Georgia Simplifies Tax Procedures to Promote Economic Growth
Georgia’s Finance Ministry has initiated simplified tax procedures in order to promote the economic growth of the country.
At a special press-conference, Finance Minister Mamuka Bakhtadze introduced three new initiatives, noting that their main aim is to combat poverty in Georgia and see the significant economic growth of the country.
“As a result of the proposed initiatives, we will encourage entrepreneurs in Georgia, create additional jobs, simplify tax administration, and at the same time provide a very important basis for attracting more foreign investments into our national economy,” the Minister stated, adding the projects are innovative and Georgia will be the first country in the world to offer taxpayers such high level tax simplicity.
According to Bakhtadze, the changes unite three initiatives:
1. The creation of one tax document in digital format instead of the previous five documents.
“The unified tax document will be a document certifying the transportation of goods and delivery of goods and services, and taxpayers will no longer be obliged to have separate tax documents for the transportation of goods,” the Minister said.
2. The promotion of micro and small businesses, which envisages promotion of local products.
In the second initiative, the government is to simplify the procedures of purchasing products from local entrepreneurs, people living in the villages, and small farmers.
“If purchasing products from non-entrepreneurs, customers will benefit from reduced taxes. And when buying products from persons with micro business status, the company will not pay profit tax,” Bakhtadze explained.
3. The transformation of Georgia into a regional financial hub.
“According to this initiative, non-resident individuals will be able to register their companies in Georgia online and will have access to bank accounts at the same time,” the Minister said, adding that these people will be able to enjoy benefits from Georgia’s free trade agreements with China and the European Union.
Georgian Prime Minister Giorgi Kvirikashvili praised the initiative of the Finance Ministry, saying it is aimed at promoting the country’s business environment and at increasing the share of small and medium businesses.
“The three new initiatives are really as large-scale and innovative as the already initiated reforms,” the PM said, highlighting that turning Georgia into a regional financial center will benefit each citizen.
“I am sure this initiative will be a very important new source of income for our country,” he added.
Thea Morrison