New tax break to apply to small businesses in Georgia

In May 2015 Georgia's monthly inflation rate reached 0.6% and the annual inflation rate equalled 3.5%. Photo by N. Alavidze/, 15 Feb 2018 - 12:42, Tbilisi,Georgia

The Government of Georgia is launching a second wave of small business assistance efforts building on the successful programs such as ‘Produce in Georgia’, agriculture programs like ‘Plant the Future’ and others.

Georgia’s Finance Minister Mamuka Bakhtadze initiated a new legislative package at today’s government meeting that concerns tax breaks for small businesses.

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, from now on those with 500,000 GEL will also qualify as small businesses.

"We believe it to be a significant relief for those engaged in small business, a serious tax relief, and an incentive, of course, for those planning to start their own small businesses. I am convinced that our entrepreneurs will embrace this initiative to establish new businesses - a breath of fresh air for small business owners and their enterprises,” said Georgia’s Prime Minister Giorgi Kvirikashvili who learned about the new tax imitative from the Finance Minister at today’s government meeting.