By Amina Nazarli
Azerbaijan and Denmark inked the convention on avoidance of double taxation and prevention of tax evasion on income taxes.
The document was undersigned by Azerbaijani Minister of Taxes Fazil Mammadov and his Danish counterpart Karsten Lauritzen on February 17.
Mammadov said that the document will contribute to the development of trade relations between the two countries. Lauritzen also agreed that the document would open opportunities for entrepreneurs of the two countries.
Trade turnover with Denmark amounted to $22.3 million in 2016, according to the Azerbaijani State Customs Committee. Almost the entire amount fell on import from that country.
Azerbaijan has so far signed similar agreements with 52 countries, including 23 with the European Union member-states. As many as 48 agreements on avoidance of double taxation already have entered into force.
Currently, Azerbaijan agrees the draft agreements on avoidance of double taxation with countries such as Morocco, Ireland, Israel, Singapore and Slovakia. The country is working on arrangement of agreements with Turkmenistan, Portugal, Oman, Albania, Kyrgyzstan, India, Syria, Republic of Bangladesh and Malaysia.
Agreement for the avoidance of double taxation allows to remove the obstacles in trade exchange and thus helping increase trade and investment.
The presence of international tax agreements is able to prevent bias against the taxpayers, and help states to carry out the exchange of information and direct meetings on controversial issues.