Facebook filed papers on March 2 with Tajikistan’s Tax Committee, after the Tajik authorities agreed that the company would report on its locally sourced turnover every quarter and pay an 18% sales tax on that amount, the Tax Committee said in a statement.
This development is a result of an over two-year effort by the Tajik government to boost state revenues by forcing tech firms like Microsoft, Google, Facebook and Booking.com to pay taxes inside Tajikistan.
The 18% tax rate far exceeds the ones levied by European nations that enforce digital services taxes.
Facebook has not yet announced the implications of the new development for advertising by entities targeting people in Tajikistan via the website. That includes domestic firms that are set to see their Facebook advertising costs grow by nearly 20%.