Iran and the Czech Republic have signed an agreement which allows the two countries' companies to avoid paying double tax on their trade activities.
The agreement was signed on Apr.30 by Iran's Minister of Economic Affairs and Finance Ali Tayyebnia and his Czech counterpart, Andrej Babiš, in the Czech capital city of Prague, Press TV reported.
According to the Iranian minister, the agreement allows Iranian and Czech companies to take advantage of the legal privileges specified in the agreement to avoid double taxation on their trade activities in the two countries.
Double taxation makes way for two countries to levy separate taxes on the same income, asset, or financial transaction, thus adding to financial costs of the parties involved in a transaction.
Speaking to reporters after signing the agreement, Tayyebnia said, the two countries have held "positive and constructive negotiations" on the expansion of their cooperation and elimination of the existing trade barriers.
He also expressed hope about further development of trade and economic cooperation between the two countries, adding that the two sides have discussed cooperation in the field of automobile manufacturing, railroads and other industries.
Czech minister of finance, for his part, said signing of the agreement will further strengthen economic relations between Tehran and Prague.