New tax preferences for small business sector will come into force on July 1. The government’s initiative calls for cutting the turnover tax for small business 5 times. As a result, companies with 500 000 GEL turnover will move to the category of small business.
Business Ombudsman Irakli Lekvinadze hails this initiative. These legal amendments will set important preferences to entrepreneurs, he said.
“The initiative will come into force in July. I believe these amendments will bring important preferences for entrepreneurs, physical bodies, who have manly engaged in trading. Technical part is also important – if they had to carry out difficult process of bookkeeping, now they will be able to enjoy 1% taxation regime and only fill out declarations. These changes do not refer to VAT. Companies with more than 100 000 GEL turnover will pay VAT anyway. Preferences will be applied to the part of revenue or turnover tax”, Lekvinadze noted.