(Civil.Ge) — The Georgian Finance Ministry has unveiled a new initiative envisaging tax breaks for small businesses.
According to the new tax reform unveiled by Finance Minister Mamuka Bakhtadze on February 16, those natural persons whose turnover from economic activities does not exceed GEL 500 000 per year will be eligible to register as small businesses. According to current legislation, only those natural persons can qualify as small businesses whose turnover does not exceed GEL 100 000. Moreover, small businesses will enjoy “unprecedented tax breaks” with the rates decreasing fivefold – from current 5% to 1%, according to the Finance Minister.
Mamuka Bakhtadze also explained that small businesses will no longer have to pay taxes in advance; instead, they will have to pay a 1% tax by the end of each month.
The Finance Minister said that the preferential treatment will apply to 120 000 individuals and it will enter into force from July 1, after the Parliament approves relevant legislative amendments.
“It is our government’s priority to significantly increase the share of small and medium-sized businesses in economy and to make benefits of economic growth tangible for the entire population,” Mamuka Bakhtadze said.
Speaking about the new tax initiative, Georgian Prime Minister Giorgi Kvirikashvili said at the government’s session on February 15 that “this initiative will be a significant relief for those engaged in small businesses.”
“I am sure that our entrepreneurs will seize upon this opportunity and it will become a breath of fresh air for small business owners, for the development of their enterprises,” PM Kvirikashvili added.
Thanks for reading Eurasia Review. For more of our reporting make sure to sign up for our free newsletter!