Georgia avoids double taxation with Saudi Arabia

Georgia and Saudi Arabia are increasing economic cooperation by avoiding double taxation.

This means that people or businesses working abroad in either country will not have to pay taxes in both countries, and will instead pay income and capital taxes in only one.

The deal was signed in Saudi Arabia, where Georgia’s Finance Minister Mamuka Bakhtadze is currently on official visit.

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 is to increase economic cooperation between Georgia and Saudi Arabia and attract more foreign investments, said Georgia’s Finance Ministry.

Currently Georgia has treaties with over 50 countries to prevent double taxation.

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