Kyrgyzstan, Azerbaijan ratify tax agreement to eliminate double taxation

President of Kyrgyzstan Sadyr Japarov has signed the law on the ratification of the "Agreement between the Kyrgyz Republic and the Republic of Azerbaijan on the Elimination of Double Taxation on Income, Prevention of Tax Evasion, and Avoidance of Taxation". 

The agreement was signed in Baku on April 24, 2024 and was ratified by the Kyrgyz parliament on October 23, 2024, Caliber.Az reports, citing the document published on the official website of the president of Kyrgyzstan.

The key objectives of the agreement include: protecting the residents of one state from discriminatory taxation in other contracting state; preventing tax evasion and abuse of the agreement provisions; and facilitating the mutual exchange of information between the competent agencies of both countries to ensure compliance with the terms of the agreement.

In general, the agreement establishes a unified approach to tax legislation between Azerbaijan and Kyrgyzstan. It creates favourable conditions for foreign investments in various sectors of Kyrgyzstan's economy by eliminating double taxation and ensuring that taxation occurs only in one country. 

Earlier, ministers from Central Asian countries signed a landmark declaration at the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29), titled Partnership in Climate Change, Glaciers, and Transboundary Cooperation. The environment ministers of Azerbaijan, Kyrgyzstan, Kazakhstan, and Uzbekistan, along with representatives from the Asian Development Bank (ADB) and the Green Climate Fund (GCF), attended the signing ceremony, which took place at the COP29 conference.

The key focus of the meeting was the launch of the From Glaciers to Farms (G2F) programme, which will be financed by the GCF and the ADB. The initiative is designed to bolster climate resilience, mitigate the effects of glacier melt, and safeguard water and food security across Central Asia.

By Naila Huseynova