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Turkmenistan, sometimes known as Turkmenia, is a landlocked Central Asian nation bordered to the northwest by Kazakhstan, to the north, east, and northeast by Uzbekistan, to the southeast by Afghanistan, to the south and southwest by Iran, and to the west by the Caspian Sea. Ashgabat is the country's capital and biggest city. The nation has a population of roughly 6 million people, making it the smallest of the Central Asian republics. Turkmenistan is one of Asia's least populous countries. Turkmenistanis (where citizenship rather than ethnicity is emphasized), Turkmenians, or Turkmens are the names of Turkmen nationals.
The region presently known as Turkmenistan has long been a crossroads for many different countries and civilizations. Merv is one of Central Asia's oldest oasis towns and was once the world's largest. Merv was also one of the major towns of the Islamic world and an important stop on the Silk Road throughout the Middle Ages. Turkmenistan was annexed by the Russian Empire in 1881 and subsequently played a key role in Central Asia's anti-Bolshevik struggle. Turkmenistan became a constituent republic of the Soviet Union, the Turkmen Soviet Socialist Republic (Turkmen SSR), in 1925; it gained independence when the Soviet Union disintegrated in 1991.
Turkmenistan has the world's fifth greatest natural gas reserves. The Karakum, or Black Sand Desert, covers the majority of the nation. Citizens got free power, water, and natural gas from the government from 1993 until 2017.
Turkmenistan is a member of the United Nations, an observer state in the Organization of Turkic States, and a member of the Türksoy community.
The nation has received widespread criticism for its terrible human rights record. Its treatment of minorities, journalistic liberties, and religious freedoms were notable topics. Turkmenistan has been controlled by three oppressive totalitarian governments since its independence from the Soviet Union in 1991. Until his death in 2006, it was controlled by President for Life Saparmurat Niyazov (also known as Türkmenbaşy or "Head of the Turkmens"). Gurbanguly Berdimuhamedow became president in 2007 after winning a non-democratic election (he had previously been vice president and then acting president), and ruled the country until 2022, when he stepped down in favor of his son Serdar, who went on to win the presidential election the same year - an election that several international observers described as neither free nor fair. The death penalty was legally abolished in the 2008 constitution after it was suspended in January 1999.
For most workers, the baseline amount of paid yearly leave is 30 days, which they are entitled to after 11 months of employment. Teachers, educational leaders, scientists, and handicapped personnel all get 45 days off. Employees who work in especially tough or dangerous conditions are entitled to three additional vacation days each year, with a maximum of 15. Air traffic controllers and select aviation personnel are also eligible for an extra 15 days. Employees with irregular schedules and those over the age of 62 are entitled to three additional vacation days per year.
Turkmenistan recognizes 12 national public holidays.
In most circumstances, there is no particular legislative right to sick leave. Employees, on the other hand, have the right to take unpaid leave to care for a sick family member, with the length of the absence determined by the medical institution that is caring for the relative.
Female employees are entitled to 112 days of fully paid maternity leave, beginning 56 days before the expected due date and ending 56 days following delivery. If there are birth problems, the paid maternity leave is extended by 16 days, and by 40 days if there are multiple births.
Except in a few cases when the mother is not present in the child's life, there is no legislative paternity leave beyond the choice for the father to take parental leave.
Apart from maternity and paternity leave, there are no other provisions in the law in Turkmenistan regarding parental leave.
Employers may terminate an employment contract for economic or business reasons, or depending on the employee's behaviour or performance. Employers are required to tell employees in writing. Two weeks or two months' notice is required, depending on the reason for termination. During the probationary term, only three days' notice is required.
Dismissals due to redundancy and employee misconduct are subject to special norms and processes.
In most cases, when an employer terminates an employment contract for a cause other than the employee's wrongdoing, severance compensation must be provided.
The notice period, as well as the circumstances and amounts payable under the employment contract's termination benefits and other compensation, are specified in the employment contract. The notice period varies between a half and a full month.
Probationary periods for employees cannot exceed three months and six months for managerial employees.
Severance or redundancy pay ranges from half a month's salary to two months' salary, depending on the length of employment.
The standard workweek is 40 hours spread over five days with an average of eight hours per day, or six days with no more than seven hours per day. Employees aged 16 to 18 may work no more than 36 hours per week, and employees under the age of 16 may not work more than 24 hours per week. Additionally, employees who work in particularly difficult or dangerous conditions, as well as disabled employees, have their workweek reduced.
Overtime is permitted in a limited number of circumstances. Employees are entitled to overtime pay.
Turkmenistan sets a national minimum wage of TMT957.00.
Turkmenistan has both a public and a modest private healthcare system. Patients usually pay significant expenses out of pocket in both the public and private systems.
Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.
Residents of Turkmenistan are liable to CIT on global income; non-residents are subject to CIT solely on income derived in Turkmenistan. The CIT base is calculated by subtracting gross revenue from allowed deductions.
Foreign legal entities' branches are liable to a 20% CIT, while Turkmen legal entities are subject to an 8% CIT (or 2 percent CIT in cases where the company qualifies as a small or medium enterprise).
Companies engaged in oil and gas activities are subject to a 20% CIT, regardless of their legal position or ownership structure.
Entities in which the government owns more than 50% of the stock are liable to CIT at a rate of 20%.
Turkmen residents are usually taxed on their global income, including in-kind advantages such as food, lodging, relocation, and so on. Non-residents are solely taxed in Turkmenistan on income earned in Turkmenistan (e.g. from their activities performed in Turkmenistan).
When payments are made through withholding agents, personal income tax (PIT) is usually imposed via withholding at source (i.e. resident legal entities, individual entrepreneurs, and permanent establishments [PEs] of non-resident legal entities). This does not apply to individual entrepreneurs' business revenue, which is subject to self-assessment.
The overall PIT rate is 10%, and it applies to employment income, company and professional income, interest, royalties, income from real estate, and capital gains. In most cases, the tax is withheld at the point of sale. Self-assessment is used to calculate the tax on company and professional income.
VAT is typically charged at a rate of 15%. Exports of products (excluding oil and gas) and foreign transportation services are tax-free. Contractors working under the auspices of the petroleum legislation may be exempt from this tax in general.
The tax base consists of sales turnover plus excise tax. If a sale is made at a set price, the tax base is the sales turnover, including VAT and excise tax. The amount of input VAT paid may be deducted from the amount of output VAT paid. Capitalise the amount of input VAT linked to capital expenditures.
Turkmenistan visa policy refers to the collection of regulations that govern the entry of foreign individuals into this Central Asian country.
This collection of rules is tailored to specific factors such as the foreigner's travel intents, nationality, and scheduled trip dates.
Turkmenistan's visa regime is widely recognized for being closed and rigid. As a result, it is one of the world's least visited nations.
According to Turkmenistan's visa policy, foreign people from all nations must get a visa and an invitation letter before entering the country. There are a few exceptions for travelers with special or service diplomatic passports, as well as those from particular areas of Kazakhstan or Uzbekistan.
Obtaining a tourist visa might take many months and cost a lot of money. Foreign visitors must get a letter of invitation from a reputable travel agency or similar sponsor, as well as a visa from a Turkmen embassy.
Turkmenistan's severe visa policy is the outcome of internal national policies designed to isolate the country and its neutral status. The number of visas issued to foreigners has decreased in recent years, and few visa applications are approved, according to sources.
When foreigners need to conduct business or labor in Turkmenistan, the same principles apply. They will need a business and work visa in both circumstances.
Turkmenistan has self-isolated and implemented measures consistent with this idea since its independence. Turkmenistan's visa policy for tourists is no exception, requiring all foreign people to obtain a valid visa in order to visit the country.
According to Turkmenistan visa regulation, all visitors must have a passport valid for at least six months in order to receive a tourist or any other sort of Turkmen visa.
A visa on arrival is also an option. You will, however, need a letter of invitation from an authorized travel agent.
Only service category or diplomatic passport holders from around 25 countries are exempt from requiring a visa to visit Turkmenistan.
In Turkmenistan, there is no standard form for an employment contract, and the work relationship starts not with the signing of a contract, but with an order given by the employer to hire an applicant based on their written application. Nonetheless, a formal contract outlining the rights and duties of both the employer and the employee is recommended. The contract would often outline the employee's job tasks, location of employment, remuneration, usual working hours, entitlement to leave and other benefits, as well as the notice time and any particular processes to be followed if either party decides to end the employment relationship.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Learning how to set up a Turkmen subsidiary necessitates consideration of your location and organization. Your location may have an effect on the Turkmen subsidiary laws you must obey, and you may experience varied prices and availability depending on the city or area you are in. If you are unfamiliar with the various locations of Turkmenistan, we suggest consulting with an expert who can assist you in selecting a location for your office.
Next, you must choose a company entity that will help you achieve your objectives. Turkmenistan will let you to establish a limited liability company (LLC), joint stock company, branch office, or representative office. Each organization has its own set of laws, which might affect how you function in a nation. If you need to execute a broad variety of operations and duties, for example, you should incorporate as an LLC. If you only handle a small number of company operations, a branch or representative office will suffice.
Most businesses with a significant presence in Turkmenistan should form an LLC. The following are some of the most usual processes in establishing a Turkmen subsidiary:
1. Submitting a signed application from approved corporate representatives
2. Submitting articles of incorporation and two copies of the charter
3. Drafting a personal information form containing information on all business participants
4. Submitting a document proving legal ownership
5. Obtaining documentation of paid-up capital receipt
Turkmenistan subsidiary laws differ depending on company, region, and other factors, therefore it's critical to understand the rules that apply to your circumstance. LLCs must have at least two shareholders, who might be persons or corporations. You'll also need one director who isn't a Turkmen native or a resident of the country.
The minimum share capital for a Turkmen LLC must be less than $20,000. Because LLCs in Turkmenistan have a lot of operating flexibility, you'll need to submit your financial accounts for an annual audit.