Question [0088]: Murat (aechka@km.ru)

What taxes and duties are liable to an individual at the import of motor cars from Arab Emirates?
At what rates the taxes and duties are levied in corresondence with the motor car’s engine capacity?

Answer:According to the Provision on order of the excise calculation and payment “On the excise on goods, made in Turkmenistan and imported to its territory”, approved by Decree of the President of Turkmenistan on August 8, 2000 by ą 3153, the motor cars are liable to excise. Therefore, at the import of motor car to the custom territory of Turkmenistan by the individuals, the last ones shall pay excise in accordance with established procedure.
Excise rates on the motor cars are:
Midget cars with useful capacity of engine up to 2 000 cubic cm inclusive – 0,25 US doll. per 1 cubic cm of engine.
Cars of full capacity with useful capacity of engine over 2 000 cubic cm – 0,35 US doll. per 1 cubic cm of engine.
On the matter of customs duty payment you should appeal to the State Customs of Turkmenistan.

Question [0089]: Murad (chap@cpart.org)

I’d like to carry out the charitable activity as an individual (privately).
How and where can I get the patent or license giving the right to carry out the above-mentioned activity?
What taxes I shall be taxed with as an individual engaged in charity? Whether I will be liable to a tax on obtained tangible and/or financial funds for indigents, e.g. invalids and orphans?

Answer:The Main State Tax Service of Turkmenistan has considered your request of June 11, 2003 and informs the following.
Charitable activity carried out by legal entity or by individual can not be considered as business (commercial) activity aimed at income (profit) receiving.
The matters of non-business (including charitable) activity organization fall under the provisions of Clauses 51 and 57-65 of the Civil Code of Turkmenistan.
As regards the matters of taxation the specified matters are solved according to the current tax laws that (with respect to a range of taxes) doesn’t link the accrual of tax liabilities with the charitable activity carrying out.

Question [0084]: Orazguliev Amandurdy (sonali@online.tm)

The first businessman transmits goods to be realized to the second one to the amount of 100 mln. manats during the first accounting period of a year. The second businessman sells goods adding own coefficients (10%) to the sum of 110 mln. manats and transfers 100 mln. manats to the first businessman, but 10 mln. manats reserved to himself, during the same accounting period.
How to determine the turnover amount of the first and second businessmen for the purposes of taxation?

Answer:The Main State Tax Service of Turkmenistan has considered your letter of March 27, 2003 and informs the follows.
According to the current tax laws of Turkmenistan the term “turnover” means the cost of sold goods at a determination of the businessmen’s object, which is liable to additional patent payment, and also the special purposed duties for settlements’ land improvement. At the same time, the moment of product sales (works and service fulfillment) proceeds receiving is considered to be the moment of available funds’ actual receiving or of payment in kind, but at a cashless payment – the moment of funds transfer on an individual businessman’s account in bank or on another account, which is available to him or from which he is within his right to receive the specified funds for shipped or transferred products (goods), fulfilled works and rendered services.
It is necessary to consider that as a payment for goods (works and services) the follows are recognized to be:
- funds receipt on taxpayer accounts of an individual businessman or his commissioner or authorized person on a bank’s account or on a taxpayer (commissioner, authorized person) cash;
- discharge offset
taxpayer-individual businessman’s transfer of chose in action to a third person
on the basis of contract or in accordance with the law;
- use of goods (products) by businessman for own consumption, non-connected with a business activity carrying out;
- goods (products) gift or works and services gratuitous fulfillment;
- lack of goods in excess of natural loss;
- goods (works and services) exchange.
Therefore, at the determination of taxable object you should be guided by the above-mentioned, being based on civil interrelations, developed between businessmen.

Question [0074]: Parahat Melayev (parahat@atacomputer.com.tr)

What laws are in force for creation of Internet and software services in home market of Turkmenistan? Some firm rendering software services in Turkmenistan is interested in what tax laws are acting for software sale in home and in foreign market.

Answer:The Main State Tax Service of Turkmenistan informs that in accordance with the Laws in force in Turkmenistan the legal entity, rendering software services in Turkmenistan and engaged in software engineering and its realization in home market, is a taxpayer according to generally established order.
According to the Decree of the President of Turkmenistan of May 28, 1998 by ą 3724 "On measures for stimulation of export production industry of Turkmenistan" the enterprises of non-governmental sector of economics are exempt from VAT - on sales proceeds from export of domestic manufacture production. The above-mentioned will apply also to your firm in case of engineered software realization in foreign market. At the same time other kinds of taxes you will pay according to the generally established order.
As regards the laws in force on the matter of the above-mentioned activity carrying out, getting of corresponding licenses etc., and in respect of its application you should appeal to the competent authorities.

Question [0073]: Chan Lorance (lorancechan@hotmail.com)

Background
The Group intends to sell its self-produced equipment to a customer in
Turkmenistan. In the sale transaction, there are two portions, one for the
equipment sale and another for service provision (e.g. installation,
training, after-sale maintenance service).

Questions re Turkmenistan

1) Please confirm whether Turkmenistan is one of the member states of the
Russian Federation, and hence regulated by the Tax Code of the Russian
Federation (Part One and Two).

2) Please advise the Permanent Establishment Rules re service provision
(e.g. installation, training, after-sale maintenance service) in the
context of Turkmenistan domestic tax law.

3) Please advise if there are any tax advantages (e.g. lower customs duty
rates, lower VAT rates, etc.) associated with importing an equipment into
Turkmenistan from a Russian Federation country as compared with importing
the same from an overseas country.

4) Please advise the customs duty implications of importing software into
Turkmenistan.

5) Please advise the royalty withholding tax implications associated with
importing software into Turkmenistan.

Answer:The Main State Tax Service of Turkmenistan has considered your letter from December 10, 2002 and informs the follows.
Since 1991 Turkmenistan achieved own independence and became a neutral state.
Therefore the legal entities' activities are controlled by both the domestic tax legislation of Turkmenistan and the intergovernmental agreements currently in force.
If foreign legal entity carries on activity on the territory of Turkmenistan through a permanent establishment and earns incomes from an after-sales service then such incomes are liable to a value added tax as well as to a tax on profit.
According to the Decrees of the President of Turkmenistan of September 8, 2000 by ą 4828 "About measures on improvement of a tax system of Turkmenistan" and of April 10, 2001 by ą 5207 "On fringes on VAT" the machinery, mechanisms, equipment, means of transport, its spares and tooling of production and technical functions.
Thereupon in accordance with regulations of above-specified Decrees of the President of Turkmenistan at the import of goods (irrespective of a country exporting such goods), which fall under the specified category of privileged ones and used for production purposes, a value added tax shall not be paid.
If the specified equipment and the other goods will be realized, gratuitous transferred to another persons or alienated in other kind, then the VAT shall be paid on total amount of such equipment in generally established order.
At present time an Agreement between the Government of Turkmenistan and the Government of Russian Federation on elimination of double taxation with respect to taxes on income and on property is currently in force.
In case of carrying on activity on the territory of Turkmenistan through a permanent establishment, taxation of a company will be controlled by regulations of a specified above Agreement as well as by domestic legislation of Turkmenistan.
In accordance with Article 12 "Royalty" of the specified above Agreement the following is established:
1. Royalty, arising in a Contracting State and paid to a resident of other Contracting State, may be taxable in that other State.
2. However, such royalty may also be taxed in a Contracting State, in which they arose, in accordance with legislation of that State, but if the recipient is a beneficial owner of royalties, then tax levied in such case shall not exceed 5% of total amount of royalties.
On matter of accrued customs obligations of software importers you should apply for information to the State Customs Service of Turkmenistan (e-mail: customs@online.tm).

Question [0072]: Roustam Vakhitov (r.vakhitov@ibfd.org)

I would be very grateful if you can send any articles, materials (in Russian) and normative acts on tax system of Turkmenistan, not yet allocated on a site, to my e-mail address.
Now I prepare a small review of changes in tax laws of Turkmenistan and the requested information would be very useful.

Answer: The Main State Tax Service of Turkmenistan systematically and in time fills up its own site www.tax.gov.tm with current changes and add-ins to the tax laws of Turkmenistan as new information on the above-mentioned becomes available.
Simultaneously informs that we can provide with exhaustive information on concrete questions on tax laws, you interested in, according to the current legislation of Turkmenistan.

Question [0071]: Inessa Nechaeva (wbc@nursat.kz)

Please supply the following information regarding the importation of cigarettes to Turkmenistan:
1. All Customs taxes required to be paid.
2. Are excise stamps/stickers required?
3. Special text by Turkmen Law required to be printed on each cigarette pack?
Are there any restrictions for cigarettes to be transited through Turkmenistan by rail or road?

Answer: Excise duty payable is fixed by the Provision on excise calculation and payment, authorized by Decree of the President of Turkmenistan of August 8, 2000 ą 3153, at the import of tobacco goods at the rate of 150% of the customs value, but not less than 1 US doll. per pack. On other manufactured tobacco and on substitutes for it there is 10 US doll. excise duty per 1 kilo. No excise duty on trade marks (stamps and labels) is provided for by current Tax Legislation of Turkmenistan. For more information on customs duties you should directly appeal to the State Customs Service of Turkmenistan.

Question [0067]: Byashim Ovezguliyev (izgantli@yahoo.com)

1. Whether an employee has the right to come to work if she would like to go out of maternity leave (112 days) irrespective of a child's age?
2. How a sick list should be paid if an employee has brought it (maternity list) for the second time before the expiry of three-year child rearing leave?
3. What changes on income tax deduction from material welfare in connection with illness are there?
What changes on income tax allowances for citizens, having three or more dependants, as well as on soldiers served in Afghanistan etc. are there?

Answer: According to the Instruction on income tax from physical persons, approved by the Ministry of economy and finance of Turkmenistan on January 29, 1992 by #5, the sums of welfare, rendered to employee in connection with his illness, are liable to tax on income in established order.
The completely exempt from income tax persons are:
- the invalids from childhood as well as vision invalids of I and II groups;
- the military men and persons liable for call-up, who were carrying out an International duty in Afghanistan and other countries, where the military actions were carried out.
The sum of calculated income tax goes down for the follow citizens:
- for invalids of I and II groups (except vision invalids) - on 50%;
- for single mothers of two or more children under 18 - on 50%;
- for widows and widowers, having two or more children under 18 and not receiving grant on loss of the breadwinner - on 50%;
- for one of the parents (at their option), bringing up the living together invalid from childhood - on 50%;
- for workers, employees and equated to them on taxation citizens, having three or more dependants - on 30% at only incomes receiving from principal place of business;
- for citizens decorated with a medal "Edermenlik" - on 50% at all incomes receiving by them.
To get the information on the matter of child rearing leave till reaching him/her of three years old and payment of maternity allowance you should appeal to the Ministry of economy and finance of Turkmenistan.

Question [0065]: "Badi Service" (badis@online.tm)

We ask for advise on the order of calculation and payment of taxes of foreign firms at the territory of Turkmenistan.

Answer: According to the positions of Instruction "On order of calculation and payment of tax on profit into the State budget of Turkmenistan" of May 19, 2000 by #24, worked out on the basis of Turkmenistan Law "On tax on profit" of October 8, 1993 as well as of other law acts adjusting tax questions, the activity of foreign legal person who have no the permanent representation in Turkmenistan but receives profits from its sources, is subject to tax on incomes at source of its payment in established order.
Enterprises, entities and other legal persons, receiving profit (incomes) from all kinds of business activity, shall pay the tax on profit (income) in accordance with the order provided by this Instruction.
Under the definition of profit of foreign legal person, carrying on the activity on the territory of Turkmenistan through the permanent representation should be taken into account that the only part of the profit of foreign legal person, received as a result of activity in Turkmenistan, is subject to taxation.
The foreign legal persons shall pay tax on income from dividends (including incomes from distribution of profit of enterprises with foreign investments) and from interests, as well as tax on income from author's rights, rent payment and on other income from work performance and service rendering, when such activity does not lead to formation of permanent representation, source of which is situated in Turkmenistan, at the rate of 15%.
The legal persons of Turkmenistan, businessmen without legal education, registered in accordance with the Law of Turkmenistan, permanent representations of foreign legal persons situated on the territory of Turkmenistan, directly paying income, shall be considered as the source of incomes in Turkmenistan.
Legal persons of Turkmenistan, businessmen without legal education, permanent representations of foreign legal persons, situated on the territory of Turkmenistan and directly paying income to foreign legal person, shall withhold tax on incomes of foreign legal persons from sources in Turkmenistan from full amount of income at each payment transfer.
In case if the positions of International Agreements provide for other rules than those, which are stated in this Instruction, then the positions of International Agreements shall be applied.
For purposes of double taxation elimination in respect of tax on profit (income) for foreign legal persons, carrying on an activity on the territory of Turkmenistan through the permanent representation or receiving incomes from sources in Turkmenistan, the tax authority of Turkmenistan issues the corresponding confirmation of tax sums paid in Turkmenistan according to a set form.
By Regulation on order of the President of Turkmenistan Decrees application "On measures on improvement of tax system of Turkmenistan" dated September 8, 2000 by # 4828 and "On additional allowances for a value added tax" dated April 10, 2001 by #5207 on matter of calculation and payment of VAT is prescribed the follows.
A value added tax is paid from goods imported to the territory of Turkmenistan by legal persons of Turkmenistan, foreign legal persons and their isolated subdivisions (representative and branch offices). The payment of a VAT from goods, imported to the territory of Turkmenistan, is made at the customs registration.
The goods, imported to the customs territory of Turkmenistan, are the objects to taxation on VAT.
The foreign legal persons, carrying on a work execution and service rendering through the permanent representatives situated on the territory of Turkmenistan, pay a VAT independently, without tax collection by source of payment.
The legal persons of Turkmenistan, businessmen without legal education registered in accordance with the Legislation of Turkmenistan, branches and representations as well as the permanent representations of foreign legal persons situated on the territory of Turkmenistan and being the immediate recipient of works and services, are recognized as the sources to whom a tax collection is charged.
At the same time we inform you that in accordance with VII and VIII parts of a Regulation on income tax from physical persons, authorized by the President of Turkmenistan Decree of January 6, 1992 by #250 taking into account the introduced additions and changes as well as a clause 88 of Instruction of the Main State Tax Service of Turkmenistan "On income tax from physical persons", #5 on January 29, 1992, the foreign employees are liable to tax on income in respect of incomes received from sources in Turkmenistan (taking into account of positions of International agreements if such are available).

Question [0062]: "Badi Service" (badis@online.tm)

What is a value added tax payment by businessmen about?

Answer: According to the clause 2 of the Turkmenistan Law "On value added tax" dated October 8, 1993 the payers of VAT are also persons, carrying out the business activity without legal education, if their goods sales (works and services rendering) proceeds exceed the 10 minimum amounts of wages per year.
So the businessmen without legal education under the carrying out the activity, for which the patent is taken out, are exempted from VAT payment.

Question [0061]: Bahar (Bahar.Ozsu@tr-ito.com)

We would be very pleased if you sent me updated information on the priviliges given to foreign companies (traders, investors, manufacturers, etc.) in Turkmenistan. Such information is required for a study carried out on Turkmenistan.

Answer: According to the clause 17 of Turkmenistan Law "On foreign investments in Turkmenistan" (taking into account of changes and amendments introduced to it) if the foreign investor has entered into the authorized fund of enterprise more than 30 % in a hard currency, then this enterprise is completely exempted from profit tax payment for the period of front-end investments payback. So, the foreign investor, who has entered the above-mentioned investment into the authorized fund of enterprise, is exempted from tax on dividends.
The profit of enterprise with foreign shares, directed to reinvestment (i.e., the redirection of profit, left at its disposal, for development of industry) after the front-end investments payback, is exempted from profit tax payment as well.
The special preferred treatment of taxation for enterprises, functioning in a free economic zone, is established by the Turkmenistan Law "On a free economic zone" dated October 8, 1993.
The specified enterprises are exempted:
- from profit tax payment during first 3 (fiscal) years of a profitable work in a free economic zone;
- enterprises with foreign investments, where the share of foreign sharer is more than 30 % in an authorized fund, next 3 (fiscal) years after the first 3 years of a profitable work are the subjects to taxation on profit at the rate, reduced on 50%, and during next 10 years - at the rate, reduced on 30%.
During the first 5 years of work in above-stated zone the taxation on property is made at the current tax rate, reduced on 50%.
The sums of profit from freight to be paid to foreign managing subject in connection with an international transportation execution are the subject to taxation at the rate of 3%.
The foreign partners of Joint Ventures, located in a free economic zone, are exempted from payment of tax on transfer abroad of obtained by them profit.
According to the Turkmenistan Law "On hydrocarbon resources" companies, enterprises and organizations, executing the oil works (contractors and subcontractors) only pay the tax on profit at the rate established by the Turkmenistan Legislation (at present time the tax rate is 25%). The order of taxable profit definition is established by contract.
Companies and enterprises, executing the oil works, pay royalty for hydrocarbon resources extraction. The size of royalty should be defined by concluded contract as well. The contract also can stipulate the bonus to be paid like once-only payments.
In case if the new taxes and duties are imposed after a contract concluding then the contractor and subcontractor only pay those taxes and duties, which are established instead of taxes and duties paid by them. This is the case of special preference condition of taxation.
The payment of income tax by physical persons, working at contractor and subcontractor, are executed in accordance with the current Legislation of Turkmenistan and the contract theses.
According to the Law "On hydrocarbon resources" the oil companies and its subcontractors are exempted from all other taxes and payments to the budget of Turkmenistan (including a value added tax, excises, tax on property, tax on depth of the Earth use etc.) on activity connected with fulfillment of contract on production division.
In accordance with the Regulations on order of state social insurance assessments payment into the budget, authorized by the President of Turkmenistan Decree dated September 8, 2000 by # 4828 " About measures on tax system of Turkmenistan perfection", the payments, made to foreign citizens, are not included into the object of the state social insurance assessment if another is not resulting of international contracts of Turkmenistan or if the specified foreign citizens will not include the state social insurance contract on a voluntary basis.
There are some other tax remissions, established by the Turkmenistan Legislation and separate Decrees of the President of Turkmenistan, as well.

Question [0059]: (ofsetlebap@online.tm)

1. In what cases the registration of commercial transactions between businessmen and state organizations on the State Commodity and Raw Materials Exchange of Turkmenistan is stipulated?
2. Whether the manufacturing organization has the right to accept the available funds to be paid for rendered services by means of receipt-cash warrants serving in the absence of electronical control cash register?

Answer: According to the Regulations on control cash registers' use under the execution of money payments with people, authorized by the President of Turkmenistan Decree dated March 27, 1995 by # 2152, enterprises, organizations and institutes, carrying out a trade activity and rendering paid services, execute the reception of cash from people with obligatory use of control cash registers.
Receipts and other documents, given by enterprises, do not make these enterprises exempted from control cash registers use under the reception of money from people.
At the same time it is necessary to mean that in accordance with item 37 of Turkmenistan Law "On enterprises" the money calculations of enterprise at own liabilities with other enterprises, as a rule, are executed through the banking institutes by cashless way.
In accordance with the current Legislation of Turkmenistan the Main State Tax Service of Turkmenistan is not the competent authority on questions on necessity and obligation of commercial transactions registration. To get the information on the matter you should appeal to the State Commodity and Raw Materials Exchange of Turkmenistan.

Question [0058]: "Bedev-Express"(asbsn@online.tm)

We've got the bill for advertising layout in "Catalogue of enterprises and organizations of Turkmenistan" from Chamber of Commerce and Industry of Turkmenistan, to which the tax for advertising at the rate of 5% is included but not pointed. Accounts department of the Chamber of Commerce and Industry has explained us that the specified tax is not paid by them but by printing office, publishing the above-mentioned Catalogue. Whether the Chamber of Commerce and Industry of Turkmenistan is due to present us an account for advertising layout with specifying of the tax for advertising at the rate of 5%, collected from us?

Answer: According to the Instruction "On order of calculation and payment of local taxes and dues into the budget" dated September 29, 2000 by # 30, worked out on a basis of Regulations on local taxes and dues, authorized by Decree of the President of Turkmenistan "On local taxes and dues" dated September 28, 2000 by # 4860 the payers of due for advertising are physical and legal persons:
a) distributing an advertising of commercial character through MASS-MEDIA and advertising agencies, situated at the territory of Turkmenistan;
b) independently executing the accommodation of advertising information of commercial character on stationary carriers at the territory of Turkmenistan.
As it is shown in your letter the agent, distributing an advertising of commercial character, is the Commercial and Industrial Chamber of Turkmenistan.
The size of due for advertising, estimated by the Commercial and Industrial Chamber of Turkmenistan, is defined as a product of cost of rendered by Chamber services on advertising (without taking into account of VAT sum) on tax rate of 5 %. Thus the payer pays the cost of services for advertising, including sum of due for advertising.
Hence, the Commercial and Industrial Chamber should bill to you the account on payment of services for advertising accomodation. The sum of due for advertising should be specified in this account.

Question [0056]: Hakan Yazici (hyazici@burc.com.tr)

Please, explain us some question on value added tax. It is known that the UN representation is exempted from VAT. Whether the contract organization will be the payer of VAT under the execution of any kinds of works and services, carried out for UN representation in Turkmenistan?

Answer: According to the item 5 of Turkmenistan Law "On value added tax" and paragraph 22 of Instruction # 3 dated January 21, 1994 "On order of value added tax calculation and payment " the exemption from VAT applies to the goods and services, meant for official use of foreign diplomatic or equated to it representatives, and also for private use of these representatives' diplomatic and administrative personnel, including members of their families, residing with them.
By this, invoices for payment of goods or services, meant for official use of foreign diplomatic or equated to it representatives, are rendered to them without value added tax.
In this case the contractor, rendering services, under the execution of calculation on VAT, the sum pointed in invoices, is shown in line 8a - Cost of goods sold, fulfilled works and services, and other material wealth free of value added tax.
Goods and services, meant for private use of diplomatic and administrative personnel of above-mentioned representatives, are paid taking into account a value added tax and sum of tax is compensated to them by establishments of economy and finance at the presence of cash-memos, confirming stated expenditures in order established by the Ministry of economy and finance of Turkmenistan.

Question [0055]: Nikolay (isafieu@online.tm)

In what size the tax from obtained bank credit should be paid?

Answer: According to the current Tax Legislation of Turkmenistan the product sales proceeds, revenue earned of enterprise from economic activity execution or value of property, concerned to the enterprise balance, can be the subjects to taxation.
Banking credits, obtained by managing subject, are the loan proceeds, using by payers for economic activity execution and irrelevant to above-mentioned categories.
In this connection there is no object to taxation. Therefore, bank credits have no any kinds of taxes.

Question [0054]: Kolisnichenko N. (mail@wsc2k.com)

Explain us the follow problem, please. Foreign company, registered in Cyprus, is Owner of steamer, which will call at Turkmenbashi on June of this year with lading of cotton-pickers. Whether the harbour dues, tariffs for towboat services, mooring operations and rendering of ship's agency services at Turkmenbashi harbour concerning foreign legal persons are the subjects to taxation on value added tax? Whether the agent, situated at Turkmenbashi, is authorized to bill the invoice for payment of steamer calling to harbour to foreign legal person including a VAT and above-mentioned tariffs and dues? Whether this foreign company, has not registrated in Turkmenistan, is obliged to pay a VAT, active on the territory of Turkmenistan, for rendered to above-mentioned company services?

Answer: The Turkmenistan Law "On value added tax" dated October 8, 1993 does not stipulate benefits for services (except transit traffics), rendered to foreign legal person in a port.
Therefore, in invoices for payment of rendered services, billed to foreign legal person, the sum taking into account a value added tax is shown.

Question [0053]: Durdyeva Zinaida (tmsasb@online.tm)

Could you publish on your site the list of non-taxable on value added tax foodstuffs under its realization.

Answer: On your question about the value added tax payment under foodstuffs realization on the territory of Turkmenistan we inform the follows.
According to the Turkmenistan Law dated October 8, 1993 "About a value added tax" and made to it changes by the President of Turkmenistan Decree dated November 10, 1993 #1554, the exemption from VAT applies to all enterprises and organizations of all forms of property by turnover at all stages of production and selling (except export transactions) of flour, bread, rolls and buns, macaroni, groats, including rice, mixed fodder, milk and all of dairy products, ice-cream, animal and cotton-seed oils, meat and meat foods, including canned goods, all kinds of sausages, fish (except delicacies), confectionery, baby nutrition, salt, tea, sugar and medicaments.

Question [0050]:
Whether any charges for free meals should be taken from workers' salary if its enterprise feeds them (dinner and supper) at own expense?
Answer: According to the item 18 of former Ministry of finance of Turkmenistan Instruction "About income tax from physical persons" by # 5 dated January 29, 1992 citizens pay taxes on salary sums, premiums and other rewards, concerned with its performance of labour duties at enterprises, institutes and organizations irrespective of property forms and kind of activity, including incomes resulting from material and social welfare granting to workers at the expense of enterprises, institutes and organizations.
That is why the cost of meals is included into citizens' incomes and is the subject to taxation on income tax coupled with wage base.
Besides, in accordance with Regulations about order of deductions payment for state social insurance into the budget, authorized by the President of Turkmenistan Decree dated September 8, 2000 by # 4828 "About measures on improvement of tax system of Turkmenistan", the cost of free meals is also included into deductions for state social insurance.

Question [0048]: Daniel Stanger (turkmenistan5@gmx.net)

Please send further informations about your tax system and your different taxes. On the Internet there are to general informations.

Answer: There is a complete and reliable information about Turkmenistan Tax Legislation, i.e. corresponding law acts, instructions, in which some current changes and additions periodically are made according to the Turkmenistan Government Decrees, in our official site: www.tax.gov.tm.
The Main State Tax Service of Turkmenistan can comply with your request to furnish you with complete information about different taxes in case if you will more specifically state your problems.

Question [0047]: Mamedov (shiri@online.tm)

Realizing the goods wholesale part in cash to other businessman, what documents it is necessary to me to execute a bargain? Besides whether I should to debit the money through the cash register or straight? At what costs the realization should be carried out?
Earlier (3 years ago) the contract with foreign deliverer was concluded, goods were supplied, but debts were not paid off. How to write off these debts and whether any taxes should be paid?

Answer: According to the President of Turkmenistan Decree # 2849 dated October 31, 1996 "On stage-by-stage setting of cash registers into the sector of trade, services and catering" an obligatory order of electronic cash registers' application for enterprises and organizations, irrespective of property form, and also for businessmen as with legal education as without one, carrying out retail trade, catering and rendering of services by means of payment in cash, is established since January 1, 1997.
By this the above-mentioned requirement applies to businessmen without legal education in case if these businessmen carry out a retail trade, catering and service rendering in appointed stationary place - stalls, stands, shops and other accomodations, which are in its possession.
If workers of enterprises execute a trade, catering and render services, and if businessmen execute cash operations without application of electronic cash registers as well then it is the case when this fact is fixed in act of State tax service, which is directed for further consideration and for taking administrative measures to corresponding commissions of hakimlic domiciliary of person, who has commited administrative infringement.
Realization of goods wholesale consignment for payment in cash is registered by a corresponding cash-memo or sales act.
Cost of production (goods, works, services), pointed by deal parties, is accepted for taxation purposes.
It is assumed that this cost corresponds to market prices level (until the opposite is not argued).
By market cost we understand the cost, existing in market of production turnover (goods, works, services) at the interaction between demand and supply for a day of realization.
If it is impossible to determine the production (goods, works, services) cost from deal's conditions, then the market cost of this production (goods, works, services) or analogical one for a day of realization is applied.
In case if costs, applicable to goods (products) sold, performed works, rendered services, are less more than 30% than at fulfillment of similar operations, then the proceeds, accepted for income tax calculation, are defined on basis of market costs (tariffs) of these or analogical goods, works, services.
For registration of revenue earned in purpose to define an additional patent payment the businessman is obliged to keep the book of incomes and charges registration, which is a primary document, reflecting financial results of business activity.
According to the clause 148 of Turkmenistan Civil Code of Saparmurad Turkmenbashi a limitation period of creditor debt is 3 years. On the expiry of 3 years a creditor debt concerns to results of economic activity and is a subject to taxation in established order.
By this the creditor debt sums of businessman are included into its incomes at the calculation of taxable base.

Question [0045]: Atajan Yusupov (atadjan@mail.ru)

I'd like to carry out the activity of translator/interpreter, that is the same what I was occupied with while I was in Turkey. I graduated the law faculty of Marmara University in Istanbul (Turkey). I'd like to get the information about the patent granting procedure for translator/interpreter activity execution and corresponding tax payment.

Answer: The activity of translator/interpreter is not included into the list of activity kind for which the patent payment is not fixed.
The Main State Tax Service of Turkmenistan issues the registration certificate for this kind of activity execution.
Citizens, carrying out the business activity and obtained the registration certificate are the payers of income tax.
Under the taxation on total year revenue of citizens, the taxable revenue is the difference between gross revenue (in terms of money or payment in kind) and documented expenditures, directly linked with an income deriving.
During a year the payers quarterly pay 25 % of year sum of tax into the budget, calculated at last year revenue, and the payers, who pay taxes for the first time, 25 % of year sum of tax, calculated at its hypothetical revenue for the current year.
Besides, the persons, carrying out the business activity without legal education (in this case is meant the activity of translator/interpreter), pay value added tax into the State budget, if their proceeds from rendered services exceed the tenfold rate of base magnitude for year tax calculation.

Question [0044]: telekechi@yandex.ru

Businessman without legal education under the checking of own accounting documents in 2002 has detected, that in 2000 were made an error by the tax calculation as the result of it the smaller sum, than is required, were paid into the budget. What sanctions will be applied to this businessman in case he himself will inform tax services about the wrong tax calculation revealing and what sanctions in case of above-mentioned revealing by tax service under the checking? If tax service will apply the financial sanctions then whether it will be applied according to the new law or to the law, working on the moment of infringement?
Businessman without legal education as the result of one year business activity execution obtained the certain revenue. This revenue was fully declared in accounting period on place of tax registration and all sums of taxes from this revenue were paid into the budget. Whether the businessman has the right to get some document or reference, confirming that this sum were really declared in tax service and thus confirming that these funds were obtained by legal way? If yes, then in what form exactly this document should be issued and what is the order of this document obtaining?
Businessman without legal education carries out the trading activity on cashless settlement. All of sold goods are purchased for cash and then are sold to buyers on cashless settlement. Whether in this case businessman owes to have accounting documents (cash-memos etc.)? If yes, then whether the absence of accounting documents is the infringement of some rules or laws and what sanctions could be applied to businessman in this case? What should this businessman do if all goods is purchased in second-hand market and most part of sellers, having no the patent, can not give any bills?
Businessman without legal education besides the general activity carries out the activity, not included into the kind of activity list, for which monthly patent payment is determined, and executes this activity on the registration certificate. In what terms the income statement should be submitted? Whether the income statement should be submitted in standard terms or the special terms and rules are determined for it?

Answer: According to the President of Turkmenistan Decree # 3506 dated November 23, 2001 "On regulation of taxation and financial sanctions application" the financial sanction for understatement (concealment) of tax sums and other obligatory payments into the budget does not apply in case when taxpayer or person, has been charged to withhold taxes from taxpayer and to tax sums transferring to the budget, independently has made changes to tax accounts before the fact of infringement revealing from the direction of tax services. In this case only a fine upon each day of payments to budget delinquency is imposed at the rate of 0,03%.
If the taxpayer has made some changes to tax accounts after the document inspection beginning then this is the case when the tax service applies financial sanctions in accordance with the current legislation of Turkmenistan. By this it is necessary to mean that the financial sanctions, stipulated by above-mentioned Decree, can be applied over a period of not more than 3 complete years, preceding to year when the check-up was done, and new sizes of fine are applied for full period since the day of tax liabilities arising.
Businessman without legal education can receive as necessary a written confirmation of paid taxes from revenue earned based on written statement to the address of State Tax Service on the place of tax registration.
Businessman without legal education, carrying out the trade activity on patent basis, pays patent surcharges at the rate of 1% from actual amount of aggregate gross revenue (commodity turnover sum) minus 2 500 000 manats per month. Current law acts do not stipulate the mandatory tender of receiving report (incoming documents) for goods, purchased for cash payment, as in this case the expenditures have no an influence upon a taxation object.
Businessman without legal education under the carrying out of activity, in addition to principal, for which the patent payment does not fixed, should keep the separate books of revenue from this kind of activity and at a stated time (until August 1 and February 1) should submit the income statement to the tax service.

Question [0043]: Durdyeva Zinaida (tmsasb@online.tm)

Whether any allowances on value added tax are stipulated for baby nutrition (made in Holland) imported through the Turkmenistan custom?

Answer: The Main State Tax Service of Turkmenistan has considered your letter and informs that the import child nutrition is not included into the list of goods, imported to the territory of Turkmenistan and exempted from VAT. Therefore, the above-mentioned goods are the subjects to taxation on VAT under its import to the territory of Turkmenistan.

Question [0042]: Mahmoud Eshraghi (halifa@online.tm)

1. What is the condition for import of construction materials and equipment in case if foreigh company was registered in Turkmenistan?
2. What accountings, discounts, exsices and taxes are stipulated for the above-mentioned?
We'll appriciate if you can give a reply in English and Russian languages.

Answer: In accordance with the President of Turkmenistan Decree dated April 10, 2001 # 25207 "About additional allowances on value added tax" the follows are the subjects to taxation on VAT under the custom registration:
- equipment, vehicles, instruments, mechanisms and machines, which have production and technical functions;
- building and finishing materials, meant for execution of project construction works (repair, reconstruction and modernization), executing in accordance with the President of Turkmenistan decisions, in the presence of the Ministry of construction and building material industry of Turkmenistan conclusion about expediency of its import to Turkmenistan taking into account the quality, technical and aesthetic parameters and cost.
Building material and equipment are not included to the list of excise goods.
The above-stated is also applies to foreign companies, registered in Turkmenistan.
On business accounting of above-stated you should appeal to the Ministry of economy and finance of Turkmenistan.

Question [0041]: Port Land Services (Pls@online.tm)

We'd like to learn the instruction of tax calculation procedure for municipal improvements. But we could not find it in your site.

Answer: In purpose of further building up improvement and accomplishment of the territory of Ashgabad, the Regulations "About additional financial sources for development of Ashgabad" was adopted by the President of Turkmenistan on April 14, 1999 by #4147.
In accordance with the above-stated Regulations, enterprises and organizations (except organizations and institutes, financed at the expense of Turkmenistan State Budget sources), situated on the territory of Ashgabad, including foreign legal persons, executing its activity on the territory of Turkmenistan through the permanent representation not depending on whether they have tax remissions and exemptions, have quarterly to pay allocations into the State Fund for municipal improvements at the rate of 0.5% from balance sheet profit. Payment of above-stated allocations is made at the expense of profit, remained at the disposal of enterprises and organization.
No other normative law acts on this question were published by the hakimlik of Ashgabad and also by the Ministry of economy and finance of Turkmenistan.

Question [0040]: Guseva N. V.

According to the letter #3672 dated 21.10.2000 and attached to it calculation of excise #1 and value added tax on goods made on commission, delivered from abroad. There is a certain percent of the rates, which is supposed to supplier and producer factory.
Please, give us the explanations and calculation, in case if alcohol is made in Turkmenistan and vodka is made from commission.
What share (in per cents) is for producer factory and also for alcohol deliverer?

Answer: Under the consideration of question on finished commodity distribution, under its production from goods made on commission it is necessary to mean that the share of producer factory and share of raw materials deliverer are fixed by agreement of parts in contract, concluded between customer and producer and are not detennined by the Tax Legislation of Turkmenistan.

Question [0038]: Redjepov Maksat (maksat.redjepov.nd@burren.co.uk)

I'd like to get the information concerning sale and export abroad of Turkmen carpets. What taxes or patent is necessary to obtain the license for such kind of business activity execution (depending on type of currency)? Where should I apply to obtain all of above-stated on my domiciliary in Balkanabad-city. I very appreciate if you will give the complete information about this sector of trade.

Answer: In purpose of execution of trade activity on carpets and carpet items selling (if you are already registered in tax service as an individual businessman) you should get the patent, issued by the state tax service on your domiciliary.
You should appeal to the State Stock Corporation "Turkmenhaly" to get the information about the license issuing procedure on the carpets and carpet items selling and its export abroad.
According to the Regulation about the application order of the President of Turkmenistan Decree dated November 10, 2000 # 4896 "About the custom duties collecting from goods, imported to Turkmenistan and exported abroad", agreed with the Cabinet of Ministers of Turkmenistan on November 10, 2000 # 4-654, physical persons can import abroad without quantitative restrictions and custom duties payment the carpets and carpet handmade items, made by enterprise of the State Stock Corporation "Turkmenhaly" of the Ministry of textile industry of Turkmenistan, and purchased in the shops of the State Stock Corporation "Turkmenhaly" of the Ministry of textile industry of Turkmenistan, of the Ministry of trade and foreign economy relations of Turkmenistan and Turkmenistan Consumers' Union.
If you'd like to get the complete information concerning the exemption from custom duty payment and the order to obtain the exemption you should appeal to the State Customs of Turkmenistan.
Attestation about carpets and carpet items purchasing in above-stated shops is the certification of single sample, issuing by the State Stock Corporation "Turkmenhaly" and Ministry of textile industry of Turkmenistan for each carpet item.
In the presence of certification on importing abroad carpets and carpet items there is no need of decision of the National Museum of Turkmen Carpet.
The State Stock Corporation "Turkmenhaly" exercises the control of carpets and carpet items for historic importance.

Question [0037]: srg_turkmen@yahoo.com

Could you answer me whether it is necessary to get the license for opening of cafe without alcohol drinks? Where and how can I get it and how much does it cost?

Answer: If you'd like to get some information about the licensing procedure of cafe opening you should appeal to the Ministry of trade and foreign economy relations of Turkmenistan.

Question [0036]: Atajanov (atajanov@online.tm)

What documents the checking establishments have the right to check up after the patent expiring (after the completion of any enterprise activity and surrender of the declaration)?
Give me, please, the full answer about the order of check realization and what is the commercial secret in this case?

Answer: In accordance with the Regulations of the State Tax Service of Turkmenistan (taking into account of made alterations and add-ins), approved by the Decree of the President of Turkmenistan dated January 6, 1992 #250, the establishments of the State Tax Service of Turkmenistan have the right to check up all necessary bookkeeping, money and other documents, concerned with the calculation and payment of taxes and also to get all necessary explanations, references and required information on questions, under the taxpayer checking.
By this, establishments of the State Tax Service of Turkmenistan should use the information, obtained during the checking, only in service purposes and keep the commercial classified information, established by legislation.
As regards the information, which is the commercial classified information, then said above question is regulated by the Turkmenistan Law "About the commercial classified information".

Question [0035]: Port Land Services (Pls@online.tm)

We would like to get the follow information:
If on a stock exchange the buyer of petroleum will be the turkmen personal firm for export of above-stated product abroad and its realization there, then:
1. what taxes and in what sizes should be levied on the stock exchange from contract of sale?
2. the following execution of goods export and its realization abroad is the subject to taxation on profit. How many percents from common profit, obtained in foreign currency, are taxable and in what currency are paid?

Answer: According to the clause 2 of the Turkmenistan Law "About income tax", under the execution of goods (work, service) export delivery the proceeds from its realization, obtained in foreign currency, converts to Turkmenistan currency according to the official rate (fixed by the Central Bank of Turkmenistan to the day of currency proceeds receiving), is accounted consisting of total revenue and is taxable to profit in established order. By this, the income tax is paid at the rate of 25%.
If you'd like to get the information about exchange takings payment you should address to the State Commodity and Raw Materials Exchange of Turkmenistan.

Question [0034]: Durdyev Ruslan (ruslan_tm@inbox.ru)

Could you answer me on follow questions:
1. Commercial firm executes its activity under the aegis of International Red Cross and financially obeys to it. And the profit tax at the rate of 30 % is deducted to there. Whether the firm should pay any taxes to the government?
2. Whether at the currency means listing from abroad on the anonymous personal account in
Foreign economic bank the payment of any taxes except for banking commission is
indispensable?

Answer: In accordance with the President of Turkmenistan Decree dated September 18, 1993 dated September 18, 1993 the Red Crescent National Society of Turkmenistan is free from of all kind of taxes, takings and duties concerning as receiving as send cargo and postal orders from National Societies of Red Cross and Red Crescent of other governments.
Manufacturing firms of Red Crescent National Society of Turkmenistan are also free from tax on conditions that these firms will pay 30 % from profit to the Society Charter activity according to the above-mentioned Decree.
Therefore, if your enterprise is the manufacturing firm, established by (created and completely belonging to) the Red Crescent National Society and fulfill all conditions of above-mentioned Decree, then it is free from all kinds of taxes, takings and duties.
For answer on the second question it is necessary to inform us as the result of what operations to the anonymous personal account came funds and its purposes.

Question [0031]: Sashliew Begench (tmpost@online.tm)

I am engaged in service and repair of computers and multiple copying engineering. There was a problem on the quality certificate of repair. Whether it is necessary to receive the quality certificate or not?

Answer: The Main State Tax Service of Turkmenistan has considered your letter and informs that in purpose to refine the problem about issuing to you the certificate on service and repair of computers and multiple copying engineering you should appeal to the "Turkmenstandartlary" State inspection.

Question [0030]: nurdakal@yahoo.com

In what cases Z report is removed from shops' cash vehicles and whether this report serves as the official document?

Answer: The Main State Tax Service of Turkmenistan informs the follows.
Under using of electronic control-cash vehicles you should be guided by point 10 of the Standard rules of control-cash machines exploitation, approved by the Ministry of trade and resources and the Ministry of economy and finance of Turkmenistan on June 6, 1995, agreed with the Main State tax inspection (nowadays "service") of Turkmenistan, registered by the Ministry of Justice of Turkmenistan on July 21, 1995 by # 26, by which is determined that the director of trade enterprise, his assistant, and in large firm a person, authorized on that by the director, at the end of a day at the presence of cashier (inspector - cashier, vendor, waiter), working on the given machine:
- checks up the indications of control and pecuniary adding counters and cements by the subscript the records of the counters' indications, made by the cashier in the book of the operating cashier;
- cashier ( controller-cashier, vendor, waiter ) gets ready and registers out the pecuniary proceeds, cash (in other words Z) report, draws up the pecuniary documents and makes corresponding records in operating cashier book.
Therefore the cash report (Z-report) is took off from the cash vehicles every day and is an official document, confirming daily pecuniary proceeds.

Question [0028]: Aganazar (Aganazar@mail.ittu.edu.tm)

If I will open some shop in my yard, then which kind of taxes I should pay? Waiting for your soon reply.

Answer: The Main State Tax Service of Turkmenistan has considered your letter and informs that:
In accordance with the Rule about procedure of patent granting and patent payment
definition, designed on basis of the order of President of Turkmenistan dated September 8, 2000 #4828 "About measures on a tax system of Turkmenistan perfecting", and another one "About simplification of taxation for businessmen without legal education", businessmen without legal education should receive the patent on implementation of separate kinds of activity. Individual businessmen, executing their activity on the patent basis, pay the additional patent payment from the actual sum of the aggregate gross income minus 2.500 manats per month. The additional patent payment is determined at rate of 1 %.
Individual businessmen, executing their activity on the patent basis, should submit the declaration on actually obtained aggregate gross income to the tax establishments on a registration place for two times per year (for half-year and for year). Term of submission of declaration for the first half-year - August 1 of the current year and for account year - February 1 of the year, which is following for account one.
Therefore, if you will open some shop for yourself in your yard, then you should rise on the tax registration in the tax service on the habitation as businessman without legal education, and receive the patent on trade activity implementation with submission of tax declarations and depositing of additional patent payments in the mentioned above order.

Question [0027]: Eduard Bagdasarov (ebagdasarov@iom.untuk.org)

Is it possible to consider the answers of the Main State Tax Service of Turkmenistan on this site as the official position of the MSTS concerning the taxpayer's questions, and also to use the published answers of MSTS by third persons as the precedent under the considering of similar tax situations?
Which term of considering and publishing of the answer on the question, asked through the online system? Do you answer on all asked questions?

Answer: According to the clause 11 of the Turkmenistan Law "About law acts" the Ministries, governmental management central establishments, including the Main State Tax Service of Turkmenistan within their authorities accept the law acts in pursuance of Turkmenistan Constitution, Turkmenistan Civil Code of Saparmurad Turkmenbashi, Legislation of Turkmenistan, the President of Turkmenistan Decrees and Laws, Decrees of Mejlis and Cabinet of Ministers of Turkmenistan.
The Main State Tax Service of Turkmenistan issues the normative acts as the instructions, regulations, methodic guidelines etc., in which is shown in pursuance of what law act the afore-said was issued.
The above-said law acts, which the payer should accept to execution, are the official source of questions interpretation, incoming to the Main State Tax Service of Turkmenistan address.
As regards the separate explanatory letters, which have not the normative-law character, then the Main State Tax Service of Turkmenistan states own opinion in it on posed questions, relying on above-stated legislative act.
Such letters can be taken into taxpayer's account.

Question [0026]: Olga (queen21@lenta.ru)

Tell us, payments of what taxes are required for the activity of international non-commercial organization on students exchange on the territory of Turkmenistan? The programs paid, money go on the participants documents processing. What documents need to be submitted?

Answer: The Main State Tax Service of Turkmenistan has considered your letter and informs the follows:
As it follows from the letter, the international non-commercial organization executes the realization of the paid programs on students exchange.
However, for definition of subject to taxation on those or diverse kinds of taxes you should submit to the tax service on a check-in location more concrete materials on your activity, exactly: constituent and primary documentation, confirming implementation of this or that kind of activity.

Question [0025]: Mergen turkmen (Mergen_turkmen@hotmail.com)

Whether the citizen of Turkmenistan (neither businessman nor the undertaking) can send abroad a lot of national hand-made manufactures such as skull-cap, socks and cheshki? If he can't, then whether it is necessary to create the undertaking for execution of this activity?
If the citizen, even not a businessman, can send the goods then whether the taxes should be paid for the sending of above-stated goods abroad? If that is the case then in which volume tax should be paid for each good separately?

Answer: The Main State Tax Service of Turkmenistan informs the follows:
According to the letter of the State Custom of Turkmenistan "About custom registration of goods, imported in Turkmenistan by physical persons for commercial purposes" dated December 11, 1998 by # 112-2/1669, agreed with the State Tax Inspection of Turkmenistan ( now "Service") dated December 11, 1998 by # 3355/10 and with the Ministry of economy and finance of Turkmenistan dated December 11, 1998 by # 1/2128, goods are considered as not intended for manufacturing or diverse commercial activity, if such kinds of goods are imported (or exported) only for use and consumption by a person, moving goods, and members of his family, and usage of goods is not connected with the withdrawal of income in any form.
By this the fact of goods import for commerce purposes is established by official (person) of custom establishment in accordance with generally accepted international standards and rules.
The above-stated widespreads also on you by the export of national workpieces to the abroad.
It is worthy to note that the export of goods for commercial purposes is possible only if the physical person is registered in the State tax service on the habitation as businessman without legal education, executing foreign trade activities, with obtaining of the patent on appropriate kind of activity.
It is necessary to mean that tax services in this case should grant the patent only after the submission of corresponding documents, testifying the registration of the businessman as the participant of foreign economic relations.
Simultaneously we lead up to your attention, that at goods export abroad, the establishments of the State Custom of Turkmenistan levy customs duties, according to valid rules about the order of calculation and payment of customs duties on the goods imported in Turkmenistan and which are exported abroad.
That is why you should appeal to the State Custom of Turkmenistan for refinement of the customs duties sizes.

Question [0024]: Tatyana Kotova (tkotova@ibtci.com)

Please describe or provide the reference link to the current state of accounting reform in Turkmenistan?

Answer: The Main State tax service of Turkmenistan has considered your inquiry and informs that on questions concerning the accounting reforms in Turkmenistan you should appeal to the Ministry of economy and finance.

Question [0023]: Anvarshan Kurbanov (Anvarshankurb@investbank.com)

According to the Legislation the businessmen's incomes declaration is the document of tax service.
But the banks, in process of analysis, ask to submit the incomes declaration. Thus, some local tax establishments do not submit the declaration to the bank at the instance of businessman. With the purpose to provide for more complete information about businessmen ( the credit depends on this ), in which form it is possible to get the information about businessman's incomes from tax service?

Answer: The Main State Tax Service of Turkmenistan has considered your letter and informs the follows:
Actual tax legislation of Turkmenistan does not stipulate the submission of declaration about any incomes, received by the businessman, by tax services to the address of bank branch.
That is why the question on requirements of actual legislation about such declarations submission to the bank establishments should be solved with the corresponding operating bank.

Question [0022]: Mushtakov Hudayyar (plan@lebap.investbank.org)

Could you give me the information on new law acts, letters of the tax service, on calling to taxation, on new materials of the Ministry of economy and finance and the instructions of the Central Bank of Turkmenistan.

Answer: The Main State Tax Service of Turkmenistan informs that the instructions and -law acts, and also the letters, concerning taxation, are on our Internet site: www.tax.gov.tm.
In a near future the section, in which are the information about normative-law acts on taxation, will be refilled with the new and earlier adopted documents.
In purpose to obtain the information about the instructions of the Ministry of economy and finance and Central Bank of Turkmenistan you should appeal to the indicated competent establishments.

Question [0021]: Galina Volkova (altyn@bk.ru)

1. The director of firm with foreign investments receives the salary abroad, in a country, which has an Agreement with Turkmenistan about removal of double taxation.
Whether it is necessary to levy income tax for us and if yes then in what currency?
Whether the tax on an accomplishment should be levied, then in what currency? How we could correctly draw this up in the documents?
2. The director of foreign representative office (there is an Agreement about removal of double taxation) receives the salary in foreign currency in Turkmenistan. In what currency the income tax and tax on an accomplishment should be levied?
3. The businessman renders service on flower and gifts delivery. How we should draw up the cash calculations with clients, if there is no office and the activity implements by boating to the address of physical or legal clients, i.e. it has movable nature. Whether it is possible to apply the stringent reporting forms? Or the cash vehicle it is so necessary?

Answer: The Main State Tax Service of Turkmenistan informs the follows:
For the answer to posed by you question on income tax collection from the director of firm with the foreign investments, it is necessary to point, whether this director of firm is the citizen of Turkmenistan or foreign citizen ?
In case if director of firm is the citizen of Turkmenistan, according to the current legislation of Turkmenistan, is a subject to taxation on income tax are the incomes obtained to the above-mentioned physical person as on the territory of Turkmenistan as abroad.
If the director of firm is the foreign citizen, then the rules, stipulated in the Agreement on double taxation removal, can be applied to him, which were made between Turkmenistan (and also former USSR) and country, which is introduced by the above-mentioned firm.
As to the second question it is worthy to note that in accordance to the current legislation of Turkmenistan if the charge and implementation of a wage payments to citizen is executed on the territory of Turkmenistan in national or even foreign currency, then the calculation and payment of income tax to the above-stated citizen and the target collecting on an accomplishment of settlements territory, is executed only in national currency of Turkmenistan.
As to a question of registration (making out, legalization) of pecuniary calculations with clients on delivery of flowers and gifts, then in accordance with the current legislation of Turkmenistan, If the service of population is made outside of fixed putting, then the applying of control-cash vehicles is not necessary and usage of the documents of stringent reporting special forms -
cash-memos of an established sample is enabled as well.
The trade operations undertaking with the population and obtaining from the population of cash money resources without applying the cash-memos is resolved on separate kinds of trade activity according to a List, approved by the order of the President of Turkmenistan dated March 27, 1995. The list stipulates, that "acceptance of cash money without applying the cash-memos is enabled, in particular, under the implementation of small retail trade from manual dollies, tanks, chutes, baskets etc.