Georgia’s business society evaluates Tax Code changes

Georgia’s Finance Ministry has introduced several changes to the country’s tax administration system to members of the business society.

The changes aimed to simplify the Tax Code.

Today, Ministry authorities met members and partner companies of Georgia Employers' Association, where the sides talked about the main changes to Georgia’s tax law.

"These types of meetings with the business [community] are very important because in this format it is possible to agree on positions and make final decisions,” said Georgia’s First Deputy Finance Minister and head of the Revenue Service Giorgi Tabuashvili.

Our Government follows the idea to have an open, transparent and reliable relationship with businesses. We understand that business is the main driving force of developing the Georgian economy. For this reason we will support business activities in Georgia,” he said.

Amendments to the tax administration system will see the number of taxes reduce.

• From now, landlords who rent out an apartment in Georgia will be taxed five percent instead of 20 percent;
• Royalties paid to non-residents will be taxed five percent instead of 10 percent;
• All kinds of overpaid amount of money will be returned within one month after the request;
• The procedures for temporary admission and reverse charges have been simplified for VAT (Value Added Tax) payers;
• The fine for not paying taxes by the deadline has been increased to 0.06 percent instead of 0.05 percent for each delayed day;
• Entities that carry out activities that aren't VAT registered will be fined five percent of taxable transaction instead of 15 percent;
• A person who brought a vehicle to Georgia before May 1, 2015 will be exempt from fines if he/she officially registered the vehicle or re-exported it before September 1, 2015.

Looking ahead Georgia’s Finance Ministry will continue to work with the Revenue Service of Georgia’s Ministry of Finance to implement further changes to the Tax Code.