№/ 27.12.1997
The Government of the
Azerbaijan Republic and the Government of Georgia, hereinafter referred to as the Parties,
With the objectives of further enlargement of trade-economic relations,
establishment of equal opportunities for economic entities and provision of fair
competition and based on the norms and procedures of the international trade, agreed as
follows: Article 1. General
For the objectives of this
Agreement: a) direct taxes will mean value added tax and excises (excise and
duties); b) zero rate will mean imposition of value added tax with 0 rate, this
will be equal to complete exemption from value added tax; c) the principle of place of assignment will mean imposition of 0 rate
upon export of goods (work, services) from the customs territory of the Party and taxation
of the goods (work, services) imported according to the rates established by the internal
legislation; d) competent authorities will mean the Ministry of Finance
of the Azerbaijan Republic and Chief Tax Inspectorate of the
Azerbaijan Republic from the Azerbaijan side and the Ministry
of Finance of the Republic of Georgia from the Georgian side.
Article 2. Principles of taxation upon export
The Parties will not impose
a tax on the goods (work, services) exported from the territory of one Party to the
territory of another Party. Article 3. Principles of taxation upon import
1. Goods (work, services)
exported from the territory of one of the Parties to the territory of another Party might
be subject to direct taxes in the importer State in accordance with its internal
legislation. Taxation will be carried out by the customs bodies upon the entry of goods to
the customs territory of this Party. 2. Value added tax on imported goods (work, services) will be withheld
from the customs value of the goods imported. 3. Upon taxation of goods (work, services) exported from the territory
of one of the Parties and imported to the territory of other Party the Parties will apply
tax rates and estimation procedures established for analogous goods (work, services)
produced (sold) within the internal markets. Article 4. Settlement of disputes
All disputes and
disagreements arising between the Parties in view of application and interpretation of
provisions of this Agreement will be settled through consultation and negotiations of the
Parties. Article 5. Exchange of information
The Parties, in relation to
the taxes falling under the sphere of effect of this Agreement, will exchange with
information on changes and additions introduced to their internal legislation. Article 6. Final provisions
1. This Agreement will come
into effect from the date of final written notification confirming fulfillment of
corresponding interstate procedures of the Parties necessary for its coming into force. 2. This Agreement will only be applied against goods (work, services)
delivered after its coming into force. 3. This Agreement will be terminated after completion of six months
period upon receipt of written notification by of one of the Parties on the intention of
the other Party on termination of the present Agreement. Executed in the city of Tbilisi on December 27, 1997 in two copies each
in Azerbaijani, Georgian and Russian, all copies having equal force. Russian text will be used for interpretation of the provisions of this
Agreement. On
behalf of the Government On
behalf of the Government The Agreement was approved by the Law #447-IG of the Azerbaijan
Republic dated February 20, 1998 (AzerSoft).
On approval of the Agreement On the principles of withholding of
direct taxes upon import and export of goods (work, services) between
the Government of the Azerbaijan Republic and the Government of
Georgia
of the Azerbaijan Republic
of Georgia
© AzerSoft
Non-official translation