Georgia and Hungary signed the agreement on double taxation avoidance.

22.02.2012

On February, 15-17, 2012, during the visit of Georgian delegation to Hungary the agreement on double taxation avoidance was signed. Official representatives of the states were Dmitry Gvindadze, the head of the Ministry of Finance of Georgia, and Dierd Matolchi, the minister of national economy of Hungary.

The agreement concerns problems of income and capital taxation, eliminating a duty of the companies and individuals to pay tax sums in the territories of both jurisdictions.

It is necessary to notice that Hungary is one of the largest trading and business partners of Georgia. During the last years (2008-2011) the commercial turn between the countries was 125 188 600 USD.

According to the head of the Ministry of Finance of Georgia, «… this agreement in order to avoid double taxation will allow increasing essentially the inflow of the Hungarian investments to the Georgian economy and also promotes trade simplification between two countries …»

Expert’s opinion

«The signing of the agreement on double taxation avoidance between Georgia and Hungary is caused at once by several factors. First, Georgia aspires to enter the NATO and needs the support of member countries of this block. Hungary, being a member of the NATO, just gives to Georgia the support of integration into the North Atlantic block.

One more reason of signing of tax agreement is the necessity of assistance to deep economic cooperation between jurisdictions. Recognizing that recently commercial relations of Georgia and Hungary become more and more close, the signing of the named international document will accelerate the process of cooperation strengthening.

The important factor indirectly influencing the signing of the new tax agreement is the Hungarian interest in the project of transit of the Azerbaijan gas in the countries of Europe. As you know Hungary is already the participant of such project. For this reason the Hungarian business needs the strengthening of economic relations with Georgia».

On the basis: http://rus-press.ge

Andrianova Irina ( the leading lawyer of legal support and banking consulting department of Honest&Bright)