The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.
CalculateThe main piece of legislation regulating accounting in Turkmenistan is Turkmenistan’s Law of 27 November 2010 No. 155-IV “On Accounting and Financial Reporting”.
In accordance with the Concept of Making and Filing of Financial Statements approved by order of the Ministry of Finance of Turkmenistan No. 12-O of 08 December 2012 and national financial reporting standard (NFRS) 1, the complete set of financial statements consists of:
The procedure of making financial statements and additional requirements thereto are determined in accordance with the international financial reporting standards (IFRS) and national financial reporting standards (NFRS), depending on the size of the company.
The Law of Turkmenistan “On State Support of Small and Medium-Sized Business” sets criteria for small and medium-sized business entities:
Small business entities have the right to apply the national financial reporting standards (NFRS) and file with state authorities a simplified form of accounting records and financial statements.
The monetary unit in the accounting and financial reporting system in Turkmenistan is the national currency of Turkmenistan, the Turkmen manat (TMT).
Financial statements shall be made in the official language of Turkmenistan: Turkmen.
Financial statements consist of sets of general-purpose financial statements, specific-purpose financial statements, interim financial statements, simplified financial statements and interim simplified financial statements. The sets of general-purpose financial statements and interim financial statements are determined in accordance with the national and international financial reporting standards.
General-purpose financial statements shall be provided to:
For general-purpose financial statements the reporting period is a calendar year – 1 January to 31 December.
For interim financial statements the reporting period is a quarter or half year.
For simplified and simplified interim financial statements the reporting period is a calendar year and half year respectively.
For a newly established (new) company the reporting period is set to last from the date of the company’s incorporation to 31 December of the respective year.
The deadlines for filing all kinds of financial statements are set for business entities by the Ministry of Finance of Turkmenistan or the Central Bank of Turkmenistan according to their competence.
Public joint-stock companies, joint-stock commercial banks, investment funds (including those with foreign investment) must publish audited annual financial statements by 1 July of the year following the reporting year.
Annual financial statements must be provided to the Tax Inspectorate and the Ministry of Finance annually by 31 March of the year following the reporting year.
Quarterly financial statements must be filed with tax authorities within 30 days after the end of every quarter.
Annual profit tax returns must be filed by 20 March of the year following the end of the tax year.
Some taxpayers must provide calculations of monthly advance payments of profit tax.
VAT returns may be filed on a monthly or quarterly basis depending on the type and size of the company. The deadline for filing such VAT returns is the 20th day of the month following the reporting month/quarter.
The main piece of legislation regulating auditing in Turkmenistan is the Law of Turkmenistan of 8 November 2014 No. 138-V “On Audit Activity”.
According to the provisions of this law, audit is compulsory for economic entities engaged in:
The law puts into a separate category joint-stock companies and their branches that do not conduct banking, financial or insurance activities. Enterprises of this type are subject to compulsory audit. However, on 17 April 2022 president of Turkmenistan signed the Law of Turkmenistan “On Making Changes and Additions to the Law of Turkmenistan “On Audit Activity””. Provisions of the new law set a quantitative criterion for compulsory audit of joint-stock companies and their branches. Now such enterprises must be audited if their annual income is at least 20 000 (twenty thousand) times bigger than the basic index set by legislation to calculate social payments and other payments, taxes and duties. According to the national legislation, the basic index is TMT 50. Hence, to be obliged to undergo audit a joint-stock company and (or) its branch must have proceeds exceeding TMT 1 000 000 in one year.
Furthermore, the following must be audited:
Compulsory audit shall only be conducted by audit firms on a yearly basis.
Compulsory audit shall be requested by the audited entity.
Late filing of financial statements by an officer shall result in a penalty amounting to one to three basic indices, i.e. TMT 50 to TMT 150.
In the case of a repeated violation, the penalty increases to three to five basic indices, i.e. TMT 150 to TMT 250.
The Law of Turkmenistan “On Accounting and Financial Reporting” contains a strict obligation for a group of economic entities to make and file consolidated financial statements. Legislatively, the principles and rules of making consolidated financial statements are set in accordance with the national (NFRS) and international financial reporting standards (IFRS).
The regulations and rules of making consolidated financial statements are set by national financial reporting standard 2. According to NFRS 2, a parent company must make consolidated financial statements.