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TAX CODE OF TURKMENISTAN

of October 25, 2005

(as amended on 30-11-2019)

Part I

Section I. General provisions

Chapter 1. Basic provisions

Article 1. Main beginnings of the tax legislation of Turkmenistan

1. This Code installs system of the taxes levied in the Government budget of Turkmenistan, the general principles of the taxation, origin basis (change, the termination) and procedure for fulfillment of duties on tax payment, the rights and obligations of taxpayers, tax authorities, forms and methods of tax control, responsibility for violation of the tax legislation of Turkmenistan, appeal of decisions tax authorities and actions of their officials.

2. The tax legislation of Turkmenistan is based on recognition of generality and equality of the taxation.

3. Each person shall pay the taxes established by this Code concerning which this person is recognized the taxpayer.

4. The acts of the tax legislation of Turkmenistan establishing the new taxes raising the tax rates or otherwise responsibility for the tax offenses worsening situation of taxpayers, tax agents, strengthening, have no retroactive force.

The acts of the tax legislation of Turkmenistan canceling the taxes reducing the sizes of the tax rates or otherwise responsibility for the tax offenses improving provision of taxpayers, tax agents, mitigating, have retroactive force if it is directly provided by these acts.

5. The taxation is made based on the acts of the tax legislation of Turkmenistan existing for date of emergence of the circumstances connected with execution of the tax liability.

Consideration of questions of violations of the tax legislation is conducted based on the legislation of Turkmenistan operating at the time of establishment of offense.

Article 2. The legislation of Turkmenistan regulating tax legal relationship

1. The tax legislation of Turkmenistan is based on the Constitution of Turkmenistan and consists of of this Code and other regulatory legal acts of Turkmenistan regulating tax legal relationship.

The regulatory legal acts regulating tax legal relationship are accepted on the basis of of this Code and cannot contradict its provisions. In case of such contradiction provisions of this Code are applied.

2. Provisions of this Code are applied to persons which are contractors and subcontractors according to the Law of Turkmenistan "About hydrocarbonic resources" taking into account the features on the taxation established by this Law.

3. This Code does not govern the relations arising in case of collection of customs payments if other is not established by this Code.

4. Other laws of Turkmenistan do not may contain provisions concerning the taxation if other is not established by this Code.

5. In tax legal relationship any concept determined by provisions of the civil and tax legislation of Turkmenistan will have that significance which is attached to it by the tax legislation of Turkmenistan if other is not established by this Code.

6. In tax legal relationship any concept which is not determined by provisions of this Code can have that value which is determined by regulatory legal acts of Turkmenistan.

Article 3. Operation of acts of the tax legislation of Turkmenistan

1. Establishment of new taxes, except established by this Code, and also change or cancellation of the operating taxes are performed only by adoption of law of Turkmenistan "About modification and amendments in the Tax code of Turkmenistan".

2. The laws of Turkmenistan making changes to this Code which establish new or change the operating taxes, become effective after one month from the date of their official publication, but not earlier than 1 date following the end of the next accounting period on the corresponding tax.

3. The laws of Turkmenistan making changes to this Code which the provision of taxpayers improves or are repealed the operating taxes, can become effective from the moment of their publication if it is directly provided in them.

Article 4. Rules of calculation of terms

The rules provided by the Civil code of Turkmenistan are applied to the terms specified in this Code or other regulatory legal act of Turkmenistan regulating tax legal relationship.

Article 5. Tax year

Tax year begins the first of January, comes to an end the thirty first of December and matches financial year.

Article 6. International agreements

If international treaties of Turkmenistan establish other provisions than containing in this Code, then provisions of international treaties are applied.

Chapter 2. Taxes in Turkmenistan

Article 7. Tax and its signs

1. Tax - the obligatory, individually non-paid payment established and levied by the state from physical persons and legal entities for the purpose of financial provision of activities of the state, arriving in the Government budget of Turkmenistan.

The tax is determined by availability of the following signs:

category of taxpayers;

taxation object;

tax base;

tax rate (rates);

terms and procedure for calculation and tax discharge.

In case of establishment of tax can be determined the accounting (tax) period, and also be provided tax benefits and the bases for use by their taxpayer.

2. The taxes established by this Code act on all territory of Turkmenistan.

3. Duties and charges are recognized as special type of tax and can not have separate signs of tax.

On establishment, introduction, calculation and payment of the state fees, customs payments and charges which are not established by this Code and also to the relations arising in the course of control of their payment of appeal of acts of the bodies exercising control of their payment, actions (failure to act) of their officials and accountability of perpetrators regulations of this Code are not applied to the relations if it does not provide other.

4. The fees, deposits and other payments paid to force of agreements or other relations of civil nature, and also payments in the form of penalties or other sanctions for violation of the law of Turkmenistan are not recognized taxes.

5. The taxes arriving in the Government budget of Turkmenistan are distributed between the centralized budget and local budgets according to the Law of Turkmenistan "About the budget system". The charges established by this Code completely are enlisted in local budgets.

Article 8. Privileges on taxes

1. Privileges on taxes are established by this Code. Provision of the privileges having individual character is forbidden.

2. The taxpayer has the right to use privileges on taxes on the moment of emergence of legal relations and during the entire period of their action.

The taxpayer has the right not to use privileges on taxes, and also to refuse their use in case of submission of the written application to the relevant tax or customs authorities. At the same time the specified privileges on taxes which the taxpayer did not use are not subject to transfer from last tax periods on future tax periods, to the subsequent offsetting on account of the forthcoming payments on taxes or compensation from the budget.

The taxpayer has the right to use privileges on taxes in case of submission of the written application to the relevant tax or customs authorities again, but not earlier than calendar year of the following after year in which he refused their use.

3. Provision of privileges on tax does not involve release from accomplishment of other obligations established by the tax legislation of Turkmenistan if other is not provided by this Code.

4. Except as specified, when it is directly provided by this Code, is not allowed inclusion in agreements of provisions under which:

obligation on calculation and expenses on the tax discharge are restacked by the taxpayer on other person;

the cost of implementable goods, works, services increases by tax amount;

make obligation to the taxpayer compensation (compensation) of expenses on the tax paid to them it is assigned to person acquiring goods (works, services).

Article 9. Monetary unit of calculation and tax payment

1. Taxes are estimated and paid in national currency of Turkmenistan if other is not established by the legislation of Turkmenistan.

Tax payment by legal nonresident persons of Turkmenistan, including through tax agents, can be performed in foreign (freely convertible) currency.

2. Any foreign currency transaction for the purpose of the taxation is converted into national currency of Turkmenistan on the official rate of the Central bank of Turkmenistan on the date of transaction making, and on currencies on which there is no official rate, - on cross-rates to US dollar if other is not established by this Code.

Section II. Tax legal relationship and their subjects

Chapter 1. Subjects of tax legal relationship

Article 10. Content of tax legal relationship

Tax legal relationship cover set of the rights and (or) obligations arising in the course of execution of the tax legislation of Turkmenistan between subjects of tax legal relationship.

Article 11. Subjects of tax legal relationship

Subjects of tax legal relationship are the taxpayer, other persons through whom the taxpayer participates in tax legal relationship, and also the authorized bodies specified in article 13 of this Code.

Article 12. The taxpayer and other persons through whom he participates in tax legal relationship

1. Taxpayers physical and (or) legal entities to whom in the presence of the circumstances provided by this Code the obligation is assigned are recognized to pay certain tax.

The obligation on the tax discharge by taxpayers - participants of partnership can be assigned to one of participants of the partnership performing activities in the territory of Turkmenistan. Taxpayers - participants of partnership bear equity responsibility on discharge of duty on the tax discharge. The term "partnership" is applied in the value determined by the Civil code of Turkmenistan.

2. Person can be recognized as the taxpayer of one or several taxes.

3. The taxpayer can participate in tax legal relationship through the tax agent, the legal or authorized representative.

Article 13. The authorized bodies participating in tax legal relationship

1. The bodies participating in tax legal relationship are:

 It is excluded in compliance

bodies of the State Customs Service of Turkmenistan (further - Customs Service);

bodies of the Ministry of Finance and Economy of Turkmenistan (further - financial, tax authorities);

other authorized bodies participating in tax legal relationship.

2. In tax legal relationship the bodies specified regarding 1 this Article are effective within their powers established by the legislation of Turkmenistan.

Chapter 2. Taxpayers

Paragraph 1. Physical persons - taxpayers
Article 14. Physical persons - residents and nonresidents

1. Physical persons citizens of Turkmenistan, citizens of foreign states, stateless persons are recognized.

2. The physical persons recognized by taxpayers can be both residents, and nonresidents of Turkmenistan.

3. The physical person is recognized resident of Turkmenistan if the period of its stay in the territory of Turkmenistan within tax year constitutes in total 183 calendar days and more. At the same time any day during which it actually was in the territory of Turkmenistan, irrespective of stay duration, except as specified stays it only for following transit through the territory of Turkmenistan is considered day of stay of physical person in Turkmenistan.

Citizens of foreign states during their stay in the territory of Turkmenistan as the staff of diplomatic representations or consular establishments of foreign states, the international organizations, and also members of their families are not recognized residents of Turkmenistan.

4. Nonresidents of Turkmenistan the physical persons which are not according to part 3 of this Article residents of Turkmenistan are recognized.

5. Resident status or the nonresident of Turkmenistan it is established in relation to each tax period.

Establishment of the status of physical person as resident of foreign state, including for application to it relevant provisions of international treaties (agreements) of Turkmenistan on elimination of double taxation, is made:

tax authority - in case of its statement on accounting as the taxpayer and based on the documents submitted for these purposes;

the tax agent - in cases and based on the documents submitted by him, stipulated in Clause the 198th of this Code.

Documents of foreign state bodies on the tax residence of physical person, on the taxes paid to them, etc. do not require legalization in consular establishments.

Article 15. Physical person - the individual entrepreneur

1. The physical person is recognized the individual entrepreneur according to the procedure and on the conditions provided by the Civil code of Turkmenistan.

Also individual entrepreneurs registered according to the legislation of foreign states belong to the specified category of persons.

2. Implementation of business activity by physical person with violation of established procedure of registration, receipt of the license or other similar document cannot form the basis for non-recognition of this physical person for the purpose of the taxation the individual entrepreneur.

Article 16. Residence of physical person

For the purpose of the taxation the residence of physical person is determined according to provisions of the Civil code of Turkmenistan.

Paragraph 2. Legal entities - taxpayers
Article 17. Legal entities - residents and nonresidents

1. For the purposes of the taxation the legal entity is recognized resident of Turkmenistan if:

it is created founded) according to the legislation of Turkmenistan;

or its principal governing body (administration, directorate, board or other similar body) is in the territory of Turkmenistan.

2. Nonresidents of Turkmenistan the legal entities who are not according to part of 1 this Article residents of Turkmenistan are recognized.

Establishment of the status of the foreign legal entity as resident of foreign state, including for application to it relevant provisions of international treaties (agreements) of Turkmenistan on elimination of double taxation, is made:

tax authority - in case of its statement on accounting as the taxpayer and based on the documents submitted for these purposes;

the tax agent - in cases and based on the documents submitted by him, stipulated in Clause 181 of this Code.

The foreign legal entity also shall provide the original of official confirmation of the tax residence of foreign state for the corresponding year to tax authority the copy – to tax agents no later than March 1 every year in which exemption of the income tax (income) of legal entities or provision of other fiscal privileges according to provisions of Article of 181 of this Code is applied to it. In case of non-presentation of such official confirmation of the tax residence by the tax agent application to the foreign legal entity of exemption of the income tax (income) of legal entities or provision of other fiscal privileges according to provisions of Article of 181 of this Code shall stop and provisions of article 180 of the Code shall be applied to this foreign legal entity properly about what the relevant tax authority in five-day time in writing informs tax agents. Renewal of application to such foreign legal entity of exemption of the income tax (income) of legal entities or provision of other fiscal privileges according to provisions of Article of 181 of this Code is made since the day following behind day of representation of official confirmation of the tax residence of foreign state by it for the corresponding year in tax authority and copies – to tax agents.

If at the foreign legal entity the tax residence (it becomes the tax resident of other country), then it shall provide the original of official confirmation of the tax residence of other foreign state in tax authority no later than twenty days after date of its change changes. In this case concerning the former tax residence of such person exemption of the income tax (income) of legal entities or provision of other fiscal privileges according to provisions of Article of 181 of this Code stops and provisions of article 180 of this Code shall be applied to this foreign legal entity as appropriate about what the relevant tax authority shall inform in writing in five-day time the foreign legal entity and tax agents.

Documents of foreign state bodies on the tax residence of the legal entity, on the taxes paid to them, etc. do not require legalization in consular establishments.

Article 18. Permanent mission of legal nonresident person

1. Permanent mission of the legal entity - the nonresident in the territory of Turkmenistan the permanent place of activities through which business activity of the legal entity is fully or partially performed, including the activities performed through the authorized person (physical or legal) is recognized if other is not provided by part 2 of this Article.

In particular, treat permanent mission:

a) the management place, branch, bureau, office, the agency, factory, workshop, the shop, shop or other similar place through which such activities are performed;

b) any place connected with investigation, development and (or) production of natural resources irrespective of terms of implementation of such activities. Specified, in particular, includes the mine, the mine, oil and (or) gas well, pit, land or sea towers and (or) wells, and also any place of implementation of the activities connected with installation, installation, assembly, adjustment, start-up, repair and (or) equipment maintenance on the specified objects. It belongs also to sea drilling platforms, regardless of their type;

c) the building site, assembly or assembly objects, and also accomplishment of the supervising activities connected with such objects irrespective of terms of implementation of works;

d) the warehouse which is in the territory of Turkmenistan and used for realization (delivery) of goods.

In the cases specified in the Items and "v" of this part, the permanent mission is considered educated from earlier of the following dates:

issues of permission (license) for implementation of investigation, development and (or) production of natural resources or the beginning of implementation of such works (services);

signings of the deed of conveyance of the platform to the contractor (the act of the admission of personnel of subcontractor for performance of works) or dates of actual start of works.

Signature date the customer of the delivery and acceptance certificate of the object or complex of works provided by the agreement is the end of existence of the building site. The building site is considered stopped existence for date when:

the customer begins operation of this object before signing of the delivery and acceptance certificate of object (complex of works);

works actually terminated after signing of the delivery and acceptance certificate of object (complex of works) or after the customer begins operation of this object (except for the works which are carried out within the guarantee maintenance provided by the relevant agreement or the legislation of Turkmenistan).

If works on the building site are temporarily suspended, then it does not stop existence, except cases of preservation of construction object according to the decision of public authorities, local executive bodies and local government bodies, and also as a result of force majeure.

Continuation or renewal after break of works on construction object leads to accession of term of conducting the continuing or resumed works, and also break time.

Continuation or resumption of work, connected with construction or installation of new object on the same building site or expansion of earlier finished object, involves accession to the cumulative term of existence of the building site of term of conducting such continuing or resumed works and break between works.

If other is not established above, the business activity of legal nonresident person of Turkmenistan performed through the permanent place of activities leads to formation of permanent mission when the term of its implementation exceeds in total 45 calendar days during any twelve-monthly period, regardless of the number of the signed agreements (contracts).

2. Is not recognized permanent mission of the legal entity - the nonresident the place used in the territory of Turkmenistan only for:

a) storages, goods demonstration or the products belonging to this legal entity;

b) contents of the goods or products belonging to this legal entity for the purposes of their conversion by other person;

c) purchases of goods for subsequent their export, including under contracts for realization to their other persons out of limits of Turkmenistan; information collection for this legal entity;

d) contents of the permanent place only for the purposes of simple contract signature on behalf of this legal entity;

e) implementation of any other activities of preparatory or auxiliary nature for the benefit of this legal entity.

In the cases stated above receipt by legal nonresident person of Turkmenistan of the income from the non-operating transactions specified in part two of article 149 of this Code and in the absence of the signs specified in part one of this Article does not lead to formation of permanent mission of legal nonresident person in the territory of Turkmenistan.

3. The activities performed by the legal entity - the nonresident of Turkmenistan in the territory of Turkmenistan through the intermediary (the broker or other independent agent acting agreements of the order, the commission or consignment or other similar agreement on the basis) provided that these persons act within the regular activities, do not lead to formation of permanent mission of this person.

4. Provision by the legal entity - the nonresident of Turkmenistan of personnel in the territory of Turkmenistan for other legal entity if it is not recognized permanent mission according to part of 1 this Article, cannot be considered as leading to formation of permanent mission if these personnel are at the disposal and acts on behalf of the legal entity to who it was sent.

5. The legal entity - the nonresident of Turkmenistan is considered as the having permanent mission if this person performs deliveries of the goods belonging to it received as a result of conversion in Turkmenistan on customs area or under customs control.

6. Interdependence of the legal entity - the resident of Turkmenistan with the legal entity - the nonresident of Turkmenistan does not lead to formation of permanent mission of legal nonresident person of Turkmenistan if the resident is not its authorized person.

7. The legal entity - the nonresident of Turkmenistan can have one or several permanent missions in the territory of Turkmenistan. The permanent mission is recognized to that from the date of its organization, investment with the appropriate representative authority or the beginning of implementation of business activity.

Chapter 3. Persons through whom the taxpayer participates in tax legal relationship

Article 19. Tax agent

1. The tax agent persons to whom according to this Code obligations on calculation, deduction and transfer in the Government budget of Turkmenistan of tax for the taxpayer are assigned are recognized.

2. The tax agent shall:

it is correct to estimate the corresponding tax, to hold it at the taxpayer and to transfer timely into the Government budget of Turkmenistan;

record the money paid to taxpayers and other types of the settlings with them added, withheld and transferred into the Government budget of Turkmenistan of taxes on each taxpayer;

within one month in writing to report in tax authority about cases when the tax was not withheld at the taxpayer and about outstanding amount of the taxpayer;

submit to tax authority the documents necessary for control over correctness of calculation, deduction and transfer of taxes in the Government budget of Turkmenistan;

carry out other obligations established by the tax legislation of Turkmenistan.

3. Tax agents concerning the rights and obligations are equated to taxpayers if other is not provided by this Code.

Article 20. Legal representative

1. The legal representative of the taxpayer - physical person person who is given appropriate authority is recognized to perform actions from his name according to the legislation of Turkmenistan.

2. The legal representative of the taxpayer (tax agent) - the legal entity person is recognized, authorized to represent the legal entity based on its constituent documents or the legislation of Turkmenistan.

Action (failure to act) of the legal representative of the taxpayer (tax agent) - the legal entity is recognized tax legal relationship equally as action (failure to act) of this legal entity.

Article 21. Authorized representative

1. The authorized representative of the taxpayer (tax agent) person authorized by the taxpayer (tax agent) is recognized to represent its interests in the relations with tax authority, other participants of tax legal relationship.

The authorized representative of the taxpayer (tax agent) performs the powers on the basis of the agreement of the order or the power of attorney and within the rights granted to it.

2. Officials of the authorized bodies participating in tax legal relationship, kaza, investigators, investigators and prosecutors cannot be authorized representatives of the taxpayer (tax agent).

Chapter 4. Rights and obligations of the taxpayer

Article 22. Rights of the taxpayer

1. The taxpayer has the right:

a) receive in the tax authority and other authorized bodies participating in tax legal relationship, consultation concerning application of the tax legislation of Turkmenistan;

b) represent the interests in the authorized bodies participating in tax legal relationship, personally or through the legal or authorized representatives;

c) use privileges on taxes in the presence of the bases corresponding on that or refuse their use;

d) obtain information in tax authority on accomplishment of the obligations to the Government budget of Turkmenistan on taxes;

e) receive delay or payment by installments on tax payment and other payments in the Government budget of Turkmenistan according to the procedure, provided by this Code;

e) get acquainted with acts of the tax audits and inspections which are carried out at it, to give explanations on them;

g) represent to tax authority and to her officials explanations on calculation and tax payment;

h) make tax payment on account of tax debt of other persons with the written notice of it tax authority;

i) on timely offsetting or return of the amounts of excessively paid (collected) taxes;

j) demand from officials of the authorized bodies participating in tax legal relationship, compliances with law of Turkmenistan when making of actions (failure to act) by them concerning the taxpayer;

k) appeal in accordance with the established procedure requirements of tax authorities and (or) Customs Service for the tax discharge, and also other decisions, actions or failure to act of the authorized bodies participating in tax legal relationship and their officials;

l) require observance of tax secret;

m) require in accordance with the established procedure compensation of the damage caused by illegal decisions, actions or failure to act of the authorized bodies participating in tax legal relationship, officials of these bodies;

o) to independently correct the mistakes made during the accounting of the taxation objects, calculation and the tax discharge;

o) other rights established by this Code and other acts of the tax legislation of Turkmenistan.

2. The rights of the taxpayers paying taxes in connection with movement of goods through customs border of Turkmenistan are determined by also customs legislation of Turkmenistan.

Article 23. Obligations of the taxpayer

1. The taxpayer shall:

a) pay the taxes established by this Code;

b) be registered in tax authority according to the procedure, established by this Code if such obligation is stipulated by the legislation Turkmenistan;

c) keep in accordance with the established procedure account of the income, deductions (costs, expenses) and the taxation objects, necessary for calculation and tax payment if other is not provided by this Code;

d) represent to tax authority in the place of accounting tax declarations and the financial reporting on those taxes concerning which he is taxpayer, in accordance with the established procedure, if other is not provided by the tax legislation of Turkmenistan;

e) represent to tax authority, to their officials and employees when conducting tax audits and in other cases established by the legislation of Turkmenistan, documents (data) necessary for calculation and tax payment;

e) fulfill requirements of tax authority about elimination of the revealed violations of the tax legislation of Turkmenistan;

g) ensure safety of documents on the basis of which business and tax accounting is kept according to the legislation of Turkmenistan;

h) declare use of tax benefits or exemptions of tax and to represent to tax authority in the place of accounting (and in the established cases to the tax agent) the documents confirming the right to such privileges and releases;

i) fulfill other duties provided by this Code and other acts of the tax legislation of Turkmenistan.

2. Taxpayers - legal entities and individual entrepreneurs - in addition to the obligations provided by part of 1 this Article shall report in writing in tax authority in the place of statement on tax accounting:

a) about opening or closing of settlement and other accounts in organizations of banks outside Turkmenistan, including for nonresidents only about accounts which are used for implementation of the business and other activity directed to profit earning (income) in Turkmenistan - in three-day time from the date of opening (closing) of such accounts;

b) about equity in other legal entities (or partnerships) - no later than ten days from the date of the beginning of such participation. Legal entities - nonresidents of Turkmenistan shall report about such participation if it is connected with the relations regulated by the tax legislation of Turkmenistan;

c) about all separate divisions created in the territory of Turkmenistan, and for residents of Turkmenistan - and beyond its limits, no later than ten days from the date of their creation, reorganization or liquidation;

d) about the termination of the activities, liquidation or reorganization, the announcement of insolvency (bankruptcy) - no later than ten days from the date of adoption of such decision;

e) about change of the location, place of management and (or) the residence of the individual entrepreneur - no later than ten days from the date of adoption of such decision or from the date of change of the residence.

3. Obligations of the taxpayers paying taxes in connection with movement of goods through customs border of Turkmenistan are determined by also customs legislation of Turkmenistan.

Section III. Taxpayer registration

Article 24. Registration as the taxpayer

1. Physical persons - the individual entrepreneurs and legal entities registered according to the legislation of Turkmenistan are subject to registration as the taxpayer, including the foreign legal entities who registered the branches and representations in Turkmenistan.

2. The physical person working according to the employment contract or the agreement of civil nature is subject to registration as the taxpayer through the employer who is the tax agent according to this Code.

3. The physical person which is not falling under action of parts 1 and 2 of this Article is subject to registration as the taxpayer in the presence of the circumstances provided by this Code for the tax discharge if in the Code other is not stipulated.

4. The foreign legal entity who is not falling under action of part of 1 this Article which activities in the territory of Turkmenistan lead to formation of permanent mission is subject to registration as the taxpayer.

The foreign legal entity is also subject to registration as the taxpayer in the cases established by part two of Article 108 and part two of Article 144 of this Code and also availability of the permanent place of activities in the territory of Turkmenistan, in the cases provided by part one of article 18 of this Code regardless of that, it leads to formation of permanent mission or not.

5. Persons specified in parts 1 - 4 these Articles, are subject to registration as the taxpayer in tax authority respectively in the location of the legal entity (its separate division), at the place of residence of physical person or the place of implementation of activities in the territory of Turkmenistan, in the location belonging to them property.

In case of origin at person which is subject to registration as the taxpayer, difficulties with determination of the place of registration, the decision on the basis of the data provided to them is made by tax authority.

6. The partnership is subject to registration in tax authority respectively in the location, the place of implementation of activities or the residence in the territory of Turkmenistan of one of participants of partnership. At the same time the option of such participant belongs to participants of partnership.

Article 25. Procedure and terms of registration

1. Registration as the taxpayer is performed based on the application submitted by person to tax authority within 10 days from the date of state registration of physical person of the individual entrepreneur or the legal entity (separate division), and for other persons - from the date of emergence of circumstances under which there is obligation to pay taxes.

For partnership 10-day term is estimated from the date of the conclusion of cooperation agreement.

Persons working according to employment contracts (contracts) or agreements of civil nature are subject to registration as the taxpayer according to the procedure, established by tax authority of Turkmenistan.

2. The physical person along with the statement for registration as the taxpayer submits identity documents of this person and confirming its residence, and being the individual entrepreneur represents in addition the certificate on state registration as the individual entrepreneur.

3. The legal entity along with the statement for registration as the taxpayer represents copies of the certificate on state registration, constituent documents, and when opening branches or representations in the territory of Turkmenistan the certificates on their state registration certified in accordance with the established procedure and also the copy of card of the statistical recording.

In appropriate cases the legal entity represents the copy of the document testimonial of investment of any person with representational functions certified in accordance with the established procedure.

4. The partnership together with the statement for registration represents the copy of cooperation agreement.

5. The tax authority shall perform statement of the taxpayer on accounting and grant the appropriate certificate within three days from the date of submission of all necessary documents by specified persons.

6. In case of change of registration data, the constituent and other documents submitted together with the statement for statement on tax accounting, person staying on tax accounting shall report about it in tax authority within ten days from the date of their change.

7. In case of adoption by the legal entity of the decision on the termination of activities through permanent mission such person shall notify on it tax authority in the place of accounting no later than ten days from the date of its acceptance.

8. Individual tax number is assigned to the taxpayer (tax agent) registered as the taxpayer.

The tax authority specifies individual tax taxpayer number in all notifications and messages sent it.

The taxpayer (tax agent) specifies the individual tax number in the declaration, the statement, settlement and payment or other document, and also in other cases, stipulated by the legislation Turkmenistan.

The procedure and conditions of assignment, application, and also change of individual tax taxpayer number are determined by tax authority of Turkmenistan.

9. Document forms, used in case of registration as the taxpayer, are established by tax authority of Turkmenistan.

Article 26. State tax register

1. Tax Administration of the Ministry of Finance and Economy of Turkmenistan keeps the State tax register consisting from:

register of physical persons;

register of legal entities.

2. Are entered in the State tax register also this about the taxpayers having temporary tax number.

Article 27. Obligations of state bodies on submission of information to tax authority

1. The bodies performing state registration of legal entities (their separate divisions) shall report in tax authority in the place of the stay about (reorganized) legal entities (their separate divisions) registered (re-registered) or liquidated no later than ten days from the date of registration (re-registration) or liquidation (reorganization).

2. Guardianship and custody bodies, educational, medical institutions, organizations of social protection of the population and other similar organizations which according to the legislation of Turkmenistan establish and perform guardianship, guardianship or property administration of the ward, shall report about establishment of guardianship over physical persons including recognized as court incapacitated, guardianship and property administration of incapacitated, other minor physical persons, the physical persons limited to court in capacity to act, capable physical persons over which guardianship in the form of patronage is established, of the physical persons recognized by court it is unknown absent, and also about the subsequent changes connected with the specified guardianship, guardianship or property administration in tax authority in the place of the stay no later than five days from the date of adoption of such decision.

3. The bodies performing registration of physical persons at the place of residence and also registration of foreign citizens and stateless persons, registration of the birth and death of physical persons, shall report about the facts of registration and registration at the place of residence or about the facts of registration of death of physical persons in tax authority in the place of the stay no later than the 5th following after month in which the registration and registration of the specified facts was carried out.

4. Bodies, authorized to grant certificates, licenses or other documents of allowing and registration nature, shall represent to tax authority in the place of the finding of the information about taxpayers to which are issued certificates, the licenses or other documents of allowing and registration nature within ten days from the date of their issue (response or the termination) (are revoked or stopped).

5. Bodies (organization), authorized to make notarial actions, shall report about the notarial certificate of the right to inheritance in tax authority in the place of the stay no later than five days from the date of the corresponding notarial certificate if other is not provided by this Code.

Article 28. The obligations of organizations of banks connected with submission of information to tax authority

The organizations of banks located in the territory of Turkmenistan shall report about opening or closing of the accounts (opened based on bank account agreement on which are enlisted and from which money can be spent) of physical person, individual entrepreneurs, the legal entity (its separate divisions), and also partnership in tax authority in the location of organizations of banks no later than the day following the opening day or closings of such account.

Upon the demand of tax authority information on accounts of other physical persons shall be submitted within three-day term.

The principal state tax authority of Turkmenistan together with the Central bank of Turkmenistan can establish special procedure for submission of information on opening or closing of separate types of accounts and categories of persons.

Section IV. Calculation and tax discharge

Chapter 1. Accounting and the reporting for the purpose of the taxation

Article 29. Accounting of the taxation objects

1. Account of the taxation objects is kept by the taxpayer (tax agent) for the purpose of the taxation.

Accounting of the taxation objects and their assessment are based on accounting data and (or) other documentary confirmed data on objects, taxable or connected with the taxation.

The accounting treatment for the separate taxation objects can be established by the Ministry of Finance and Economy of Turkmenistan.

2. Account of the taxation objects is kept by the taxpayer (tax agent) independently, is except for unknown the absent and incapacitated persons concerning whom such account is kept by their legal or authorized representatives.

3. Accounting of the taxation objects shall provide complete and fair presentation about all transactions connected with activities of the taxpayer and about its financial position. The specified transactions shall be reflected so that it was possible to trace their beginning, the course and the termination.

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