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It is registered by

Ministry of Justice

Republic of Tajikistan  

 On October 28, 2021 No. 457

ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of October 22, 2021 No. 440

About National standards of assessment of the Republic of Tajikistan

According to article 4 of the Law of the Republic of Tajikistan "About estimative activities" the Government of the Republic of Tajikistan decides:

1. Approve National standards of assessment of the Republic of Tajikistan (are applied).

2. Declare invalid the order of the Government of the Republic of Tajikistan of May 3, 2006 No. 192 "About approval of Provisional rules of implementation of estimative activities in the Republic of Tajikistan and the Standards of assessment obligatory to application by subjects of estimative activities in the Republic of Tajikistan".

Prime Minister of the Republic of Tajikistan

Emomalii Rahmon

Appendix

to the Order of the Government of the Republic of Tajikistan of October 22, 2021 No. 440

National standards of assessment of the Republic of Tajikistan

1. General provisions

1. National standards of assessment of the Republic of Tajikistan (further - these Standards) establish provisions and the basic principles of assessment, the requirement to evaluating the real estate value, personal estate, intellectual property item, and also the requirement to the valuation report used in the valuation report.

2. Provisions of these Standards are obligatory in case of realization of estimative activities in the territory of the Republic of Tajikistan.

3. These standards are not applied to assessment of historical and cultural heritage, determination of cadastral cost for the purpose of the taxation and cost determination of the privatized state-owned property.

§1. Requirements to evaluating object of assessment

4. Evaluating includes the following requirements:

- conclusion of the contract for evaluating;

- identification of object of assessment;

- collection and information analysis, necessary for evaluating;

- reasons for the applied approaches to assessment, including the choice of types of assessment of objects of assessment and their implementation;

- coordination (generalization) of results of application of approaches to assessment and determination of final size of project cost of assessment;

- creation of the valuation report.

5. In the course of carrying out estimative works collection and the analysis of the technical, market, accounting, financial and other information sufficient for receipt of the reasonable conclusion about assessment project cost are necessary. For each type of information it is necessary to specify source of its obtaining.

6. The customer is responsible for completeness, reliability of documents and the other information provided to the appraiser when evaluating according to the prisoner between them the agreement according to the legislation of the Republic of Tajikistan.

7. The appraiser has the right to rely on data from the areas which are not entering framework of its professional competence with involvement of specialists of other professions and the reliable information obtained by them.

8. The appraiser has no right to use the data which are within its professional competence which reliability he doubts. This requirement extends, in particular to the data obtained from the customer who ordered assessment work, even in that case when the customer declares their reliability.

§2. Bases and conditions for evaluating object of assessment

9. The agreement on evaluating object of assessment signed between the appraiser and the customer or authorized representative of the customer is the basis for evaluating object of assessment.

10. The agreement on evaluating object of assessment is signed according to the Law of the Republic of Tajikistan "About estimative activities".

2. Real estate appraisal

§1. Objects of real estate appraisal

11. For the purposes of these Standards objects of assessment are subdivided into the following types of real estate:

- buildings and constructions, including internal engineering networks and systems, and also the equipment providing functioning of the estimated buildings and constructions;

- objects of construction in progress;

- transfer devices;

- long-term plantings;

- right to use by the parcel of land (as special object of civil legal relationship);

- other types of property classified as real estate according to the legislation of the Republic of Tajikistan.

§2. Condition of real estate appraisal

12. In case of real estate appraisal it is necessary to consider the factors connected with assessment object, its environment, location, actual state, the parcel of land belonging to assessment object, comfortable conditions, and also physical, functional and economic capacities. The appraiser should conduct assessment object research for establishment of its condition and to determine whether provided data concerning assessment object are applicable.

13. The cost of the damaged real estate shall correspond to the cost of recovery of immovable object taking into account costs for recovery. In case of final fracture or impossibility of recovery, project cost shall be determined by the cost of costs for its clearing and elimination of elements from the previous construction.

14. Project cost of construction in progress can be determined with use of cost approach based on the residual cost of replacement considering costs for recovery of the estimated real estate and the size of cumulative depreciation. Project cost of construction in progress can be also determined with use of income approach on the basis of discounting of the cash flow considering completion costs of construction and the income from the subsequent sale or profitable use of complete construction object.

15. The real estate appraisal as a part of the functioning company can be carried out with subsequent use or as part of the functioning company. In this case assessment is carried out without proper analysis of its use taking into account that the purpose and conditions of the current use are protected. The real estate appraisal as part of the nonfunctioning company is carried out taking into account the analysis of the best and most effective use.

16. After the duration of the agreement and the simultaneous termination of right to use by the parcel of land, assessment of improvement of the parcels of land is carried out at the utilization cost of waste if other procedure is not provided in the document for land use by the respective site.

17. In case of receipt of the parcels of land or other real estate for the state or social needs all losses of users of real estate are estimated on market value and paid by persons for benefit of whom the parcel of land is acquired. Real estate value in connection with acquisition of the parcel of land for the state needs is determined by the appraiser when obtaining by the owner or non-state user of the notification on compulsory acquisition of the parcel of land for the state needs.

18. Assessment is carried out for the purpose of international accounting standards and reflection of actual cost of fixed assets, and also for preparation of the pro forma statement for the exact description of property status of business entities. For the majority of practical the market value determined according to these Standards is more whole, and requirements to assessment of fair value according to international standards of assessment are satisfactory provided that specific assumptions, such as regulations on accounting units or unaccounted restrictions of sales will be considered.

19. Assessment can be carried out based on accurately certain special permission established according to the procedure of assessment. In such cases it shall be declared that cost is valid only for date of assessment and will change in the future in case of financial instability during which can change both market, and purchase and sale terms.

20. The initial cost of the immovable object put up for sale (auction or tender), is determined as minimum price at which object can be sold or transferred. This cost is calculated on the basis of data on market value of object and shall consider all factors of assessment influencing project cost. Thus, in case of real estate appraisal for auctions and tenders the appraiser determines market value of property, analyzes conditions of the next auction or tender and offers the starting price of object of assessment for assessment. For receipt of exact market price, the appraiser uses directly three approaches of assessment: costly, profitable and comparative.

§3. Customer's task for real estate appraisal

21. The customer's task for real estate appraisal shall include:

- determination of the estimated real estate;

- determination of the right to assessment;

- intended use by the customer of results of assessment and report;

- type of the determined cost of the estimated real estate;

- date of assessment by which condition the cost of the estimated real estate is determined;

- assumptions and special conditions taking into account which assessment is carried out.

22. The task for assessment in addition to the determined cost can include the following payments in national currency:

- market rent;

- complete costs for recovery;

- costs for elimination of pollution or recultivation.

§4. Efficiency analysis of use of real estate

23. Efficiency analysis of use of real estate allows to determine the most profitable use of real estate object by which participants of the market when pricing the transaction are guided. In case of determination of market value the appraiser is guided by results of this analysis for the choice of approaches and forms of assessment of object of assessment and the choice of comparable real estate objects in case of application of each approach of assessment.

24. The most effective use is potential use of real estate which is physically possible, admissible legally and feasible from the financial point of view, and, as a result, has the highest cost of the estimated property.

25. The most effective use of real estate object can correspond to its real current use or assume other use.

26. The analysis of the most effective use can be carried out in relation to separate components of object estimates (certain buildings of property complex and others). Such objects in case of assessment of market value should be chosen according to the most effective use of object of assessment.

§5. Approaches and evaluation methods of real estate

27. In case of real estate appraisal the following approaches are used:

- profitable;

- costly;

- comparative.

28. The impracticability of realization of one of approaches shall be proved in the valuation report.

29. Establishment of market or other value is performed by the above-stated grouped approaches.

30. The income approach is performed as the main approach in case of assessment of market value of real estate objects which are bought and on sale in connection with their capability to bring in the income. The appraiser, using one of approaches of estimates of profitability, carries out the following sequence of actions:

- carries out market research of the residential, commercial and land real estate (information collection about the prices or rates of similar rental rates and size of the net income provided to owners (users) of the compared objects);

- carries out the analysis of the obtained data and on its basis predicts the provided process of cash flow for settlement period;

- estimates risks of investors in residential, commercial real estate and the parcels of land;

- makes calculation of capitalization rate or discounting;

- applies capitalization methods of the income.

31. The amount of possible gross income should be calculated proceeding from potential commissioning of the object of assessment in lease in case of its most effective use, reliable information about the size of rental rate and total area of the estimated real estate. Data on real gross income are calculated proceeding from regulation of the actual use or similar object. In case of assessment it is also necessary to consider standard agreement provisions of lease of such real estate. In this case it is possible to make the relevant amendments when forecasting the amount of the rent for the purpose of its translation according to standard market conditions of lease of such real estate.

32. Calculation of the necessary costs connected with reduction in compliance of consumer characteristics of object of assessment with characteristics of similar real estate, the income from which was considered when forecasting net income of object of assessment, can be considered in case of realization:

- method of direct earnings capitalization by reduction of the received assessment project cost by the size of current value of the costs necessary for such reduction;

- method of discounting of cash flow by their addition to operating costs of the corresponding periods of realization within forecast period.

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