Double Taxation Avoidance Treaty  

The main purposes of the Treaty on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion are to promote economic cooperation between countries and encourage foreign investments. The text of the treaties concluded by Georgia is based on OECD Model Tax Convention, according to which taxing rights are distributed between treaty partners. Particularly, resident of one Contracting State deriving income from the other Contracting State may be taxed whether in the source state of income or in the country of residence. For the avoidance of double taxation, resident of one Contracting State deriving income from the other Contracting State will be credited against tax in the source state. DTA treaty also regulates issues regarding the prevention of fiscal evasion y means of implementing internationally recognized standards of exchange of information for tax purposes.

 


“Double Taxation Avoidance” Treaties concluded by Georgia

Currently 56 Treaties on the” Avoidance of Double Taxation and the Prevention of Fiscal Evasion” are in force. 

See attached treaties:
  

 

Currently Georgia has 56 active agreements.

Austria *

(in force 01.03.06)

(protocol in force 01.03.13)

 

Ireland

(DTA, MLI Synthesised text)

 

The Netherlands

(in force 21.02.03)

 

Belgium

(in force 04.05.04)

 

Italy

(in force 19.02.04)

 

Poland

(in force 31.08.06)

 

Bulgaria

(in force 01.07.99)

 

Latvia *

(in force 04.04.05)

(protocol in force 27.11.12)

 

Rumania

(in force 15.05.99)

 

United Kingdom 

(DTA, Protocol, MLI Synthesised text)

 

Lithuania

(in force 20.07.04)

 

Greece

(in force 20.10.02)

 

Germany *

(in force 21.12.07)

(protocol in force 01.01.15)

 

Luxembourg

(DTA, MLI Synthesised text)

 

France

(in force 01.06.10)

 

Denmark

(in force 23.12.08)

 

Malta

(in force 19.12.09)

 

Finland

(DTA, MLI Synthesised text)

 

Estonia *

(in force 27.12.07)

(protocol in force 11.03.11)

 

Czech Republic

(in force 04.05.07)

 

Spain

(in force 01.07.11)

 

Azerbaijan

(in force 06.06.98)

 

Singapore

(in force 28.06.10)

 

Ukraine

(in force 01.04.99)

 

Turkey

(in force 15.02.10)

 

Armenia

(in force 03.07.00)

 

China

(in force 10.11.05)

 

Turkmenistan

(in force 26.01.00)

 

Uzbekistan

(in force 20.10.97)

 

Kazakhstan

(in force 05.07.00)

 

Iran

(in force 14.02.01)

 

Qatar

(in force 11.03.11)

 

The United Arab Emirates

(in force 28.04.11)

 
Sweden

Sweden

(in force 26.07.14)

 

Switzerland Confederation

(in force 07.07.11)

 

The State of Israel

(in force 22.11.11)

 

India

(DTA, MLI Synthesised text)

 

Hungary

(in force 13.05.12)

 

Slovakia

(in force 29.07.12)

 

Bahrain

(in force 01.08.12)

 

Norway

(in force 23.07.12)

 

Egypt

(in force 20.12.12)

 
 

Serbia

(DTA, MLI Synthesised text)

 

San Marino

(in force 12.04.13)

 

Slovenia

(DTA, MLI Synthesised text)

 

Kuwait

(in force 14.04.13)

 

Croatia

(in force 06.12.13)

 
 

Portugal

(in force 18.04.15)

 

Japan

(in force 03.04.92)

 

Belarus

(in force 24.11.15)

 

Iceland

(DTA, MLI Synthesised text)

 

Cyprus

(in force 04.01.16)

 

Korea

(in force 17.11.16)

 

Liechtenstein

(in force 21.12.2016)

 

Moldova

(in force 17.04.2018)

 

Kingdom of Saudi Arabia

(in force 01.04.2019)

* Changes

Sweden

 

Terms of Agreement

State Permanent establishment, months Dividends Interest(1) Royalties
Austria(2) 6 months 0% / 5% /10% 0% 0%
Azerbaijan 6 months 10% 10% 10%
United Arab Emirates 6 months 0% 0% 0%
Belgium 9 months 5% / 15% 10 % 5% / 10% (3)
Bulgaria 9 months 10% 10% 10%
United Kingdom 12 months 0% / 15% (7) 0% 0%
Germany 6 months 0% / 5% /10% (6) 0% 0%
Denmark 6 months 0% / 5% / 10% (2) 0% 0%
Spain 6 months 0% / 10% 0% 0%
Estonia 9 months 0% 0% 0%
Turkey 12 months 10% 10% 10%
Turkmenistan 6 months 10% 10% 10%
India 90 days 10% 10% 10%
Israel 9 months 5% 15% 0%
Iran 12 months 5% / 10% 10% 5%
Italy 6 months 5% / 10% 0% 0%
Ireland 6 months 0% / 5% /10% 0% 0%
Japan 12 months 15% 0%/10% 0%/10%
Qatar 6 months 0% 0% 0%
Lithuania 9 months 5% / 15% 10% 10%
Latvia 6 months 5% 5% 10%
Luxemburg 6 months 0% / 5% /10% 0% 0%
Malta 6 months 0% 0% 0%
Netherlands 6 months 0% / 5% / 15% (2) 0% 0%
Poland 6 months 10% 10% 10%
Portugal 9 months 5%/10% 10% 5%
Rumania 9 months 8% 10% 5%
Greece 9 months 8% 8% 5%
Singapore 6 months 0% 0% 0%
Slovenia 6 months 5% 5% 5%
Armenia 6 months 5% / 10% 10% 5%
France 6 months 0% / 5% / 10% 0% (5) 0%
Uzbekistan 6 months 5% / 15% 10% 10%
Ukraine 12 months 5% / 10% 10% 10%
Hungary 12 months 0% / 5% 0% 0%
Finland 6 months 0% / 5% / 10% (2) 0% 0%
Kazakhstan 6 months 15% 10% 10%
Switzerland 6 months 10% 0% 0%
China 6 months 0% / 5% / 10% (2) 10% 5%
Czech Republic 6 months 5% / 10% 8% 0% / 5% / 10% (4)
Slovakia 6 months 0% 5% 5%
Bahrain 6 months 0% 0% 0%
Norway 6 months 5/10% 0% 0%
Egypt 6/183 days 10% 10% 10%
Serbia 9 months 5%/10% 10% 10%
San Marino 6 months 0% 0% 0%
Kuwait 6 months 0%/5% 0% 10%
Croatia 9 months 5% 5% 5%
Belarus12 month5% / 10%5%5%
Iceland6 months5% / 10%5%5%
Cyprus 9 months 0% 0% 0%
Korea9 months5% / 10%10%10%
Liechtenstein9 months0%0%0%
Moldova12 months5%5%5%
Kingdom of Saudi Arabia6 months5% / 0%5% / 0%5% / 8%
 


Multilateral Tax Convention (MLI)

On June 7, 2017 within the OECD ministerial, Georgia signed a “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (MLI).

The primary purpose of the Multilateral Convention is implement BEPS treaty –related measures, in particular minimum standards under BEPS Action 6 and 14 in treaties for the avoidance of double taxation.

Multilateral instrument will cover and amend respectively 34 out of 56 agreements on the avoidance of double taxation concluded by Georgia.

The Multilateral instrument was ratified by the Parliament of Georgia on December 27, 2018 and the instrument of ratification has been deposited within the OECD secretariat.

See attached text of the Convention:

 

 




Application of Double Tax Treaties

Granting of benefits under tax treaties concluded by Georgia is regulated by the Decree of the Minister of Finance N 633 as of December 28, 2011.

See attached Order:

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