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New System of Profits Tax to Come into Force in 2017

New System of Profits Tax to Come into Force in 2017

Deputy Finance Minister Lasha Khutsishvili has taken part in the round table of the UN top political forum: “Reform of Internal Resources Mobilization in Partner Countries and Role of Addis Abeba Tax Initiative”, where he updated the meeting participants about the Georgian experience in cooperation as part of the initiative.

Addis Abeba Tax Initiative was created in 2015 by the Governments of Germany, Netherlands, Great Britain and the USA. It unites more than 40 countries and organizations that have showed readiness to increase efforts in partner countries for fostering mobilization of internal resources in the partner countries. It is worth noting Georgia was one of the first countries that joined the mentioned initiative. Georgia has been cooperating with this initiative from the very beginning.

At the meeting the Deputy Finance Minster talked about introduction of minimal standards on Georgia’s performance under the Base Erosion and Profit Shifting (BEPS) project. He also named the fields where the country needs assistance from the Addis Abeba initiative donor countries.

He also emphasized Georgia’s active involvement in the current project in international field such as the inclusive platform developed for BEPS package introduction. Georgia joined this platform in June 2016 and it provides plenipotentiary and equal involvement in tax evasion prevention efforts jointly with Organization of Economic Cooperation and Development (OECD) and the Big 20 countries, as well as in the BEPS workgroups and in the group of experts of transparency and information exchange global forum.

The Deputy Finance Minister updated the forum participants on tax system reforms in Georgia, including the new system of profits tax that will come into force in 2017.

The meeting organizers jointly stressed Georgia’s active involvement in international projects and the country’s progress in tax system reformation issues.