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: 2 | ARCHIVED on 25-Mar-2022 | ISR50550 | Created by: Sidet Kim on 07-Mar-2022 | Modified by: Sidet Kim on 25-Mar-2022 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 was approved by the World Bank Board of Directors on May 28, 2021 and became effective on December 6, 2021. The Operation has complied with all of the legal covenants listed under the Financing Agreement. The Operation has achieved DLI/DLR 1 namely "Selected Preferential Tax and Customs Incentives Eliminated" and DLI/DLR 2.1 namely "The Recipient’s Government shall have issued official instructions for MoF, TC and other relevant ministries and agencies to develop and approve the required secondary regulations under the new Tax Code". The achievement of DLI/DLR1 was confirmed by the Bank through a letter dated January 17, 2022. The TC has recently signed a contract with an independent firm to verify compliance for DLI/DLR 2.1. The verification work is in progress. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P171892 IDA-D8350 Effective USD 50.00 50.00 0.00 7.24 41.04 15% 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 3/25/2022 Page 1 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Within 2 months after Technical TC Other In Progress 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 Thirty-party Verification 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 Comments 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 IT specialists in PIG to ensure adequate implementation of ICT procurement under the Program Source DLI# Responsibility Timing Timing Value Status DLI 4 Within two months after Technical TC, PIG Other In Progress effectiveness Completion Measurement IT Specialists are hired Comments 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 3/25/2022 Page 2 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Completion Measurement E&S Specialists are hired Comments 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 31-Jan-2023 Not Yet Due Completion Measurement Relevant MoF staff is trained on cost-benefit analysis of tax incentives Comments Action Description Midline and endline taxpayer surveys Source DLI# Responsibility Timing Timing Value Status Midline survey - 2023, Technical TC Other Not Yet Due 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 Comments 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 30-Jun-2023 Completed Systems Completion Measurement Taxpayer service centers are established in all district level tax offices (68) and some densely populated jamoats 3/25/2022 Page 3 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Comments 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 Not Yet Due 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 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 In Progress 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 Comments 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 Not Yet Due Systems Committee waste to the facility Completion Measurement Gap analysis of licensed e-waste facilities in Tajikistan is completed. The ESMP is implemented. 3/25/2022 Page 4 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) The ESMP is implemented. Annual Program Implementation Reports Comments 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 Not Yet Due Systems implementation Completion Measurement Annual Program Implementation Reports Comments 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 In Progress effectiveness Completion Measurement TC shares standard bidding documents and contract forms with WB Comments 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 Not Yet Due effectiveness. Completion Measurement A capacity building and training plan is confirmed acceptable by WB. Comments 3/25/2022 Page 5 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) 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 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 In Progress implementation Completion Measurement Annual audits completed and submitted to the World Bank within six months after the end of the audit period. Comments 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 Completion Measurement Copy of audit reports submitted to the WB 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. 3/25/2022 Page 6 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Comments 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 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 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial 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 -- 3/25/2022 Page 7 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Overall Substantial Substantial Moderate RiskComments Comments Since the Tax code has been approved, the Political and Governance risk rating is revised to Moderate. Therefore, the overall risk is downgraded to Moderate. The Program’s fiduciary inherent risk rating is High before mitigation measures, due to systemic concerns regarding financial management, procurement, fraud and corruption. Residual risk assessed based on the guiding principles in risk assessment and the application of the Systematic Operations Risk-Rating Tool (SORT) in World Bank Operations (updated October 28, 2020) is assessed to be Substantial. Results PDO Indicators by Objectives / Outcomes Simplified Tax System IN01113824 ►Selected preferential tax and customs incentives eliminated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Tax incentives eliminated under each of the following The draft Tax Code, preferential tax The draft Tax Code, which envisages regimes for the new which envisages elimination of two taxpayers: A new edition of the Tax elimination of two preferential tax regimes Code is developed and preferential tax regimes (or 14 tax and customs (a) Construction of consulted. The (or 14 tax and customs incentives), was hydro power plants (for amendments to the Tax incentives), is expected Value approved by the the investor, general Code propose to eliminate to be approved by the Government and ratified contractor and at least 14 incentives, Government at the end of by the Parliamentary. suppliers) (10 related to two preferential August 2021 and The Bank confirmed the incentives); (b) Supply tax regimes. submitted for the results achievement of of manufactured Parliamentary approval in DLI/DLR1 on January products by the September 2021. 17, 2022. investor implementing a production sharing agreement (4 incentives). Date 31-Mar-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This DLI indicator will measure the number of tax and customs incentives under preferential tax regimes eliminated by the Parliamentary approval of the new edition of the Tax Code. The achievement of this DLI will require that incentives under the preferential tax regimes are eliminated for new taxpayers of the Comments following economic activities and groups of taxpayers: (a) Construction of hydro power plants (for the investor, general contractor and suppliers of goods, works and services); (b) Supply of manufactured products by the investor implementing a production sharing agreement. Improved Quality of Taxpayer Services IN01113861 ►(a) Taxpayer satisfaction with the quality of selected available taxpayer electronic services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/25/2022 Page 8 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Value 84.19 84.19 84.19 89.00 Date 12-Mar-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This indicator will be 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, only 3 available services are tracked (with *). At mid and end line, available and new services are tracked. The following services are measured under this indicator: Comments • E-payments of taxes • Electronic labeling of goods • Electronic Appeals IN01113862 ►(b) Taxpayer satisfaction with the quality of selected available taxpayer electronic services - woman (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 85.96 85.96 85.96 89.00 Date 12-Mar-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This indicator will measure women taxpayer satisfaction with the quality of selected taxpayer available electronic services. See definition of the indicator (a) Taxpayer satisfaction with the quality of selected Comments available taxpayer electronic services. IN01113863 ►(c) Taxpayer satisfaction with the quality of selected new taxpayer electronic services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 84.19 Date 12-Mar-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This indicator will be 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 Comments will be tracked too. The following services are measured under this indicator: New services: • Registration of cash registers in electronic format • VAT refund • E-assistant for all taxpayers (filing declaration, calculate taxes, payment of taxes etc.) IN01113864 ►(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 0.00 0.00 84.19 Date 12-Mar-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This indicator will measure women taxpayer satisfaction with the quality of selected taxpayer new electronic services. See definition of the indicator (a) Taxpayer satisfaction with the quality of selected new taxpayer Comments electronic services. Improved Voluntary Compliance IN01113825 ►VAT Compliance Gap (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.90 45.90 45.90 33.40 3/25/2022 Page 9 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Date 30-Oct-2020 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure 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 Comments gap is expressed as a percentage of potential revenue. Intermediate Results Indicators by Results Areas 1. Simplified Tax System IN01113866 ►1.1 Regulatory foundations for improvement of the tax system established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Recipient has issued official instructions for MoF, TC and other relevant The new edition of the Tax The new edition of the The Recipient have ministries and agencies Code is developed and Tax Code is developed drafted, approved and to develop and approve consulted but not and consulted but not published on one of the required secondary approved. There are no approved. There are no the official web-sites Value regulations under the secondary regulations in secondary regulations in the secondary new Tax Code. The place to support place to support regulations required independent firm was implementation of the new implementation of the under the new Tax hired to verify the Tax Code. new Tax Code. Code. achievement of DLI/DLR 2.1. Verification is in progress. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The DLI will measure that: DLR 2.1. The Recipient’s Government shall have issued official instructions for MoF, TC and other relevant ministries and agencies to develop and approve the required secondary Comments regulations under the new Tax Code. DLR 2.2. The Recipient shall have drafted, approved and published on one of the official web-sites the secondary regulations required under the new Tax Code. IN01113869 ►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 Tax expenditure report is Tax expenditure report annual draft budget not prepared and not prepared and is not prepared and that is submitted to published with the annual published with the annual published with the Parliament. Cost- draft budget that is draft budget that is annual draft budget that benefit analysis of Value submitted to Parliament. submitted to Parliament. is submitted to selected four tax Cost-benefit analysis of Cost-benefit analysis of Parliament. Cost-benefit incentives/ exemptions selected tax incentives/ selected tax incentives/ analysis of selected tax is conducted and exemptions is not exemptions is not incentives/ exemptions published with the draft conducted. conducted. is not conducted. annual republican budget. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The achievement of this DLI will require that: DLR 3.1. Tax expenditure report is published with the annual draft budget that is submitted to Parliament between October 1, 2023 – September 30, 2026. DLR 3.2. Comments Cost-benefit analysis of selected tax incentives/ exemptions is conducted and published with the draft annual republican budget between October 1, 2023 – September 30, 2026. IN01113872 3/25/2022 Page 10 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) ►1.3 Rules for tax and financial accounting reporting for CPT and VAT are harmonized (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Rules for establishing a New harmonized rules Rules for establishing a Rules for establishing a tax base in tax and for establishing a tax tax base in tax and tax base in tax and financial accounting base in tax and Value financial accounting financial accounting reporting for CPT and financial accounting reporting for CPT and VAT reporting for CPT and VAT are not reporting for CPT and are not harmonized. VAT are not harmonized. harmonized. VAT are enforced. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 Comments The indicator will reflect approval of the harmonized tax and financial accounting rules for CPT and VAT IN01113875 ►1.4 Percent 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 0.00 0.00 95.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure percentage of staff occupying professional positions in tax policy and intelligence functions in relevant departments of MoF and TC, out of all staff in professional positions in tax policy and Comments intelligence functions in MoF and TC, trained in revenue forecasting, tax policy and data analytics. The lists of relevant staff will be approved by the management of MoF for MoF staff and management TC for TC staff annually. By the end of the project the target is to train 95% of the identified relevant staff. IN01113879 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 0.00 0.00 50.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 IN01113880 ►1.5 Improved representation of women in management positions in TC workforce (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Women in managerial Women in managerial Women in managerial Women in managerial positions out of all staff in positions out of all staff positions out of all staff positions out of all staff in Value TC managerial positions in TC managerial in TC managerial TC managerial positions comprise 7.8 percent positions comprise 7.8 positions comprise comprise 7.8 percent only. only. percent only. 11.00 percent. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This DLI will require that: DLR 7.1. An action plan to address gender gap in TC workforce is developed and approved by TC management between October 1, 2021 – September 30, 2022. DLR 7.2. Representation of Comments women in TC managerial positions to be increased to 11% by September 30, 2026. 2. Improved Quality of Taxpayer Services IN01113865 ►2.1 Development and Implementation of a Modern ICT Governance Model (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/25/2022 Page 11 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) The ICT department The ICT department does The ICT department The ICT department operates based on a not have an ICT does not have an ICT does not have an ICT modern ICT Value governance model or ICT governance model or ICT governance model or governance model with infrastructure upgrade infrastructure upgrade ICT infrastructure up to date plan. plan. upgrade plan. infrastructure. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure upgrade of the ICT infrastructure. It will require that a new governance model for ICT department of the TC is developed and approved by the internal regulation. The ICT governance model Comments will include staffing number with skills requirements necessary to support the model and ICT Infrastructure Upgrade Plan. ICT infrastructure will be upgraded by the end of the Program and local offices are to be connected to Tax Committee ICT infrastructure for video conferencing and training. IN01113868 ►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 0.00 0.00 6.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This composite indicator will track the number of the following services: • Reengineered under the project. ‘Reengineered’ is defined as services with ‘to-be’ maps developed, approved, and implemented. • Automated at Level 3 and/or 4 according to the United Nations (UN) four-stage maturity model of e- Government. According to this model, Level 3 corresponds to transactional services: two-way interaction with services recipients is possible. Level 4 corresponds to ‘connected services.’ See ‘UN E-Government Survey 2012: E-Government for the People’. The services, planned to be reengineered and automated Comments under the project include: Available services that require further improvement: • E-payments of taxes • Electronic labeling of goods • Electronic Appeals New services to be automated: • Registration of cash registers in electronic format • VAT refund • E-assistant for all taxpayers (filing declaration, calculate taxes, payment of taxes etc.) IN01113871 ►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 30.00 30.00 70.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure number of TC offices, where terminals for submission of e-declaration, procured Comments under the project, will be installed. IN01113874 ►2.4 Percent 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 63.85 63.85 78.50 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure 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. IN01113877 3/25/2022 Page 12 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) ►2.5 Percent 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 0.00 0.00 95.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure 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 Comments Offices, trained in the use of e-applications for taxpayer 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% of the identified relevant staff. IN01113882 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 0.00 50.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 IN01113883 ►2.6 Number of hours required for filing tax reporting (DB indicator) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 224.00 224.00 224.00 180.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 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). See DB methodology for Comments more details https://www.doingbusiness.org/en/methodology/paying-taxes The baseline data of 224 hours comes from DB 2020 report, containing data covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). IN01113885 ►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 Quality of taxpayer Quality of taxpayer Taxpayer feedback is regulated by a Unified service is regulated by a service is regulated by a mechanism is Standard for Taxpayer Unified Standard for Unified Standard for established and Service (the Standard), Taxpayer Service (the Taxpayer Service (the functional in the enacted in 2017. Standard), enacted in Standard), enacted in Taxpayer Contact Implementation of the 2017. Implementation of 2017. Implementation of Center. Taxpayer Standard is not monitored. the Standard is not the Standard is not feedback mechanism There is no system for monitored. There is no monitored. There is no is functional in the monitoring and system for monitoring system for monitoring Taxpayer Contact continuously enhancing and continuously and continuously Center. Annual reports taxpayer services. enhancing taxpayer enhancing taxpayer on taxpayer feedback, services. services. collected through the taxpayer feedback mechanism, are published at TC website. A Unified Standard for Taxpayer Service is revised 3/25/2022 Page 13 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) based on taxpayer feedback. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The achievement of the DLI will require that: DLR 6.1. A taxpayer feedback mechanism has been established and functional in the Taxpayer Contact Center. DLR 6.2. Annual reports on taxpayer feedback, collected through the taxpayer feedback mechanism, has been published on TC website annually between Comments October 1, 2024 – September 30, 2026. DLR 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. 3. Improved Voluntary Compliance IN01113867 ►3.1 Reduced burden of tax audit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 90% of field audits of large Audits are not risk- taxpayers (i.e. Audits are not risk-based. Audits are not risk-based. based. Risk-based taxpayers with annual Risk-based selection Risk-based selection selection methodology turnover above 25 methodology is methodology is is developed, but not million Somoni) during Value developed, but not developed, but not consistent with the Government consistent with consistent with international financial year are international approaches. international approaches. approaches. conducted for cases selected by the risk- based selection tool. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The DLI will require that: DLR 4.1. The TC shall have approved the risk assessment methodology enhanced Comments based on relevant international experience. DLR 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. IN01113870 ►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 Tax monitoring is not Tax Monitoring Tax monitoring is not Tax monitoring is not conducted. Program is fully conducted. conducted. operational and covers There are 242 corporate 10% of legal entities There are 242 corporate There are 242 corporate Value taxpayers with annual out of all registered taxpayers with annual taxpayers with annual turnover above 25 million corporate taxpayers turnover above 25 million turnover above 25 Somoni as of September with annual turnover Somoni as of September million Somoni as of 1, 2020. above 25 million 1, 2020. September 1, 2020. Somoni. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This composite indicator will measure 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 Comments information, the piloting of the Tax Monitoring Program and the approval of the regulation, introducing tax 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. IN01113873 3/25/2022 Page 14 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) ►3.3 Percent 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 31.00 31.00 75.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will the measure percentage of mass desk audits as a share of the sum of all audit, launched Comments during the GoT financial year. IN01113876 ►3.4 Percent 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 95 % of VAT refunds out of all VAT refunds Risk criteria or fast track Risk criteria or fast track Risk criteria or fast track during the Government procedure are not used procedure are not used Value procedure are not used for financial year are for verification of VAT for verification of VAT verification of VAT refund. processed using risk- refund. refund. based verification or fast track procedures. Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 This DLI will require that from baseline 0, 95 % of VAT refunds out of all VAT refunds during the Comments Government financial year are processed using risk-based verification or fast track procedures. IN01113878 ►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 70.10 70.10 90.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure 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. IN01113881 ►3.6 Percent 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 10.00 10.00 95.00 Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 30-Sep-2026 The indicator will measure 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 arreas 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% of the identified relevant staff. IN01113884 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 0.00 0.00 50.00 3/25/2022 Page 15 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Date 31-Jan-2021 01-Sep-2021 17-Mar-2022 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 Code was approved by the Government on Achieved. The new Tax August 31, 2021. It Code of the Republic of eliminates tax and Tajikistan was approved customs incentives under by the Government on two preferential tax September 2, 2021 and A new edition of the Tax regimes: (a) Construction ratified and finally Code is developed and of hydro power plants (for endorsed with Resolution consulted. The the investor and general No. 217 of Majlisi Milli of amendments to the Tax contractor) (10 Majlisi Oli of the Republic Value N/A Code propose to eliminate incentives) (b) Supply of of Tajikistan on December at least 14 incentives, manufactured products 17, 2021. It’s currently related to two preferential by the investor available on the Tax tax regimes. implementing a Committee website: production sharing www.andoz.tj. The Bank agreement (4 incentives). confirmed the results The new edition of the achievement of DLI/DLR 1 Tax Code is expected to through a letter dated be ratified by the January 17, 2022. Parliament in the fall of 2021. Date -- 01-Sep-2021 17-Mar-2022 -- 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 The new edition of the The new edition of the Tax Tax Code was approved Code is developed, by the Government on consulted and expected to August 31, 2021 and be approved by the expected to be ratified by Government by the the Parliament in the fall Program effectiveness. of 2021. There are no There are no secondary secondary regulations in DLR 2.1 is achieved and regulations in place to place to support under the verification Value support implementation of N/A implementation of the process by the an the new Tax Code. The new Tax Code. The independent firm. Government Plan of the Government Plan of the Regulatory Acts to be Regulatory Acts to be Approved under the New Approved under the New Edition of the Tax Code, is Edition of the Tax Code, drafted and expected to be is drafted and expected finalized by the Tax Code to be finalized by the Tax approval. Code approval. 3/25/2022 Page 16 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Date -- 01-Sep-2021 17-Mar-2022 -- 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 Tax expenditure report is Tax expenditure report is not prepared and published not prepared and See DLIs (DLRs) Value with the annual draft budget published with the annual Not yet due. 3.1 and 3.2 that is submitted to draft budget that is Parliament. submitted to Parliament. Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113889 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: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 DLR 3.1. Tax Tax expenditure report is Tax expenditure report is expenditure report is not published with the not published with the published with the Value annual draft budget that Not yet due. annual draft budget that is annual draft budget is submitted to submitted to Parliament. that is submitted to Parliament. Parliament. Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113890 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 Cost-benefit analysis of incentives/ selected tax incentives/ selected tax incentives/ Value Not yet due. exemptions is exemptions is not exemptions is not conducted and conducted. conducted. published with the draft annual republican budget. Date -- 01-Sep-2021 17-Mar-2022 -- Comments 3/25/2022 Page 17 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) ►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 Audits are not risk-based. Value Audits are not risk-based. Not yet due. See DLI (DLR) 4.2 Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113892 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 Risk assessment Risk assessment methodology is methodology is developed, developed, but is not Value but is not consistent with Not yet due. N/A consistent with modern modern tax administration tax administration approaches. approaches Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113893 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: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 DLR 4.2. At least 90% of field audits of large taxpayers (i.e. taxpayers, registered in TC Large Taxpayers Directorate and Value Audits are not risk-based. Audits are not risk-based. Not yet due. regional TC offices for large taxpayers) during the Government financial year are conducted for cases selected by the risk- based selection tool. Date -- 01-Sep-2021 17-Mar-2022 -- Comments 3/25/2022 Page 18 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) ►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 95 % of VAT refunds out of all VAT refunds during Risk criteria or fast track Risk criteria or fast track the Government procedure are not used Value procedure are not used for Not yet due. financial year are for verification of VAT verification of VAT refund. processed using refund. risk-based verification or fast track procedures. Date -- 01-Sep-2021 17-Mar-2022 -- 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 Quality of taxpayer Quality of taxpayer service service is regulated by a is regulated by a Unified Unified Standard for Standard for Taxpayer Taxpayer Service (the Service (the Standard), Standard), enacted in enacted in 2017. 2017. Implementation of Value Implementation of the Not yet due. See DLI (DLR) 6.2 the Standard is not Standard is not monitored. monitored. There is no There is no system for system for monitoring monitoring and and continuously continuously enhancing enhancing taxpayer taxpayer services. services. Date -- 28-Aug-2021 17-Mar-2022 -- Comments IN01113896 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 Value No No No Yes Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113897 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 3/25/2022 Page 19 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Indicator Type: October 1, 2025 - Baseline Actual (Previous) Actual (Current) September 30, 2026 DLR 6.2. Annual reports on taxpayer There is no system for There is no system for feedback, collected monitoring and monitoring and through the taxpayer Value Not yet due. continuously enhancing continuously enhancing feedback taxpayer services. taxpayer services. mechanism, has been published on TC website. Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113898 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 -- 01-Sep-2021 17-Mar-2022 -- 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 Women in managerial positions out of all staff in positions out of all staff in Value TC managerial positions Not yet due. See DLI (DLR) 7.2 TC managerial positions comprise 7.8 percent comprise 7.8 percent only. only. Date -- 28-Aug-2021 17-Mar-2022 -- Comments IN01113900 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 No No No 3/25/2022 Page 20 of 21 The World Bank Implementation Status & Results Report Tax Reform Operation (P171892) Date -- 01-Sep-2021 17-Mar-2022 -- Comments IN01113901 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 Women in managerial TC managerial positions out of all staff in positions out of all staff in positions out of all Value TC managerial positions Not yet due. TC managerial positions staff in managerial comprise 7.8 percent comprise 7.8 percent only. positions comprise only. 11%. Date -- 01-Sep-2021 17-Mar-2022 -- Comments 3/25/2022 Page 21 of 21