While neither a bilateral investment treaty nor a bilateral tax treaty exists between Turkmenistan and the U.S., the former U.S.-Soviet treaty on double taxation presently applies. Currently, no tariffs or duties are charged for goods imported into Turkmenistan, with the exception of excise taxes on specific consumer goods. Customs duties are not charged on foreign investors' imported property if it is designated for production purposes or considered part of the enterprise's capital fund. No restrictive packaging, testing, labeling, or certification regulations exist at present. The exact treatment for joint venture is likely to be set in a specific contract.
Business can benefit from exemptions and tax holidays established for specific circumstances.
Foreign investors are offered some tax relief from Turkmenistan's 25 percent profit tax and its 15 percent dividend tax on income from dividends, interests, copyrights, licenses, leases, royalties and other incomes. Investors holding more than 30 percent of hard currency shares in an enterprise's capital fund are exempt from the dividend tax. Enterprises are not required to pay the profit tax until the investors have fully recovered their original investment. Additionally, those companies which reinvest their profits are exempt from tax payments on the reinvested capital, and any equipment of product contributing to the capital of a joint venture is exempt from import duty. Free economic zones have been created in the republic to attract more foreign capital.