Pension insurance payments
Pension insurance is payable by employers at 20% of the total remuneration provided to local employees. Additional 3.5% obligatory professional pension insurance is levied on employers with respect to employees who work under hazardous conditions. Employees may participate in a voluntary pension insurance, the minimum rate for which is established at 2% of total remuneration. Income paid to expatriate employees should not be subject to the pension insurance payments.
Value-added tax (VAT)
VAT is generally payable at the rate of 15%. A zero-rate applies to exports of goods (except for oil and gas) and international transport services.
Net wealth/worth taxes
Net wealth/worth taxes are not applicable in Turkmenistan.
Luxury and excise taxes
Excise tax is paid on goods or products that are considered in the list of excised goods or products. Normally, excised goods consist of alcoholic beverages, tobacco products, and automobiles. Excise rates vary based on the type of goods as well as by domestic production or import.
Levy on sales of automobiles
Individuals selling automobiles in the territory of Turkmenistan shall be recognised as payers of the levy on sales of automobiles.
The levy on sales of automobiles is imposed in the amount of five to eight times the minimum monthly wage (approximately 90 United States dollars [USD] to USD 140) depending on the type of vehicle sold (i.e. passenger car, lorry, or bus).
Levy from dog owners
Individuals residing in cities who are owners of dogs (except for service dogs) shall be recognised as payers of the levy from dog owners.
The levy from dog owners is established in the form of a fixed amount of 0.4 of the minimum wage established in Turkmenistan.
Special purpose duty for improvement of urban and rural territories
A special duty, aimed at improving urban and rural territories, is imposed on individuals who are residents of Turkmenistan working under employment and civil agreements (contracts) and individual entrepreneurs. The duty applies at the following rate:
- Individual entrepreneurs: 0.3% of total gross revenues from selling goods (work, services) net of VAT, but not less than 2 Turkmen new manats (TMT) per month.
- Other individuals: TMT 2 per month.