Georgia establishes tax free relations with Liechtenstein
Georgia and Liechtenstein are increasing economic cooperation by avoiding double taxation, meaning that people or businesses working between the two countries will be free from income and capital taxes.
The deal was signed in May 2015 in Georgia’s capital Tbilisi but entered into force today.
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 Liechtenstein and attract more foreign investments, said Georgia’s Finance Ministry.
Currently Georgia has treaties with 54 countries to prevent double taxation.
Recently Georgia signed the same agreement with Kyrgyzstan, South Korea and Iceland.