The profit tax system that came into force on January 1, 2017, in Georgia aims to create a favorable business environment, accelerate economic growth, and improve tax administration. This system is based on the distributed profit taxation regime, similar to the one implemented in Estonia.
On July 3, ISET Policy Institute organized a roundtable discussion on corporate tax income reform assessment. The event was attended by experts from local and international institutions who shared their views and exchanged ideas on the findings of the assessment.
Under the Georgian Constitution, the country's strategic objective is to join the European Union. The vast majority of citizens agree with and support this objective. The European future is not only the country's historical strategic choice but also the hope for the prosperity and well-being of the country's population and the promise of a better future for future generations.
The "Local Economic Development (LED) in Georgia" project, implemented by a consortium led by HELVETAS and commissioned by the Swiss Agency for Development and Cooperation (SDC), aims to strengthen Georgian actors’ involvement in LED. Moreover, it incorporates an overarching objective “to contribute to increasing employment and income of rural women and men in their localities by enhancing effective collaboration among local and national actors (public, private, civil society) for the creation of new economic opportunities.”
The Estonian model of Corporate Income Taxation (CIT) that came into force on January 1, 2017, in Georgia is based on the distributed profit taxation regime, according to which retained corporate income is tax-free, and profit is taxed at 15% only when distributed.