LAW ON Amendments and Additions to the Tax Code of Turkmenistan
I. Introduce into the Tax Code of Turkmenistan, adopted by the Khalk Maslakhaty of Turkmenistan on October 25, 2004 (as amended by the Law of Turkmenistan dated October 25, 2005) (Türkmenistanyň Halk Maslahatynyň resmi namalarynyň ýygyndysy, 2005, HM-80; Vedomosti of the Mejlis of Turkmenistan, 2005. , No. 4, Article 37; 2006, No. 3, Article 12; 2007, No. 1, Articles 20 and 24, No. 2, Article 48, No. 4, Article 68 and 74; Türkmenistanyň Halk Maslahatynyň resmi namalarynyň ýygyndysy, 2008, HM-96; Vedomosti of the Mejlis of Turkmenistan, 2008, No. 1, article 7, No. 3, article 41; 2009, No. 2, article 41, No. 3, Article 45; 2010, No. 1, Article 19, No. 2, Article 34, No. 3, Article 64; 2011, No. 1, Articles 5 and 24, No. 2, Article 45, No. 3, Article 59; 2012, No. 1, Article 48, No. 3, Article 68; 2013, No. 1, Article 7, No. 2, Article 26; 2014 , No. 1, Articles 24 and 49, No. 3, Article 112, No. 4, Article 149; 2015, No. 2, Articles 48 and 71, No. 3, Article 111, No. 4 , art. 146; 2016, no. 1, art. 52, no. 3, art. 118, no. 4, art. arts. 144 and 165; 2017, no. 2, art. 77, no. 3, art. 111, No. 4, Articles 135 and 147; 2018, No. 2, Article 42, No. 4, art. Art. 95 and 107; 2019, no. 2, art. 34, no. 4, art. 94; 2020, no. 3, art. 45, no. 4, art. 84), the following changes and additions:
1) in the last paragraph of the second part of Article 96 and in the seventh part of Article 169 of the text in the state language, the words “ulanyş tölegleriniň” and “Ulanyş tölegleri” shall be replaced by the words “ulanyş tutumlarynyň” and “Ulanyş tutumlary”, respectively;
2) after the second paragraph of Article 105, add the following paragraph:
“Exporting products obtained after processing crude oil and gas condensate purchased from parties that are not residents of Turkmenistan. A prerequisite for the application of such a value added tax rate is the direct implementation of such export by legal entities that are residents of Turkmenistan, carrying out this processing. At the same time, the export of goods for tax purposes is understood as the export of goods outside of Turkmenistan in the presence of confirmation in the established manner of the fact of crossing the customs border of Turkmenistan; ";
3) part two of Article 122 shall be supplemented with the following paragraph:
“The export of products obtained after processing crude oil and gas condensate purchased from parties that are not residents of Turkmenistan is exempt from paying excise duty. A prerequisite for the application of such an exemption is the direct implementation of such export by legal entities that are residents of Turkmenistan, carrying out this processing. ”;
4) after paragraph 23 of part seven of Article 154, add the following paragraph:
"Depreciation charges related to the positive difference arising from the revaluation of fixed assets (assets) in accordance with the legislation of Turkmenistan and international financial reporting standards.";
5) Article 157 shall be stated as follows:
"Article 157. Depreciation deductions
1. Depreciation deductions for fixed assets and intangible assets used by the taxpayer to generate income are accepted as deductions taken to determine the taxable profit.
For the calculation of depreciation deductions, the procedure and norms established by the legislation of Turkmenistan and this article are applied.
2. Capital expenditures are included in the taxpayer's expenses (deductions) through depreciation deductions.
The cost of the depreciable property does not include capital expenditures that are directly indicated in this Code as accepted as deductions.
3. When a customer operates a construction facility that has not been commissioned in accordance with the established procedure or has not been registered as fixed assets, depreciation deductions are included in the deductions as for fixed assets accepted for accounting. The above applies in other similar cases.
4. For property leased (rented), depreciation deductions are made by the lessor (lessor).
For leased property, depreciation deductions are made by the lessee.
5. The following are excluded from the composition of fixed assets (assets) from which depreciation deductions are made:
fixed assets and intangible assets acquired free of charge;
cultural heritage and museum values;
library fund;
fully amortized;
fixed assets not put into operation;
assets of non-entrepreneurial legal entities, budgetary and public organizations, regardless of the purpose of use.
6. Depreciation charges on intangible assets are accounted for as deductions only if the conditions established by the legislation of Turkmenistan are met and their actual use for generating income is confirmed.
7. Specific amounts of depreciation charges calculated for fixed assets are developed and approved by the Ministry of Finance and Economy of Turkmenistan within the maximum size of depreciation charges calculated for the types of division into groups of fixed assets approved by the President of Turkmenistan. "
II. This Law shall enter into force from the day of its official publication, with the exception of paragraphs 2 and 3 of Part I of this Law.
III. Clauses 2 and 3 of Part I of this Law shall come into force from June 1, 2021 and are valid until December 31, 2021 (inclusive).
President of Turkmenistan
Gurbanguly BERDYMUHAMEDOV.
Ashgabat, June 5, 2021.
* Translation from the state language of Turkmenistan.