Georgian and Saudi officials signed an income tax treaty on
March 14 2018, which has been forwarded for ratification.
Georgia's finance ministry has said that the main goal of
the agreement is to increase economic cooperation between
Georgia and Saudi Arabia and attract more foreign
investment.
The agreement applies to existing profit tax, income tax,
and property tax. The treaty stipulates maximum withholding tax
rates as follows:
- 5% on dividends;
- 5% on income from debt claims; and
- 5% on royalties for the use (or right to
use) of industrial, commercial, or scientific equipment, and
8% in all other cases.
Once ratified by both countries, the treaty will enter into
force on the first day of the month after the one in which the
later country ratified it. It will become applicable from
January 1 of the following calendar year.
Georgia has double taxation treaties with 50 countries.
Irina Lopatina (irina.lopatina@eurofast.eu), Tbilisi
Eurofast
Tel: +995 322180310
Website: www.eurofast.eu