Economy, Domestic Economy

Tax Treaty Signed With Czech Republic

Tax Treaty Signed  With Czech RepublicTax Treaty Signed  With Czech Republic

Iran and the Czech Republic have agreed on a tax treaty according to which businesses and traders from both countries will be exempt from double taxation mechanism, IRNA reported.

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

“The agreement allows Iranian and Czech companies to take advantage of the legal privileges specified in the treaty to avoid double taxation on their trade activities,” Tayebnia said after the signing ceremony of the deal. Removal of double taxation will allow for reduced tax rates, or total exemption for treaty signatories.

  Expanding Commercial Ties

Tayebnia said that the two countries held “constructive negotiations” on the expansion of cooperation and elimination of the existing trade barriers.

“We discussed cooperation in the fields of automobile manufacturing, railroads and other industries,” he added.

The Czech minister, for his part, said that the agreement will further strengthen economic relations between Tehran and Prague.

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

Tayebnia, left Tehran for Prague on Wednesday. During his 3-day visit, he also met with Vice-President of Czech parliament’s Chamber of Deputies, Vojtech Filip.

Tehran and Prague have a long history of ties and in 2007 they promoted their bilateral diplomatic relations from the level of charge d’affaires to the ambassadorial level. Officials from both countries have expressed their willingness to increase the trade volume and develop ties in all spheres.

  Unimpressive Trade

Economic ties with the Czech Republic have been growing ever since President Hassan Rouhani assumed office in June 2013. A huge commercial delegation from the Czech Republic, which included representatives from different sectors such as energy, oil, gas, petrochemical, and auto, recently paid a three-day visit to Tehran to scope out possible investment opportunities in Iran.

Based on the latest statistics released by Iran’s Customs Administration (ICA), trade between the two countries during the past Iranian year (ended March 20) amounted to $24 million, with the balance in favor of the Czech Republic.

Iran exported $4 million worth of goods to the Czech Republic, including dried fruits, flooring, saffron, vehicles and medical furniture.

The Czech Republic exported $20 million worth of commodities including cigarette paper, crystal, food, antibiotics and ball bearings.