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UAE and Georgia sign deal to avoid double taxation

ABU DHABI — The UAE has signed a double taxation avoidance agreement with the Republic of Georgia.

UAE Ministry of Finance Director General Younis Haji Al Khoori and Georgian Deputy Minister of Finance Rozdan Kimola signed the agreement.

The agreement aims at enhancing cooperation and partnership with the Republic of Georgia. By creating a suitable investment environment, the agreement helps to encourage development in both countries.

It also includes exempting airlines from all types of taxes on its operations resulting from the transfer of passengers and freights, in addition to other investments in various investment tools such as deposits and bonds. The agreement exempts taxes on income generated by technical services provided to UAE airlines.

Beneficiaries of this agreement include Emirates, Etihad Airways, Air Arabia and all airlines established in the UAE.

The agreement exempts government authorities and private sector organisations from tax imposed by Georgia on interest earnings, which reaches to 10 per cent of total earnings. It also includes exempting taxes on all incomes and other investments in all economic sectors. The deal secures achieving the economic balance with Georgia, in addition to determining the tax status of the taxpayers, helping to prevent double taxation.

This secures the diversification of national economic resources income, in addition to reducing the operational cost of the UAE federal, local and private sector investments. It also enhances air transport industry and increase the volume of bilateral trade and tourism.

The UAE signed 52 agreements of double taxation avoidance with all its commercial partners to be a leading Middle East and North Africa country in this regard.

business@khaleejtimes.com