Georgia's Tax Code to see changes in financial sector taxation

The Georgian Government’s economic team has prepared amendments to the Tax Code of the country with regards to fiscal and tax policy parts of the code that concern the financial sector, Finance Minister Lasha Khutsishvili said on Monday.

Khutsishvili said banking institutions, credit unions, microfinance organisations and lending entities would see the "classical model" of income tax applied to them.

The five percent tax on dividends issued by these entities will be cancelled, and their taxable income will be taxed at 20 percent instead of 15 percent, the Minister added.

• Banks, financial sector companies to pay 20% tax after Gov’t scraps Estonian model switch

In comments about the insurance sector, Khutsishvili said it would be treated separately from the financial sector and added its transition to the Estonian model of income tax would be postponed by one year.

In other comments, the Minister said tax benefits for individuals employed in the agriculture sector and agricultural cooperatives would be extended by three years until January 1, 2026.

A separate benefit, aimed at promoting local production and small business, will continue until 2026, and the requirement for individuals trading at the market to use cash registers will be postponed, Khutsishvili also revealed.