2020-02-06
"Today we will be discussing a new reform in terms of proposed legislative amendments. It is aimed at harmonizing the principles of the value added tax (VAT) with those of the European Union (EU). Draft Law will be submitted by the Ministry of Finance of Georgia and its main goal is to make the VAT management in the country mirroring the practices of the EU" stated Giorgi Gakharia, Prime Minister of Georgia at the Executive Government Meeting today.
According to the Head of Government of Georgia, reform and legislative amendments will facilitate the development of Georgian business and more effective use of opportunities offered by the Deep and Comprehensive Free Trade Area (DCFTA) enjoyed by Georgia with EU.
"Of course, it will incentivize the Georgian business and primarily the medium-sized enterprises to assume more contractual commitments and deliver them faster and more effectively as offered to companies and economy of the country under the DCFTA" noted the Prime Minister of Georgia.
Also, in line with the legislative amendments, internally displaced people (IDPs) will have a waiver on the property tax, provided they own agricultural land plot of no larger than 5 hectares.
"It is the smallest, but still an incentive for our IDPs, who are engaged in the agriculture practices" noted the Prime Minister of Georgia.
According to the Head of Government of Georgia, Tax Code of Georgia will be amended within the scope of the new reform to incentivize the construction sector and its provisions relating to unfinished construction sites will remain valid through 2026 to make sure that they get completed by the indicated timeline. Eligibility criteria include the constructions of residential blocks launched before 2008 that will be enjoying waiver on VAT before completion. It will enable the construction sector to complete the work in the total investment value exceeding several hundred million dollars.
"This legislative amendment, this tax incentive was most effective and it has facilitated the quick and effective completion of many unfinished work at construction sites. Nevertheless, as it turned out, such eligible projects were plenty and we decided to extend it through 2026 for the benefit of our businesses" concluded the Prime Minister of Georgia at the Executive Government Meeting today.