Asia-Pacific

Turkmenistan

Corporate rate
8%
Top personal rate
10%
VAT / GST rate
15%
One-sentence summary Turkmenistan's corporate tax position: 8% standard for resident legal entities (2% for small and medium enterprises). Personal income tax: Flat 10%. VAT/consumption tax: 15% standard; no VAT registration threshold (unlike neighboring Central Asian states).

Corporate Tax Rate

8% standard for resident legal entities (2% for small and medium enterprises).

Personal Tax Rate

Flat 10%.

VAT / GST Rate

15% standard; no VAT registration threshold (unlike neighboring Central Asian states).

Residency

An individual is resident if permanently resident in Turkmenistan or physically present for 183 days or more in a calendar year (unless otherwise provided under an applicable tax treaty), confirmed via two independent sources. Residents are taxed on worldwide income.

CFC (Controlled Foreign Company) Rules: No

Confirmed directly via Freeman Law's tax treaty summary: "CFC Rules. No CFC rules."

Thin Capitalization

No statutory thin capitalization ratio was identified in reliable sources this session. One lower-quality directory source claims thin capitalization rules are "not in play," but given that source's demonstrated unreliability on other jurisdictions reviewed this session, this is treated as a genuine gap ("not identified") rather than a confirmed "No" - the claim happens to point the same direction as an absence, but is not being relied upon as confirmation given its source quality.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent requiring Turkmenistan residents to self-report their own foreign accounts was identified. Institutional-level CRS/FATCA participation is likely significantly constrained given Turkmenistan's tightly closed, centrally-controlled economy and currency system, though this was not independently confirmed this session. Separately and independently of local law, US citizens and Green Card holders with Turkmenistan accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of local requirements.

Treaty Network

Turkmenistan has approximately 20 double taxation agreements, confirmed via two independent TaxAtlas pages, primarily with major trading partners and investors in the energy sector. Distinctively, Turkmenistan is an assignee of a number of double tax treaties originally entered into by the USSR, alongside treaties separately entered into and ratified by Turkmenistan's own government post-independence, confirmed directly via GSL's specialist tax-law profile - a structural legacy of Turkmenistan's status as a Soviet successor state. Withholding tax exemptions may be available where the foreign recipient is resident in a treaty-partner country and follows specified administrative procedures, also confirmed via GSL. Transfer pricing rules apply to related-party transactions and external trade deals, with tax authorities empowered to adjust calculations where pricing diverges from market value by more than 20% generally (or more than 10% for Petroleum Law contractors specifically), confirmed via Freeman Law.

Sources: Freeman Law - Turkmenistan Tax Treaty (CFC No, residency, transfer pricing thresholds), GSL - Turkmenistan Tax System (USSR-assignee treaties, withholding exemption procedure), TaxAtlas - Turkmenistan Tax Rates and System (2026), TaxAtlas - Turkmenistan Tax Treaties and DTAs, Orbitax - Turkmenistan Corporate Income Tax (rate structure corroboration), Rivermate - Employment Taxes in Turkmenistan. Page last verified: August 08, 2026. General information only - confirm current rates with a licensed advisor in this jurisdiction before relying on this page.