1 / 21

Georgian Economy Overview

julio
Download Presentation

Georgian Economy Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Georgian Economy Overview June 2009 www.mof.ge

    2. Economic Growth 1 Georgian Economy Overview

    3. Current Account Deficit 2 Georgian Economy Overview

    4. Georgian Economy Overview 3 Diversified Trade Structure

    5. Georgian Economy Overview 4

    6. Fiscal and Monetary Performance 5 Georgian Economy Overview

    7. Georgian Economy Overview 6 Monetary Performance

    8. The Donors’ Pledges of US$4.5 billion Aid by donors Aid by sectors Georgian Economy Overview 7

    9. The Donors’ Pledges of US$4.5 billion, cont’d Georgian Economy Overview 8

    10. Economy’s Stimulus Package - GEL 2.2 bn, Social Package - GEL1.6 bn Georgian Economy Overview 9

    11. Budget Supplement

    12. Robust Banking Sector 11 Georgian Economy Overview

    13. Banking Sector Resilient Georgian Economy Overview 12

    14. Recent Reforms - Taxation Georgian Economy Overview 13

    15. Special Taxation Regimes Adopted 14 Special taxation systems have been adopted for the different regimes aimed at establishing new international financial institutions in the country, encourage economic growth, support sustainable development and the trade-transit function of Georgia Georgian Economy Overview

    16. Increasing Integration Into the Global Economy Georgian Economy Overview 15

    17. Customs Code Amendments Existing Requirements: The customs value of goods carried into the Georgian customs territory, processed from the goods carried out under the customs regime for processing the goods outside the customs territory will be diminished by the customs value of Goods declared and carried out for proscessing purposes. It is not defined whether the cost of transportation (carrying in and out) should be included. Proposal: It will be determined, that when carring in the processed good, as customs value shall be considered only the value added through the processing, with no regard to transportation costs. Georgian Economy Overview 16

    18. Tax Code Amendments Georgian Economy Overview 17

    19. Tax Code Amendments Financial Lease Reason: According to the current law leasing is considered as supply of goods, yet for the purposes of VAT, it is considered as service and is taxed accordingly. Leased assets in its total value is considered as supply of goods, although essentially it is divided in two parts, because the lessor transfers an asset in discounted value to the lessee and receives interest from the given asset, which basically means income from certain financial service rendered, but not income generated from the supply of goods. Given the abovementioned, regulation of leasing is vague and inaccurate. Proposal: leasing must be considered as provision of service, taking into account certain conditions; Discounted value of income generated from leasing (10% rate applicable) shall not be less than the difference between the present value of a given asset and its expected residual value. At the end of the lease term, lessee may acquire the leased-asset at its residual value, which may not be higher than 15% of the fair market value of the asset at the beginning of the lease term. Georgian Economy Overview 18

    20. Tax Code Amendments Partnership and Taxation of Income Reason: according to the existing tax code a partnership is obliged to allocate taxable income (profit) to the shareholders (partners), however, there is no complete mechanism of partnership taxation that would regulate total income, deductions, calculations, tax payment, tax declaration and other matters related to tax liabilities of the partnership and its members. Proposal: Taxable income of partnership will be allocated to its shareholders, in accordance with their shares, and will be included in the total income of the shareholders; Shareholder is obliged to tax the abovementioned income, with no regard whether the partnership has distributed the profit or not; Obligation of a partnership to submit the declaration is defined, and a partnership becomes liable to submit to the tax authority the information on the income received per share and the distribution of profit among the shareholders; If a member of a partnership is not a registered taxpayer, a partnership is obliged to withhold the tax, whereas the member may claim the credit in the same amount as taxed at source. Losses of a partnership will not be allocated to the shareholders and will be carried forward and reimbursed through the profit generated in the following years. Is effective from 1 January 2011 Georgian Economy Overview 19

    21. Economy Remains Resilient Economy remains resilient due to the following reasons Donor support Diversified economy Reforms – strong economic fundamentals Georgia is committed to continuing reforms Continue building strong democratic institutions Rule of Law and judiciary reform Further lighting tax burden Economic liberalisation Georgian Economy Overview 20

    22. Contacts Georgian Economy Overview 21

More Related