TAX & LAW BRIEF
THE DRAFT AMENDMENT TO THE TAX CODE OF GEORGIA
Draft amendments to the Tax Code of Georgia has been published on the Legislative Herald of Georgia, according to which:
- The statutes of limitations for presenting the Revenue Service tax assessment shall not be considered expired if the relevant tax assessment has been placed on the taxpayer’s electronic portal by the tax authority before the expiration of statutes of limitations;
- An arbitral award will be treated equivalently to court decision with respect to recognition of bad debts;
- The benefits generated by the recognition of the ownership on property under the Law of Georgia on Recognition of Property Rights of the Land Plot Possessed (Used) by the Individual and Legal Entities is exempt from the income tax;
- Distribution of profit through shares/stocks to the partner is not subject to the Corporate Income Tax. According to the draft amendment, distribution of shares in this form will not be treated as capital injection.