President vetoes amendments to tax code aimed at asset transfers from countries with preferential taxation to Georgia

Georgian President Salome Zourabichvili on Friday vetoed amendments to the domestic tax code that aimed at asset transfers from countries with preferential taxation to Georgia.

Zourabichvili also said she would “keep vetoing any bill” that “contradicts” Georgia's European and Euro-Atlantic aspirations.

The country’s Parliament approved the changes initiated in the tax code in the third reading last month, after an accelerated discussion, with 73 MPs supporting the initiative in the 150-member lawmaking body.

The amended code also establishes tax reliefs for transfer of ownership rights to Georgian enterprises for all assets of foreign enterprises registered in the country with preferential taxation until January 1, 2028.

Per the amendments the relevant operations will be exempted from profit, income and property taxes. The import of assets or goods into Georgia will be exempted from import taxes within the scope of this operation, while Georgian enterprises will also be exempted from property tax until January 1, 2030.

Georgian Economy Minister Levan Davitashvili last month said the amendments in the domestic tax code had allowed the country to attract “more capital, investments and property” and make it an “attractive investment country for investors”.