The Swiss Foreign Ministry has welcomed the entry into force of a double taxation agreement between Georgia and Switzerland. The agreement, which relates to taxes on income and capital, the Ministry said, will contribute to the further positive development of bilateral economic relations.
The provisions of the agreement will apply to the taxes withheld at source on contributions credited or paid out on or after January 1, 2012, and will apply to the other taxes for tax years from 2012 onwards.
The agreement, when effective will provide a legal framework that assigns the countries' taxing rights. As in the case of many such agreements, the withholding tax payable at source may be reduced under the terms of the agreement, producing a conducive environment for trade and investment.
The agreement does not currently provide provisions for the exchange of information in accordance with the Organisation for Economic and Cooperation Development (OECD) standard, although new negotiations in this area are planned, the ministry said.
The provisions of the agreement will apply to the taxes withheld at source on contributions credited or paid out on or after January 1, 2012, and will apply to the other taxes for tax years from 2012 onwards.
The agreement, when effective will provide a legal framework that assigns the countries' taxing rights. As in the case of many such agreements, the withholding tax payable at source may be reduced under the terms of the agreement, producing a conducive environment for trade and investment.
The agreement does not currently provide provisions for the exchange of information in accordance with the Organisation for Economic and Cooperation Development (OECD) standard, although new negotiations in this area are planned, the ministry said.
