Georgia avoids double taxation with Iceland

Georgia and Iceland are stepping up their bilateral cooperation in taxation and customs affairs.

Today a cooperation agreement on avoidance of double taxation, prevention of evasion of income and capital taxes, came into force. 

The agreement initially was signed in May this year when Finance Ministers of Cyprus, Liechtenstein and Iceland visited Georgia. All three countries signed a cooperation agreement with Georgia on avoidance of double taxation, prevention of evasion of income and capital taxes in Tbilisi on May 13, 2015.

Double taxation is the levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), assets (in the case of capital taxes), or financial transaction (in the case of 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 the countries and attract more investments, noted Georgia’s Finance Ministry.

The agreement also included cooperation and mutual assistance in customs issues.

Currently Georgia has treaties with 51 countries to ensure the avoidance of double taxation.

Recently Georgia also signed the same agreement on avoiding double taxation with Belarus, while its president Alexander Lukashenko paid an official visit to Georgia in April.