Georgian Government looks to liberalise Tax Code
Tweet 
Share
The Georgian Government is planning to simplify the Tax Code and create better conditions to the business society.
Today, Georgia’s Prime Minister Giorgi Kvirikashvili announced the Government had started active works to liberalise the taxes following the Estonian model.
We are actively discussing to establish Estonian model in Georgia. In particular, the model comes to the income tax only in case of profit-sharing. Meanwhile, in case of the re-investing the companies will not pay the income tax. This will support to mobilise investment resrouces and the existing potential,” Kvirikashvili explained at today’s Government meeting.
The Prime Minister announced the Government would cooperate with the International Monetary Fund (IMP) representatives to Georgia to create the draft law. First it should be discussed at the Government meeting and then sent to the Parliament for further approval. Only after that the law would enter into force.
Meanwhile, a month ago Georgia’s Finance Minister Nodar Khaduri also talked about the simplifying of the country’s Tax Code. Khaduri announced the amendment would come into tax limitation period.
According to the amendment the six-year limitation period was reduced to three years. However, according to article 309, paragraph 62, the three-year term was regulated and defined as follows:
- From January 1, 2015 to January 1, 2016 period - 5 years and;
- From January 1, 2016 to January 1, 2017 period - 4 years.
The limitation of 6-year term was extended until 1 January 2015, while the 3-year shifting period would start from 1 January 2016.
The Minister added the tax audit process will become more time-limited in order to avoid "further problems” to the business society.
Proposed changes also considered scrapping several types of unpaid taxes, including unpaid tax debts that originated before 2011. As for the tax debts that were originated before 2013 they would be written off in case the taxpayer did not have any activities within the following period.
Changes also related to import tax. Khaduri said import would exempt from value added tax (VAT).
The Finance Ministry also announced income tax reform for this year.
The candidate Ministry of Finance Nodar Khaduri plans to introduce "several important reforms” next year, including simplifying the Tax Code and creating better conditions to the business society.
The Government of Georgia is taking action to reduce unemployment in the country by creating more jobs, in addition to reducing tax profit in Georgia.
Georgia’s Finance Ministry has introduced several changes to the country’s tax administration system to members of the business society.
Georgia’s economic team is working on modifying the country’s profit tax rules, with the main goal to liberalise Georgia’s profit tax.
The Georgian Government is planning to amend the country’s tax law.
The Government of Georgia is taking actions to decriminalise economic crime and liberalise the Tax Code in order to further develop Georgian economy.
Georgia is making changes to the country's tax law in a bid to improve the investment climate, attract more investors and additional capital to the country.
Estonian experts are giving a helping hand to Georgian authorities to implement the Estonian Taxation Model in Georgia.
Georgia’s economic team is working on modifying the country’s income tax rules, with the main goal to improve the investment climate, attract more investors and additional capital to the country.
Sarah Williamson, president of the American Chamber of Commerce (AmCham) in Georgia is praising the Georgian Government’s effort to simplify the country’s Tax Code and is encouraging the Prime Minister to put forward "much needed” reform proposals.
The Prime Minister of Georgia believes a new Governmental department needs to be created to facilitate better communication and coordination between ministries, resulting in quicker economic decision-making.
A draft law on modifying Georgia’s income tax rules will come into force in January 2017 instead of July 2016, taking into account requests from local businesses to postpone the enactment of new Tax Code law.
Georgia welcomes Estonian Taxation Model
Georgia will soon enjoy the benefits of a more simplified and liberal Tax Code. The new Tax Code will contribute to improving the investment climate, attracting more investors and additional capital to the country.
Georgia enjoys simplified and liberal Tax Code
A new Tax Code that aims to improve the investment climate, attract more investors and additional capital to Georgia has come into force.
Thousands of Georgian taxpayers have had their tax obligations annulled in a shock move by the Georgian Government.
To promote ease of doing business in Georgia, the Government is further simplifying duty tax rules for imported goods.