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.
Inheritance, estate, and gift taxes
There are no inheritance, estate, or gift taxes 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 charged at the rate of ten to forty times the basic amount for the calculation of taxes and fees established in Turkmenistan (approximately 145 to 570 United States dollars [USD]), depending on the type of vehicle sold (i.e. passenger car, lorry, or bus), its engine displacement, load capacity, and number of seats.
Levy from vehicle owners
Individuals who are owners of vehicles in the territory of Turkmenistan shall be recognised as payers of the levy from vehicle owners.
The levy from vehicle owners is charged at the rate of two to thirty times the basic amount for the calculation of taxes and fees established in Turkmenistan (approximately USD 30 to USD 430), depending on the type of vehicle (i.e. passenger car, lorry, or bus), its engine displacement, load capacity, and number of seats.
Levy from car park owners
The levy from car park owners must be paid by individual entrepreneurs that provide land plots for car parking for a fee.
The levy from car park owners is charged in the amount of USD 0.3 to USD 0.4 per square metre of parking space, depending on the region of 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 5 Turkmen new manats (TMT) per month.
- Other individuals: TMT 5 per month.