The Parliament of Georgia supported the initiative to establish tax benefits in the second reading on April 18. The authors of the draft law are deputies of the ruling party "Georgian Dream" and it is considered in an accelerated mode. 75 deputies supported the change, and 9 were against it.
According to the draft law, those Georgian businessmen who own assets in offshore zones will be given tax benefits for transferring assets to Georgia. According to opposition MPs, the draft law is tailored to Bidzina Ivanishvili, the chairman of "Georgian Dream", and its adoption is related to increased expectations regarding international sanctions.
The initiative was submitted to the Parliament by its co-author, the Chairman of the Finance and Budget Committee, Paata Kvizhinadze. According to him, this change is not related to Bidzina Ivanishvili, and even if it is, "nothing bad happens with it". Paata Kvizhinadze also ruled out the possibility that Ivanishvili might become a target of international financial sanctions.
The richest citizen of Georgia, Bidzina Ivanishvili, carries out his business operations through offshore companies, "Cartu Bank", "Tourism Development Fund" and "Co-Investment Fund", which are legally owned by offshore companies.
According to the draft law submitted to the parliament, when assets are transferred from offshore companies to Georgia, the receiving Georgian company will be exempted from tax if the operation is completed before January 1, 2028, and until January 1, 2030, the enterprise involved in the said transaction will be exempt from import tax when receiving the physical asset from the offshore company in Georgia.
