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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 23

Elimination of Double Taxation

(1) In Georgia:

  • (a) Where a resident of Georgia derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in San Marino, Georgia shall allow:
    • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in San Marino;
    • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in San Marino.
  • Such deduction in either case shall not, however, exceed the sums of the tax which would have been accrued according to the rules and rates on this income and capital effective in Georgia.
  • (b) Where in accordance with any provision of the Agreement income derived or capital owned by a resident of Georgia is exempt from tax in Georgia, Georgia may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

(2) In San Marino:

  • (a) Where a resident of San Marino derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Georgia, San Marino shall allow:
    • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Georgia;
    • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Georgia.
  • Such deduction in either case shall not, however, exceed that part of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in Georgia.
  • (b) Where in accordance with any provision of the Agreement income derived or capital owned by a resident of San Marino is exempt from tax in San Marino, San Marino may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.