About Civil.ge
Eng | Geo | Rus
Last updated: 17:44 - 18 Aug.'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
18 Aug.'17 17:44
Ruling Party, Opposition Meet over Constitutional Amendments
Parliamentary and non-parliamentary opposition parties accepted GD’s proposal to resume discussions. 
18 Aug.'17 12:31
Georgian Leaders Condemn Barcelona Attack
President, Prime Minister, Parliamentary Chairman issued statements following the terrorist act.
17 Aug.'17 17:28
Detention of Civic Activist Stirs Outcry in Tbilisi
Tamar Mearakishvili was briefly detained by the Moscow-backed Tskhinvali authorities.   
16 Aug.'17 18:27
2008 Russo-Georgian War Recap: August 16
Civil.ge uses its archives and other sources to provide a daily recap of the events of the war.
16 Aug.'17 15:50
Alliance of Patriots Names Mayoral Candidate
Irma Inashvili, lawmaker and Parliament’s Vice Speaker, will enter the mayoral race in Tbilisi.
16 Aug.'17 12:11
U.S. Annual Report on Georgia Religious Freedom
The U.S Department of State released its report also covering the developments in Georgia on August 15.
15 Aug.'17 19:15
GDDG Offers Consultations on Constitutional Amendments
The ruling party expressed readiness to discuss “all major issues of the constitutional reform.”  
15 Aug.'17 13:23
Geostat: 2016 FDI USD 1.56 bln
Final figures have been revised downwards from preliminary data of USD 1.64 billion.
15 Aug.'17 11:51
2008 Russo-Georgian War Recap: August 15
Civil.ge uses its archives and other sources to provide a daily recap of the events of the war.
14 Aug.'17 14:09
2008 Russo-Georgian War Recap: August 14
Civil.ge uses its archives and other sources to provide a daily recap of the events of the war.

About Civil Georgia
Civil.Ge © 2001-2017, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
68