Personal Income Tax in Turkmenistan
Turkmenistan operates a flat personal income tax (PIT) system with a standard rate of 10% for residents on employment income. Dividend and interest income are taxed at 0% for residents. Non-residents are subject to a flat 20% rate on Turkmenistan-source income.
Tax Residency
An individual is considered a tax resident of Turkmenistan if they meet any of the following criteria:
- Spend more than 183 days in Turkmenistan in a calendar year
- Have their permanent residence in Turkmenistan
- Have their center of vital interests (economic and personal) in Turkmenistan
Resident individuals are taxed on their worldwide income. Non-residents are taxed only on Turkmenistan-source income at a flat 20% rate.
Personal Income Tax Rate (2026)
Turkmenistan applies a flat PIT rate structure for employment and wage income:
| Taxpayer Type | Income Type | Tax Rate |
|---|---|---|
| Resident | Employment / Wages | 10% |
| Resident | Dividends / Interest | 0% |
| Non-Resident | All Turkmenistan-source income | 20% |
Personal Allowance
A personal allowance of TMT 100,000 per year is available to resident individuals. This amount is deducted from gross employment income before applying the 10% PIT rate.
Employment Income
Employment income includes salaries, wages, bonuses, commissions, and benefits in kind. Employers are required to withhold PIT from employee salaries and remit it to the tax authorities monthly. The 10% rate applies after deducting the personal allowance and social security contributions.
Taxable Benefits in Kind
- Company car: Imputed value based on usage
- Housing: Market value of accommodation provided by employer
- Interest-free loans: Imputed interest at market rates
- Education expenses: Amount paid by employer
Deductions and Allowances
Standard Deductions
- Social Security Contributions: Employee contributions (1%) are fully deductible
- Personal Allowance: TMT 100,000 annual deduction
- Charitable Donations: To approved organizations, within limits
Filing Requirements
- Annual Tax Return: Due by April 1 of the following year
- PAYE Returns: Monthly, by the 15th of the following month
- Estimated Tax Payments: For self-employed individuals, quarterly installments
Penalties
- Late filing: 10% of tax due, plus penalties per month of delay
- Late payment: Interest per month of delay
- Understatement: 25% of understated tax
- Fraud: Up to 100% of tax evaded, plus criminal prosecution