Verified Facts
The tax rates in Turkmenistan range from 10% to 30% for individuals, with a corporate tax rate of 8% and a standard Value-Added Tax (VAT) rate of 15%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Turkmenistan operates a territorial taxation system, where tax is levied on income earned within the country, regardless of the taxpayer's residency status. However, worldwide taxation applies to residents, who are taxed on their global income, with foreign-earned income subject to taxation in Turkmenistan. To be considered a tax resident, an individual must have a permanent home in Turkmenistan or spend more than 183 days in the country within a 12-month period. The tax system is administered by the Ministry of Finance and Economy, which is responsible for collecting taxes, enforcing tax laws, and providing tax-related services to taxpayers.
The tax system in Turkmenistan is designed to promote economic growth and development, with a focus on encouraging foreign investment and trade. The government has implemented various tax incentives and exemptions to attract businesses and individuals to the country. For example, foreign investors are exempt from paying taxes on profits for a certain period, and companies operating in free economic zones are eligible for reduced tax rates. Additionally, the government has established a number of tax-free zones, including the Turkmenbashi Free Economic Zone, which offers a range of tax and customs incentives to businesses operating in the zone.
Personal Income Tax
| Income Bracket (TMT) | Tax Rate |
|---|---|
| 0 - 10,000 | 10% |
| 10,001 - 50,000 | 15% |
| 50,001 - 100,000 | 20% |
| 100,001 - 200,000 | 25% |
| 200,001 and above | 30% |
| Taxpayers in Turkmenistan are entitled to various deductions and allowances, including a personal allowance of 10,000 TMT per year, as well as deductions for charitable donations, mortgage interest, and education expenses. Tax returns must be filed annually by April 1st, and taxpayers can choose to file electronically or in paper form. It is also worth noting that tax rates and brackets are subject to change, and taxpayers should consult the Ministry of Finance and Economy's website for the latest information on tax rates and regulations. |
Corporate & Business Tax
- The corporate tax rate in Turkmenistan is 8%, which is one of the lowest in the region.
- Small businesses with an annual turnover of less than 100,000 TMT are eligible for a reduced tax rate of 5%.
- Companies operating in free economic zones are exempt from paying taxes on profits for a period of 5 years.
- Foreign companies must register with the Ministry of Finance and Economy and obtain a tax identification number to operate in Turkmenistan.
- Companies are required to file annual tax returns and pay taxes on a quarterly basis, with the first installment due by January 15th of each year.
VAT / Sales Tax
- The standard VAT rate in Turkmenistan is 15%, which applies to most goods and services.
- A reduced VAT rate of 10% applies to certain basic necessities, such as food, clothing, and medicine.
- Exemptions from VAT are available for certain types of businesses, including healthcare and education services.
- Foreign tourists are eligible for a tourist refund scheme, which allows them to claim a refund of VAT paid on certain purchases.
For Expats & Foreign Workers
- Tax residency rules apply to foreign workers who spend more than 183 days in Turkmenistan within a 12-month period.
- Turkmenistan has double taxation treaties with 20 countries, including the United States, the United Kingdom, and Germany.
- Foreign workers are required to contribute to the social security system, which provides benefits for retirement, healthcare, and unemployment.
- Remittance rules apply to foreign workers who send money abroad, with a maximum limit of 10,000 TMT per month.
- Foreign workers are required to obtain a work permit and register with the tax authorities before starting work in Turkmenistan.
- Foreign workers may be eligible for a tax exemption on foreign-earned income, depending on their country of residence and the terms of their employment contract.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to a tax rate of 10%.
- Capital gains tax is included in the income tax rate, with a maximum rate of 30%.
- Cryptocurrency is considered a taxable asset in Turkmenistan, with gains subject to capital gains tax.
- Foreign investors are eligible for a tax exemption on investment income, depending on the type of investment and the terms of the investment agreement.
- The government has established a number of investment incentives, including tax breaks and subsidies, to encourage foreign investment in the country.