Iran, Czech Republic sign agreement on double taxation

Iran and the Czech Republic have signed an agreement which allows the two countries’ companies to avoid paying double tax on their trade activities.

The agreement was signed on Thursday by Iran’s Minister of Economic Affairs and Finance Ali Tayyebnia and his Czech counterpart, Andrej Babiš, in the Czech capital city of Prague.

According to the Iranian minister, the agreement allows Iranian and Czech companies to take advantage of the legal privileges specified in the agreement to avoid double taxation on their trade activities in the two countries.

Double taxation makes way for two countries to levy separate taxes on the same income, asset, or financial transaction, thus adding to financial costs of the parties involved in a transaction.

Speaking to reporters after signing the agreement, Tayyebnia said, the two countries have held “positive and constructive negotiations” on the expansion of their cooperation and elimination of the existing trade barriers.

He also expressed hope about further development of trade and economic cooperation between the two countries, adding that the two sides have discussed cooperation in the field of automobile manufacturing, railroads and other industries.

Czech minister of finance, for his part, said signing of the agreement will further strengthen economic relations between Tehran and Prague.

Andrej Babiš, minister of finance and deputy prime minister of the Czech Republic

He added that the Iranian market is of special importance to the Czech Republic because it is a gateway to other regional markets as well as Iran’s neighboring countries.

Heading a delegation, Tayyebnia is currently in the Czech capital city of prague to discuss further expansion of bilateral relations between the two sides.

After his arrival on Thursday, the Iranian minister noted that there are good grounds for further expansion of economic collaboration between Tehran and Prague, adding, “During recent years, the volume of bilateral trade has taken a nosedive and our goal is to develop cooperation between the two countries.”

In addition to his counterpart, Tayyebnia is also expected to meet and confer with Vice Speaker of the Czech Parliament Vojtech Filip.

By Press TV