3 new tax initiatives to support local and foreign businesses in Georgia

Latest Geostat data revealed the country's estimated real GDP growth rate reached 3.2 percent in Q1 2015, which was a 2.6 percent increase year-on-year. Photo by N. Alavidze/Agenda.ge
Agenda.ge, 04 Apr 2018 - 12:48, Tbilisi,Georgia

The Government of Georgia is introducing three new tax initiatives that aim to support businesses in Georgia, improve the business environment and increase the share of small and medium sized business in the country’s economy.

The first initiative is exempting entrepreneurs from any additional bureaucracy-related challenges. In particular, instead of five tax documents, the entrepreneurs will be required to present only one tax document.

The second initiative will ease the procedures as well as tax burdens of purchasing products from local entrepreneurs or farmers in the rural areas of Georgia. For example, hotels or other type of hospitality or food facilities will be able to buy local products with better tax conditions and will not have to bring products from the capital city of Tbilisi.

The third initiative aims at turning Georgia into a regional financial centre. The initiative will allow non-resident entities to register companies in Georgia online.

This initiative will allow foreign investors to register their companies online in Georgia, open bank accounts in our banking system and also manage their companies online”, said Georgia’s Prime Minister Giorgi Kvirikashvili at today’s government meeting while presenting all three tax initiatives.

Recently, Georgia’s Finance Ministry also introduced new tax breaks which will apply to small businesses in Georgia. Upon the implementation of the new tax initiative, the turnover tax for small entrepreneurs will be reduced five times.

Also, Georgia is creating a special system wherein entrepreneurs will be able to pay VAT returns in 5-7 business days by filling out an electronic application.