Tax
Eight per cent corporate tax for private business, higher for state entities
The Tax Code charges private enterprises a low corporate rate while state-owned entities pay more. Personal income tax is a flat rate on employment income.
Key rules
- Jurisdiction — Main State Tax Service administers. Hydrocarbon contractors are taxed under petroleum-law terms.
Governing law
- Tax Code of Turkmenistan2004, as amended
- Customs Code of Turkmenistan
In practice
Private legal entities are taxed at a substantially lower corporate rate than state enterprises, an unusual two-tier structure. Personal income tax is flat and low. VAT applies at a standard rate with exemptions. Contractors under production sharing agreements are taxed on terms set in the agreement and the Petroleum Law rather than the general code, which is where the real fiscal terms of the gas sector sit. Published statistics are sparse and no audited budget is available, so effective burden cannot be verified.