Copying and distributing are prohibited without permission of the publisher

Georgia: Kyrgyzstan ratifies double tax treaty with Georgia

23 August 2017

Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.


Irina Lopatina

On June 22 2017, the parliament of Kyrgyzstan approved the bill ratifying the tax treaty signed with Georgia on October 13 2016. Currently, the ratification from the Georgian side is still pending, and in order to become law and to be ratified, the bill still needs to be signed by the presidents.

The 2016-signed treaty covers taxes on income and profit taxes. In the case of Georgia, these would be the profit tax and income tax, while in Kyrgyzstan the income tax on individuals and tax on income and profits of legal persons. The agreement will also be applicable to similar taxes that may be imposed at a later stage, on the condition that the signatory parties notify each other about the tax changes introduced.

Permanent establishments (PEs) are deemed to arise when a building, construction site or an installation project or related supervisory activity lasts for more than six months. Additionally, a PE also includes a place of management, a branch, an office, a factory, a workshop or a mine or oil/gas well.

In terms of withholding tax rates, dividends are to be taxed at 5% of the gross amount of the dividends if the beneficial owner holds at least 25% of the capital of the company paying the dividends and 10% of the gross amount of the dividends in all other cases. The withholding tax rate for interest has been set at 5%, while for royalties at 10%.

Once the double tax agreement enters into force its provisions shall have effect in respect of taxes withheld at source on or after the first day of January of the year following the one during which the agreement enters into force.

Irina Lopatina (irina.lopatina@eurofast.eu), Tbilisi
Eurofast Global
Tel: +995 322180310
Website: www.eurofast.eu






International Tax Review Profile

Good news for tax professionals as US Treasury proposes to repeal 298 outdated tax regulations. https://t.co/U2ipmjA8gi

Feb 13 2018 03:40 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @MPAgnew: Roses are red And subject to VAT Unlike other things Such as garments not suitable for older persons made from Tibetan goat fu…

Feb 8 2018 03:48 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @jmfeiner: If violets are red and roses blue, no worries, it's in s 14AZ(3),(bb)(ii) #TaxValentines #Simplification

Feb 8 2018 02:14 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @LBellavite: Roses are red Unfortunately it is true In beautiful Italy A web tax is due #TaxValentines

Feb 8 2018 02:14 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @WinklerPartners: Lunar New Year public holiday dates: Taiwan: 15-20 February China: 15-20 February Vietnam (Tet): 15-20 February Hong…

Feb 8 2018 12:31 ·  reply ·  retweet ·  favourite
International Correspondents