Turkmenistan is a Central Asian country with a population of over 5 million. While it borders the Caspian Sea, most of the country includes the Karakum Desert. Great for companies in the natural gas and cotton sectors, Turkmenistan has the fourth largest reserve of natural gas in the world, and it’s the ninth largest cotton-producing country.
While expanding to this country will bring your company many benefits, it’s also full of potential complications. First, you need to decide on a Turkmenistan payroll option, figure out the applicable taxes, and ensure that you’re staying compliant — all while running multiple business locations. As a global PEO, G-P can make the expansion process easier through Turkmenistan payroll outsourcing.
Taxation Rules in Turkmenistan
Many taxes apply to companies expanding to Turkmenistan. For example, resident non-governmental entities have a corporate profit tax rate of 8%, while other residents have a 20% tax. Sole proprietorships have only a 2% income tax rate.
Turkmenistan uses a Pay As You Earn (PAYE) system, which means you as an employer are required to withhold and remit all individual income tax, city maintenance fees, voluntary pension fund, and medical insurance contributions on behalf of your employees. All employees, including residents and non-residents, have a flat tax rate of 10%.
Turkmenistan Payroll Options for Companies
When you decide to work in Turkmenistan, you’ll have four different payroll options to choose from:
- Remote: Many subsidiaries cannot support an internal payroll due to money or staff size. In these cases, you can add your employees to your parent company’s existing payroll.
- Internal: This Turkmenistan payroll option works well for large subsidiaries with a strong commitment to working in Turkmenistan. Before instituting an internal payroll, make sure you have the money and staff to support it.
- Payroll processing company in Turkmenistan: A Turkmenistan payroll processing company will help you outsource your payroll, but their responsibility stops there. They can’t take care of compliance, which means you’ll be held responsible for any of the company’s mistakes.
- Turkmenistan payroll outsourcing: Choosing Turkmenistan payroll outsourcing with G-P is the only sure way to handle both your payroll and compliance. Our team will act as the Employer of Record, so you can focus on your company.
How to Set Up a Payroll in Turkmenistan
Setting up your Turkmenistan payroll requires an existing subsidiary. Incorporating in a foreign country can turn into a time-consuming process if you’re not familiar with the different laws and regulations. In most cases, it can take weeks or months to set up your subsidiary, which will delay all other aspects of your operation.
Instead, you can work with G-P. Choosing Turkmenistan payroll outsourcing with us will mean you have the time and peace of mind to focus on your business. We’ll add your employees to our existing and compliant payroll, and we’ll make sure you meet all the right laws and regulations.
Learning and drafting key entitlement and termination terms as part of your employment contracts can help you set up your Turkmenistan payroll. Turkmenistan legislation says employers should be held liable for any unjustified termination. At the conclusion of employment, employees must submit certain documents to the employer, such as identification documents, work records, diplomas, and more.
Payroll Processing Company in Turkmenistan
G-P will help you expand quickly and efficiently starting today. Contact us to learn more about Turkmenistan payroll outsourcing.