Special meeting with the Minister of Finance

The Minister of Finance made a presentation in English to the international community comprised of members from the American Chamber of Commerce in Georgia (AmCham Georgia), EU-Georgia Business Council (EUGBC), French Business Council, German Business Council, Austrian Business Council and International Chamber of Commerce (ICC) regarding the upcoming changes to the tax code.

Business representatives welcomed the proposed changes and promised to provide further feedback to the Tax Working Group to finalize the New Tax Code.

Micro Business (entity with less than GEL 30,000 annual turnover) will be exempt from taxes. VAT registration threshold doubles to GEL 200,000. Organizer/administrator of special trade zones shall act as a tax agent for those small businesses which are involved in trading at public places. Taxpayers will now have the right to write off outdated and defective goods. And most importantly, An advance tax ruling shall be binding upon the Tax Authority. An advance tax ruling is a written statement given by the by Tax authority to a taxpayer stating how it will interpret and apply specific provisions of tax law to a definite transactions the taxpayer is contemplating. This means that if the transaction was carried out substantially as set out in the request, taxpayer will not be subject to any additional tax or sanctions.

The presentation of the Minister of Finance The Part of New Tax Code Excluding Customs Code Provisions is attached.