I. To be added to Turkmenistan Tax Code enacted by Turkmenistan Halk Maslahaty on October 25th 2004 (amended by the Law of Turkmenistan of October 25th 2005)

(Collection of normative acts of Turkmenistan Halk Maslahat, 2005, HM-80; Bulletin of Mejlis of Turkmenistan, 2005, No. 4, Article 37; 2006, No. 3, Article 12; 2007, No. 1, Article 20 and 24, No. 2, Article 48, No. 4, Article 68 and 74; Collection of normative acts of Turkmenistan Halk Maslahat, 2008, HM-96; Bulletin of 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, Article 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, Article 24 and 49, No. 3, Article 112, No. 4, Article 149; 2015, No. 2, Article 48 and 71, No. 3, Article 111, No. 4, Article 146; 2016, No. 1, Article 52, No. 3, Article 118, No. 4, Article 144 and 165; 2017, No. 2, Article 77, No. 3, Article 111, No. 4, Article 135 and 147; 2018, No.

2, Article 42, No. 4, Article 95 and 107; 2019, No. 2, Article 34, No. 4, Article 94; 2020, No. 3, Article 45, No. 4, Article 84), the following changes and additions:

1) In the last paragraph of part II, Article 96 and in part VII, Article 169 of the text the following words «ulanyş tölegleriniň» and «Ulanyş tölegleri» written in State language, must be replaced respectively with the words «ulanyş tutumlarynyň» and «Ulanyş tutumlary»;

2) After Paragraph 2 of Article 105 to be added the following paragraph:

“Export of products derived from processing crude oil and gas condensate, which were purchased from the parties who are not considered residents of Turkmenistan. An obligatory condition for application of such rate of value added tax is a direct implementation of such export by legal entities who are residents of Turkmenistan, carrying out such processing. Export of products for taxation purpose shall be understood as export of goods outside of Turkmenistan if there is evidence of them crossing the customs border of Turkmenistan in accordance with the established procedure”;

3) Paragraph with the following content to be added to the Part II of Article 122:

“Export of products derived from processing crude oil and gas condensate, which were purchased from the parties who are not considered residents of Turkmenistan are exempt from paying the excise tax. An obligatory condition for application of such exemption is a direct implementation of such export by legal entities who are residents of Turkmenistan, carrying out such processing.”;

4) Paragraph with the following content to be added after paragraph 23 part VII of Article 154:
“depreciation deductions, related to a positive difference arising from re-evaluation of fixed assets (funds) in accordance with Turkmen legislation and international financial reporting standards.”;

5) Article 157 to be amended to read as follows:

“Article 157. Depreciation deductions

1. Depreciation deductions on fixed assets and intangible assets used by a taxpayer for the purpose of generating income are to be taken as deductions which serve to determine taxable profit.
For depreciation calculation procedure and norms established by legislation of Turkmenistan and the present article to be applied.

2. Capital expenditures to be included to taxpayer’s expenses (deductions) using depreciation deductions.
Capital expenditures, which are explicitly specified in present Code to be taken as deductions shall not be included in the cost of depreciable property.

3. In cases of customer operating on a construction facility which has not been commissioned in accordance with established procedure or has not been accounted as fixed assets, depreciation deductions to be included in deductions as for registered fixed assets. This is also applied in similar cases.

4. Depreciation deductions on rented property shall be made by the lessor (landlord).
For leased property, depreciation deductions are made by the lessee.

5. The following depreciation deductions from the fixed assets are excluded:

fixed assets and intangible assets acquired free of charge;

cultural heritage and museum valuable assets;
library funds;
fully depreciated;
fixed assets not put into operation;
assets of non-commercial legal entities, budgetary and social organizations, regardless of the purpose of use.

6. Depreciation charges on intangible assets to be accounted as deductions strictly under the conditions established by the legislation of Turkmenistan and after the confirmation of their actual use for generating income.

7. Specific amounts of depreciation deductions calculated on fixed assets are developed and approved by the Ministry of Finance and Economy of Turkmenistan within the maximum amounts of depreciation deductions calculated on the types of division into groups of fixed assets approved by the President of Turkmenistan.”

II. Present Law to come to effect from the day of its official publication, except for clauses 2 and 3 of part I of present Law.

III. Clauses 2 and 3 of Part I of Present Law to come to effect starting from June 1st, 2021 and to remain active until December 31st, 2021 (inclusive)

The President of Turkmenistan

Gurbanguly Berdimuhamedov.

Ashgabat, June 5, 2021

*Translation from the state language of Turkmenistan.