Georgia-Kyrgyzstan sign agreement on double taxation

Georgia and Kyrgyzstan are increasing economic cooperation by signing an agreement on avoidance of double taxation.

The deal was signed today in Georgia’s capital Tbilisi and will prevent people or businesses working between the two countries from evading income and capital taxes.

Double taxation is the levying of tax by two or more jurisdictions on the same declared income (income taxes), assets (capital taxes), or financial transaction (sales taxes). This double liability is often mitigated by tax treaties between countries.

The main goal of signing the agreement was to increase economic cooperation between Georgia and Kyrgyzstan and attract more foreign investments, said Georgia’s Finance Ministry.

Currently Georgia has treaties with 52 countries to prevent double taxation.

Recently Georgia signed the same agreement with South Korea, Iceland and Belarus.

A delegation from Kyrgyzstan is currently in Georgia and holding meetings with Georgian authorities.

The morning began with a special ceremony to welcome Kyrgyzstan’s president and his wife to Georgia. This was followed by an official meeting with Georgia’s President Giorgi Margvelashvili at the Presidential Palace in Avlabari district.

Several agreements were signed at today concerning promotion of further cooperation in security, economy and education. Margvelashvili said the agreements would create new cooperation opportunities between Georgia and Kyrgyzstan.

This was Atambayev’s first visit to Georgia and Margvelashvili hoped the trip would further strengthen relations between the two countries.