Anticipating new tax code

The Georgian Parliament is planning the third hearing and adoption of a new tax code. The tax code has been labeled by the Georgian government and Georgian administration as “revolutionary” and “liberal”.

It should be mentioned however that so far this code has received more criticism from businessmen and analysts than support. The legislators have taken very few of their remarks and suggestions into consideration. There are certain items in the draft tax code which businessmen are particularly against. There are however some paragraphs in the code which, according to the government are beneficial for business and are therefore highly promoted. For instance the zero tax rate for micro businesses – those businesses with an annual turnover of less than GEL 30 thousand. However, the proprietors of these micro businesses should be officially registered as entrepreneurs. Small business, which has annual turnover up to GEL 200 000 will pay only turnover tax. Medium and big business will pay VAT quarterly. The code has introduced the idea of a good face tax fare, which will also have certain benefits. Gambling businesses will be taxed by the additional amounts, and so on. Of course all the details of the tax code, positive or negative will become clearer after it comes into force.