Georgia

Type of profile
Country
Overview

Recent reform steps

Georgia is actively participating in the Base Erosion and Profit Shifting (BEPS) project. Together with 70 ministers and other high-level representatives, Georgia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”) in June 2017. Within the framework of the MLI, Georgia has initiated a review of its tax treaties, resulting in the modification of 35 out of 54 active treaties under the MLI upon its entry into effect. In addition, a Georgian team has come up with a set of reservations as well as notifications and options regarding its covered tax agreement, which were communicated to the OECD Secretariat.

Further, preferential tax regimes existing in Georgia have been reviewed by the Forum on Harmful Tax Practices (FHTP) against the compliance with the Action 5 minimum standards in 2017. As a result of these reviews, it has been recognised that Georgia’s Free Industrial Zone and Special Trade Company Regimes are out of scope of the minimum standards. Therefore, no further action is required by Georgia. Two other regimes, the International Financial Company and the Virtual Zone Person Regimes, were concluded as “potentially harmful but not actually harmful”. These two regimes will require no further actions to be taken by Georgia, though they are subject to an ongoing yearly monitoring process on their actual harmfulness. In 2018, the FHTP conducted a reassessment of preferential tax regimes existing in Georgia, resulting in similar evaluations as in the year before.

Progress achieved

International tax standards

In 2018, the OECD launched a peer review of existing bilateral tax treaties to ensure effective and coordinated implementation of the Action 6 minimum standard. This peer review revealed that a large majority of the BEPS Inclusive Framework members, including Georgia, have made substantial progress towards implementing the minimum standard and are currently in the process of modifying their treaty network by using the MLI.

In November 2018, the Ministry of Finance of Georgia prepared the draft package for the implementation of the Country-by-Country Reporting (CbCR), consisting of the amendments to the primary legislation along with the secondary legislation.

Throughout 2018, Georgia was closely involved in activities of the Forum of Tax Administration Mutual Agreement Procedures (FTA MAP) and participated in the reviews of other jurisdictions. The Ministry of Finance provided the reporting of its mutual agreement procedures statistics pursuant to the agreed reporting framework on April 17 2018.

The peer review of Georgia on Action 14 (MAP) is scheduled for 2020.

EU screening process

With a letter from December 2018, the Ministry of Finance was informed by the General Secretariat of the Council that Georgia would retain its status and would not be included in the lists of non-cooperative jurisdictions in 2019.

OECD Induction Programme

In 2017, the Georgian Government and the OECD agreed to launch an induction programme to support Georgia in reviewing its domestic legislation and implementing BEPS minimum standards and tools developed by the OECD to facilitate the implementation process thereof.

As part of the OECD Induction Programme, a roadmap for Georgia has been finalised in 2018. The roadmap is a working document that outlines particular areas where technical assistance is required and sets relevant timelines.

Outlook: DRM priorities in 2019

Priority activities
  • Training of staff
Expected outcomes
  • Improved efficiency

Ensuring policy coherence for development

Georgia is part of various international groups and activities working towards the development of coherent policy strategies and approaches. Furthermore, Georgia is represented in working groups at the level of the OECD as well as regional communities working in the field of international tax cooperation.

Resources

There are no resources available.

DRM Project Data as Recipient

all
2015
2016
2017
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
European Commission
year all
3 projects
amount 0.00 USD
disbursement 675 044.70 USD
Strengthening Administrative Capacity of the Revenue Service in Taxation
year 2015
1 project
amount 0.00 USD
disbursement 348 990.00 USD
Capacity Building of the Investigation Service of the Ministry of Finance of Georgia
year 2016
1 project
amount 0.00 USD
disbursement 233 010.50 USD
Strengthening the Administrative Capacity of the Georgia Revenue Service in Taxation
year 2016
1 project
amount 0.00 USD
disbursement 93 044.20 USD
United States of America
year all
22 projects
amount 1 559 300.00 USD
disbursement 1 022 510.00 USD
Technical Assistance for Georgia . Revenue Policy and Administration
year 2015
1 project
amount 0.00 USD
disbursement 12 390.00 USD
Governing for Growth in Georgia (G4G) Activity . Agricultural Enabling Environment
year 2015
1 project
amount 0.00 USD
disbursement 41 720.00 USD
Governing for Growth in Georgia (G4G) Activity . Business Enabling Environment
year 2015
1 project
amount 16 980.00 USD
disbursement 90 350.00 USD
Governing for Growth in Georgia (G4G) Activity . Modern Energy Services
year 2015
1 project
amount 30 640.00 USD
disbursement 0.00 USD
Governing for Growth in Georgia (G4G) Activity . Private Sector Capacity
year 2015
1 project
amount 37 500.00 USD
disbursement 0.00 USD
Governing for Growth in Georgia (G4G) Activity . Trade and Investment Enabling Environment
year 2015
1 project
amount 50 000.00 USD
disbursement 0.00 USD
Governing for Growth in Georgia (G4G) Activity . Business Enabling Environment
year 2015
1 project
amount 0.00 USD
disbursement 60 230.00 USD
Governing for Growth in Georgia (G4G) Activity . Private Sector Capacity
year 2015
1 project
amount 0.00 USD
disbursement 5 000.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 76 530.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 168 000.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 90 000.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 19 880.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 404 160.00 USD
disbursement 360.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 73 530.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 124 330.00 USD
disbursement 10.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 168 000.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 183 600.00 USD
disbursement 53 130.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 90 000.00 USD
N/A
year 2016
1 project
amount 404 160.00 USD
disbursement 360.00 USD
N/A
year 2016
1 project
amount 124 330.00 USD
disbursement 10.00 USD
N/A
year 2016
1 project
amount 183 600.00 USD
disbursement 53 130.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 19 880.00 USD
Slovakia
year all
1 project
amount 1 420.00 USD
disbursement 1 420.00 USD
Study visit of the Ministry of Finance of Georgia representatives to Slovakia
year 2016
1 project
amount 1 420.00 USD
disbursement 1 420.00 USD
Hungary
year all
2 projects
amount 1 592.29 USD
disbursement 1 592.30 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme
year 2016
1 project
amount 1 000.19 USD
disbursement 1 000.20 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme.
year 2017
1 project
amount 592.10 USD
disbursement 592.10 USD
Totals
year all
28 projects
amount 1 562 312.29 USD
disbursement 1 700 567.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
European Commission
year 2015
1 project
amount 0.00 USD
disbursement 348 990.00 USD
Strengthening Administrative Capacity of the Revenue Service in Taxation
year 2015
1 project
amount 0.00 USD
disbursement 348 990.00 USD
United States of America
year 2015
8 projects
amount 135 120.00 USD
disbursement 209 690.00 USD
Technical Assistance for Georgia . Revenue Policy and Administration
year 2015
1 project
amount 0.00 USD
disbursement 12 390.00 USD
Governing for Growth in Georgia (G4G) Activity . Agricultural Enabling Environment
year 2015
1 project
amount 0.00 USD
disbursement 41 720.00 USD
Governing for Growth in Georgia (G4G) Activity . Business Enabling Environment
year 2015
1 project
amount 16 980.00 USD
disbursement 90 350.00 USD
Governing for Growth in Georgia (G4G) Activity . Modern Energy Services
year 2015
1 project
amount 30 640.00 USD
disbursement 0.00 USD
Governing for Growth in Georgia (G4G) Activity . Private Sector Capacity
year 2015
1 project
amount 37 500.00 USD
disbursement 0.00 USD
Governing for Growth in Georgia (G4G) Activity . Trade and Investment Enabling Environment
year 2015
1 project
amount 50 000.00 USD
disbursement 0.00 USD
Governing for Growth in Georgia (G4G) Activity . Business Enabling Environment
year 2015
1 project
amount 0.00 USD
disbursement 60 230.00 USD
Governing for Growth in Georgia (G4G) Activity . Private Sector Capacity
year 2015
1 project
amount 0.00 USD
disbursement 5 000.00 USD
Totals
year 2015
9 projects
amount 135 120.00 USD
disbursement 558 680.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
European Commission
year 2016
2 projects
amount 0.00 USD
disbursement 326 054.70 USD
Capacity Building of the Investigation Service of the Ministry of Finance of Georgia
year 2016
1 project
amount 0.00 USD
disbursement 233 010.50 USD
Strengthening the Administrative Capacity of the Georgia Revenue Service in Taxation
year 2016
1 project
amount 0.00 USD
disbursement 93 044.20 USD
Slovakia
year 2016
1 project
amount 1 420.00 USD
disbursement 1 420.00 USD
Study visit of the Ministry of Finance of Georgia representatives to Slovakia
year 2016
1 project
amount 1 420.00 USD
disbursement 1 420.00 USD
United States of America
year 2016
14 projects
amount 1 424 180.00 USD
disbursement 812 820.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 76 530.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 168 000.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 90 000.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 19 880.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 404 160.00 USD
disbursement 360.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 73 530.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 124 330.00 USD
disbursement 10.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 168 000.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 183 600.00 USD
disbursement 53 130.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 90 000.00 USD
N/A
year 2016
1 project
amount 404 160.00 USD
disbursement 360.00 USD
N/A
year 2016
1 project
amount 124 330.00 USD
disbursement 10.00 USD
N/A
year 2016
1 project
amount 183 600.00 USD
disbursement 53 130.00 USD
Governing for Growth in Georgia (G4G) Activity
year 2016
1 project
amount 0.00 USD
disbursement 19 880.00 USD
Hungary
year 2016
1 project
amount 1 000.19 USD
disbursement 1 000.20 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme
year 2016
1 project
amount 1 000.19 USD
disbursement 1 000.20 USD
Totals
year 2016
18 projects
amount 1 426 600.19 USD
disbursement 1 141 294.90 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Hungary
year 2017
1 project
amount 592.10 USD
disbursement 592.10 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme.
year 2017
1 project
amount 592.10 USD
disbursement 592.10 USD
Totals
year 2017
1 project
amount 592.10 USD
disbursement 592.10 USD