A round of negotiations between the official delegations of Kyrgyzstan and Japan on concluding an Agreement on the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion or Avoidance took place in Bishkek from 6 to 9 October.
According to the Ministry of Economy, the parties discussed the draft agreement provisions in detail during the negotiations. Following the meeting, the document was agreed upon in principle and will be signed after completing all necessary internal procedures provided for by the legislation of both countries.
The agreement's main goal is to eliminate the double taxation of income for economic entities of Kyrgyzstan and Japan, which will create favourable conditions for economic cooperation and attracting investment.
It is noted that such international agreements are considered an effective tool for attracting direct foreign investment and strengthening trust between the business circles of the two countries.
In addition, the document provides for:
· The protection of residents of one state from discriminatory taxation on the territory of the other.
· The prevention of tax evasion and abuse of the agreement's provisions.
· The development of mutual exchange of tax information between the competent authorities of Kyrgyzstan and Japan.
Agreements on the avoidance of double taxation ensure legal certainty for investors, minimise tax risks, and promote the development of international economic cooperation.
Reported by Kabar (Kyrgyzstan).
