Georgia avoids double taxation with Japan

Georgia and Japan are increasing economic cooperation by avoiding double taxation.

This means that people or businesses working abroad in either country will not have to pay taxes in both countries, and will instead pay income and capital taxes in only one.

The deal was signed today between Georgian Finance Minister and the Ambassador of Japan to Georgia.

The convention replaced the 1986 agreement between Japan and the Soviet Union, and henceforth Georgia ‘s double taxation agreement with Japan is based on a new legal framework document”, says the Ministry of Finance of Georgia.

Double taxation is the levying of tax by two or more jurisdictions on the same declared income (income taxes), assets (capital taxes), or financial transaction (sales taxes). This double liability is often mitigated by tax treaties between countries.

The main goal of signing the agreement is to increase economic cooperation between Georgia and Japan and attract more foreign investments, said Georgia’s Finance Ministry.

Currently Georgia has treaties with over 56 countries to prevent double taxation.