BASIC INFORMATION

The purpose of the creation of free economic zones in the Republic of Tajikistan

The main goals for the establishment of FEZ “Panj” shall be the following Encouraging the development of the economic potential of the Republic of Tajikistan, including by attracting the foreign and domestic investments, the introduction of best practice of governance and management,  effective involving of the region and country economy into the international labour division, development of the trade-economic cooperation with foreign countries, increase of the republic export potential, municipal engineering development on the territories bordering to FEZ “Panj”, creation of modern engineering-transport, telecommunication, production and social infrastructure, providing population employment of the country.

In order to attract investments, tax and customs preferences are provided for the subjects of the «Panj» free economic zone, which can be both foreign investors and domestic entrepreneurs.

In the free economic zone, it is planned to stimulate the production of goods and the provision of services with the involvement of new and modern technologies.

INFORMATION ABOUT FEZ “PANJ” 

Free economic zone “Panj” was established by the Decree of the Government of the Republic of Tajikistan No. 145 dated March 7, 2009, which is located in the southwestern part of the Republic of Tajikistan, on the territory of the Karadum massif, Jaihun district, Khatlon region, organized for a period of 50 years, with a total area of 401, 63 hectares of land.

Free economic zone “Panj” conducts its activities in accordance with the Law of the Republic of Tajikistan “0 free economic zones in the Republic of Tajikistan” No. 700 dated March 25, 2011 and the Regulations on free economic zones in the Republic of Tajikistan approved by the Resolution of the Majlisi namoyandagon Majlisi Oli of the Republic of Tajikistan dated 29 October 2008 No. 1174.

The given Regulation defines organizational, legal and economical basics of creating, operating and liquidation of free economic zone of a complex type Free economic zone “Panj” (hereinafter referred to as FEZ “Panj”).

Region where FEZ «Panj» is located is characterized by an extensive network of roads for passenger and freight traffic. The Dushanbe-Kabul-Nizhny Pyanj Highway passes through the territory of the FEZ «Panj», which facilitates the transportation of goods to Afghanistan, Pakistan, Iran, India and other states.

FEZ “Panj”- separate (bounded) plot on the territory of the Republic of Tajikistan, within the bounds of which operate special customs and tax regimes and also the simplified procedure for registration of FEZ “Panj” subjects (hereinafter referred to as FEZ subjects),also rules for entrance and departure of FEZ “Panj” residents and non-residents.

On FEZ “Panj” territory is created preferential regime for creating and operations of organizations, enterprises and individual entrepreneurs, formed with domestic and (or) foreign investments attraction.

FEZ subjects are individual entrepreneurs and organizations regardless of legal forms provided by the legislation, and also branches and their representations that

Comparative table on taxation in the FEZ “PANG“

In FEZ “Panj” the subjects are provided with the following guarantees:

• The system of state guarantees for protection of property and investments and the use of land stipulated by the legislation of the Republic of Tajikistan shall be applied to the subjects of free economic zone.
• Subjects of free economic zone shall be guaranteed to transfer abroad their incomes and other amounts in foreign currency obtained legally as a result of their activity in the free economic zone.
• The state shall guarantee the full and unconditional protection of the rights and the legal interests of the subjects of free economic zones after the liquidation of the free economic zone in accordance with the current legislation of the Republic of Tajikistan.
• In the case of early liquidation of the free economic zone, the subjects of the free economic zone shall be guaranteed the right to continue the activities under the registration and conditions effective at the moment of obtaining the status of a subject of free economic zone.

The business activity on the territory of the free economic zone, regardless of the form of ownership, shall be exempt from all kinds of taxes, stipulated by the Tax code of the Republic of Tajikistan, except for the social tax and the tax on the income of physical persons.

 Profits of foreign investors, and the salaries of foreign employees received in foreign currency can be freely transferred abroad and in such transfer shall not be liable to taxation.

Import into the territory of the free economic zone of foreign and domestic goods shall be carried out without collection of customs duties and taxes and also without application to the goods of the bans and the restrictions of economic nature.

Export from the territory of the free economic zone of the goods outside of the Republic of Tajikistan shall not be subject to taxes and customs duties, except for the fees for customs clearance, and the bans and the restrictions of economic nature shall not apply.

 Priority activities in the FEZ “Panj” shall include the following: 

• organization of production of chemical and petrochemical products
• mechanical engineering and metalworking
• creation of production of building materials
• organization of production of sanitary products
• creation of production of power plants
• construction of a transport and logistics center
• creation of production for the processing of agricultural products
• creation of production for the processing of cotton fiber
• development of light industry and others.

ACTIVITIES  FREE ECONOMIC ZONE «PANJ» ARE REGULATED: 

• Law of the Republic of Tajikistan «On FEZ»
• Regulation of FEZ “Panj”
• Law of the Republic of Tajikistan “On Investments”;
• Decrees of the Government of the Republic of Tajikistan;
• Decrees of the Majlisi namoyandagon Majlisi Oli of the Republic of Tajikistan.

         The administration of the FEZ “Panj” will provide comprehensive support, including in resolving registration issues, which will allow, using the “one window” principle, to go from the idea of an investment project to the registration of an enterprise as a business entity from 3 to 10 days, as a subject of the FEZ from 3 to 7 days.

MAIN CRITERIA FOR IMPLEMENTATION OF INVESTMENT PROJECT IN FEZ:

• The volume of investments to carry out productive activity – not less than the amount equivalent to 500 thousand U.S. dollars;
• The volume of investments for export and import activity – not less than the amount equivalent to 50 thousand U.S. dollars;
• The volume of investments for rendering services activity – not less than the amount equivalent to 10 thousand U.S. dollars;
• creation or development of export-oriented or import-substituting production.

Currently, the Administration is developing business plans for the processing of marble, dolomite, the construction of a canning and sugar factories, the construction of a mini plant for the processing and production of pomegranate juice using local raw materials, and others. In case of interest in these projects, the Administration of FEZ “Panj” is ready to cooperate on a mutually beneficial basis.

MEETINGS AND NEGOTIATIONS OF THE FEZ ADMISTRATION             

The FEZ Administration for 2020 held negotiations with the Ambassadors in the Republic of Tajikistan, and their trade representatives, and more than 120 meetings were held with foreign and domestic investors, via the Internet and mobile communications, as well as representatives and investors (People’s Republic of China, Republic of Turkey, Republic of Belarus, Republic of Kazakhstan, Republic of Uzbekistan, Islamic Republic of Iran, Islamic Republic of Pakistan, Islamic Republic of Afghanistan, United Arab Emirates, Republic of Canada, Republic of Hungary, Republic of Poland, United Kingdom and Russian Federation).

These meetings provided an opportunity to attract companies as subjects of the FEZ. At present, 12 entities are registered in FEZ “Panj” in various areas: production of building materials, import and export (trade), oil refinery and bio-ethanol production, plastic box production, battery and solar panel production, corn processing and production corn sticks, production of electric machines, etc.  Negotiations are underway with more than 30 domestic and foreign companies.

The administration of FEZ “Panj” is ready for mutually beneficial cooperation.