Georgia’s Finance Ministry introduces new tax breaks to businesses

The Georgian Ministry of Finance is introducing new tax breaks to Georgia’s business society and especially to those who are based in the regions of the country.

The first meeting with the representatives of local business society was held in Georgia’s Kvemo Kartli region on March 3, where Deputy Finance Minister Lasha Khutsishvili talked about a new legislative package that concerns tax breaks for small businesses.

A similar meeting was also held today in Georgia’s Black Sea resort town of Batumi, where Finance Minister Mamuka Bakhtadze personally met with the representatives of Batumi’s business community and introduced them to the upcoming amendments.

Representatives of Batumi's business society met Georgia's Finance Minister to learn more about upcoming tax amendments. Photo from Georgia's Finance Ministry. 

In general, the new tax initiative aims to support businesses in Georgia, improve the business environment and increase the share of small and medium sized business in the country’s economy.

Upon the implementation of the new tax initiative, the turnover tax for small entrepreneurs will be reduced five times.

In addition, while in the past small businesses were defined as businesses with a turnover of up to 100,000 GEL (about $40,733/€33,108*), from now on those with 500,000 GEL (about $203,665/€165,540*) will also qualify as small businesses.

As Bakhtadze promised, similar meetings will be continued in other regions of Georgia.

*Currency conversions reflect National Bank of Georgia values as of today.