BAKU, Azerbaijan, Jan.6
By Tamilla Mammadova – Trend:
Georgian Parliament has approved a package of tax breaks for businesses, Trend reports via Georgian media.
Some 81 MPs voted for the amendments to the Tax Code. The bill is initiated by Davit Songhulashvili, Beka Liluashvili, Gocha Enukidze and Mariam Kvrivishvili. The code provides several tax breaks for businesses.
According to the amendments made to the Tax Code:
1. Exemption of income tax is continued for another six months, namely for 6 months from December 1, 2020. So, the employer is entitled not to pay to the budget, if the salary received by this employee from the same employer during 1 calendar month does not exceed 1,500 lari ($455.54). This tax benefit will apply to more than 550,000 people employed in more than 42,000 companies. The amount of tax relief in the income tax is 270 million lari ($81.9 million);
2. Possibility of taxing property leasing/leasing services with VAT will be continued from December 1, 2020, for the next 6 calendar months. This change will help companies avoid incurring additional tax liabilities, which will place a heavy burden on their financial situation;
3. Persons, who are engaged in the activities of tourism sector, hotels, restaurants, etc. will exempt from property tax in 2021. This tax benefit will apply to more than 1,000 companies, which employ more than 30,000 people. The amount of tax relief in the property tax is 45 million lari ($13.6 million);
4. Persons carrying out the mentioned activities (tourism sector, hotels, restaurants, etc.) have the right not to pay deferred income tax to the budget in accordance with Article 309, Part 11 of the Tax Code. The mentioned tax relief will apply to up to 1000 companies, which employ up to 40,000 people. The amount of tax relief in the income tax is 20 million lari ($6.07 million);
5. Hotels located in Borjomi, Bakuriani, Kazbegi Municipality, Gudauri village, Khulo Municipality, Resort Goderdzi and Mesia Municipality will have possibility to postpone payment of income tax until April 20, 2021 without accruing the fine. Deferring taxes along with the established tax breaks during this period will help companies retain employees. The tax relief will apply to more than 100 companies and the amount of deferred tax is 0.5 million lari ($151,847).
6. The amount of VAT during the imports will be calculated without adding additional components (import-related fees, associated costs, etc.) before 2023. The purpose is to simplify customs procedures amid pandemic.
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