CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Georgia Signs Free Trade Zone MoU With China

Georgia Signs Free Trade Zone MoU With China

by Mary Swire, Tax-News.com, Hong Kong

05 December 2017


China and Georgia have signed an agreement on the creation of free trade zones in Georgia that would facilitate Georgia's role in China's Belt and Road initiative.

The Memorandum of Understanding was signed by Chinese Vice Minister of Commerce Qian Keming and Georgia's First Vice Prime Minister and Minister of Economy and Sustainable Development, Dimitry Kumsishvili, at the "Tbilisi Belt and Road Forum" on November 28.

The Belt and Road initiative is a Chinese-led strategy to bind the economies and cultures of more than 60 countries by land and sea. The aim is that by 2050 the Belt and Road region will account for 80 percent of global GDP growth, and three billion more people will be advanced into the middle class.

According to news reports, the two ministers also confirmed that the China-Georgia Free Trade Agreement (FTA) ratified in May 2017 would come into effect from January 1, 2018. Under the terms of the deal Georgia will eliminate tariffs on 96.5 percent of tariff lines, and within five years China will remove tariffs on 93.9 percent of tariff lines on products from Georgia.

China has signed a number of agreements to support other countries to develop their own tax-privileged economic zones as part of its push to further its trade relations along the Belt and Road. At the end of November China signed a similar deal with Panama on the creation of such zones there.

Free trade zones offer a number of tax advantages that make them attractive to businesses. Typically these can include exemption from corporate income taxes, sales taxes or value-added taxes, lower rates of tax on outbound dividend payments, no customs duty on goods temporary stored within the zone, and reductions to import and export duties. They can also include waivers to restrictions that are otherwise in place on foreign investment.

TAGS: tax | tariffs | China | agreements | Georgia | Hong Kong | trade | free trade zone | Economy

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »