Заблуждение США о Грузии

US-Georgia Double Taxation Treaty: Myth or Reality?

Mistake of the U.S. Internal Revenue Service

The United States of America established diplomatic relations with Georgia 30 years ago. However, a very simple issue remains open: whether these two countries have a bilateral Double Taxation Treaty. The U.S. Government strongly believes that such a treaty exists: its text is published on the official website of the United States Internal Revenue Service.

Source: https://www.irs.gov/pub/irs-trty/ussr.pdf

The United States regards the Convention between the United States of America and the former USSR on Matters of Taxation, with related letters, signed at Washington on June 20, 1973 as a US-Georgia Double Taxation Treaty. In other words, it is believed that Georgia as a former Soviet Union Republic is a successor to this international treaty.

In the meantime, official Tbilisi does not consider itself as a signatory to this particular international treaty:

Source: https://www.mof.ge/5127

According to the Article 16 of the Vienna Convention on Succession of States in respect of Treaties (1978), "A newly independent State is not bound to maintain in force, or to become a party to, any treaty by reason only of the fact that at the date of the succession of States the treaty was in force in respect of the territory to which the succession of States relates."

Georgia believes that since it was annexed by Soviet Russia in the year of 1921, none of the international treaties of Russia are in force for the new-born Georgian Republic.

Moreover, Georgia does not even maintain diplomatic relations with Russia after the outbreak of the Russo-Georgian War in the year of 2008.

Strangely, the United States IRC still believes that Georgia is one of the former Soviet Republics which are now covered by the treaty with the Commonwealth of Independent States (CIS), formerly known as the Union of Soviet Socialist Republics (USSR).

Source: https://www.irs.gov/.../inte.../georgia-tax-treaty-documents

Needless to say that Georgia now is NOT covered by the Treaty with the Commonwealth of Independent States (CIS) simply because Georgia terminated its CIS membership in August, 2008.

I have ground to believe that the Governments of both Nations should resolve this anecdotal difference and set up a firm international treaty covering the Double Taxation issues.