The Finance and Budget Committee of Georgia has, in its first reading, approved draft amendments to the Tax Code of Georgia in an accelerated procedure, proposing significant changes to the country’s tax framework.
The draft law provides for the abolition of the special tax regime for the organization of fairs and traders operating within fairgrounds. At the same time, certain tax benefits will be extended until January 1, 2028.
Under the amendments, regulatory provisions for the special trade zone and fair organization will be removed from the Tax Code. Additionally, the ultimate parent company of a multinational enterprise group will be required to submit a report to the tax authority within 12 months after the end of the reporting year.
Key tax benefits extended until 2028 include:
- Provisions in the agricultural sector previously valid until 2026.
- VAT exemption on the supply and import of investment gold, with the right to deduct.
- Tax relief on the import of raw tobacco.
- Exemption from cash register obligations for individuals operating from non-stationary trading places in markets (excluding small businesses and VAT payers).
- Fixed income taxation for individuals earning from short-term rentals of residential premises.
- Incentives to promote the completion of construction projects started before August 2008.
The proposed amendments aim to simplify taxation, encourage investment, and maintain support for strategic sectors while phasing out outdated special regimes.
