require a control of legality of the documents necessary for a propertytransaction (e.g., checking the compliance of contracts with requirements of the law)?

Yes 0.5

If yes, who is responsible for checking the legality of the documents? Registrar; Notary;Lawyer;

Does the legal system require verification of the identity of the parties to a propertytransaction?

Yes 0.5

If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;

Is there a national database to verify the accuracy of identity documents? No 0.0

For a standard land dispute between two local businesses over tenure rights of a propertyworth 50 times gross national income (GNI) per capita and located in the largest businesscity, what court would be in charge of the case in the first instance?

Economic courtof Dushanbe city

How long does it take on average to obtain a decision from the first-instance court for such acase (without appeal)?

Less than a year 3.0

Are there any statistics on the number of land disputes in the first instance? No 0.0

Number of land disputes in the largest business city in 2017:

Equal access to property rights index (-2–0) 0.0

Do unmarried men and unmarried women have equal ownership rights to property? Yes

Do married men and married women have equal ownership rights to property? Yes 0.0


Page 28

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws infacilitating lending. The most recent round of data collection for the project was completed in May 2018.

.See the methodology for more

information


Strength of legal rights index (0–12)

Rights of borrowers and lenders throughcollateral laws (0-10)

•

Protection of secured creditors’ rights throughbankruptcy laws (0-2)

•

Depth of credit information index (0–8)

Scope and accessibility of credit informationdistributed by credit bureaus and credit registries(0-8)

•

Credit bureau coverage (% of adults)

Number of individuals and firms listed in largestcredit bureau as a percentage of adult population

•

Credit registry coverage (% of adults)

Number of individuals and firms listed in creditregistry as a percentage of adult population

•


assesses the sharing of credit information and the legal rights ofborrowers and lenders with respect to secured transactions through 2 sets ofindicators. The depth of credit information index measures rules and practicesaffecting the coverage, scope and accessibility of credit information availablethrough a credit registry or a credit bureau. The strength of legal rights indexmeasures the degree to which collateral and bankruptcy laws protect the rights ofborrowers and lenders and thus facilitate lending. For each economy it is firstdetermined whether a unitary secured transactions system exists. Then two casescenarios, case A and case B, are used to determine how a nonpossessory securityinterest is created, publicized and enforced according to the law. Special emphasisis given to how the collateral registry operates (if registration of security interests ispossible). The case scenarios involve a secured borrower, company ABC, and asecured lender, BizBank.

Doing Business

In some economies the legal framework for secured transactions will allow only caseA or case B (not both) to apply. Both cases examine the same set of legal provisionsrelating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank)are used:

- ABC is a domestic limited liability company (or its legal equivalent).- ABC has up to 50 employees.- ABC has its headquarters and only base of operations in the economy’s largestbusiness city. For 11 economies the data are also collected for the second largestbusiness city.- Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan,ABC grants BizBank a nonpossessory security interest in one category of movableassets, for example, its machinery or its inventory. ABC wants to keep bothpossession and ownership of the collateral. In economies where the law does notallow nonpossessory security interests in movable property, ABC and BizBank use afiduciary transfer-of-title arrangement (or a similar substitute for nonpossessorysecurity interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floatingcharge or any charge that gives BizBank a security interest over ABC’s combinedmovable assets (or as much of ABC’s movable assets as possible). ABC keepsownership and possession of the assets.


Page 29

http://www.doingbusiness.org/en/methodology/getting-credit

http://www.doingbusiness.org/en/methodology/getting-credit

Getting Credit - Tajikistan

Figure – Getting Credit in Tajikistan and comparator economies – Ranking and Score

DB 2019 Getting Credit Score

0 100







Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are thesum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Tajikistan and comparator economies


0

1

2

3

4

5

6

7

8

Inde

x Sc

ore

1

6

9 8 97.2


OECD highincome


Strength of legal rights index (0-12) 1 7.2 6.1 12 (5 Economies)

Depth of credit information index (0-8) 7 6.6 6.7 8 (42 Economies)

Credit registry coverage (% of adults) 0 25.3 21.8 100.0 (4 Economies)

Credit bureau coverage (% of adults) 44.9 43.4 65.3 100.0 (25 Economies)


Page 30

Details – Legal Rights in Tajikistan

Strength of legal rights index (0-12) 1

Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity andenforcement of functional equivalents to security interests in movable assets exist in the economy?

No

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, withoutrequiring a specific description of collateral?

No

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring aspecific description of collateral?

No

May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds andreplacements of the original assets?

No

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations besecured between parties; and can the collateral agreement include a maximum amount for which the assets areencumbered?

No

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and byasset type, with an electronic database indexed by debtor's name?

No

Does a notice-based collateral registry exist in which all functional equivalents can be registered? No

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performedonline by any interested third party?

No

Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvencyprocedure?

No

Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganizationprocedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a timelimit for it?

No

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allowthe secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keepthe asset in satisfaction of the debt?

Yes

Figure – Credit Information in Tajikistan and comparator economies


0

1

2

3

4

5

6

7

8

Inde

x Sc

ore

7 76 6

7 6.6


Page 31

Details – Credit Information in Tajikistan

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational orcovers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Depth of credit information index (0-8) Creditbureau

Creditregistry

Score

Are data on both firms and individuals distributed? Yes No 1

Are both positive and negative credit data distributed? Yes No 1

Are data from retailers or utility companies - in addition to data from banks andfinancial institutions - distributed?

No No 0

Are at least 2 years of historical data distributed? (Credit bureaus and registriesthat distribute more than 10 years of negative data or erase data on defaults assoon as they are repaid obtain a score of 0 for this component.)

Yes No 1

Are data on loan amounts below 1% of income per capita distributed? Yes No 1

By law, do borrowers have the right to access their data in the credit bureau orcredit registry?

Yes No 1

Can banks and financial institutions access borrowers’ credit information online(for example, through an online platform, a system-to-system connection orboth)?

Yes No 1

Are bureau or registry credit scores offered as a value-added service to helpbanks and financial institutions assess the creditworthiness of borrowers?

Yes No 1

Total Score ("yes" to either public bureau or private registry) 7

Coverage Credit bureau Credit registry

Number of individuals 2,434,107 0

Number of firms 21,489 0

Total 2,455,596 0

Percentage of adult population 44.9 0


Page 32

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gainas well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The mostrecent round of data collection for the project was completed in May 2018. .See the methodology for more information


: Review andapproval requirements for related-partytransactions; Disclosure requirements for related-party transactions

• Extent of disclosure index (0–10)

: Abilityof minority shareholders to sue and holdinterested directors liable for prejudicial related-party transactions; Available legal remedies(damages, disgorgement of profits, fines,imprisonment, rescission of the transaction)

• Extent of director liability index (0–10)

:Access to internal corporate documents;Evidence obtainable during trial and allocation oflegal expenses

• Ease of shareholder suits index (0–10)

: Simple average of the extent ofdisclosure, extent of director liability and ease ofshareholder indices

• Extent of conflict of interest regulation index(0–10)

:Shareholders’ rights and role in major corporatedecisions

• Extent of shareholder rights index (0-10)

:Governance safeguards protecting shareholdersfrom undue board control and entrenchment

• Extent of ownership and control index (0-10)

:Corporate transparency on ownership stakes,compensation, audits and financial prospects

• Extent of corporate transparency index (0-10)

: Simple average of the extent of shareholdersrights, extent of ownership and control and extentof corporate transparency indices

• Extent of shareholder governance index (0–10)

: Simple average of the extent of conflict ofinterest regulation and extent of shareholdergovernance indices

• Strength of minority investor protection index(0–10)


To make the data comparable across economies, a case study uses severalassumptions about the business and the transaction.

- Is a publicly traded corporation listed on the economy’s most important stockexchange. If there are fewer than ten listed companies or if there is no stockexchange in the economy, it is assumed that Buyer is a large private company withmultiple shareholders.- Has a board of directors and a chief executive officer (CEO) who may legally act onbehalf of Buyer where permitted, even if this is not specifically required by law.- Has a supervisory board in economies with a two-tier board system on which Mr.James appointed 60% of the shareholder-elected members.- Has not adopted bylaws or articles of association that go beyond the minimumrequirements. Does not follow codes, principles, recommendations or guidelines thatare not mandatory.- Is a manufacturing company with its own distribution network.

The business (Buyer):

- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected twodirectors to Buyer’s five-member board.- Mr. James also owns 90% of Seller, a company that operates a chain of retailhardware stores. Seller recently closed a large number of its stores.- Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expandBuyer’s distribution of its food products, a proposal to which Buyer agrees. The priceis equal to 10% of Buyer’s assets and is higher than the market value.- The proposed transaction is part of the company’s principal activity and is notoutside the authority of the company.- Buyer enters into the transaction. All required approvals are obtained, and allrequired disclosures made—that is, the transaction was not entered into fraudulently.- The transaction causes damages to Buyer. Shareholders sue Mr. James and theexecutives and directors that approved the transaction.

The transaction involves the following details:


Page 33

http://www.doingbusiness.org/en/methodology/protecting-minority-investors

Protecting Minority Investors - Tajikistan

Figure – Protecting Minority Investors in Tajikistan and comparator economies – Ranking and Score

DB 2019 Protecting Minority Investors Score

0 100







Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minorityinvestors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent ofshareholder governance index.

Figure – Protecting Minority Investors in Tajikistan and comparator economies – Measure of Quality

Tajikistan

Kazakhstan

Kyrgyz Republic

Moldova

Russian Federation

OECD high income

Europe & Central Asia

0 10 20 30 40 50 60Sub-Indicator Score

7 6 8 4 9 6

9 6 9 8 10 9

7 5 7 8 5 8

9 4 7 5 8 8

8 2 6 5 9 7

7.4 5.5 6.5 5.2 6.3 7.4

7.6 4.6 7.2 5.6 7.3 6.8

Extent of corporate transparency index (0-10) Extent of director liability index (0-10) Extent of disclosure index (0-10)Extent of ownership and control index (0-10) Extent of shareholder rights index (0-10) Ease of shareholder suits index (0-10)


OECD highincome


Extent of disclosure index (0-10) 8.0 7.3 6.5 10 (13 Economies)

Extent of director liability index (0-10) 6.0 4.9 5.3 10 (Cambodia)

Ease of shareholder suits index (0-10) 6.0 6.8 7.3 10 (Djibouti)

Extent of shareholder rights index (0-10) 9.0 7.1 6.4 10 (Kazakhstan)

Extent of ownership and control index (0-10) 4.0 5.6 5.4 None in 2017/18

Extent of corporate transparency index (0-10) 7.0 7.5 7.6 10 (6 Economies)


Page 34

Details – Protecting Minority Investors in Tajikistan – Measure of Quality

Answer Score

Extent of conflict of interest regulation index (0-10) 6.7

Extent of disclosure index (0-10) 8.0

Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholdersexcludinginterested parties

3.0

Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0

Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure ofall material facts

2.0

Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on thetransaction andon the conflict ofinterest

2.0

Must Buyer immediately disclose the transaction to the public? (0-2) No disclosureobligation

0.0

Extent of director liability index (0-10) 6.0

Can shareholders representing 10% of Buyer's share capital sue for the damage thetransaction caused to Buyer? (0-1)

Yes 1.0

Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)

Liable if unfair orprejudicial

2.0

Can shareholders hold the other directors liable for the damage the transaction caused toBuyer (0-2)

Not liable 0.0

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim byshareholders? (0-1)

Yes 1.0

Must Mr. James repay profits made from the transaction upon a successful claim byshareholders? (0-1)

No 0.0

Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0

Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfairor prejudicial

2.0

Ease of shareholder suits index (0-10) 6.0

Before suing, can shareholders representing 10% of Buyer's share capital inspect thetransaction documents? (0-1)

Yes 1.0

Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Documents thatthe defendantrelied on

1.0

Can the plaintiff request categories of documents from the defendant without identifyingspecific ones? (0-1)

No 0.0

Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Yes 2.0

Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0

Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0

Extent of shareholder governance index (0-10) 6.7

Extent of shareholder rights index (0-10) 9.0

Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0

Can shareholders representing 10% of Buyer's share capital call for a meeting ofshareholders?

Yes 1.0

Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0

Do shareholders automatically receive preemption rights every time Buyer issues newshares?

Yes 1.0


Page 35

Must shareholders approve the election and dismissal of the external auditor? Yes 1.0

Are changes to the rights of a class of shares only possible if the holders of the affectedshares approve?

Yes 1.0

Assuming that Buyer is a limited company, does the sale of 51% of its assets requiremember approval?

Yes 1.0

Assuming that Buyer is a limited company, can members representing 10% call for ameeting of members?

Yes 1.0

Assuming that Buyer is a limited company, must all or almost all members consent to add anew member?

Yes 1.0

Assuming that Buyer is a limited company, must a member first offer to sell their interest tothe existing members before they can sell to non-members?

No 0.0

Extent of ownership and control index (0-10) 4.0

Is it forbidden to appoint the same individual as CEO and chairperson of the board ofdirectors?

Yes 1.0

Must the board of directors include independent and nonexecutive board members? No 0.0

Can shareholders remove members of the board of directors without cause before the endof their term?

Yes 1.0

Must the board of directors include a separate audit committee exclusively comprising boardmembers?

Yes 1.0

Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% ofBuyer?

No 0.0

Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0

Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0

Assuming that Buyer is a limited company, must Buyer have a mechanism to resolvedisagreements among members?

No 0.0

Assuming that Buyer is a limited company, must a potential acquirer make a tender offer toall shareholders upon acquiring 50% of Buyer?

No 0.0

Assuming that Buyer is a limited company, must Buyer distribute profits within a maximumperiod set by law?

No 0.0

Extent of corporate transparency index (0-10) 7.0

Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? Yes 1.0

Must Buyer disclose information about board members’ primary employment anddirectorships in other companies?

Yes 1.0

Must Buyer disclose the compensation of individual managers? No 0.0

Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0

Can shareholders representing 5% of Buyer’s share capital put items on the general meetingagenda?

Yes 1.0

Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0

Must Buyer disclose its audit reports to the public? No 0.0

Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0

Assuming that Buyer is a limited company, can members representing 5% put items on themeeting agenda?

Yes 1.0

Assuming that Buyer is a limited company, must Buyer's annual financial statements beaudited by an external auditor?

Yes 1.0


Page 36

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as theadministrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recentround of data collection for the project was completed in May 2018 covering for the Paying Taxes indicator calendar year 2017 (January 1,2017 – December 31, 2017). See the methodology for more information.


Tax payments for a manufacturing company in2017 (number per year adjusted for electronicand joint filing and payment)

Total number of taxes and contributions paid orwithheld, including consumption taxes (valueadded tax, sales tax or goods and service tax)

•

Method and frequency of filing and payment•Time required to comply with 3 major taxes(hours per year)

Collecting information, computing tax payable•Preparing separate tax accounting books, ifrequired

•

Completing tax return, filing with agencies•Arranging payment or withholding•

Total tax and contribution rate (% of commercialprofits)

Profit or corporate income tax•Social contributions, labor taxes paid byemployer

•

Property and property transfer taxes•Dividend, capital gains, financial transactionstaxes

•

Waste collection, vehicle, road and other taxes•Postfiling Index

Time to comply with a VAT refund (hours)•Time to obtain a VAT refund (weeks)•Time to comply with a corporate income taxcorrection (hours)

•

Time to complete a corporate income taxcorrection (weeks)

•


Using a case scenario, records taxes and mandatory contributions amedium size company must pay in a year, and measures the administrative burdenof paying taxes, contributions and dealing with postfiling processes. Information isalso compiled on frequency of filing and payments, time taken to comply with taxlaws, time taken to comply with the requirements of postfiling processes and timewaiting.

Doing Business

To make data comparable across economies, several assumptions are used:- TaxpayerCo is a medium-size business that started operations on January 1, 2016.It produces ceramic flowerpots and sells them at retail.

Taxes andmandatory contributions are measured at all levels of government.

- In June 2017, TaxpayerCo. makes a large capital purchase: the value of themachine is 65 times income per capita of the economy. Sales are equally spread permonth (1,050 times income per capita divided by 12) and cost of goods sold areequally expensed per month (875 times income per capita divided by 12). Themachinery seller is registered for VAT and excess input VAT incurred in June will befully recovered after four consecutive months if the VAT rate is the same for inputs,sales and the machine and the tax reporting period is every month. Input VAT willexceed Output VAT in June 2017.

All taxes and contributionsrecorded are paid in the second year of operation (calendar year 2017).

The VAT refund process:

- An error in calculation of income tax liability (for example, use of incorrect taxdepreciation rates, or incorrectly treating an expense as tax deductible) leads to anincorrect income tax return and a corporate income tax underpayment. TaxpayerCo.discovered the error and voluntarily notified the tax authority. The value of theunderpaid income tax liability is 5% of the corporate income tax liabilitydue. TaxpayerCo. submits corrected information after the deadline for submitting theannual tax return, but within the tax assessment period.

The corporate income tax audit process:


Page 37

http://www.doingbusiness.org/en/methodology/paying-taxes

Paying Taxes - Tajikistan

Figure – Paying Taxes in Tajikistan and comparator economies – Ranking and Score

DB 2019 Paying Taxes Score

0 100







Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are thesimple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of thecomponent indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentileof the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with atotal tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Tajikistan and comparator economies – Measure of Quality


0

20

40

60

80

100

Inde

x sc

ore

40.4048.85

37.38

90.79

73.1464.41


OECD highincome


Payments (number per year) 6 16.6 11.2 3 (Hong Kong SAR,China)

Time (hours per year) 224 214.8 159.4 49 (Singapore)

Total tax and contribution rate (% of profit) 67.3 32.3 39.8 26.1% (32 Economies)

Postfiling index (0-100) 40.40 64.41 84.41 None in 2017/18


Page 38

Details – Paying Taxes in Tajikistan

Tax ormandatorycontribution

Payments(number)

Notes onPayments

Time(hours)

Statutorytax rate

Tax base Total taxandcontributionrate (% ofprofit)

Notes onTTCR

Social tax 1.0 online 48.0 25% gross salaries 28.48

Corporateincome tax

1.0 online 74.0 14% (but notless than 1%of turnover)

taxable profit 17.68

Road tax 1.0 online 1% adjustedturnover

16.66

Real estatetax

1.0 online various rates per squaremeter

3.97

Vehicle tax 1.0 online 12.5% ofcalculationindex (TJS40)

vehiclecapacity

0.47

Tax oninterest

0.0 12% interest 0.31 not included

Value addedtax (VAT)

1.0 online 102.0 18% value added 0.00 not included

Employeepaid - Socialtax

0.0 online andjointly

1% gross salaries 0.00 withheld

Totals 6 224 67.3


Page 39

Details – Paying Taxes in Tajikistan – Tax by Type

Taxes by type Answer

Profit tax (% of profit) 17.7

Labor tax and contributions (% of profit) 28.5

Other taxes (% of profit) 21.1


Page 40

Details – Paying Taxes in Tajikistan – Measure of Quality

Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporateincome tax in this table.The hours for VAT include all the VAT and sales taxes applicable.The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with acorporate income tax correction and time to complete a corporate income tax correction.N/A = Not applicable.

Notes:

Answer Score

Postfiling index (0-100) 40.40

VAT refunds

Does VAT exist? Yes

Does a VAT refund process exist per the case study? No

Restrictions on VAT refund process Restricted tointernationaltraders

Percentage of cases exposed to a VAT audit (%) Not applicable

Is there a mandatory carry forward period? No

Time to comply with VAT refund (hours) No VAT refundper case studyscenario

0

Time to obtain a VAT refund (weeks) No VAT refundper case studyscenario

0

Corporate income tax audits

Does corporate income tax exist? Yes

Percentage of cases exposed to a corporate income tax audit (%) 50% - 74%

Time to comply with a corporate income tax correction (hours) 10.5 83.49

Time to complete a corporate income tax correction (weeks) 7.0 78.13


Page 41

Trading across Borders

records the time and cost associated with the logistical process of exporting and importing goods. measuresthe time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestictransport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the projectwas completed in May 2018. .

Doing Business Doing Business

See the methodology for more information


Documentary compliance

Obtaining, preparing and submitting documentsduring transport, clearance, inspections and portor border handling in origin economy

•

Obtaining, preparing and submitting documentsrequired by destination economy and any transiteconomies

•

Covers all documents required by law and inpractice, including electronic submissions ofinformation

•

Border compliance

Customs clearance and inspections•Inspections by other agencies (if applied to morethan 20% of shipments)

•

Handling and inspections that take place at theeconomy’s port or border

•

Domestic transport

Loading or unloading of the shipment at thewarehouse or port/border

•

Transport between warehouse and port/border•Traffic delays and road police checks whileshipment is en route

•


To make the data comparable across economies, a few assumptions are madeabout the traded goods and the transactions:

Time is measured in hours, and 1 day is 24 hours (for example, 22 days arerecorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data arerecorded as is. Alternatively, suppose documents are submitted to a customs agencyat 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day.The time for customs clearance would be recorded as 24 hours because the actualprocedure took 24 hours.

Time:

Insurance cost and informal payments for which no receipt is issued areexcluded from the costs recorded. Costs are reported in U.S. dollars. Contributorsare asked to convert local currency into U.S. dollars based on the exchange rateprevailing on the day they answer the questionnaire. Contributors are private sectorexperts in international trade logistics and are informed about exchange rates.

Cost:

- For all 190 economies covered by , it is assumed a shipment is in awarehouse in the largest business city of the exporting economy and travels to awarehouse in the largest business city of the importing economy.- It is assumed each economy imports 15 metric tons of containerized auto parts (HS8708) from its natural import partner—the economy from which it imports the largestvalue (price times quantity) of auto parts. It is assumed each economy exports theproduct of its comparative advantage (defined by the largest export value) to itsnatural export partner—the economy that is the largest purchaser of this product.Shipment value is assumed to be $50,000.- The mode of transport is the one most widely used for the chosen export or importproduct and the trading partner, as is the seaport or land border crossing.- All electronic information submissions requested by any government agency inconnection with the shipment are considered to be documents obtained, preparedand submitted during the export or import process.- A port or border is a place (seaport or land border crossing) where merchandisecan enter or leave an economy.- Relevant government agencies include customs, port authorities, road police,border guards, standardization agencies, ministries or departments of agriculture orindustry, national security agencies and any other government authorities.

Assumptions of the case study:Doing Business


Page 42

http://www.doingbusiness.org/en/methodology/trading-across-borders

Trading across Borders - Tajikistan

Figure – Trading across Borders in Tajikistan and comparator economies – Ranking and Score

DB 2019 Trading Across Borders Score

0 100







Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. Thesescores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Tajikistan – Time and Cost

Export-

BorderCompliance

Export-

DocumentaryCompliance

Import-

BorderCompliance

Import-

DocumentaryCompliance

0

20

40

60

80

100

120

140

Tim

e (h

ours

)

0

50

100

150

200

250

300

350Co

st (U

SD)

51

313

66

330

107223

126

260

Time (hours) Cost (USD)


OECD highincome


Time to export: Border compliance (hours) 51 22.1 12.5 1 (19 Economies)

Cost to export: Border compliance (USD) 313 157.5 139.1 0 (19 Economies)

Time to export: Documentary compliance (hours) 66 24.3 2.4 1 (26 Economies)

Cost to export: Documentary compliance (USD) 330 97.9 35.2 0 (20 Economies)

Time to import: Border compliance (hours) 107 21.1 8.5 0 (25 Economies)

Cost to import: Border compliance (USD) 223 162.3 100.2 0 (28 Economies)

Time to import: Documentary compliance (hours) 126 24.7 3.4 1 (30 Economies)

Cost to import: Documentary compliance (USD) 260 93.9 24.9 0 (30 Economies)


Page 43

Details – Trading across Borders in Tajikistan

Characteristics Export Import

Product HS 08 : Edible fruit and nuts; peel of citrusfruit or melons

HS 8708: Parts and accessories of motorvehicles

Trade partner Turkey China

Border Dusty-Tursunzade border crossing Dusty-Tursunzade border crossing

Distance (km) 71 71

Domestic transport time (hours) 3 3

Domestic transport cost (USD) 433 433

Details – Trading across Borders in Tajikistan – Components of Border Compliance

Time to Complete (hours) Associated Costs (USD)

Export: Clearance and inspections requiredby customs authorities

48.0 313.3

Export: Clearance and inspections requiredby agencies other than customs

0.0 0.0

Export: Port or border handling 2.5 0.0

Import: Clearance and inspections requiredby customs authorities

104.0 223.3

Import: Clearance and inspections requiredby agencies other than customs

0.0 0.0

Import: Port or border handling 2.5 0.0


Page 44

Details – Trading across Borders in Tajikistan – Trade Documents

Export Import

Certificate of conformity Bill of lading

Certificate of origin Certificate of conformity

Commercial invoice Commercial invoice

Customs export declaration Customs import declaration

Document confirming payment of customs fees Document confirming payment of customs fees

CMR waybill Inspection report

Sales purchase contract Packing list

Terminal handling receipts CMR waybill

TIR carnet Sales purchase contract

Import permit from Turkey Terminal handling receipts

Phytosanitary certificate SOLAS certificate

Phytosanitary permit to export to Turkey

Inspection report from the Customs Committee


Page 45

Enforcing Contracts

.

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and thequality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality andefficiency in the court system. The most recent round of data collection was completed in May 2018. See the methodology for moreinformation


Time required to enforce a contract through thecourts (calendar days)

Time to file and serve the case•Time for trial and to obtain the judgment•Time to enforce the judgment•

Cost required to enforce a contract through thecourts (% of claim)

Attorney fees•Court fees•Enforcement fees•

Quality of judicial processes index (0-18)

Court structure and proceedings (-1-5)•Case management (0-6)•Court automation (0-4)•Alternative dispute resolution (0-3)•


The dispute in the case study involves the breach of a sales contract between 2domestic businesses. The case study assumes that the court hears an expert on thequality of the goods in dispute. This distinguishes the case from simple debtenforcement.

To make the data comparable across economies, uses severalassumptions about the case:- The dispute concerns a lawful transaction between two businesses (Seller andBuyer), both located in the economy’s largest business city. For 11 economies thedata are also collected for the second largest business city.- The buyer orders custom-made goods, then fails to pay alleging that the goods arenot of adequate quality.- The value of the dispute is 200% of the income per capita or the equivalent in localcurrency of USD 5,000, whichever is greater.- The seller sues the buyer before the court with jurisdiction over commercial casesworth 200% of income per capita or $5,000.- The seller requests the pretrial attachment of the defendant’s movable assets tosecure the claim.- The dispute on the quality of the goods requires an expert opinion.- The judge decides in favor of the seller; there is no appeal.- The seller enforces the judgment through a public sale of the buyer’s movableassets.

Doing Business


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http://www.doingbusiness.org/en/methodology/enforcing-contracts

http://www.doingbusiness.org/en/methodology/enforcing-contracts

Enforcing Contracts - Tajikistan

Figure – Enforcing Contracts in Tajikistan and comparator economies – Ranking and Score

DB 2019 Enforcing Contracts Score

0 100







Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. Thesescores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Tajikistan – Time and Cost

Europe&

CentralAsia

Kazakhstan KyrgyzRepublic

Moldova OECDhigh

income

RussianFederation

Tajikistan

0

100

200

300

400

500

600

700

Tim

e (d

ays)

0

10

20

30

40

50

Cost

(% o

f cla

im v

alue

)496.3

26.3 37022.0

410

47.0585

28.6

582.4

21.2 337

16.5

43025.5

Time (days) Cost (% of claim value)

Standardized Case

Claim value TJS 33,110

Court name Dushanbe Commercial Court



OECD highincome


Time (days) 430 496.3 582.4 None in 2017/18

Cost (% of claim value) 25.5 26.3 21.2 None in 2017/18

Quality of judicial processes index (0-18) 7.5 10.3 11.5 None in 2017/18


Page 47

Figure – Enforcing Contracts in Tajikistan and comparator economies – Measure of Quality

Tajikistan

Kazakhstan

Kyrgyz Republic

Moldova

Russian Federation

OECD high income


0 2 4 6 8 10 12 14 16 18Sub-Indicator Score

2 2 1 2.5

3 5 3 5

1.5 1 0 2.5

2.5 3 2 2

2.5 4 0 3

2.5 3.1 2.3 3.6

2.1 3 1.4 3.6

Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)

Details – Enforcing Contracts in Tajikistan

Indicator

Time (days) 430

Filing and service 40

Trial and judgment 120

Enforcement of judgment 270

Cost (% of claim value) 25.5

Attorney fees 8.5

Court fees 10

Enforcement fees 7

Quality of judicial processes index (0-18) 7.5

Court structure and proceedings (-1-5) 2.5

Case management (0-6) 2.0

Court automation (0-4) 1.0

Alternative dispute resolution (0-3) 2.0


Page 48

Details – Enforcing Contracts in Tajikistan – Measure of Quality

Answer Score

Quality of judicial processes index (0-18) 7.5

Court structure and proceedings (-1-5) 2.5

1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5

2. Small claims court 0.0

2.a. Is there a small claims court or a fast-track procedure for small claims? No

2.b. If yes, is self-representation allowed? n.a.

3. Is pretrial attachment available? Yes 1.0

4. Are new cases assigned randomly to judges? No 0.0

5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0

Case management (0-6) 2.0

1. Time standards 1.0

1.a. Are there laws setting overall time standards for key court events in a civilcase?

Yes

1.b. If yes, are the time standards set for at least three court events? Yes

1.c. Are these time standards respected in more than 50% of cases? Yes

2. Adjournments 0.0

2.a. Does the law regulate the maximum number of adjournments that can begranted?

No

2.b. Are adjournments limited to unforeseen and exceptional circumstances? No

2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.

3. Can two of the following four reports be generated about the competent court: (i) time todisposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) singlecase progress report?

No 0.0

4. Is a pretrial conference among the case management techniques used before thecompetent court?

Yes 1.0

5. Are there any electronic case management tools in place within the competent court foruse by judges?

No 0.0

6. Are there any electronic case management tools in place within the competent court foruse by lawyers?

No 0.0

Court automation (0-4) 1.0

1. Can the initial complaint be filed electronically through a dedicated platform within thecompetent court?

no 0.0

2. Is it possible to carry out service of process electronically for claims filed before thecompetent court?

No 0.0

3. Can court fees be paid electronically within the competent court? Yes 1.0

4. Publication of judgments 0.0

4.a Are judgments rendered in commercial cases at all levels made available to thegeneral public through publication in official gazettes, in newspapers or on theinternet or court website?

No

4.b. Are judgments rendered in commercial cases at the appellate and supremecourt level made available to the general public through publication in officialgazettes, in newspapers or on the internet or court website?

No

Alternative dispute resolution (0-3) 2.0

1. Arbitration 1.5


Page 49

1.a. Is domestic commercial arbitration governed by a consolidated law orconsolidated chapter or section of the applicable code of civil procedureencompassing substantially all its aspects?

Yes

1.b. Are there any commercial disputes—aside from those that deal with publicorder or public policy—that cannot be submitted to arbitration?

No

1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes

2. Mediation/Conciliation 0.5

2.a. Is voluntary mediation or conciliation available? Yes

2.b. Are mediation, conciliation or both governed by a consolidated law orconsolidated chapter or section of the applicable code of civil procedureencompassing substantially all their aspects?

No

2.c. Are there financial incentives for parties to attempt mediation or conciliation(i.e., if mediation or conciliation is successful, a refund of court filing fees, incometax credits or the like)?

No


Page 50

Resolving Insolvency

studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used tocalculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation ordebt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors,

uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the EconomistIntelligence Unit. The most recent round of data collection was completed in May 2018. .

Doing Business

DoingBusiness

See the methodology for more information


Time required to recover debt (years)

Measured in calendar years•Appeals and requests for extension are included•

Cost required to recover debt (% of debtor’sestate)

Measured as percentage of estate value•Court fees•Fees of insolvency administrators•Lawyers’ fees•Assessors’ and auctioneers’ fees•Other related fees•

Outcome

Whether business continues operating as a goingconcern or business assets are sold piecemeal

•

Recovery rate for creditors

Measures the cents on the dollar recovered bysecured creditors

•

Outcome for the business (survival or not)determines the maximum value that can berecovered

•

Official costs of the insolvency proceedings arededucted

•

Depreciation of furniture is taken into account•Present value of debt recovered•

Strength of insolvency framework index (0- 16)

Sum of the scores of four component indices:•Commencement of proceedings index (0-3)•Management of debtor’s assets index (0-6)•Reorganization proceedings index (0-3)•Creditor participation index (0-4)•


To make the data on the time, cost and outcome comparable across economies,several assumptions about the business and the case are used:

- A hotel located in the largest city (or cities) has 201 employees and 50 suppliers.The hotel experiences financial difficulties.- The value of the hotel is 100% of the income per capita or the equivalent in localcurrency of USD 200,000, whichever is greater.- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’sreal estate. The hotel cannot pay back the loan, but makes enough money tooperate otherwise.

In addition, evaluates the quality of legal framework applicable tojudicial liquidation and reorganization proceedings and the extent to which bestinsolvency practices have been implemented in each economy covered.

Doing Business


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http://www.doingbusiness.org/en/methodology/resolving-insolvency

Resolving Insolvency - Tajikistan

Figure – Resolving Insolvency in Tajikistan and comparator economies – Ranking and Score

DB 2019 Resolving Insolvency Score

0 100







Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. Thesescores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Tajikistan – Time and Cost

Europe&

CentralAsia

Kazakhstan KyrgyzRepublic

Moldova OECDhigh

income

RussianFederation

Tajikistan

0

0.5

1

1.5

2

2.5

3

Tim

e (y

ears

)

0246810121416

Cost

(% o

f est

ate)2.3 13.2

1.5

15.0

1.5

15.0 2.8 15.0

1.7 9.32.0

9.0 1.7 9.0

Time (years) Cost (% of estate)


OECD highincome


Recovery rate (cents on the dollar) 34.2 38.6 70.5 None in 2017/18

Time (years) 1.7 2.3 1.7 0.4 (Ireland)

Cost (% of estate) 9.0 13.2 9.3 1.0 (Norway)

Outcome (0 as piecemeal sale and 1 as goingconcern)

0 .. .. ..

Strength of insolvency framework index (0-16) 4.0 11.1 11.9 None in 2017/18


Page 52

Figure – Resolving Insolvency in Tajikistan and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), theeconomy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Tajikistan

Kazakhstan

Kyrgyz Republic

Moldova

Russian Federation

OECD high income


0 2 4 6 8 10 12 14 16Sub-Indicator Score

1 1.5 1 0.5

6 3 4 2

3 3 1 2

4 2.5 3 2.5

5 2.5 3 1

5.3 2.8 2.2 1.9

4.5 2.6 2.3 1.8

Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4)Reorganization proceedings index (0-3)

Figure – Resolving Insolvency in Tajikistan and comparator economies – Recovery Rate


0

20

40

60

80

100

Reco

very

rate

(cen

ts o

n th

e do

llar)

34.2 38.9 36.230.9

42.1 38.6


Page 53

Details – Resolving Insolvency in Tajikistan

Indicator Answer Score

Proceeding foreclosure Because the company has assets that can be sold through foreclosure proceedings, thisprocedure will be used because it is faster and less costly than insolvency proceedings.

Outcome piecemeal sale It will be very difficult to find a buyer for the hotel as a whole.

Time (in years) 1.7 It can take up to 20 months to complete foreclosure proceedings in Tajikistan. It will take around 4-5 court hearings to get a court decision due the large number of creditors and it will likely takeseveral auctions to sell the assets. In practice, it may take up to one year to sell the property,since it is difficult to find a buyer. It may also take some time to make an evaluation of the propertybefore the auction.

Cost (% ofestate)

9.0 For a foreclosure procedure, the cost is approximately 9% of the value of the estate to resolve thecase. Attorneys' fees (around 4%) will represent the major component of the cost associated withthis procedure. The rest would be accountants and assessors' fees (2%), court expenses (2%)and auctioneer's fees (1%).

Recovery rate(cents on thedollar)

34.2


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Details – Resolving Insolvency in Tajikistan – Measure of Quality

Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), theeconomy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”Note:

Answer Score

Strength of insolvency framework index (0-16) 4.0

Commencement of proceedings index (0-3) 1.5

What procedures are available to a DEBTOR when commencing insolvency proceedings? (b) Debtor mayfile for liquidationonly

0.5

Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but acreditor may filefor liquidationonly

0.5

What basis for commencement of the insolvency proceedings is allowed under theinsolvency framework?

(d) Both (a) and(b) options needto be compliedwith, concurrently

0.5

Management of debtor's assets index (0-6) 1.0

Does the insolvency framework allow the continuation of contracts supplying essential goodsand services to the debtor?

No 0.0

Does the insolvency framework allow the rejection by the debtor of overly burdensomecontracts?

Yes 1.0

Does the insolvency framework allow avoidance of preferential transactions? No 0.0

Does the insolvency framework allow avoidance of undervalued transactions? No 0.0

Does the insolvency framework provide for the possibility of the debtor obtaining credit aftercommencement of insolvency proceedings?

No 0.0

Does the insolvency framework assign priority to post-commencement credit? (c) No priority isassigned to post-commencementcreditors

0.0

Reorganization proceedings index (0-3) 0.5

Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5

Does the insolvency framework require that dissenting creditors in reorganization receive atleast as much as what they would obtain in a liquidation?

No 0.0

Are the creditors divided into classes for the purposes of voting on the reorganization plan,does each class vote separately and are creditors in the same class treated equally?

No 0.0

Creditor participation index (0-4) 1.0

Does the insolvency framework require approval by the creditors for selection orappointment of the insolvency representative?

No 0.0

Does the insolvency framework require approval by the creditors for sale of substantialassets of the debtor?

Yes 1.0

Does the insolvency framework provide that a creditor has the right to request informationfrom the insolvency representative?

No 0.0

Does the insolvency framework provide that a creditor has the right to object to decisionsaccepting or rejecting creditors' claims?

No 0.0


Page 55

Labor Market Regulation

presents detailed data for the labor market regulation indicators on the website( ). The report does not present rankings of economies on these indicators or include the topic in the aggregateease of doing business score or ranking on the ease of doing business.

Doing Business Doing Businesshttp://www.doingbusiness.org

The most recent round of data collection was completed in May 2018. .See the methodology for more information


(i) whether fixed-term contracts are prohibited forpermanent tasks; (ii) maximum cumulative durationof fixed-term contracts; (iii) length of theprobationary period; (iv) minimum wage.

Hiring

(i) maximum number of working days allowed perweek; (ii) premiums for work: at night, on a weeklyrest day and overtime; (iii) whether there arerestrictions on work at night, work on a weekly restday and for overtime work; (iv) whethernonpregnant and nonnursing women can worksame night hours as men; (v) length of paid annualleave.

Working hours

(i) whether redundancy can be basis for terminatingworkers; (ii) whether employer needs to notifyand/or get approval from third party to terminate 1redundant worker and a group of 9 redundantworkers; (iii) whether law requires employer toreassign or retrain a worker before making workerredundant; (iv) whether priority rules apply forredundancies and reemployment.

Redundancy rules

(i) notice period for redundancy dismissal; (ii)severance payments due when terminating aredundant worker.

Redundancy cost

(i) whether law mandates equal remuneration forwork of equal value and nondiscrimination based ongender in hiring; (ii) whether law mandates paid orunpaid maternity leave; (iii) length of paid maternityleave; (iv) whether employees on maternity leavereceive 100% of wages; (v) availability of five fullypaid days of sick leave a year; (vi) eligibilityrequirements for unemployment protection.

Job quality


To make the data comparable across economies, several assumptions about theworker and the business are used.

- Is a cashier in a supermarket or grocery store, age 19, with one year of workexperience.- Is a full-time employee.- Is not a member of the labor union, unless membership is mandatory.

The worker:

- Is a limited liability company (or the equivalent in the economy).- Operates a supermarket or grocery store in the economy’s largest business city.For 11 economies the data are also collected for the second largest business city.- Has 60 employees.- Is subject to collective bargaining agreements if such agreements cover more than50% of the food retail sector and they apply even to firms that are not party to them.- Abides by every law and regulation but does not grant workers more benefits thanthose mandated by law, regulation or (if applicable) collective bargainingagreements.

The business:


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http://www.doingbusiness.org/

http://www.doingbusiness.org/en/methodology/labor-market-regulation

Labor Market Regulation - Tajikistan

Details – Labor Market Regulation in Tajikistan

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? Yes

Maximum length of a single fixed-term contract (months) No limit

Maximum length of fixed-term contracts, including renewals (months) No limit

Minimum wage applicable to the worker assumed in the case study (US$/month) 50.2

Ratio of minimum wage to value added per worker 0.4

Maximum length of probationary period (months) 3.0

Working hours

Standard workday 8.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 50.0

Premium for work on weekly rest day (% of hourly pay) 100.0

Premium for overtime work (% of hourly pay) 100.0

Restrictions on night work? Yes

Whether nonpregnant and nonnursing women can work the same night hours as men Yes

Restrictions on weekly holiday? No

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 18.0

Paid annual leave for a worker with 5 years of tenure (working days) 18.0

Paid annual leave for a worker with 10 years of tenure (working days) 18.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 18.0

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party notification if one worker is dismissed? Yes

Third-party approval if one worker is dismissed? No

Third-party notification if nine workers are dismissed? Yes

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? Yes

Priority rules for redundancies? Yes

Priority rules for reemployment? No

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure 8.7

Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7

Notice period for redundancy dismissal for a worker with 10 years of tenure 8.7

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7

Severance pay for redundancy dismissal for a worker with 1 year of tenure 13.0


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Severance pay for redundancy dismissal for a worker with 5 years of tenure 13.0

Severance pay for redundancy dismissal for a worker with 10 years of tenure 13.0

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 13.0

Job quality

Equal remuneration for work of equal value? Yes

Gender nondiscrimination in hiring? Yes

Paid or unpaid maternity leave mandated by law? Yes

Minimum length of maternity leave (calendar days)? 140.0

Receive 100% of wages on maternity leave? Yes

Five fully paid days of sick leave a year? No

Unemployment protection after one year of employment? No

Minimum contribution period for unemployment protection (months)? 18.0


Page 58

Business Reforms in Tajikistan

In the past year, observed a peaking of reform activity worldwide. From June 2, 2017, to May 1, 2018, 128 economiesimplemented a record 314 regulatory reforms improving the business climate. Reforms inspired by have been implementedby economies in all regions. The following are reforms implemented since 2008.

Doing BusinessDoing Business

Doing Business

= reform making it easier to do business. = Change making it more difficult to do business.Doing Business

DB2019

Trading across Borders: Tajikistan made trading across borders easier by streamlining customs clearance with Uzbekistan through theSimplified Customs Corridor agreement.

DB2018

Starting a Business: Tajikistan made starting a business easier by raising the revenue threshold for mandatory value added taxregistration.

Registering Property: Tajikistan made registering property easier by eliminating a procedure and reducing time as the registration of thesale-purchase agreement at the city government is no longer practiced. At the same time, fee increases raise the cost of transferringproperty.

Labor Market Regulation: Tajikistan adopted legislation that changes to the rules of severance payments. It also abolished restrictions onnight work by non-pregnant women and non-nursing mothers.

DB2017

Starting a Business: Tajikistan made starting a business more difficult by requiring that companies with annual revenue of more than SM500,000 register as a VAT payer

Paying Taxes: Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing andpaying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates wereincreased.

DB2016

Paying Taxes: Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for corporateincome tax, VAT and labor taxes. On the other hand, it increased real estate tax fees.

Trading across Borders: Tajikistan made trading across borders easier by making it possible to submit customs declarations electronically.

DB2015

Starting a Business: Tajikistan made starting a business easier by enabling the Statistics Agency to issue the statistics code for the newbusiness at the time of registration.

Dealing with Construction Permits: Tajikistan made dealing with construction permits less costly by reducing the fee to obtain thearchitectural planning assignment.

Getting Credit: Tajikistan improved access to credit information by beginning to provide credit scores.

Paying Taxes: Tajikistan made paying taxes easier for companies by introducing an electronic system for filing and paying corporateincome tax, VAT and labor taxes.

DB2014

Starting a Business: Tajikistan made starting a business more difficult by requiring preliminary approval from the tax authority and thesubmission of additional documents at registration.

Getting Credit: Tajikistan improved access to credit information by establishing a private credit bureau.

Paying Taxes: Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, merging theminimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land andvehicle tax rates.

DB2013

Protecting Minority Investors: Tajikistan strengthened investor protections by making it easier to sue directors in cases of prejudicialrelated-party transactions.


Page 59

DB2012

Starting a Business: Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after thestart of operations, thereby eliminating the requirements related to opening a bank account.

Getting Credit: Access to credit using movable property in Tajikistan became more complicated because the movable collateral registrystopped its operations in January, 2011.

DB2011

Starting a Business: Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the stateand the tax authority.

Protecting Minority Investors: Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual reportand greater access to corporate information for minority investors.

Paying Taxes: Tajikistan lowered its corporate income tax rate.

DB2010

Starting a Business: Tajikistan made starting a business easier by reducing the minimum capital requirement and speeding up theissuance of tax identification numbers.

Dealing with Construction Permits: Tajikistan made dealing with construction permits easier and less time consuming by eliminatingseveral procedures.

Registering Property: Tajikistan made transferring property more costly by increasing the state duty for property transactions.

Getting Credit: Tajikistan improved its credit information system through a new law allowing the creation of a private credit bureau.

Protecting Minority Investors: Tajikistan strengthened investor protections through amendments to the joint stock companies lawenhancing disclosure requirements for related-party transactions, increasing director liability in cases where related-party transactions harmthe company and allowing shareholders to request the rescission of such transactions.

Resolving Insolvency: Tajikistan improved its insolvency process by amending its insolvency law to reduce the duration and cost ofproceedings.

DB2009

Dealing with Construction Permits: In Tajikistan dealing with construction permits became more time consuming because ofadministrative backlogs and more costly because of an increase in fees.

Protecting Minority Investors: Tajikistan strengthened investor protections by introducing rules on the approval of related-partytransactions, increasing disclosure requirements for such transactions and allowing minority investors to initiate suits against directors onbehalf of the company in order to defend their rights as shareholders.

DB2008

Starting a Business: Tajikistan made starting a business easier by reducing the number of business activities subject to licensingrequirements.


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