New income tax treaty between Georgia and Moldova

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

New income tax treaty between Georgia and Moldova

intl-updates

A tax treaty between Georgia and Moldova is the first of its kind concluded between the two countries, and will enter into force after the ratification instruments are exchanged.

The treaty was signed following the Georgia-Moldova Business Forum held in Tbilisi, in April 2017, where participants explored business opportunities between the two countries in the agriculture, consulting, textile, information technology, tourism and development sectors, among others.

The parties signed a convention on the avoidance of double taxation and prevention of tax evasion in regards to income tax, in order to support the development of cooperation between the business communities of the two countries.

The treaty covers Georgian profit tax and income tax, as well as Moldovan income tax. In terms of withholding tax rates, the maximum rate of 5% was established on dividends, interest and royalties. Anti-treaty shopping provisions have been implemented in those articles as well.

A permanent establishment is deemed to include a building site or construction/installation project with a duration of more than six months within a 12-month period. The same applies to the provision of services (including consultancy) lasting more than three months in a 12-month period.

Both countries will apply the credit method and the exemption-with-progression method for the elimination of double taxation.

lopatina.jpg

Irina Lopatina (irina.lopatina@eurofast.eu), Tbilisi

Eurofast Global

Tel: +995 322180310

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Australian law firm Webb Henderson’s report said PwC had met 46 of 47 targets; in other news, the OECD has issued new transfer pricing country profiles
The arrival of a seven-strong team from Baker McKenzie will boost WTS Germany’s transfer pricing capabilities and help it become ‘a European champion’, the firm’s CEO said
Germany has forgotten to think about digital reporting requirements, a WTS partner claimed at ITR’s Indirect Tax Forum 2025
E-invoicing is currently characterised by dynamism, with fragmentation acting as a key catalyst for increasing interoperability, says Aida Cavalera of the International Observatory on eInvoicing
Pillar two and the US tax system ‘could work in harmony’, Scott Levine tells ITR in an exclusive interview to mark his arrival at Baker McKenzie
Peter White, who has a tax debt of A$2 million, has been banned for five years from seeking registration with Australia’s Tax Practitioners Board (TPB)
Wopke Hoekstra’s comments followed US measures aimed against ‘unfair foreign taxes’; in other news, Grant Thornton and Holland & Knight made key tax partner hires
An Administrative Review Tribunal ruling last month in Australia v Alcoa represents a 'concerning trend' for the tax authority, one expert tells ITR
A recent decision underlines that Indian courts are more willing to look beyond just legal compliance and examine whether foreign investment structures have real business substance
Following his Liberal Party’s election victory, one source expects Mark Carney to follow the international consensus on pillar two, as experts assess the new administration
Gift this article