Georgia to avoid double taxation with South Korea

Georgia and South Korea are stepping up bilateral cooperation to avoid double taxation, boost investments and increase economic cooperation.

Georgia’s Finance Minister Nodar Khaduri plans to visit South Korea and sign a cooperation agreement on avoidance of double taxation, prevention of evasion of income and capital taxes.

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

The main goal of signing the agreement was to increase economic cooperation between the countries and attract more investments, noted Georgia’s Finance Ministry.

Meanwhile, today Khaduri hosted South Korean charge d’affaires in Georgia Kim In-hwan. At the meeting the South Korean official said Georgia was an attractive country for South Korean investments.

In the near future a group representing Korean companies will visit Georgia and explore the investment opportunities, announced Georgia’s Finance Ministry.

Khaduri said he would introduce Georgia’s taxation system in detail to the potential investors.

He added Georgia enjoyed active cooperation with South Korean financial institutions Exim Bank and Korean Development Agency.

Currently Georgia has treaties with 52 countries to ensure the avoidance of double taxation.

Recently Georgia also signed the same agreement on avoiding double taxation with Iceland and Belarus.