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MAIN STATE TAX SERVICE OF TURKMENISTAN

Question [0020]: What is the established order of surtax calculation and deduction from the workers (citizens of Turkmenistan) groups coordinating the international loan projects, receiving wages in foreign currency?
Answer:
Calculation and deduction of surtax from wages of the above mentioned workers in foreign currency are made according to the Rule about surtax from the physical persons, approved by the Decree of the President of Turkmenistan dated January 6, 1992 ¹ 252, in view of the brought in to it additions and changes, and the Order of the President of Turkmenistan Decree application dated March 14, 2001 ¹ 3356 “About differential rates of surtax from physical persons", approved by the Vice-president of the Cabinet of Ministers of Turkmenistan dated April 27, 2001 ¹ 8-394.
For the surtax rate definition, the wages, received in foreign currency, are recalculated in manats at an official rate of the Central bank of Turkmenistan, working on the date of income receiving in foreign currency.
For example, for May, 2001 the wages in the sum of 300 US dollars are charged to the worker. According to the bulletin of foreign currency rates of the Central bank of Turkmenistan for the date of above-mentioned income receiving, the exchange rate of one US dollar concerning national currency made 5200 manats for one US dollar. By simple recalculation we shall receive 1560000 manats (300*5200=1560000 manats). As the differential rate of surtax on the monthly income from 1500001 up to 1650000 manats is established at a rate of 11 per cents, then the surtax will make 33 US dollars / (1560000*11) /100=171600/5200=33 of US dollars.
The employer simultaneously with performance in operating bank of the checks on means receiving in foreign currency for monthly (for half of month) wages payment, is obliged to list the due sums of surtax in foreign currency into the budget profit.
The operating bank recalculates the withheld sum of surtax in foreign currency to manats at the rate of the Central bank of Turkmenistan and lists into the State budget of Turkmenistan profit.
The specified order of calculation and deduction of surtax from the citizens of Turkmenistan, receiving wages in foreign currency, is given in an Explanation of the Ministry of economy and finance and the Main State Tax Service of Turkmenistan dated October 1, 2001 ¹ 10/2527.

Question [0019]: Whether the building, assembly or civil and erection works, carried out by the legal person by an economic way, are subjects to taxation on added cost?
Answer:
According to clause 3 of Turkmenistan Laws “About the added cost tax” the turnovers on goods (works, services) release, inside the enterprise for needs of own consumption, the expenses on which do not concern on production costs, manipulation and workers, are taxable on added cost.
From above said follows, that the building, assembly and the civil and erection works, carried out by the legal person by an economic way, are subject to taxation on added cost.
Thus, for a taxed turnover of such works is accepted in view of rules of item 1 of clause 4 of the above-mentioned Law, cost of these or similar goods (works, services), estimated on the used prices (tariffs), and at their absence under the actual cost price.
At the calculation of taxable turnover under the added cost tax is necessary also to be guided by item 2 of clause 4 of Law, according to which for building, construction and repair organizations the taxable turnover is the cost of executed works, paid by the customer.
Thus, taxable turnover under the added cost tax at performance of building, assembly or civil and erection works by the legal person by an economic way should be defined, proceeding from the actual cost price of such works.
It is necessary to note, that by the transfer on grant basic or goods serve (works, services) for needs of own consumption, the day of turnover fulfillment is the day of their transfer (performance).
It means, that the volumes of building, assembly or civil and erection works are subjects to taxation on added cost, executed by the legal person by an economic way, at the date of such work total volume completion and writing off the expenses from the account 08 of “ The capital investment” on the account 01 “The basic means” or other accounts, stipulated for such purpose of book keeping.
The calculation of the added cost tax on the specified works and offset of the paid added cost tax for raw material, materials, and also service of side organizations within the framework of specified works performance, is carried out in the established order.
The present answer is based on an Explanation of the Main State Tax Service of Turkmenistan dated August 29, 2001 ¹ 1889/1.

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