50 businesses in mountain regions benefit from state support

Ministry of Finance launched a public campaign to encourage Georgia’s mountain residents to get involved in business. Photo by N.Alavidze/Agenda.ge.
Agenda.ge, 07 Jun 2016 - 16:16, Tbilisi,Georgia

Dozens of businesses in Georgia’s mountain regions are benefactors of state support that reduces their tax obligations and supports the development of local businesses.

About 50 enterprises located in different mountainous areas are benefitting from the special taxation system, while 13 today were granted the status of ‘Mountainous Area Enterprise’, announced Georgia’s Ministry of Finance.

The special taxation system saw entrepreneurs in the mountainous regions be exempt from paying profit and property taxes (legal entities), while physical entities were exempt from paying income and property taxes for a 10 year term. 

This was part of the Government’s recently introduced Mountain Law of Georgia, which aimed to support entrepreneurs in Georgia’s mountainous areas and make business easier for them as a way to stimulate their local economies. The Mountain Law partially came into effect at the beginning of this year and new aspects of the law will continue to be implemented throughout the year. 

The Finance Ministry said the state support served to encourage people to live and work in the mountain regions, which in recent years had gradually emptied of people due to financial hardship.

Today we granted the status of Mountainous Area Enterprise to 13 enterprises,” announced Finance Minister Nodar Khaduri.

These businesses operated in "very important directions”, such as furniture manufacturing, construction, production of wine, beer and soft drinks, producing milk and processing milk products, baking, production of agricultural products, poultry and more.  

Businesses operating in mountainous Georgia who wish to gain the status of ‘Mountainous Area Enterprise’ and enjoy the state benefits, company owners must submit an application to the Revenue Office of the Ministry of Finance. 

The Revenue Office will forward the application to the Ministry of Finance within 60 days. 

From there the Ministry will discuss the possibility of granting that business with ‘Mountainous Area Enterprise’ status at a Governmental meeting. Members of the Government must approve the application and grant the status.