About Civil.ge
Eng | Geo | Rus
Last updated: 18:24 - 26 Jun.'17
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
26 Jun.'17 18:24
UNM Names Mayoral Candidate in Tbilisi
Zaal Udumashvili will be the mayoral candidate, while Nika Melia will compete for Sakrebulo chairmanship.
26 Jun.'17 16:59
PM Kvirikashvili on Kakha Kaladze’s ‘Interesting’ Political Plans
Energy Minister Kakha Kaladze will reportedly be the ruling party’s mayoral pick for Tbilisi.
26 Jun.'17 14:18
In Ramadan Messages, Georgian Leaders Reach Out to Muslim Community
PM, President and Parliamentary Speaker released statements on the occasion of Ramadan Bayram.
23 Jun.'17 16:05
40th round of Geneva International Discussions
Russia and Georgia spar over security.
23 Jun.'17 15:41
MPs Pass Constitutional Changes with First Reading
Amid the opposition’s boycott, amendments were unanimously adopted by the parliamentary majority.
23 Jun.'17 01:04
Moscow Cuts ‘Investment’ Funding for Tskhinvali
90% of South Ossetia’s budget for 2017 was subsidized by the Russian Federation.
22 Jun.'17 17:20
Crime Wave Stirs Public Outcry in Abkhazia
Public demands action to stop “lawlessness” in the region, authorities promise to investigate the cases.
21 Jun.'17 16:59
Senior MEP: Mukhtarli Case ‘Very Alerting’
Rebecca Harms called for “an independent investigation” both in Azerbaijan and Georgia.
21 Jun.'17 16:16
Parliamentary Opposition Renews Calls for Plebiscite over Constitution Reform
Movement for Liberty - European Georgia submitted 150,000 signatures to the Government administration.
21 Jun.'17 14:21
Venice Commission on Georgia’s New Constitution
The Council of Europe’s (CoE) advisory body for legal affairs released its opinion on June 19.

About Civil Georgia
Civil.Ge © 2001-2017, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
44