The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Tax Reform Operation (P171892) EUROPE AND CENTRAL ASIA | Tajikistan | Governance Global Practice | Requesting Unit: ECCCA | Responsible Unit: EECG1 IBRD/IDA | Program-for-Results Financing | FY 2021 | Team Leader(s): Raul Felix Junquera-Varela, Hassan Aliev Seq No: 6 | ARCHIVED on 22-Dec-2023 | ISR59480 | Created by: Hassan Aliev on 18-Dec-2023 | Modified by: Hassan Aliev on 22-Dec-2023 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) To simplify the tax system, enhance quality of taxpayer services, and improve voluntary compliance. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The operation continues to perform satisfactorily with in terms of progress towards respect to prospects of achieving its the development objective and overall implementation progress. To date, the project has achieved several Disbursement Linked Indicator (DLI)/Disbursement Linked Result (DLR) which demonstrates strong commitment to the Program by from the Government. The project has already fully achieved two DLIs (DLI1 Selected preferential tax and customs incentives eliminated and DLI2 Regulatory foundations for improved tax system established). Likewise, two DLRs have been achieved (DLR 6.1 Taxpayer feedback mechanism has been established and functional in the Taxpayer Contact Center, DLR 7.1 Adoption of an action plan to address the gender gap in the Tax Committee. DLR 3.1. (Developing and publishing a tax expenditure report) will be soon finalized. TC has initiated the work on the cost-benefit analysis of tax incentives (DLR 3.2.). TC also has achieved DLI 4 (Reduced burden of tax audit), DLR 5 (Percentage of VAT refunds processed using risk-based verification), DLR 6.1. (Taxpayer service standards have been enhanced and based on taxpayer feedback), DLR 7.1. (Developing Action Plan to address gender gap), and DLR 7.2. (Representation of women in managerial positions). The project is also generally on track with the implementation on of its Program Action Plan. With respect to the Investment Project Financing Component of the operation, the progress has been slow due to delays in procurement. As of December 15, 2023, total disbursement of funds is 57%. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 12/22/2023 Page 1 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) P171892 IDA-D8350 Effective USD 50.00 50.00 0.00 26.79 20.20 57% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P171892 IDA-D8350 Effective 28-May-2021 03-Jun-2021 06-Dec-2021 31-Dec-2026 31-Dec-2026 Program Action Plan Action Description Capacity building on PforR implementation is conducted for the Tax Reform Secretariat and PIG Source DLI# Responsibility Timing Timing Value Status Within 2 months after Technical TC Other Completed effectiveness Capacity building is delivered through a series of consultations, organized by WB team for Tax Reform Secretariat Completion Measurement and PIG. Comments Action Description Third party verification (TPV) agency is contracted. Source DLI# Responsibility Timing Timing Value Status Within 3 months after Technical TC Other Completed effectiveness Completion Measurement Signed contract between PIU and TPV agency. Contracts are signed with a TPV per DLR readiness. To date, two consultancy contracts for verification of DLIs have Comments been concluded. Appointment of M&E specialist in PIG to ensure adequate M&E arrangements, data collection and monitoring of Action Description results under the Program Source DLI# Responsibility Timing Timing Value Status Within 2 months after Technical TC Other Completed effectiveness Completion Measurement M&E Specialist is hired Comments Action Description Appointment of 2 ICT specialists in PIG to ensure adequate implementation of ICT procurement under the Program Source DLI# Responsibility Timing Timing Value Status 12/22/2023 Page 2 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) DLI 4 Within two months after Technical TC, PIG Other In Progress effectiveness Completion Measurement IT Specialists are hired Initial process for hiring of the local IT-specialists under the IPF component was unsuccessful due to the insufficient Comments budget allocated for these positions. Currently, hiring process is in progress. Appointment of Environmental and Social (E&S) Specialists responsible for (1) communication and outreach, (2) Action Description outreach to taxpayers to ensure compliance, and (3) environmental and social risks mitigation, monitoring, and reporting at the PIG. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Within 2 months after TC, PIG Other Completed Systems effectiveness Completion Measurement E&S Specialists are hired The Environmental Specialist was hired and contracted on September 27, 2022. Comments The Social Specialist was hired and contracted on February 20, 2022. Strengthen the M&E capacity of the tax authorities based on modern methodologies to assess key performance Action Description indicators Source DLI# Responsibility Timing Timing Value Status DLI 4 December 2021, throughout the Technical TC Other In Progress Program implementation Completion Measurement The M&E system is strengthened at the TC. Regular M&E reports on KPIs are produced Comments Action Description Training on cost-benefit analysis of tax incentives Source DLI# Responsibility Timing Timing Value Status Technical DLI 3 MoF Due Date 20-Dec-2023 Completed Completion Measurement Relevant MoF staff is trained on cost-benefit analysis of tax incentives Comments With the support of the Bank-Executed TA, the Bank delivered training on the cost-benefit analysis of tax incentives. Action Description Midline and endline taxpayer surveys Source DLI# Responsibility Timing Timing Value Status 12/22/2023 Page 3 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Midline survey - 2023, Technical TC Other In Progress endline survey - 2026 Midline and endline taxpayer surveys are completed and data on taxpayer satisfaction with selected available and Completion Measurement new services is available For mid-line survey, contract was signed in March 2023. The company submitted its inception report in November Comments 2023. Establish taxpayer service centers in all district level tax authorities, possibly in rural densely populated jamoats, Action Description where taxpayers have no access to the internet Source DLI# Responsibility Timing Timing Value Status Environmental and Social DLI 6 TC Due Date 31-Jan-2024 In Progress Systems Completion Measurement Taxpayer service centers are established in all district level tax offices (68) and some densely populated jamoats Service Centers provide help with consultation to taxpayers, who have difficulties with submitting their electronic tax Comments declarations. The work on establishing taxpayer service centers is in progress. Modernize, strengthen and implement the system of continuous in-service training and on-job mentorship with Action Description specific focus on women promotion, including development and implementation of action plan on tax staff ICT capacity building Source DLI# Responsibility Timing Timing Value Status DLI 5 Annually throughout Environmental and Social TC Other the Program In Progress Systems implementation An action plan on ICT capacity building of tax staff is prepared and being implemented. Annual staff capacity Completion Measurement building/training plans are approved, implemented and reported in each tax office. Comments ICT Development Road Map has been approved, which provides for an action plan on capacity building for TC staff. Prepare and implement Taxpayer Communication Plan with strengthened the taxpayer feedback mechanism at the Action Description Call Center and local tax offices. Source DLI# Responsibility Timing Timing Value Status DLI 1 Throughout the Environmental and Social TC Other Program Completed Systems implementation Taxpayer Communication Plan and Stakeholder Engagement Plan implemented and reported as part of Annual Program Implementation Reports; Completion Measurement Effective GRM is in place in every tax office. Regular GRM reporting 12/22/2023 Page 4 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Comments TC has submitted information on existing GRM mechanism. Currently, GRM is functioning in all tax offices. Perform a gap analysis of licensed e-waste facilities in Tajikistan against the Bank’s requirements/GIIP prior to Action Description sending e-waste to the facility and update ESMP to include corrective actions to address any identified material issues. Source DLI# Responsibility Timing Timing Value Status Environmental and Social DLI 4 TC/State Property Prior to sending e- Other Completed Systems Committee waste to the facility Gap analysis of licensed e-waste facilities in Tajikistan is completed - report submitted to the Bank in April 2023. The ESMP is implemented. Completion Measurement Reporting Progress through Annual Program Implementation Reports Comments The report was submitted in April 2023 Action Description Implement and report on the ESMP with e-waste management procedures Source DLI# Responsibility Timing Timing Value Status DLI 4 Throughout the Environmental and Social TC Other Program In Progress Systems implementation Completion Measurement Annual Program Implementation Reports Comments The first project Annual Program Implementation Report was submitted in April 2023. Development of standard bidding documents and contract forms for the Program procurement of goods, works, non- Action Description consulting and consulting services Source DLI# Responsibility Timing Timing Value Status No later than 6-months Fiduciary Systems TC Other after the project Completed effectiveness Completion Measurement TC shares standard bidding documents and contract forms with WB Documents received from the SAPP and sent to the World Bank for consideration. Bidding documents to be used for Comments the Program (PforR) component were updated by the Procurement Specialist and were submitted for Bank review in June 2023. 12/22/2023 Page 5 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Prepare a capacity building and training plan, acceptable to the Bank, for improving the TC staff fiduciary capacity. Action Description Dedicated TC staff to complete training and get certified in public procurement and national IA Certification of the MOF Source DLI# Responsibility Timing Timing Value Status No later than 6 months Fiduciary Systems TC Other after the Program Completed effectiveness. Completion Measurement A capacity building and training plan is confirmed acceptable by WB. A Staff Capacity Building Strategy for the Tax Committee has been developed to improve the fiduciary system and is Comments submitted to the management of the Tax Committee, the Ministry of Finance, SAPP, and also to the World Bank for consideration. . The MoF to ensure for each fiscal year under the Program that the originally approved (revised) budget funding for Action Description activities that are supported by the PforR is set at least at a level of the actual TC commitment under respective budget lines. Source DLI# Responsibility Timing Timing Value Status During the budget approval (revision) Fiduciary Systems MoF Other cycle for the Borrower’s In Progress each fiscal year under the Program. Completion Measurement MoF confirms to WB allocation of budget funding annually. Comments MoF confirmed allocation of budget funding for FY 23. An independent private auditor, acceptable to the Bank, procured by the MoF to conduct audit of first two years of Action Description Program implementation. Source DLI# Responsibility Timing Timing Value Status First two years of the Fiduciary Systems TC Other Program Completed implementation Completion Measurement Annual audits completed and submitted to the World Bank within six months after the end of the audit period. Comments Audit was conducted in November 2023. SAPP to establish a mechanism to check, before contract award under the Program, the World Bank’s debarment Action Description (www.worldbank.org/debarr) and temporary suspension lists to avoid awarding to firms or individuals on the debarred list Source DLI# Responsibility Timing Timing Value Status No later than 6 months Fiduciary Systems SAPP Other after the project Completed effectiveness 12/22/2023 Page 6 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Completion Measurement Copy of audit reports submitted to the Bank. Comments TC publishes annual Procurement Plans at the beginning of each fiscal year and conducts business outreach and Action Description market sounding events before launching tenders Source DLI# Responsibility Timing Timing Value Status Throughout the Fiduciary Systems TC Other Program In Progress implementation Completion Measurement Evidence of published Procurement Plans at the beginning of TC fiscal year. The Procurement Plan for the PforR has been published on the TC websites in January 2023 (andoz.tj) and will be Comments updated on an ongoing basis every year. TC payments processed according to the contract conditions but not later than 3 months after fulfilment of Action Description contractors/suppliers/consultants contractual obligations. TC to ensure that all accounts payable are closed and there are no overdue payables. Source DLI# Responsibility Timing Timing Value Status Throughout the Fiduciary Systems TC Other Program In Progress implementation Completion Measurement TC confirms to WB during implementation support missions Comments There is no delays with paying to the project suppliers. Enhanced use of functionalities of online complaint module at the SAPP web portal to address received procurement Action Description related complaints under the Program. Regular monitoring by TC of status of complaints review and resolution Source DLI# Responsibility Timing Timing Value Status Throughout the Fiduciary Systems TC Other Program In Progress implementation Completion Measurement TC confirms to WB during implementation support missions Comments Continuously monitored. Risks Systematic Operations Risk-rating Tool 12/22/2023 Page 7 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Simplified Tax System IN01387232 ►Selected preferential tax and customs incentives eliminated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The new Tax Code of The new Tax Code of the the Republic of Republic of Tajikistan Tajikistan (which was (which was approved by approved by the the Government on Government on Tax incentives September 2, 2021 and September 2, 2021 and eliminated under each ratified and finally ratified and finally of the following endorsed with Resolution endorsed with preferential tax No. 217 of Majlisi Milli of Resolution No. 217 of regimes for the new Majlisi Oli of the Republic Majlisi Milli of Majlisi Oli taxpayers: A new edition of the Tax of Tajikistan on of the Republic of Code is developed and December 17, 2021) Tajikistan on December (a) Construction of adopted. The eliminated the incentives 17, 2021) eliminated the hydro power plants (for amendments to the Tax Value associated with the incentives associated the investor, general Code propose to eliminate construction of with the construction of contractor and at least 14 incentives, hydroelectric power hydroelectric power suppliers) (10 related to two preferential plants (Chapter 46) and plants (Chapter 46) and incentives); (b) Supply tax regimes. persons benefitting from persons benefitting from of manufactured the right to apply for the right to apply for products by the incentives in the incentives in the investor implementing implementation of implementation of a production sharing production sharing production sharing agreement (4 agreements (Chapter agreements (Chapter incentives). 48), which provided for 48), which provided for exemption from payment exemption from of 14 taxes and duties. payment of 14 taxes and duties. Date 31-Mar-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 12/22/2023 Page 8 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) The target is achieved. Comments Improved Quality of Taxpayer Services IN01387234 ►(a) Taxpayer satisfaction with the quality of selected available taxpayer electronic services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 84.19 88.30 88.30 89.00 Date 12-Mar-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 This indicator was calculated as the average percentage of respondents satisfied, that is, having rated their level of satisfaction as 4 or 5 on a scale of 1 to 5 with the 3 available services tracked in the survey and listed below. At baseline, satisfaction with 3 existing available services are tracked . At mid and end line, 3 Comments available and new services will be tracked. Currently, the following services are measured under this indicator: e-payments of taxes, electronic labeling of goods, and electronic appeals. IN01387235 ►(b) Taxpayer satisfaction with the quality of selected available taxpayer electronic services - women (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 85.96 87.20 87.20 89.00 Date 30-Sep-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 This indicator measures women taxpayer satisfaction with the quality of selected available taxpayer electronic services. See definition of the indicator (a) Taxpayer satisfaction with the quality of Comments selected available taxpayer electronic services. IN01387241 ►(c) Taxpayer satisfaction with the quality of selected new taxpayer electronic services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 87.70 87.70 84.19 Date 12-Mar-2021 06-Jun-2023 06-Jun-2023 30-Sep-2026 This indicator was calculated as the average percentage of respondents satisfied, that is, having rated their level of satisfaction as 4 or 5 on a scale of 1 to 5 with 3 new services tracked in the survey and listed below. At baseline, new services were not measured as they did not exist. At mid and end line, new services will be Comments tracked too. The following services are measured under this indicator: New services: Registration of cash registers in electronic format, VAT refund, and E-assistant for all taxpayers (filing declaration, calculate taxes, payment of taxes etc.). IN01387242 ►(d) Taxpayer satisfaction with the quality of selected new taxpayer electronic services - woman (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 89.80 89.80 84.19 Date 30-Sep-2022 06-Jun-2023 06-Jun-2023 30-Sep-2026 This indicator measured women taxpayer satisfaction with the quality of selected new taxpayer electronic services. See definition of the indicator (a) Taxpayer satisfaction with the quality of selected new taxpayer Comments electronic services. 12/22/2023 Page 9 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Improved Voluntary Compliance IN01387233 ►VAT Compliance Gap (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.90 45.90 45.90 33.40 Date 30-Oct-2020 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measured the difference between the total potential VAT revenues (net of refunds) if 100% of taxpayers are compliant, and percentage of total observed VAT revenue collected (net of refunds). The gap is expressed as a percentage of potential revenue. It should be noted that regarding the Gap in Compliance with VAT, an analysis is currently underway to finalize the revision presented by the World Bank and is Comments being approved by the TC management, further analysis information will be provided, taking into account the rate reduction. It is expected that this information will be provided by end February 2023, but it has not been still provided. Intermediate Results Indicators by Results Areas 1. Simplified Tax System IN01387244 ►1.1 Regulatory foundations for improvement of the tax system established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Recipient’s The Recipient’s Government shall have Government shall have issued official issued official instructions instructions for MoF, TC for MoF, TC and other and other relevant relevant ministries and ministries and agencies agencies to develop and to develop and approve approve the required the required secondary secondary regulations regulations under the under the new Tax Code. new Tax Code. On November 2, 2021, On November 2, 2021, the Government of the the Government of the Republic of Tajikistan Republic of Tajikistan The new edition of the Tax The Recipient has instructed the Ministry of instructed the Ministry Code is developed and drafted, approved and Finance, the Tax Code of Finance, the Tax consulted but not published on one of and other ministries and Code and other approved. There are no the official web-sites Value departments of the ministries and secondary regulations in the secondary Republic of Tajikistan to departments of the place to support regulations required develop and apply by- Republic of Tajikistan to implementation of the new under the new Tax laws in support of the develop and apply by- Tax Code. Code. implementation of the laws in support of the new version of the Tax implementation of the Code. new version of the Tax At the moment, On 28 Code. April, 2023, 74 legal acts At the moment, On 28 supporting new Tax April, 2023, 74 legal Code were develpoed acts supporting new and approved. Tax Code were develpoed and approved. 12/22/2023 Page 10 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 Achieved. Comments IN01387247 ►1.2 Improved transparency of tax expenditure (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Tax expenditure report is published with the Tax expenditure report is annual draft budget not prepared and Tax expenditure report is Tax expenditure report that is submitted to published with the annual prepared, but it has not is prepared, but it has Parliament. Cost- draft budget that is been published. Cost- not been published. benefit analysis of Value submitted to Parliament. benefit analysis of Cost-benefit analysis of selected four tax Cost-benefit analysis of selected tax incentives/ selected tax incentives/ incentives/ exemptions selected tax incentives/ exemptions is not exemptions is not is conducted and exemptions is not conducted. conducted. published with the draft conducted. annual republican budget. Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 In December 2023, the TC informed the World Bank team that a tax expenditure report (DLR 3.1) was prepared by the MoF. The Ministry shared during the mission a report and a list of tax incentives (only in Russian) and quantified the tax expenditures at 10.9% of GDP for 2022. The Bank will review the list of Comments incentives - once translated - to determine whether the list includes only valid tax incentives as the level of revenue forgone (i.e., 10.9% of GDP) is deemed high. The Bank requested from the authorities to publish the tax expenditures report along with the national budget in order to meet DLR 3.1. IN01387250 ►1.3 Rules for tax and financial accounting reporting for CPT and VAT are harmonized (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Analysis of international Analysis of international standards for standards for establishing tax base in establishing tax base in tax and financial tax and financial New harmonized rules Rules for establishing a accounting reporting for accounting reporting for for establishing a tax tax base in tax and CPT and VAT is CPT and VAT is base in tax and Value financial accounting completed. completed. financial accounting reporting for CPT and VAT Contradictions in the Contradictions in the reporting for CPT and are not harmonized. rules for establishing a rules for establishing a VAT are enforced. tax base in tax and tax base in tax and financial accounting financial accounting reporting for CPT and reporting for CPT and VAT are identified. VAT are identified. Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 Achieved. Comments IN01387253 ►1.4 Percentage of MoF and TC professional staff in tax policy and intelligence functions trained on key tax policy analysis functions, including revenue forecasting, tax policy and data analytics (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 49.00 51.00 95.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 12/22/2023 Page 11 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) TC is finalizing the Action Plan, which will address all the above issues. Comments IN01387257 o/w women (percentage of all women in tax policy and intelligence functions) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 22.20 24.00 50.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 IN01387258 ►1.5 Improved representation of women in management positions in TC workforce (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At the moment, On 28 April, 2023 Women in managerial positions out of all staff in TC managerial positions comprise 9.1 percent only. 190 women work in the Tax Committee, of which At the moment, On 38 are in senior positions December, 2023 . Women in managerial An action plan to address positions out of all staff gender gap in TC in TC managerial workforce is developed positions comprise 11 and approved by TC percent. The target is management. achieved. Women in managerial Women in managerial This PforR (component) A female manager has positions out of all staff positions out of all staff in Value is being implemented as been appointed to the in TC managerial TC managerial positions part of the Action Plan to Tax Committee to positions comprise comprise 7.8 percent only. eliminate the gender gap implement the Action 11.00 percent. in leadership positions in Plan to close the gender the TC staff, which was gap in the leadership of approved by the order of the Tax Code Order the TC No. 118 dated dated January 27, 2022, February 23, 2022 No. 64-F . A female manager has been appointed to the Tax Committee to implement the Action Plan to close the gender gap in the leadership of the Tax Code Order dated January 27, 2022, No. 64-F . Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 An action plan to address the gender gap in TC workforce has been developed and approved by TC management. This IRP (component) is being implemented as part of the Action Plan to eliminate the gender gap in leadership positions in the NC staff, which was approved by the order of the NC No. 118 dated February 23, 2022 Comments A female manager has been appointed to the Tax Committee to implement the Action Plan to close the gender gap in the leadership of the Tax Code Order dated January 27, 2022, No. 64-F / 12/22/2023 Page 12 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) 2. Improved Quality of Taxpayer Services IN01387243 ►2.1 Development and Implementation of a Modern ICT Governance Model (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A new ICT governance A new ICT governance model has been model has been developed and developed and approved approved by the internal by the internal regulation. regulation. A plan for the A plan for the implementation of the implementation of the development of an development of an The ICT department automated tax automated tax The ICT department does operates based on a administration system for administration system not have an ICT modern ICT 2020-2025 within the for 2020-2025 within the Value governance model or ICT governance model with framework of the Project framework of the infrastructure upgrade up to date has been developed, Project has been plan. infrastructure. information on the developed, information progress of execution by on the progress of periods will be provided execution by periods additionally. will be provided additionally. Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the upgrade of the ICT infrastructure. Implementation will require that a new governance model for ICT department of the TC is developed and approved by the internal regulation. A plan for the implementation of an automated tax administration system for 2020-2025 within the Comments framework of the project has been developed, IN01387246 ►2.2 Number of services reengineered / automated at Level 3 or 4 according to the United Nations (UN) four-stage maturity model of e- Government within the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 6.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 TC has hired a consulting firm, which is helping with achieving this indicator. The first results were achieved Comments in August 2023. IN01387249 ►2.3 Number of TC offices equipped with the terminals for submission of e-declaration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 42.00 42.00 70.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the number of TC offices, where terminals for submission of e-declaration, procured Comments under the project, will be installed. IN01387252 12/22/2023 Page 13 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) ►2.4 Percentage of taxpayers out of all registered taxpayers in the taxpayer group, submitting declaration electronically disaggregated by legal entities and individual entrepreneurs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 63.85 64.60 65.00 78.50 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the average percentage of: (a) Legal entities out of all registered legal entities as taxpayers, submitting declaration electronically and (b) Individual entrepreneurs out of all registered Comments individual entrepreneurs as taxpayers, submitting declaration electronically. IN01387255 ►2.5 Percentage of TC professional staff in taxpayer services and compliance functions, trained in use of e-applications for taxpayer services, reengineered and automated under the Project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34.00 42.50 95.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator will start reporting from September 2024. It will measure the percentage of staff occupying professional positions in taxpayer services and compliance functions in TC central office, contact center, local Tax Offices, out of all staff in professional positions in taxpayer services and compliance functions in TC central office, contact center and local Tax Offices, trained in the use of e-applications for taxpayer Comments services, reengineering and automated under the project. The lists of relevant staff will be approved by the TC management annually. By the end of the project the target is to train 95 percent of the identified relevant staff. IN01387260 o/w women (percentage of all women taxpayer services and compliance functions) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 81.00 50.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 IN01387261 ►2.6 Number of hours required for filing tax reporting (DB indicator) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 224.00 224.00 1.00 180.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the administrative burden of paying 3 major taxes (social contributions, CIT and VAT) for medium size companies, expressed in time (number of hours) required for paying taxes and contributions and complying with post filing procedures (VAT refund and tax audit). Since DB discontinued Comments now, the project and WB has agreed that during the project mid-term review to cancel or reformulate this indicator. IN01387263 ►2.7 Taxpayer Service Standards have been enhanced and based on taxpayer feedback (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Quality of taxpayer service The new version of the The new version of the Taxpayer feedback is regulated by a Unified Unified Taxpayer Service Unified Taxpayer mechanism is Standard for Taxpayer Standards was Service Standards was established and Service (the Standard), developed in 2022 on the developed in 2022 on functional in the 12/22/2023 Page 14 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) enacted in 2017. basis of the Tax Code, the basis of the Tax Taxpayer Contact Implementation of the which was adopted Code, which was Center. Taxpayer Standard is not monitored. taking into account adopted taking into feedback mechanism There is no system for proposals from both account proposals from is functional in the monitoring and international financial both international Taxpayer Contact continuously enhancing institutions and feedback financial institutions and Center. Annual reports taxpayer services. from the private sector. feedback from the on taxpayer feedback, Monitoring of the private sector. collected through the implementation of the Monitoring of the taxpayer feedback Unified Standards is implementation of the mechanism, are monitored by the relevant Unified Standards is published at TC Department of the TC monitored by the website. A Unified and its results are relevant Department of Standard for Taxpayer published in the weekly the TC and its results Service is revised newspaper, and also are published in the based on taxpayer posted on the official weekly newspaper, and feedback. website. also posted on the Services to taxpayers are official website. constantly being Services to taxpayers improved. In 2022, 10 are constantly being new services were improved. In 2022, 10 introduced, and in the new services were first quarter of 2023, 2 introduced, and in 2023, new types of services 8 new types of services were developed and were developed and provided for use. provided for use. By 1 April 2023, the By 1 December 2023, Taxpayer Services the Taxpayer Services Department received a Department received a total of 30,360 appeals, total of 40,450 appeals, Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator will measure achievements of DLI 6 and DLR 6.1 and is expected to achieve its targets Comments by September 2024. 3. Improved Voluntary Compliance IN01387245 ►3.1 Reduced burden of tax audit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The criteria for assessing The criteria for the level of risk assessing the level of presented by taxpayers risk presented by (tax agents) are formed taxpayers (tax agents) At least 90% of field on the basis of the are formed on the basis audits of large annexes of the order of of the annexes of the taxpayers (i.e. Audits are not risk-based. the Tax Committee under order of the Tax taxpayers with annual Risk-based selection the Government of the Committee under the turnover above 25 methodology is Republic of Tajikistan Government of the million Somoni) during Value developed, but not and the decision of the Republic of Tajikistan the Government consistent with State Committee for and the decision of the financial year are international approaches. Investments and State State Committee for conducted for cases Property Management of Investments and State selected by the risk- the Republic of Tajikistan Property Management based selection tool. "On Criteria for of the Republic of Assessing the Level of Tajikistan "On Criteria Risk". The criteria for for Assessing the Level assessing the level of of Risk". The criteria for 12/22/2023 Page 15 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) risk based on the assessing the level of provisions of the above risk based on the document, risk provisions of the above assessment is carried out document, risk within the data of the assessment is carried Unified Information out within the data of System for Tax the Unified Information Administration, tax System for Tax declarations (reports), as Administration, tax well as information from declarations (reports), authorized bodies, in as well as information accordance with which from authorized bodies, the level of risk of the in accordance with taxpayer's activities which the level of risk of under a special program the taxpayer's activities is assessed. under a special program is assessed. The Bank provided in-person (field visits in August and September 2023) and remote support to ensure completion of the risk analysis matrix and meet DLR 4.2. The TC added and adjusted the risk weight to various indicators leading to the adoption of a revised risk matrix in October 2023 by the Risk Analysis department. The TC developed a risk management automated module, which became operational on October 1, 2023. The TC also developed and adopted a methodology document (i.e., Standard Operating Procedures - SOP) describing in detail: the process of the development of the risk indicators; the selection of the risky taxpayers; the development of the risk-based audit plan; and the evaluation of the audit outcome to adjust the risk matrix. The TC also developed an audit plan according to the risk-based approach for the large taxpayers’ segment. 12/22/2023 Page 16 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator will be measured through the implementation and achievements of DLR 4.1 and DLR 4.2. DLR 4.2 was achieved in November 2023. DLR 4.1 - the TC shall have approved the risk assessment methodology enhanced based on relevant Comments international experience. DLR 4.2 - 90 percent of field audits of large taxpayers are conducted for cases selected by the risk-based selection tool between October 1, 2023 – September 30, 2026. IN01387248 ►3.2 Coverage of corporate taxpayers with annual turnover above 25 million Somoni by Tax Monitoring Program (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target There are 459 corporate taxpayers with annual turnover above 25 million Tax monitoring is not Tax Monitoring Somoni as of May1, conducted. Program is fully 2023. operational and covers According to the Order of There are 242 corporate 10 percent of legal the Chairman of the Tax 10% Value taxpayers with annual entities out of all Committee, monitoring turnover above 25 million registered corporate and accounting of Somoni as of September taxpayers with annual taxpayers with an annual 1, 2020. turnover above 25 turnover of more than 25 million Somoni. million somoni began from January 01, 2023. Date 31-Jan-2021 21-Dec-2022 20-Dec-2023 30-Sep-2026 This composite indicator measures the development and institutionalization of Tax Monitoring Program for corporate taxpayers with annual turnover above 25 million Somoni. In Years 1-2 this will include the development of the Concept for tax monitoring and mechanisms of information exchange between TC and taxpayers, the development and the approval of the methodology for assessing reliability of taxpayer information, the piloting of the Tax Monitoring Program and the approval of the regulation, introducing tax Comments monitoring process and Program. In Years 3-5 of the project the indicator will measure the percentage of legal entities, covered by Tax Monitoring Program, out of all registered corporate taxpayers. Tax Monitoring Program is fully operational and covers 10% of legal entities out of all registered corporate taxpayers with annual turnover above 25 million Somoni. IN01387251 ►3.3 Percentage of mass desk audits launched out of total number of audits launched during the financial year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 31.00 42.00 43.00 75.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the percentage of mass desk audits as a share of the sum of all audit, launched Comments during the GoT financial year. IN01387254 ►3.4 Percentage of VAT refunds processed using risk-based verification or fast track procedures between October 1, 2023 – September 30, 2026. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Risk criteria or fast track Risk criteria or fast track 25% 95 % of VAT refunds procedure are not used for procedure are not used out of all VAT refunds verification of VAT refund. during the Government 12/22/2023 Page 17 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) for verification of VAT financial year are refund. processed using risk- based verification or fast track procedures. Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 Currently, 25% of VAT refunds are processed using risk-based verification or fast track procedures. Comments IN01387256 ►3.5 Percentage of active taxpayers in the total number of taxpayers registered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 70.10 74.00 78.00 90.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the percentage of active taxpayers (taxpayers, submitted tax declaration in the Government financial year) as a share of all registered taxpayers, including legal entities, branches and Comments representative offices of foreign legal entities, individual entrepreneurs, dekhkan farms. IN01387259 ►3.6 Percentage of TC professional staff in compliance risk management and tax audit functions trained in risk management, risk-based audits, and arrears management (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 57.70 83.00 95.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 The indicator measures the percentage of staff occupying professional positions in compliance risk management and audit functions out of all staff in professional positions in compliance risk management and audit functions in TC, trained in risk management, risk-based audits and arrear management. The lists Comments of relevant staff will be approved by the TC management annually. By the end of the project the target is to train 95 percent of the identified relevant staff. IN01387262 o/w women (Percentage of all women in compliance risk management and audit functions) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.70 50.00 Date 31-Jan-2021 06-Jun-2023 20-Dec-2023 30-Sep-2026 Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Selected preferential tax and customs incentives eliminated (Intermediate Outcome, 3,750,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 A new edition of the Tax Achieved. The new Tax Achieved. The new Tax Code is developed and Code of the Republic of Code of the Republic of consulted. The Tajikistan was approved Tajikistan was approved amendments to the Tax by the Government on by the Government on Value N/A Code propose to eliminate September 2, 2021 and September 2, 2021 and at least 14 incentives, ratified and finally ratified and finally related to two preferential endorsed with Resolution endorsed with Resolution tax regimes. No. 217 of Majlisi Milli of No. 217 of Majlisi Milli of 12/22/2023 Page 18 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Majlisi Oli of the Republic Majlisi Oli of the Republic of Tajikistan on of Tajikistan on December December 17, 2021. It’s 17, 2021. It’s currently currently available on the available on the Tax Tax Committee website: Committee website: www.andoz.tj. The Bank www.andoz.tj. The Bank confirmed the results confirmed the results achievement of DLI/DLR achievement of DLI/DLR 1 1 through a letter dated through a letter dated January 17, 2022. January 17, 2022. Date -- 06-Jun-2023 20-Dec-2023 -- Comments ►DLI 2 Regulatory foundations for improved tax system established (Intermediate Outcome, 7,500,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Significant progress has been made in drafting, Significant progress has approving, and been made in drafting, publishing the secondary approving, and publishing regulations/complementa the secondary ry regulations required to regulations/complementar The new edition of the Tax implement the tax code. y regulations required to Code is developed, Out of 96 by-laws implement the tax code. consulted and expected to identified by the Out of 96 by-laws be approved by the government, all have identified by the Government by the already been drafted. government, all have Program effectiveness. The team was informed already been drafted. The There are no secondary that to date 74 have team was informed that to regulations in place to already been approved date 84 have already been Value support implementation of N/A and published on the approved and published the new Tax Code. The website. It is also worth on the website. It is also Government Plan of the mentioning that all over worth mentioning that all Regulatory Acts to be the country a taxpayers’ over the country a Approved under the New awareness campaign is taxpayers’ awareness Edition of the Tax Code, is in place to disseminate campaign is in place to drafted and expected to be the tax code and disseminate the tax code finalized by the Tax Code complementary and complementary approval. regulations. This includes regulations. This includes reaching out to social reaching out to social media and mass media media and mass media to to further disseminate further disseminate and and interpret tax interpret tax legislation. legislation. Date -- 06-Jun-2023 20-Dec-2023 -- Achieved. Comments ►DLI 3 Improved transparency of tax expenditure (Intermediate Outcome, 7,500,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Value Tax expenditure report is WB team was informed . In December 2023, the See DLIs (DLRs) not prepared and published that a tax expenditure TC informed the World 3.1 and 3.2 with the annual draft budget report was prepared by Bank team that a tax 12/22/2023 Page 19 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) that is submitted to the Ministry of Finance expenditure report (DLR Parliament. (MoF), but it has not 3.1) was prepared by the been published yet. MoF. The Ministry shared during the mission a report and a list of tax incentives (only in Russian) and quantified the tax expenditures at 10.9% of GDP for 2022. The Bank will review the list of incentives - once translated - to determine whether the list includes only valid tax incentives as the level of revenue forgone (i.e., 10.9% of GDP) is deemed high. To meet DLR 3.1, the Bank requested from the authorities to publish the tax expenditures report along with the national budget. Moreover, the TC initiated the work on the cost-benefit analysis of tax incentives (DLR 3.2). The TC is focused on VAT and Corporate Income Tax (CIT) and they have so far identified 7 key benefits related to VAT-type of incentives and 12 key benefits related to CIT- type incentives. The Bank welcomed the progress on DLI 3 and requested from the TC to focus on two tax incentives and finalize the cost-benefit analysis. Given the work registered to date, it is expected that both DLR 3.1 and DLR 3.2 can be achieved in calendar year 2024. Date -- 06-Jun-2023 20-Dec-2023 -- The tax code removed some tax benefits, and the operation aspires for improving the transparency of tax incentives as indicated by publishing annually a tax expenditure report and conducting a cost-benefit analysis of selected tax incentives. A starting point is the tax gap analysis recently conducted by the WB where the size of the tax policy gap is estimated. Prior to making a decision regarding the potential removal of a tax benefit, it Comments is recommended to initiate a gradual process of comprehensive and systematic evaluation of tax expenditures as a policy instrument. An evaluation of this nature considers the objective of and justification for government intervention, its potential beneficiaries, and alternative policy interventions such as budgetary outlays or regulation. It also includes a careful evaluation of the costs and benefits of intervention. IN01387267 DLI 3.1 Tax expenditure report is published with the annual draft budget that is submitted to Parliament (Output, 3,000,000.00, 0%) Unit of Measure: Text Indicator Type: 12/22/2023 Page 20 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 In December 2023, the TC informed the World Bank team that a tax expenditure report (DLR 3.1) was prepared by the MoF. The Ministry shared during the mission a report and a list of tax incentives (only in Russian) and quantified the tax expenditures at 10.9% of GDP for 2022. The Bank will review the list of incentives - once translated - to determine whether the list includes only valid tax incentives as the level of revenue forgone (i.e., 10.9% of GDP) is deemed high. To meet DLR 3.1, the Bank DLR 3.1. Tax WB team was informed requested from the Tax expenditure report is expenditure report is that a tax expenditure authorities to publish the not published with the published with the Value report was prepared by tax expenditures report annual draft budget that is annual draft budget MoF, but it has not been along with the national submitted to Parliament. that is submitted to published yet. budget. Moreover, the TC Parliament. initiated the work on the cost-benefit analysis of tax incentives (DLR 3.2). The TC is focused on VAT and Corporate Income Tax (CIT) and they have so far identified 7 key benefits related to VAT-type of incentives and 12 key benefits related to CIT- type incentives. The Bank welcomed the progress on DLI 3 and requested from the TC to focus on two tax incentives and finalize the cost-benefit analysis. Given the work registered to date, it is expected that both DLR 3.1 and DLR 3.2 can be achieved in calendar year 2024. Date -- 06-Jun-2023 20-Dec-2023 -- The tax code removed some tax benefits, and the operation aspires for improving the transparency of tax incentives as indicated by publishing annually a tax expenditure report and conducting a cost-benefit analysis of selected tax incentives. A starting point is the tax gap analysis recently conducted by the WB where the size of the tax policy gap is estimated. Prior to making a decision regarding the potential removal of a tax benefit, it is recommended to initiate a gradual process of comprehensive and systematic evaluation of tax expenditures as Comments a policy instrument. An evaluation of this nature considers the objective of and justification for government intervention, its potential beneficiaries, and alternative policy interventions such as budgetary outlays or regulation. It also includes a careful evaluation of the costs and benefits of intervention. IN01387268 12/22/2023 Page 21 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) DLI 3.2 Cost-benefit analysis of selected tax incentives/ exemptions is conducted and published with the draft annual republican budget (Output, 4,500,000.00, 0%) Unit of Measure: Text Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 DLR 3.2. Cost- benefit analysis of four targeted tax Cost-benefit analysis of incentives/ selected tax incentives/ Value Not yet due. Not yet due. exemptions is exemptions is not conducted and conducted. published with the draft annual republican budget. Date -- 06-Jun-2023 20-Dec-2023 -- Comments ►DLI 4 Reduced burden of tax audit (Intermediate Outcome, 5,500,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Value Audits are not risk-based. Not yet due. The Bank provided in- See DLI (DLR) 4.2 person (field visits in August and September 2023) and remote support to ensure completion of the risk analysis matrix and meet DLR 4.2. The TC added and adjusted the risk weight to various indicators leading to the adoption of a revised risk matrix in October 2023 by the Risk Analysis department. The TC developed a risk management automated module, which became operational on October 1, 2023. The TC also developed and adopted a methodology document (i.e., Standard Operating Procedures - SOP) describing in detail: the process of the development of the risk indicators;, the selection of the risky taxpayers;, the development of the risk- based audit plan;, and the evaluation of the audit outcome to adjust the risk matrix. The TC also developed an audit plan according to the risk- 12/22/2023 Page 22 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) based approach for the large taxpayers’ segment. Date -- 06-Jun-2023 20-Dec-2023 -- Comments IN01387270 DLI 4.1 The TC shall have approved the risk assessment methodology enhanced based on relevant international experience (Output, 1,000,000.00, 0%) Unit of Measure: Text Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 The Bank provided in- person (field visits in August and September 2023) and remote support to ensure completion of the risk analysis matrix and meet DLR 4.2. The TC added and adjusted the risk weight to various indicators leading to the adoption of a revised risk matrix in October 2023 by the Risk Analysis department. The TC developed a risk management automated Risk assessment module, which became methodology is developed, operational on October 1, Value but is not consistent with Not yet due. 2023. The TC also N/A modern tax administration developed and adopted a approaches. methodology document (i.e., Standard Operating Procedures - SOP) describing in detail: the process of the development of the risk indicators;, the selection of the risky taxpayers;, the development of the risk- based audit plan;, and the evaluation of the audit outcome to adjust the risk matrix. The TC also developed an audit plan according to the risk- based approach for the large taxpayers’ segment. Date -- 06-Jun-2023 20-Dec-2023 -- Comments IN01387271 DLI 4.2 90% of field audits of large taxpayers are conducted for cases selected by the risk-based selection tool between October 1, 2023 – September 30, 2026 (Output, 4,500,000.00, 0%) Unit of Measure: Text Indicator Type: 12/22/2023 Page 23 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 The Bank provided in- person (field visits in August and September 2023) and remote support to ensure completion of the risk analysis matrix and meet DLR 4.2. The TC added and adjusted the risk weight to various indicators leading to the adoption of a revised risk matrix in October 2023 by DLR 4.2. At least the Risk Analysis 90% of field audits of department. The TC large taxpayers (i.e. developed a risk taxpayers, registered management automated in TC Large module, which became Taxpayers operational on October 1, Directorate and Value Audits are not risk-based. Not yet due. 2023. The TC also regional TC offices developed and adopted a for large taxpayers) methodology document during the (i.e., Standard Operating Government Procedures - SOP) financial year are describing in detail: the conducted for cases process of the selected by the risk- development of the risk based selection tool. indicators;, the selection of the risky taxpayers;, the development of the risk- based audit plan;, and the evaluation of the audit outcome to adjust the risk matrix. The TC also developed an audit plan according to the risk- based approach for the large taxpayers’ segment. Date -- 06-Jun-2023 20-Dec-2023 -- Comments ►DLI 5 Percent of VAT refunds processed using risk-based verification or fast track procedures between October 1, 2023 – September 30, 2026 (Outcome, 7,500,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Value Risk criteria or fast track Not yet due. The Bank also provided 95 % of VAT procedure are not used for in-person and remote refunds out of all verification of VAT refund. support to assist the TC in VAT refunds during developing a solution for the Government the automated VAT risk- financial year are based approach. The TC processed using developed an e-filing risk-based solution to submit a VAT verification or fast refund claim electronically track procedures. and automated the process for the treatment of the VAT refund claims. 12/22/2023 Page 24 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) As a result of these changes, the refund claims - within the reporting period – are now processed via a VAT refund risk matrix with a preset threshold to sort the claims that would undergo a fast track or an in-depth track treatment. This allowed the TC to meet DLR 5 with 25% of VAT refund claims processed using a risk- based verification system. Date -- 06-Jun-2023 20-Dec-2023 -- Comments ►DLI 6 Taxpayer Service Standards have been enhanced and based on taxpayer feedback (Intermediate Outcome, 3,750,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 The TC established a taxpayer feedback mechanism (DLR 6.1) and the Bank formally informed the MoF of this achievement in a letter dated April 24, 2023. The Quality of taxpayer service new version of the Unified is regulated by a Unified Taxpayer Service Standard for Taxpayer Standards was developed Service (the Standard), in 2022 on the basis of the enacted in 2017. Tax Code. No major Value Implementation of the In progress. See DLI (DLR) 6.2 progress was recorded Standard is not monitored. since the May 2023 There is no system for mission. The next steps monitoring and include producing and continuously enhancing publishing annual reports taxpayer services. on taxpayer feedback collected through the feedback mechanism (DLR 6.2); and publishing revised unified standards for taxpayer service on the TC website (DLR 6.3). Date -- 06-Jun-2023 20-Dec-2023 -- Comments IN01387274 DLI 6.1 Taxpayer feedback mechanism has been established and functional in the Taxpayer Contact Center (Intermediate Outcome, 1,000,000.00, 0%) Unit of Measure: Yes/No Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 12/22/2023 Page 25 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Value No Yes Yes Yes Date -- 06-Jun-2023 20-Dec-2023 -- Taxpayers’ feedback on tax services provided by the tax administration. The TC has a Call Center in place that receives feedback from taxpayers on a regular basis. The TC has also put in place a Hotline where taxpayers can complain or submit information requests. Overall, including the Call-Centers, chats, emails, or the Hotline, Comments the TC has received in 2022 so far around 20,900 complains/requests. IN01387275 DLI 6.2 Annual reports on taxpayer feedback, collected through the taxpayer feedback mechanism, has been published on TC website annually between October 1, 2024 – September 30, 2026. (Intermediate Outcome, 1,000,000.00, 0%) Unit of Measure: Text Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 The TC established a taxpayer feedback mechanism (DLR 6.1) and the Bank formally informed the MoF of this achievement in a letter dated April 24, 2023. The new version of the Unified Taxpayer Service DLR 6.2. Annual Standards was developed reports on taxpayer There is no system for in 2022 on the basis of the feedback, collected monitoring and Tax Code. No major through the taxpayer Value Not yet due continuously enhancing progress was recorded feedback taxpayer services. since the May 2023 mechanism, has mission. The next steps been published on include producing and TC website. publishing annual reports on taxpayer feedback collected through the feedback mechanism (DLR 6.2); and publishing revised unified standards for taxpayer service on the TC website (DLR 6.3). Date -- 06-Jun-2023 20-Dec-2023 -- Comments IN01387276 DLI 6.3 A Unified Standard for Taxpayer Service has been revised based on taxpayer feedback and published on TC website between October 1, 2023 – September 30, 2024. (Intermediate Outcome, 1,750,000.00, 0%) Unit of Measure: Yes/No Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Value No No No No Date -- 06-Jun-2023 20-Dec-2023 -- 12/22/2023 Page 26 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) The work is expected to start by the end 2023. Comments ►DLI 7 Improved representation of women in management positions in TC workforce (Intermediate Outcome, 2,000,000.00, 0%) October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Women in managerial positions out of all staff in Value 9.10 11.00 See DLI (DLR) 7.2 TC managerial positions comprise 7.8 percent only. Date -- 21-Dec-2022 20-Dec-2023 -- An action Plan is approved and being implemented. Comments IN01387278 DLI 7.1 An action plan to address gender gap in TC workforce has been developed and approved by TC management between October 1, 2021 – September 30, 2022. (Intermediate Outcome, 750,000.00, 0%) Unit of Measure: Yes/No Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 Value No Yes Yes No Date -- 06-Jun-2023 20-Dec-2023 -- An action plan is approved and being implemented. Comments IN01387279 DLI 7.2 Representation of women in TC managerial positions increased to 11% by September 30, 2026. (Intermediate Outcome, 1,250,000.00, 0%) Unit of Measure: Text Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 DLR 7.2. Woman in Women in managerial TC managerial positions out of all staff in positions out of all Value 9.10 11.00 TC managerial positions staff in managerial comprise 7.8 percent only. positions comprise 11%. Date -- 06-Jun-2023 20-Dec-2023 -- Comments A lot of work has been done on gender balance, especially in terms of hiring women and having more women at a managerial level. In this regard, TC is working in close collaboration with the National University. Currently around 12.3 percent of the total staff of the TC are women (221 women including 23 in managerial positions). The TC pointed to a research that was recently conducted by the Asian Development Bank (ADB) in the region where the revenue administration of Tajikistan has the higher percentages of women. While recognizing progress in this area, it is important to continue moving in this direction to increase the percentage of women working in the institution especially in managerial positions in alignment with the indicators included in the 12/22/2023 Page 27 of 28 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) project. The TC has developed the gender action plan, which the Bank provided comments on December 7, 2022 12/22/2023 Page 28 of 28