კონფერენცია

∘ Nino Lobzhanidze ∘
IMPACT OF THE TAX SYSTEM ON SMALL AND MEDIUM SIZED ENTREPRENEURSHIP IN GEORGIA

Summary

The paper evaluates the role of the tax factors in improving the conditions of small and medium sized enterprises. The characteristics of the tax system are analyzed. There are discussed best cases of stimulating tax policies in a developed country and the corresponding data for the comparative analysis of small and medium sized businesses for individual cases in each country.

Firstly the paper evaluates the strengths and weaknesses of the small and medium sized enterprises and its role in the improvement of the business environment and the overall economic situation in the country. The paper discusses the development of entrepreneurship in accordance with existing government policy and highlights the impact of the tax system; it is reviewed tax benefits for the local and foreign entrepreneurs of all the countries in which Georgia has signed an agreement of double taxation and tax zero out evasion. Also, it is estimated already conducted tax reforms and the future EU tax harmonization policy capabilities. The article discusses the problems that are the obstacles for local and foreign entrepreneurs to invest in small and medium sized entrepreneurship. Conclusions are made regarding the problems identified on and recommendations are suggested.

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	∘ Nino Lobzhanidze ∘ IMPACT OF THE TAX SYSTEM ON SMALL AND MEDIUM SIZED ENTREPRENEURSHIP IN GEORGIA Summary The paper evaluates the role of the tax factors in improving the conditions of small and medium sized enterprises. The characteristics of the tax system are analyzed. There are discussed best cases of stimulating tax policies in a developed country and the corresponding data for the comparative analysis of small and medium sized businesses for individual cases in each country. Firstly the paper evaluates the strengths and weaknesses of the small and medium sized enterprises and its role in the improvement of the business environment and the overall economic situation in the country. The paper discusses the development of entrepreneurship in accordance with existing government policy and highlights the impact of the tax system; it is reviewed tax benefits for the local and foreign entrepreneurs of all the countries in which Georgia has signed an agreement of double taxation and tax zero out evasion. Also, it is estimated already conducted tax reforms and the future EU tax harmonization policy capabilities. The article discusses the problems that are the obstacles for local and foreign entrepreneurs to invest in small and medium sized entrepreneurship. Conclusions are made regarding the problems identified on and recommendations are suggested.