TAJIKISTAN Law and Practice Contributed by: Farhad Azizov and Shavkat Akhmedov, AAA Law Offices
Gains attributable to a PE are taxed as business prof - its, including the 15% PE net profit tax. Resident or non-resident “blocker” entities do not avoid Tajik taxa - tion on operating profits; dividends remain subject to withholding unless treaty-relieved. 9.5 Anti-Evasion Regimes Transfer Pricing, CFC, and Treaty Anti-Abuse Measures Tajikistan enforces transfer pricing rules and CFC-like provisions for low-tax jurisdictions. Non-resident with - holding obligations apply to certain asset disposals. Treaty benefits require genuine ownership and opera - tional substance, with conduit or artificial structures risking denial. Maintaining documentation and arm’s length compliance is critical. 10. Employment and Labour 10.1 Employment and Labour Framework Overview of Labour Law The Labour Code of the Republic of Tajikistan governs hiring, working time, pay, leave, termination, unions, collective bargaining, and dispute resolution. It applies to all employers, including foreign-owned companies and operations in FEZs. Any employer act that wors - ens employee rights compared to the Code is void. Collective Bargaining and Unions Social partnership operates through national, secto - ral, and territorial tripartite or bipartite commissions. Collective agreements at company level are com - mon, especially in medium-sized and large enterpris - es, covering pay systems, benefits, working hours, safety, training, redundancy procedures, and con - sultation requirements. Agreements are negotiated with employee representatives and approved by the workforce. 10.2 Employee Compensation Salary Structure and Benefits Employers determine wages and bonus schemes subject to statutory minimum wage compliance. Employees are entitled to paid annual leave, sick leave, maternity and parental protections, and social insurance contributions. Collective agreements may
provide additional benefits, such as extra leave, insur - ance, or transport/meal allowances. Implications for M&A or Change of Control Collective agreements continue after changes in ownership or management until a new agreement is adopted. Individual benefits under existing agree - ments must be preserved, and a new collective agree - ment should be concluded within three months post- transfer. 10.3 Employment Protection Redundancy and Termination Guarantees Employees affected by layoffs or operational changes are entitled to: • severance of at least three months’ average wage; • continued pay for the 2nd and 3rd months if regis - tered as unemployed with the labour authority; and • early retirement up to one year before statutory age for eligible workers. Managers affected by ownership changes are entitled to at least six months’ salary as compensation. Transfer of Employment and Consultation Asset deals do not automatically transfer employment, but continuity is usually preserved through contracts and collective agreements. Collective agreements typically specify procedures for employee notifica - tion and consultation in mass layoffs or restructuring events. 11. Intellectual Property and Data Protection 11.1 Intellectual Property Considerations for Investors’ intellectual property (IP) rights are rec - ognised and protected under Tajik law. There is no separate FDI-IP screening regime. However, projects involving sensitive or restricted information – such as state secrets or confidentiality-limited data – may be subject to review or access controls by authorised state bodies. Investors must follow procedures for Approval of FDI Role of IP in FDI
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