The Ministry of Finance has submitted a draft agreement between Estonia and Kyrgyzstan to the ministries of foreign affairs and justice on the avoidance of double taxation, and the prevention of tax evasion.
According to spokesperson for the Ministry of Finance Maria Murakas, the draft agreement will then be forwarded to the government, after which the two countries will look for an opportunity to sign it.
The agreement limits income tax that the source country of income can levy on the income of residents of the other country, ensures equal treatment of individuals and businesses, and averts double taxation that may occur as a result of the combined effect of the two countries’ different laws.
Estonia has similar agreements based on the Organization for Economic Cooperation and Development (OECD) model with 56 countries.
Editor: Editor: Dario Cavegn