2016-02-11
Today under the chairmanship of Prime Minister Giorgi Kvirikashvili the Cabinet session was held. The participants of the meeting discussed 36 issues placed on the agenda.
The Government approved draft Law on "Amending the Tax Code of Georgia", which envisages implementation of Estonian model of tax system in Georgia. Pursuant to the said model, in case of reinvesting the income, the enterprises will be exempt from the corporate income tax. The income will be taxable only in case if it is distributed among the shareholders as dividends.
Alongside with the corporate tax reform, important amendments will be introduced to ensure tax administration. Namely, the seizure of a person's bank account in case of tax related dispute will only be possible upon the consent of the court; tax inspection will only be conducted by the tax authority, VAT will not be chargeable in case of import of the fixed assets, if the company utilizes them in the operations taxable by VAT, etc. The package will be submitted to the Parliament for review.
The Cabinet also approved draft Ordinance on "Giving Consent to the Ministry of Finance on Signing the financial agreement "Georgia East-West Highway II" between Georgia and European Investment Bank". The documents concerning allocation of financial resources for the purpose of infrastructure of Georgia by the EIB will be signed today.
The Government also approved draft Ordinance on "Necessary Measures for the Implementation of "Agreement Concerning Obtaining Uniform Technical Notes and Conditions of the Mutual Recognition of Official Approval based on such Technical Notes for those Wheeled Vehicles and the Equipment and Parts of Objects, which can be Installed and / or used on Wheeled Means of Transportation". The Ordinance enables entrepreneurs to produce vehicles (or their parts) for local and international market, conduct their codification and grant them VIN code for international production of vehicles.
The Government also approved draft Ordinance on "Establishing Governmental Commission to Conduct Exhibition Dedicated to the Georgian Viticulture and Winery in at the Centre of Wine Civilization in Bordeaux in 2017". The draft Ordinance was submitted by the Ministry of Agriculture of Georgia.
Prime Minister's Press Office