About Civil.ge
Eng | Geo | Rus
Last updated: 10:55 - 1 May.'18
RSS
Mobile
Twitter
Facebook
Finance Ministry Reluctant over Zero Tax on Reinvested Profit
Civil Georgia, Tbilisi / 5 Oct.'15 / 18:15

Deputy Finance Minister Giorgi Kakauridze told lawmakers on Monday that the government will not hurry the corporate income tax reform.
 
He could not specify when, if at all, the previously announced intention to scrap the corporate income tax on reinvested profits could be introduced.

The proposal was first announced in March, 2015 by then Economy Minister Giorgi Kvirikashvili, who is now the Foreign Minister. He said at the time that although it would have a negative short-term impact on state coffers, cutting tax revenues by several hundreds of millions of lari, in the long run it would boost economic growth.

At a parliamentary committee hearing of the 2016 draft state budget on October 5, Deputy Finance Minister Kakauridze was asked by opposition MP from Free Democrats party, Davit Onoprishvili, if the proposal was still on the table.

The Deputy Finance Minister responded: “After a thorough discussion we found that it’s not a model that can be automatically replicated in Georgia with positive results. We had a meeting with the Estonian experts, including people who were involved in the implementation of this reform [in Estonia], but this model creates certain risks and triggers questions.”

Estonia has had zero corporate taxes on reinvested profit since 2000.

“In general, we are planning a reform of this tax, but I cannot give a precise date when it will be done, but I can say with high probability it won’t be applied from 2016,” Kakauridze said. “In the course of 2016 we will have to work much in order to apply this model starting in 2017 if such decision is at all taken.”

“This is quite a difficult process, fraught with quite a lot of risks… Yes this [model] has its positive sides, but there are lots of negative aspects as well, so it has to be thoroughly considered; no final decision has been made in which direction this reform will go,” he added.

The draft of 2016 state budget sets tax revenues at GEL 7.78 billion of which GEL 955 million is expected from the corporate income tax.

Latest News
01 May.'18 10:55
We Have Moved to a New Platform
Direct Your Bookmarks to https://civil.ge.
29 Apr.'18 03:54
Ruling Party Candidate Wins MP By-Elections
Givi Chichinadze will represent Vani and Khoni single-mandate constituency in the Parliament of Georgia.
28 Apr.'18 09:40
Polls Open for Vani and Khoni MP By-Elections
48,123 voters are eligible to cast their ballots in Vani and Khoni single-mandate constituency.
27 Apr.'18 17:23
State Dept’s Europe Affairs Point Man to Visit Tbilisi
Wess Mitchell will meet senior government officials and address the NATO-Georgia Public Diplomacy Forum.
27 Apr.'18 13:45
In Quotes: Georgian Politicians on Ex-PM Bidzina Ivanishvili’s Comeback
Bidzina Ivanishvili will be approved as the Georgian Dream party chairman at the upcoming convention.
26 Apr.'18 18:15
SG Jens Stoltenberg: Georgia NATO’s ‘Very Close’ Partner
The NATO Secretary General says Foreign Ministers meeting tomorrow will recognize the country’s progress.
26 Apr.'18 14:24
Ex-PM Ivanishvili to Chair Georgian Dream Party
Prime Minister Giorgi Kvirikashvili said Ivanishvili was ‘best equipped’ to add new dynamism to the party.
26 Apr.'18 11:12
Lawmaker Proposes Criminal Liability for ‘Insult of Religious Feelings’
The parliamentary human rights committee decided to set up a working group for scrutinizing the draft law.
25 Apr.'18 17:21
New Abkhaz Government Head Appointed
Gennady Gagulia has served as the Abkhaz “prime minister” twice - in 1995-1997, and 2002-2003.
25 Apr.'18 14:43
Watchdog Improves Georgia’s Press Freedom Ranking
None of the countries of the former Soviet Union (except the Baltics) are ranked ahead of Georgia.

About Civil Georgia
Civil.Ge © 2001-2020, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
12