SOME ISSUES OF TAX INCOME IN GEORGIA
SOME ISSUES OF TAX INCOME IN GEORGIA

Summary/Abstract: Tax reform was an important part of economic reforms in Georgia in the post-Soviet period. To date it has changed many times. This process continues at the present time. In the post-Soviet Georgia, there is a constant process of searching for an optimal tax policy option. Changes are occurring in tax management as well as in types and rates of taxation; both fixed and differentiated tax rates were enacted at various times; the number of taxes has decreased more than three times. Income tax and value added tax (VAT) occupy the leading positions in budget revenues, while the amount of profit tax is relatively modest. In general, business development provides additional jobs and more taxes. In turn, a developed business makes more profit. Georgia is one of the leading countries in the business registration rankings, but successful business operations are related to ease of paying taxes. In recent years, the Estonian experience has been used in Georgia: reinvested earnings are exempt from tax. This gave the business additional funds and strengthened its material base. Consequently, the budget revenues - the amount of profit tax - were reduced. Later, these "privileges" will be extended to large financial institutions, which are the main taxpayers of profits. In Georgia, once the model, similar to the "Estonian model" of tax changes are fully enacted, it will be possible to fully evaluate the results obtained. Currently, within the framework of this paper, based on the existing official statistical materials, we will try to analyze the obtained results in advance.

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