Absolutely all entrepreneurs in Georgia will be able to count on tax breaks in 2021. The Minister of Finance, Mr. Ivane Machavariani, outlined five main components of an aid package for businesses hit by the pandemic.
- Income tax relief
Income tax benefits have been extended for another six months, as of December 1st, 2020. An employer, whose employees receive a salary of up to 750 GEL, will not have to pay income tax. Should the income of an employee, received from the same employer within one calendar month, not exceed 1,500 GEL, then 750 GEL of the total amount is also not taxable.
- VAT incentives for property rental
The option of levying tax on rental property has been raised for the next six months as of December 1st, 2020. The same appllies to VAT on leasing services during the same period.
- Property tax write-off
Businesses that operate in the tourism industry and have been affected by the pandemic will be exempt from property tax in 2021.
- Income tax write-off
The income tax deferred during February-May 2020, will be written off.
- Deferral of income tax for hotels in ski resorts
Until July 1, 2021, income tax has been deferred for the hotels in the resorts of Bakuriani, Gudauri, Goderdzi and Mestia without interest accrued in November and December 2020.
The Minister of Finance explained: “The government was able to establish these benefits thanks to the amendments introduced by the parliament to the Tax Code of Georgia.”
For additional information regarding the abovementioned tax benefits, please contact our Country Executitve in Georgia, Ms Irina Lopatina, via email at email@example.com
Eurofast is a regional business advisory organisation employing local advisors in over 22 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.