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.
© 2019 Euromoney Institutional Investor PLC. For help please see our FAQ.