YEREVAN, OCTOBER 25, ARMENPRESS. Armenia and Serbia rule out the double taxation on revenues and property through the ratification of the respective convention.

The Parliament of Armenia discusses the issue of “Ratifying the convention on excluding the double taxation on revenues and property signed between the Governments of Armenia and Serbia on March 10, 2014 in Yerevan”, reports "Armenpress".

Deputy Minister of Finance Armen Hayrapetyan said the agreement ensures prevention mechanisms for tax evasion, as well as guarantees exclusion of non-discrimination towards the people of contracting states.

“In particular, the agreement defines establishment of cooperation between the tax authorities of the contracting states. The cooperation provides an opportunity to regulate problematic issues over the use of double taxation and tax laws, as well as information exchange to prevent tax evasion”, Hayrapetyan said.

He said the signing of convention on excluding the double taxation will contribute to increasing the turnover of goods and services, and the movement of capital, technologies and people will boost the economic ties between the two states.

The Convention restricts Armenia’s right to tax the revenues of the Serbian residents who have carried out business in Armenia. Armenia can tax such revenues only in case when the business is being carried out though a permanent stay in Armenia.

The 6th article of the convention defines the procedure of taxation of the revenue from the real estate in Armenia, according to which the Serbian resident’s revenue received from the real estate in Armenia can be charged in Armenia.