Tax laws Turkmenistan
Turkmenistan's taxation system is governed by the Tax Code, which establishes the framework for various taxes levied to fund the State Budget.
Key Components of Turkmenistan's Tax System:
Personal Income Tax:
- Rate: A flat rate of 10% is applied to individual income.
- Residency: Individuals residing in Turkmenistan for 183 days or more within a calendar year are considered tax residents and are subject to taxation on their worldwide income. Non-residents are taxed only on income sourced within Turkmenistan.
Corporate Income Tax:
- Rates:
- Resident Nongovernmental Entities: Subject to an 8% tax rate.
- Other Residents and Nonresidents with a Permanent Establishment (PE): Subject to a 20% tax rate.
- Nonresidents without a PE: Subject to a 15% withholding tax on gross income. citeturn0search1
- Basis: Resident companies are taxed on their worldwide income, while nonresidents are taxed on income derived from Turkmen sources or from carrying out business within Turkmenistan.
Value Added Tax (VAT):
- Rate: A standard rate of 15% is applied to goods and services.
Withholding Taxes:
- Dividends:
- Resident Companies: Subject to a 15% withholding tax.
- Resident Individuals: Subject to a 10% withholding tax.
- Nonresident Companies without a PE: Subject to a 15% withholding tax.
- Nonresident Individuals: Subject to a 10% withholding tax. citeturn0search2
- Royalties and Fees for Technical Services: Subject to a 10% withholding tax for both resident and nonresident individuals, unless reduced under an applicable tax treaty.
Tax Administration:
- The State Tax Service oversees the enforcement of tax legislation, ensuring compliance and timely collection of taxes.
International Tax Treaties:
- Turkmenistan has established tax treaties with various countries to prevent double taxation and fiscal evasion.
For the most accurate and up-to-date information, it's advisable to consult the State Tax Service of Turkmenistan or a tax professional, as tax laws and regulations are subject to change.
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