TBC Bank Group announced that the recent amendment to the Georgian Tax Code in relation to corporate income tax will have an immediate impact on its deferred tax liability.
The amendment, which comes begins on 12 June 2018, postpones tax relief for re-invested profit from January 1, 2019 to January 1, 2023 for financial institutions. As a result, TBC will reverse the one-off deferred tax gain recognized in 2016.
This reversal will result in an estimated 14-19 million GEL expense on the profit and loss statement, and an estimated 5 million GEL reduction in equity during Q2 of 2018. Excluding this effect, TBC expects its effective tax rate to be in the range of 9-11% in 2018.