The France-Turkmenistan tax treaty: the Franco-Soviet text of 1985

The applicable convention is the one concluded with the USSR: the French tax authorities indicate that the Franco-Soviet convention of October 4, 1985, continues to apply to Turkmenistan, the successor state of the USSR. It caps withholding tax at 15% on dividends and 10% on interest. Article 16 allows for the exchange, upon request, of information necessary for the application of the convention; it does not include a clause for the application of each state's domestic legislation. This page is based on the official tax administration commentary (BOFiP): the text of the convention could not be consulted.

A USSR convention confirmed by an exchange of letters in 1994

The convention was signed in Paris on October 4, 1985, and entered into force on March 28, 1987. An exchange of letters signed in Ashgabat, published by Decree No. 94-988, has been in force since April 28, 1994. Withholding taxes apply to income paid from January 1, 1988. On the French side, it covers income tax and corporate tax. The administrative list classifies it among the conventions relating solely to income; Turkmenistan is not included in the list of conventions modified by the MLI.

Status. According to the BOFiP (BOI-INT-CVB-TKM, version of 12/09/2012), this convention "continues to have effect with regard to Turkmenistan, successor state of the USSR"; it appears in the list BOI-ANNX-000306 of 29/04/2026 (agreements in force on 1 January 2026), without any note of suspension. No source consulted mentions any suspension or denunciation; however, the doctrine dates from 2012.

Turkmenistan: Maximum Detentions and Key Rules

The 183-day threshold is calculated per calendar year

For private sector remuneration, taxation falls to the state where the work is performed. The exception requires three conditions: a work assignment of no more than 183 days per calendar year, an employer who is not a resident of the state where the assignment takes place, and remuneration not paid through a permanent establishment of the employer in that state. The relevant period is the calendar year, not a rolling twelve-month period. The commentary also mentions exemptions for certain categories: teachers and researchers, scholarship recipients, journalists, and international transport personnel. The duration of these exemptions is not specified here.

Residence, self-employment, earnings

The residency criteria in Article 1 are hierarchical and not alternative: permanent home, center of vital interests, habitual residence, and then nationality; for a company, the place of effective management. Profits from self-employment are taxed in the State of residence, unless there is a permanent establishment in the other State. A construction or assembly project does not constitute self-employment if its duration does not exceed 24 months. Income from and capital gains on real estate are taxable where the property is located. Other capital gains are taxable in the State of residence of the transferor, unless there is a substantial interest in the property.

Avoiding double taxation

For a resident of France, dividends and interest withheld at source in Turkmenistan entitle the taxpayer to a tax credit, generally equal to the withholding tax within the limits of the tax treaty and capped at the French tax due on this income. Other income taxable in Turkmenistan is exempt in France and taken into account for the effective tax rate. A resident of Turkmenistan who receives income from French sources must prove their tax residency by any appropriate means, such as a certificate from the Turkmen tax authorities.

Exchange of information, non-discrimination and amicable procedure

Article 16 allows for the exchange, upon request, of information necessary for the application of the convention; it does not include a clause for the exchange of information for the application of each State's domestic legislation. Articles 13 (non-discrimination) and 17 (mutual agreement procedure) exist. The mutual agreement procedure is detailed in the administrative guidelines (BOI-INT-DG-20-30).

What this page does not cover

The text of the convention, wealth, inheritance and gifts, Turkmen law, social security and public pensions and the duration of exemptions by category are not addressed.

What changes depending on your situation

• Your residence as defined in Article 1.
• The nature of the income: dividend, interest, copyright, salary, pension.
• The number of days spent in the mission state during the calendar year.
• Turkmen law, to be validated with a local professional.