Kyrgyzstan, Czech republic agree on double taxation avoidance
By Abdul Kerimkhanov
Kyrgyz-Czech relations develop on the basis of trust and equality. The potential for increasing cooperation, including in the economy, is very large, but the trade turnover between the two countries amounts to only a few million dollars.
During the 6th Czech-Kyrgyz business forum in the framework of the visit of the Minister of Industry and Trade of the Czech Republic Martha Novakova to Uzbekistan and Kyrgyzstan, it became known that the sides signed an agreement on the avoidance of double taxation.
Within the framework of the business forum, Czech Minister of Trade Marta Novakova and Minister of Economy of Kyrgyzstan Oleg Pankratov signed an agreement on cooperation between the Ministry of Industry and Trade of Czech Republic and the Ministry of Economy of Kyrgyzstan.
The parties also signed an agreement on avoidance of double taxation and prevention of tax evasion with respect to taxes on income between the Czech and Kyrgyz governments.
“I would like Czech Republic to become a trade and economic hub for Kyrgyzstan and a point of entry into the EU market. Also, so that Kyrgyzstan becomes hub and entry point to the market of Central Asian countries,” said Novakova.
She considers, today one cannot be satisfied with the mutual cooperation of the two countries.
“At this time, we import primarily raw materials from Kyrgyzstan. Czech Republic joined the EU in 2004. The EU membership entailed many changes, primarily in the legislation. Kyrgyzstan today is a member of the EAEU. I am sure that you are going through this kind of process,” Novakova stressed.
The minister noted that Czech Republic highly appreciates the membership of Kyrgyzstan in the World Trade Organization.
She added that Czech Republic carefully observes the negotiation process that Kyrgyzstan holds with the EU regarding a partnership.
Novakova expressed hope that Kyrgyzstan and the EU will sign an agreement within a year.
The minister noted that more than 30 Czech companies, which represent energy, environmental issues, environmental protection, health care, as well as consumer goods companies, arrived in Kyrgyzstan, adding that they expect to find partners and conditions for the development of their business here.
Diplomatic relations between Kyrgyzstan and Czech Republic were established on January 1, 1993.
The volume of trade turnover between the two countries was $ 16 million in 2017.
The Czech Export Bank (ČEB), which is a specialized banking institution established for the state support of Czech exports, has made a separate loan portfolio for work with Kyrgyzstan (about $ 150 million as of 2018).
To date, ČEB has financed over 12 projects in Kyrgyzstan at reduced annual rates.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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