What Is Avoidance Of Double Taxation Agreement

Double taxation conventions The main objectives of the treaty for the avoidance of double taxation and the prevention of fiscal evasion are to promote economic cooperation between countries and to encourage foreign investment. The text of the treaties concluded by Georgia is based on the OECD Model Convention, according to which the taxation rights are divided between the contracting parties. In particular, income resident in a Contracting State of the other Contracting State may be taxed, whether it is in the State of origin of the income or in the country of residence. In order to avoid double taxation, persons resident in a Contracting State who receive income from the other Contracting State shall be recorded in the tax in the State of source.