BISHKEK (TCA) — On June 13, the first Double Taxation Agreement was signed between the Kyrgyz Republic and the United Kingdom of Great Britain and Northern Ireland by British Ambassador Robin Ord-Smith and Kyrgyz Minister of Economy Arzybek Kojoshev, the British Embassy in Bishkek said.
This Double Taxation Agreement represents an important step in the developing relationship between the two countries.
The signed agreement is a result of three years of detailed negotiations. The agreement creates a level-playing field, allowing British and Kyrgyz companies to avoid double taxation in sectors such as banking and finance, extractives, international cargo, entertainment, film industry and sport.
The treaty follows the OECD (Organisation for Economic Co-operation and Development) Model Convention in many respects. In particular it sets limits on the amounts of tax that can be charged when dividends, interest and royalties are transferred from one country to the other. Businesses of both countries will welcome that.
British Ambassador Robin Ord-Smith also added: “This double taxation treaty represents an important step in the developing relationship between the Kyrgyz Republic and the United Kingdom in this the 25th anniversary of bilateral diplomatic relations. I am confident that this treaty will help to further encourage bilateral trade and investment. I very much hope it will lead to many more British companies looking at business opportunities in the Kyrgyz Republic.”