Parliament has ratified the agreement between Georgia and France on avoidance of double taxation of income and profit. The agreement was signed on March 4.
It differs from standard model in one of the articles. Namely, building object will be considered as permanent office, if it exists more than 6 months (instead of usual 12) and therefore will be not subject to direct taxation.
Giorgi Godabrelidze, deputy finance minister, said that should support to attract French investments in constructing sector.
Besides, document introduces differential rates of dividend taxation. Zero rate taxation will apply in case of investments exceeding 3 million EUR if dividend acceptor company holds more than 50% of dividend paying company. In case when share is at least 10% and investments exceed 100,000 EUR, tax rate is 5% of total sum of dividends, in other cases – 10%.