კონფერენცია

∘ Teona Yumbulashvili ∘ Nino Javakhishvili ∘
SOME ASPECTS OF DEVELOPMENT OF GEORGIA’S TAX SYSTEM

Summary

The origin of taxes has an ancient history, and the tax system was later established. As for the tax system of Georgia, it has changed for years In particular, the number of taxes in Georgia decreased from 21 to 6. From January 1 of 2017, there have been several significant changes in the Tax Code.

It is important to make changes to profit tax in the Tax Code. Which implies the introduction of the "Estonian Model", a similar model allows us to have the best investment environment.

It should be taken into consideration the fact that the benefits of business exemption from income taxes, what are the shortcomings, and what obstacles are related to this reform. How well the business representatives will be prepared for this reform.

As with all the "Estonian model" has positive and negative sides. Such a reform will positively affect the economy of the country, accelerate economic growth, more financial resources available to companies, It is expected to increase the productivity of the economy, the business will have the opportunity to develop more and more attractive climate to start and operate the business, working place will be increased and most importantly tax registration and administration will be simplified.

Except for the positive factors mentioned by us, certain risks are expected, In particular, in the short term, certain revenues will be lost in the budget, but more important is the benefits that the economy will receive as a result of this reform

Besides the positive impact on macroeconomic indicators, the introduction of the model is accompanied by legislative or other risks

The proposed model is based only on Estonian experience and whether it will justify some risk in Georgia, Because the challenges and reforms of the model implementation are evaluated by taking into consideration the experience of one country.

It is noteworthy that in the case of Georgia and Estonia the scope of the impact of the reform is different. The effect of the reform in Estonia was higher than in Georgia, which could be explained by 2000 as a tax system in Estonia, The ease with which the Estonian companies have been able to reinvest profit. In Georgia, the tax system is already liberal, which means that the starting position of the reform is better with us and consequently less effect on Estonia than the result of the reform.

Establishment of a well-arranged and well-regarded tax system in the country is a guarantee of the formation of the country’s economy and income.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Teona Yumbulashvili ∘ Nino Javakhishvili ∘ SOME ASPECTS OF DEVELOPMENT OF GEORGIA’S TAX SYSTEM Summary The origin of taxes has an ancient history, and the tax system was later established. As for the tax system of Georgia, it has changed for years In particular, the number of taxes in Georgia decreased from 21 to 6. From January 1 of 2017, there have been several significant changes in the Tax Code. It is important to make changes to profit tax in the Tax Code. Which implies the introduction of the "Estonian Model", a similar model allows us to have the best investment environment. It should be taken into consideration the fact that the benefits of business exemption from income taxes, what are the shortcomings, and what obstacles are related to this reform. How well the business representatives will be prepared for this reform. As with all the "Estonian model" has positive and negative sides. Such a reform will positively affect the economy of the country, accelerate economic growth, more financial resources available to companies, It is expected to increase the productivity of the economy, the business will have the opportunity to develop more and more attractive climate to start and operate the business, working place will be increased and most importantly tax registration and administration will be simplified. Except for the positive factors mentioned by us, certain risks are expected, In particular, in the short term, certain revenues will be lost in the budget, but more important is the benefits that the economy will receive as a result of this reform Besides the positive impact on macroeconomic indicators, the introduction of the model is accompanied by legislative or other risks The proposed model is based only on Estonian experience and whether it will justify some risk in Georgia, Because the challenges and reforms of the model implementation are evaluated by taking into consideration the experience of one country. It is noteworthy that in the case of Georgia and Estonia the scope of the impact of the reform is different. The effect of the reform in Estonia was higher than in Georgia, which could be explained by 2000 as a tax system in Estonia, The ease with which the Estonian companies have been able to reinvest profit. In Georgia, the tax system is already liberal, which means that the starting position of the reform is better with us and consequently less effect on Estonia than the result of the reform. Establishment of a well-arranged and well-regarded tax system in the country is a guarantee of the formation of the country’s economy and income.