Ireland And Georgia Sign Double Taxation Treaty

by Robert Lee, Tax-News.com, London

21 November 2008

The Irish Minister for Foreign Affairs, Micheál Martin and the Georgian Minister of Foreign Affairs, Eka Tkeshelashvili signed a double taxation avoidance and prevention of fiscal evasion agreement in Tbilisi on Sunday November 20.

Negotiations for the agreement originally took place between Ireland and Georgia in Tbilisi in May 2007.

The agreement is comprehensive in scope and generally follows the OECD Model Convention.

The agreement covers taxes on the income of individuals and companies.

The nil rate of withholding tax on interest and royalty payments and the reduced rates of withholding tax on dividends will be important in facilitating business and investment flows between both countries. The non-discrimination article, which protects nationals of each country from discriminatory tax provisions in the other, and the exchange of information article, which is necessary to counter tax evasion, are also important aspects of the convention.

The agreement will enter into effect when both countries have completed their ratification procedures.

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