Georgia establishes tax free relations with Moldova

Georgia and Moldova 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 today in Georgia’s capital Tbilisi within the Tbilisi Silk Road Forum.

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 Moldova and attract more foreign investments, said Georgia’s Finance Ministry.

Currently Georgia has treaties with 55 countries to prevent double taxation.

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