The Budget and Finance Committee deliberated and approved the Draft Tax Code and the companion Bills by expedited procedure.

The draft law, along with the extension of certain tax benefits until January 1, 2028, also provides for the abolition of the special taxation regime applicable to market organizers and traders operating within market territories.

Additionally, in order to eliminate certain gaps in the existing legislation, the bill introduces clarifying amendments.

The proposed amendments were introduced by Mamuka Baratashvili, Deputy Finance Minister.

The draft law envisions removing from the Georgian Tax Code the regulatory provisions related to special trading zones and market organization. It also stipulates that a multinational enterprise group’s ultimate parent company, if it is a resident of Georgia, must submit a country-by-country report to the tax authority no later than 12 calendar months after the end of the reporting year.

According to the bill, provisions currently effective in the agricultural sector until January 1, 2026, will be extended until January 1, 2028. The supply and import of investment gold will be exempt from VAT with the right of deduction.

The tax exemption related to the import of raw tobacco will also be extended until January 1, 2028. Furthermore, until that same date, the exemption from the obligation to use a cash register will continue to apply to individuals who do not employ hired labor and who conduct economic activity from non-stationary trade locations within market areas (including stalls). This exemption does not apply to individuals with small business status or those registered (or required to be registered) as VAT payers under the Tax Code.

The option to tax income received from the short-term rental of a personally owned residence at a fixed income tax rate will also be extended until January 1, 2028. In order to ensure the completion of construction projects launched before August 2008, the draft law provides for the continuation of relevant tax benefits until 2028.