TAX & LAW BRIEF
SIGNIFICANT AMENDMENTS IN GEORGIAN TAX CODE
According to the amendment, which has been published on the Legislative Herald of Georgia on 12 June 2018:
- Organizations conducting economic activities are also moving to new Corporate Income Tax (CIT) regime from 2019 and are becoming subject to taxation on the following transactions:
-- Incurring expanses which are not related to economic activities and/or purpose of organization (including the expenses not related to charity activities and/or the purpose of grant agreements);
-- Free of charge supply of goods / delivery of service and/or transfer of funds, when it is not related to purpose of organization;
-- Incurring representative expanses that exceeds the limit determined by Georgian Tax Code (GTC).
- For the relations arisen from 1 January 2018, a company/organization or an individual entrepreneur who reimburses the service fee amount to individuals should withhold tax at the source of payment.