About Civil.ge
Eng | Geo | Rus
Last updated: 20:00 - 28 Aug.'16
RSS
Mobile
Twitter
Facebook
Kvirikashvili Refloats Idea of Zero Tax on Reinvested Profit
Civil Georgia, Tbilisi / 15 Jan.'16 / 13:21

PM Giorgi Kvirikashvili said on January 15 that the government will submit “in the nearest future” to the Parliament bill envisaging zero tax on reinvested profit.

“The government has started active work on tax liberalisation and we are actively considering introducing elements of the Estonian model, involving taxing only the distributed profit… That implies exempting companies from profit tax, if that profit is reinvested,” MP Kvirikashvili said at a government session on Friday morning. Estonia has had zero corporate taxes on reinvested profit since 2000.
 
“We are actively working on this with the IMF representation… and I think that it will be possible in the nearest future to discuss the draft at a government session and then send it to the Parliament for consideration,” Kvirikashvili said, adding that he is convinced that there will be support of opposition lawmakers as well on this issue.

Kvirikashvili first voiced this proposal in March 2015, when he was the Economy 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.

The idea appeared to be shelved since then. Deputy Finance Minister Giorgi Kakauridze said in October, 2015 that the government would not hurry with this reform, adding that it was “quite a difficult process, fraught with quite a lot of risks.”
 
Georgia’s 2016 state budget sets targeted revenue from corporate profit tax at GEL 980 million, accounting for 12.3% of total forecasted tax revenues for this year.

Latest News
28 Aug.'16 20:00
Defense Minister Visits Georgian Troops in Afghanistan
This is Izoria’s first foreign trip since becoming the Defense Minister on August 1.
27 Aug.'16 14:21
14 Parties, 5 Blocs Run in Elections for Adjara’s Supreme Council
Election commission registered 26 political parties for elections of Autonomous Republic’s local parliament.
26 Aug.'16 20:48
25 Parties, 7 Blocs Run in Parliamentary Elections
CEC registered 45 parties, 20 of which plan to form 7 election blocs to run on joint ticket.
25 Aug.'16 18:37
UNM Makes Ex-First Lady Number 2 on Its Party List of MP Candidates
Sandra Roelofs is also running as UNM’s majoritarian MP candidate in Zugdidi.
25 Aug.'16 17:23
Chief of Belarus Security Agency Visits Tbilisi
Agreement on cooperation between the security agencies of the two countries was signed.
25 Aug.'16 10:42
List of Majoritarian MP Candidates
Deadline of nominating majoritarian MP candidates for political parties expires on September 8.
24 Aug.'16 18:36
NATO NAC to Visit Georgia on Sept.7-8
It will be the fourth visit of ambassadors from NATO member-states to Georgia.
24 Aug.'16 15:05
PM Vows to Renew Push for Defining Marriage in Constitution After Elections
He spoke about President’s decision to block referendum on the issue at a government session.
23 Aug.'16 15:31
7 Men Sent to Pretrial Detention in Case of Alleged Foiled Attack on Gas Pipeline
All of the arrested men, but one, deny charges, which range from plotting a terrorist act to not reporting crime.
22 Aug.'16 17:17
Security Service Says ‘Terrorist Act’, Targeting Gas Pipeline, Foiled
PM Kvirikashvili said that “a huge disaster” has been prevented.

About Civil Georgia
Civil.Ge © 2001-2016, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
42