Individuals, businesses in Poland, Georgia to only pay single tax under deal

A deal between Georgia and Poland coming into force today will allow individuals and businesses operating in either country to only pay a single tax while also combating tax avoidance, the Georgian Ministry of Finance said on Monday.

Tax subjects will pay income and capital taxes in only one of the two countries under the Treaty of the Avoidance of Double Taxation, with the Ministry explaining the agreement was aiming to “promote economic cooperation between the countries and encourage foreign investments”.

Finance Minister Lasha Khutsishvili and Polish Ambassador Mariusz Maszkiewicz signed the updated agreement in 2021, replacing an earlier deal signed between the countries in 2006.

The Ministry said withholding tax rates on dividends, interest and royalties had been reduced from 10 to five percent in the deal.

Georgia has double taxation agreements with 57 countries.