Japan’s Ministry of Finance announced Monday that a new tax convention with Turkmenistan will enter into force on November 27, 2025, marking a significant step in strengthening economic ties between the two nations.
The Convention between Japan and Turkmenistan for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance was formally activated following an exchange of diplomatic notes between the two governments in Ashgabat on October 28, 2025. The agreement, which was originally signed on December 16, 2024, aims to prevent individuals and businesses from being taxed twice on the same income in both countries.
Key Implementation Details
Under the new convention, most tax provisions will take effect from January 1, 2026. Specifically, taxes levied on the basis of a taxable year will apply to any taxable years beginning on or after that date, while taxes not based on a taxable year will apply to those levied on or after January 1, 2026.
However, provisions concerning the exchange of tax information and assistance in tax collection will become effective immediately upon the convention’s entry into force on November 27, 2025, regardless of when the taxes were levied or which taxable year they relate to.
Maintaining Existing Agreements
The Ministry of Finance emphasized that the new convention will not affect Japan’s existing tax treaty with other former Soviet republics. The Convention between the Government of Japan and the Government of the Union of Soviet Socialist Republics for the Avoidance of Double Taxation with respect to Taxes on Income remains applicable between Japan and countries other than Turkmenistan.
The agreement is expected to facilitate increased bilateral investment and economic cooperation by providing greater tax certainty for businesses and individuals operating across both jurisdictions.