The Business Association of Georgia plans to request the government to extend the income tax benefits for another 6 months.
According to the government decision, for a period of 6 months from May 1, 2020, salaries up to 750 GEL will be exempt from income tax, and for salaries up to 1500 GEL, the first 750 GEL will be exempt from income tax. This means exempting employers in the private sector of max GEL 150 per month for monthly salary. In particular, if in the past companies had to transfer 750 GEL to an employee to pay a net 600 GEL, now they will be taxed with an income tax of 0 GEL and will only need 600 GEL to pay the same 600 GEL salary.
The Minister of Finance, Ivane Machavariani, responded to the issue today:
"As you know, we expect 5% economic growth. However, all events today are very dynamic and ever-changing - including the regional conflict. Back in Spring, The World Bank changed its forecasts weekly. Therefore, depending on how dynamic the economic recovery process will be, we will consider appropriate measures, be it the recovery process, assistance, compensation, etc. I hope the necessity to discuss benefits and compensations will be minimized. I hope the recovery process will flow smoothly, and we will talk about incentives, assistance, etc. as much as possible," said Vano Machavariani.
