New rules so Georgia avoids double taxation with Kyrgyzstan

The main goal of avoiding double taxation with Kyrgyzstan was to increase economic cooperation. Photo by Georgia's Ministry of Finance., 19 May 2016 - 15:11, Tbilisi,Georgia

Georgia and Kyrgyzstan are stepping up bilateral cooperation to avoid double taxation, boost investments and increase economic cooperation.

A delegation from Kyrgyzstan is currently in Georgia and holding meetings with Georgian authorities to discuss a cooperation agreement on avoidance of double taxation, prevention of evasion of income and capital taxes.

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

Currently Georgia has treaties with 52 countries to ensure avoidance of double taxation.

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