OREANDA-NEWS. March 11, 2008. The new list of the particular kinds of entrepreneurial activity subject to simplified taxation and fixed patent dues came into force.

The list approved by the recent Resolution of President of Turkmenistan Gurbanguly Berdymuhamedov is to be another step towards improvement of the national legislative basis, an important factor of the fundamental reforms implemented in the country and successful national social and economic development. Speaking at a sitting of the Cabinet of Ministers held to consider the priority issues of national economic development the Turkmen leader emphasized that in the transition period paramount importance should be attached to development of the non-governmental sector.

According to the Chief State Tax Service, with the view to develop entrepreneurial activity, to strengthen the control of the activities subject to taxation as well as to implement effectively the provisions of the Tax Code the President of Turkmenistan issued the Resolution called upon to bring the list of the particular kinds of entrepreneurial activity in compliance with the approved State Class Index of Economic Activities. The decision was conditioned by the non-conformity of the current list to the Class Index complicating the statistic reporting procedure.

After the new list of kinds of entrepreneurial activity subject to simplified taxation comes into force the load of taxes imposed on private entrepreneurs will be decreased that will enable to fulfil the tasks of macroeconomic model building based on the principles of national economic accounting. The list specifies the kinds of the activity to be licensed, certified and permitted.

The Resolution improves the patent procedure. To enhance the control over some licensed kinds of entrepreneurial activity the tax agencies are authorized to issue patents only after the entrepreneurs receive the license for some kinds of the entrepreneurial activity.

To regulate the procedure of leasing (tenancy) the living space the contracts of tenancy must be registered with the relevant agencies. The velayat and Ashgabat Khyakimliks are to elaborate the procedure of obtaining registration of the contracts of tenancy.

Improving the existing taxation system will promote an upsurge of entrepreneurial activity. The measures to support entrepreneurial activity initiated by President of Turkmenistan Gurbanguly Berdymuhamedov along with the effective tax policy and improved legislation providing the substantial benefits and state guarantees of observance and protection of the interests of entrepreneurs create the favourable conditions for establishing the class of private producers able to compete on both domestic and foreign markets.