BAKU, Azerbaijan, July 30
By Klavdiya Romakayeva - Trend:
The updated text of the convention on the avoidance of double taxation with respect to income and the prevention of tax evasion with respect to taxation signed between Georgia with Japan came into force, Trend reports citing Georgian media.
The signing of the convention "on the avoidance of double taxation with respect to income and the prevention of tax evasion" is reported to be a major development in Georgia-Japan relations, as the new text replaced the 1986 tax treaty previously in force between the former Soviet Union and Japan.
It is noted that the new convention is based on the international standards set by the Organization for Economic Cooperation and Development (OECD) in the 2017 Model Tax Convention on Income and Capital, and is aimed at promoting economic cooperation and attracting investment between the two countries.
At present, agreements on the avoidance of double taxation are in force with 57 countries.
In January 2021 it was reported that there were26 companies operating in Georgia with the participation of Japanese capital. According to 3Q2020 data, investments carried out by Japan in the Georgian economy amounted to $15.4 million and the main investment sector was energy. In the spring of 2020 one of the largest Japanese energy companies, TEPCO Renewable Power (TEPCO RP) invested in the Georgian energy system and acquired 31.4 percent of the shares of one of the largest projects.
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