Signature of Double Taxation Agreement between Ireland and Georgia
The Minister for Foreign Affairs, Mr. Micheál Martin T.D. and the Georgian Minister of Foreign Affairs, Ms. Eka Tkeshelashvili signed in Tbilisi today, 20th November 2008, an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.
Negotiations for an Agreement with Georgia took place 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. It operates by either granting exclusive taxation rights to one or other country, or where the income or gain remains taxable in both, by providing that the country of residence of the taxpayer will relieve double taxation by allowing a credit for the tax paid in the other country.
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.
Text of the Convention (PDF, 80KB)