Representative of Courtyard Marriott and Temur Chkonia signed a Memorandum of Cooperation in Kutaisi City Hall. According to the agreement, Temur Chkonia will build a 5 star, more than 100-rooms...
Georgia ranks 22nd out of 190 countries according to the World Bank and PwC Paying Taxes 2018 report, which compares countries by the ease of complying with tax law.
Paying Taxes 2018 is one of the elements of the World Bank’s Doing Business 2018 study in which Georgia ranked 9th overall.
Using the perspective of a medium sized domestic manufacturer, Paying Taxes looks at how a case study company interacts with tax systems in 190 economies around the world. It assesses not just the amount of tax paid, but how long it takes the company to meet its tax compliance obligations. This includes the time to prepare file and pay the main taxes, as well as the time taken to claim a VAT refund and to deal with a correction to a corporate income tax return.
On average globally, it takes the case study company 240 hours to comply with its taxes, it makes 24 payments and has an average Total Tax & Contribution Rate of 40.5% (percentage of income borne by the company in taxes).
According to Paying Taxes 2018, in Georgia the case study company takes 269 hours to comply with its taxes, (one hour less than last year). The case study company makes five payments (no change on last year). The case study company has a Total Tax & Contribution Rate of 16.4% (no change on last year).
The average time to comply in other non-EU Eastern European and Central Asian economies. is 230 hours, which is lower than in Georgia. However the region’s average Total Tax & Contribution Rate is greater at 33.4%, as is the regional average number of payments at 16.
The post-filing processes for value-added tax (VAT) and corporate income tax (CIT) returns, which are considered in the study for the second year, can be amongst the most challenging and lengthy processes for businesses to comply with. Georgia performs well in this category however scoring 85.9, where 100 is the best score. This means Georgia ranks 4th in the Eastern Europe & Central Asia region, where the average score is 62. The global average score is 59.5 for the post-filing index.