1 / 7

Update on Double Taxation Avoidance Treaties

Update on Double Taxation Avoidance Treaties. AmCham Tax and Customs Committee February 9, 2010. Double Taxation Avoidance Treaties: Background. International Trade Leads to Situations where Tax Resident of One State is Taxed in One or More Other States

lance-kaufman
Download Presentation

Update on Double Taxation Avoidance Treaties

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Update on Double Taxation Avoidance Treaties AmCham Tax and Customs Committee February 9, 2010

  2. Double Taxation Avoidance Treaties: Background • International Trade Leads to Situations where Tax Resident of One State is Taxed in One or More Other States • Conflict between Provisions of Two or More Taxing Jurisdictions with Regard to Same Income Is Known as “Double” Taxation • To Avoid Double Taxation, Trading Nations Agree through Bilateral Treaties Not to Tax Income and Assets which Are Otherwise Subject to Taxation in Any or Both Jurisdictions

  3. Double Taxation Avoidance Treaties of Republic of Azerbaijan • 39 Treaties Signed • 39 Treaties Ratified by Azerbaijan • 33 Treaties Effective • Negotiations with More (Syria, Libya) Are Underway • By Comparison, as of Beginning 2007, Azerbaijan Had 26 Signed Treaties with Only 22 Effective • As of March 2009, Azerbaijan Had 29 Effective Treaties

  4. Treaty Mechanisms andUse in Azerbaijan • Double Taxation Can Be Avoided through Limited or Complete Exemption • Where Exemption Granted Results in Reduced or No Taxes, Exemption Is Applied through Tax Refund or Advanced Clearance Procedures • Treaties Rarely Used to Structure Investments in/out of Azerbaijan as No Complete Exemptions Are Granted thereunder and, until Recently, there Were No Treaties with “Popular” Jurisdictions • “Old” Soviet Treaties Implemented with Germany (before Replaced with New Treaty) and Japan (Still in Effect) • Situation Is Improving with New Treaties Coming into Effect

  5. Updates as of January 1, 2010 • Start of Calendar Year Is Traditionally Used for Double Taxation Treaties to Come into Effect in Relation to Particular Taxes Listed in Treaty • Treaty with Luxembourg, “Popular” and Credible Jurisdiction, Came into Effect (According to Azerbaijani Ministry of Taxes, July 2, 2009) • Treaty with Netherlands, Another “Popular” and Credible Jurisdiction, Came into Effect (According to Ministry of Taxes, December 18, 2009) • Status of Treaty with UAE Remains Unclear • Reference to Ministry of Taxes’ Webpage on Status of Treaties: http://www.taxes.gov.az/?name=beynelxalq&lang=

  6. List of Azerbaijani Double Taxation Avoidance Treaties

  7. List of Azerbaijani Double Taxation Avoidance Treaties

More Related