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- Tax guide 2026
Tax guide
Turkmenistan corporate tax guide 2026
A company registered in Turkmenistan pays 8% profit tax in most sectors and a branch of a foreign company pays 20%. VAT is 15%, and 15% is withheld from dividends, interest and royalties paid abroad. Three smaller charges on profit and the payroll taxes complete the bill.
Quick answer
Turkmenistan tax rates in one view
- Profit tax is 8% in most sectors for a company registered in Turkmenistan and 20% for a branch of a foreign company.
- VAT is 15%. Exported goods are zero-rated, except oil, gas and their refined products.
- Dividends, interest, royalties and fees for services performed in Turkmenistan carry 15% withholding tax when paid to a non-resident.
- Three charges are worked out on profit: 3%, 1.5% and, in Ashgabat, 0.5%.
- An employer withholds 10% income tax from salaries and pays 20% pension insurance on the pay of local staff.
Key facts
- Tax year
- Calendar year
- Currency of account
- Manat, fixed at TMT 3.50 to the US dollar
- VAT return
- Every month, by the 20th
- Profit tax return
- Every quarter, with financial statements
- Main law
- Tax Code of Turkmenistan, article 172 for profit tax rates
Profit tax
What is the corporate tax rate in Turkmenistan?
It depends on what you registered. Article 172 of the Tax Code sets 8% for legal entities resident in Turkmenistan in most sectors and 20% for other legal entities. A company created under Turkmen law is a resident, whoever owns it, so a company with foreign investment pays 8%. A branch is the permanent establishment of a foreign company, so it pays 20%. The structures are compared on our page on company registration in Turkmenistan.
| Who pays | Rate | Note |
|---|---|---|
| Company registered in Turkmenistan | 8% | Includes an LLC or joint venture with foreign shareholders |
| Branch of a foreign company | 20% | On the profit earned in Turkmenistan |
| Entities more than half owned by the state | 20% | Also oil and gas contractors |
| State banks and insurers; communication (except by satellite), standardisation, metrology and certification services | 50% | On the profit from that activity |
| Small and medium firms in private ownership | 2% of revenue | It is not open to a company with a foreign shareholder. |
The 8% is not the whole bill. Dividends a company pays to a foreign shareholder carry 15% withholding tax. With the three charges on profit, a company in Ashgabat gives up about 26% of profit. A branch in Ashgabat gives up about 36%. Under article 180 of the Tax Code, branch profit distributed to a foreign legal entity may be taxed at 15%, unless a tax treaty treats it as a dividend. In our experience this tax is charged when a branch sends profit to its parent company.
VAT
What is the VAT rate in Turkmenistan?
The standard rate is 15%. Exported goods are taxed at 0%, except oil, gas and their refined products. The return is filed every month, by the 20th of the month after, and the tax is paid by the 25th (Tax Code, article 111). Late payment carries interest of 0.03% a day (article 70).
Privately owned Turkmen firms are outside VAT: the Tax Code calls them legal entities in private ownership (article 95). A branch and a company with a foreign shareholder are not in that group and pay VAT.
Withholding and funds
Withholding tax and the charges on profit
Income paid to a non-resident with no permanent establishment in Turkmenistan is taxed at source. The payer withholds 15% from dividends, interest, royalties, rent and fees for services performed in Turkmenistan (Tax Code, article 180). The tax is withheld at each payment and paid to the budget at the same time, or within 15 days when the payment is made abroad (articles 175 and 180). If the income is paid after the month in which it was earned, the payer pays the tax from its own funds within 15 days after the end of that month and withholds it later. The report to the tax office is due by the 20th of the month after the payment.
A tax treaty with the recipient’s country can lower the rate. Treaty relief needs an application and a certificate of the recipient’s tax residence (article 181).
Three charges worked out on profit
| Charge | Rate | Charged on |
|---|---|---|
| Agriculture Development Fund | 3% | On the profit shown in the accounts. Set by presidential decree, outside the Tax Code |
| Fee for the improvement of territories | 1.5% | Of profit, paid once a year. Branches pay it too |
| Ashgabat City Development Fund | 0.5% | Of profit. Businesses located in Ashgabat only |
| Property tax | 1% | Of the average yearly value of fixed assets and stock used in the business. Land is not taxed |
What happens when the money leaves the country is a separate question. See profit repatriation from Turkmenistan for currency conversion and dividends.
Payroll taxes
What an employer pays on salaries
An employer withholds 10% personal income tax from each salary and pays it to the budget. On top of the salary, the employer pays 20% state pension insurance on the pay of local staff. The Law on State Pension Insurance insures citizens and permanent residents, not other foreign staff, and in practice the 20% is not paid on their pay.
The pension report is filed every month, by the 20th. Pay itself is due at least twice a month under the Labour Code. See minimum wage and labour rules in Turkmenistan for the rest of the employment rules. To hand the monthly run over, see our payroll services in Turkmenistan.
Filing dates
When tax returns are due
Filing calendar
What is filed and paid, and when.
- By the 20thVAT return for the month before. Also the pension report and the report on tax withheld from non-residents.
- By the 25thVAT payment and the monthly advance payment of profit tax.
- Every quarterProfit tax return with the financial statements. The property tax return is due by the 20th of the month after the quarter.
- Every yearAnnual financial statements on the date the Ministry of Finance and Economy sets, and the audit.
Accounts follow Turkmenistan’s national standards and records are kept in Turkmen. If you would rather not run this calendar yourself, our accountant in Ashgabat files every return as part of our accounting services in Turkmenistan.
A branch and any company with foreign investment must also have its annual accounts audited by a licensed Turkmen audit firm. See who must be audited in Turkmenistan.
Mistakes
Five mistakes foreign companies make
Each of these comes from reading a headline rate without the rule behind it.
- 01
Reading 8% as the whole bill
Add the three charges on profit and 15% on dividends paid abroad, and about 26% of the profit of a company in Ashgabat is gone by the time it reaches a foreign owner.
- 02
Assuming a branch pays 8%
A branch pays 20% and, in our experience, a further 15% on profit it sends to its parent company. Some rate tables online give only one figure, and it is often the wrong one for your structure.
- 03
Planning on the 2% regime
Small and medium firms in private ownership pay 2% of revenue. It is not open to a company with a foreign shareholder.
- 04
Forgetting the monthly profit tax advance
Profit tax is paid in advance by the 25th of every month, before the quarterly return (Tax Code, article 175). A late payment carries interest of 0.03% a day.
- 05
Treating tax as the main cost
Tax is rarely the largest cost of doing business here. Agree how you will be paid, and in which currency, before you register.
Questions
Questions about tax in Turkmenistan
Short answers, each with the rule behind it.
Ask our accountantWhat is the corporate tax rate in Turkmenistan in 2026?
Profit tax is 8% in most sectors for a legal entity resident in Turkmenistan, which includes a company with foreign shareholders. It is 20% for a branch of a foreign company, for an entity more than half owned by the state and for oil and gas contractors. State banks and insurers pay 50%, as do communication (except by satellite), standardisation, metrology and certification services on that profit. The rates are set by article 172 of the Tax Code.
How much is VAT in Turkmenistan and when is it paid?
VAT is 15%. Exported goods are taxed at 0%, except oil, gas and their refined products. The return is filed every month by the 20th of the month after and the tax is paid by the 25th (Tax Code, article 111).
Is there withholding tax on dividends in Turkmenistan?
Yes. Dividends paid to a non-resident carry 15% withholding tax, unless a tax treaty with the recipient’s country lowers it. The same 15% applies to interest, royalties, rent and fees for services performed in Turkmenistan.
Does a branch pay more tax than a company in Turkmenistan?
Yes. Profit tax is 20% for a branch against 8% for a company. A company’s dividends to a foreign shareholder then carry 15% withholding tax, so with the three charges on profit a company in Ashgabat gives up about 26% of profit. In our experience a branch pays 15% on profit it sends to its parent company (Tax Code, article 180), on top of 20% profit tax. With the three charges on profit, a branch in Ashgabat gives up about 36%.
When are tax returns due in Turkmenistan?
The VAT return is due every month by the 20th and the payment by the 25th. Profit tax is paid in advance by the 25th of every month, and the return and financial statements are filed every quarter. Annual financial statements follow the year end, on the date the Ministry of Finance and Economy sets.
Can a foreign-owned company use the 2% small business tax?
Small and medium firms in private ownership pay 2% of revenue (Tax Code, article 172). It is not open to a company with a foreign shareholder. A company pays profit tax at 8% in most sectors, and a branch pays 20%.
Have your returns filed from Ashgabat
Our accountant keeps the books and files every return. Tell us what you have registered and we will quote in writing.