Income tax exemption to be extended for six months
Income tax exemption to be extended for six months

The validity of the income tax exemption will be extended for six months from December 1, 2020. Tax Code amendments were initiated at today’s meeting of the Parliament Bureau.

The bill reads that the employer is entitled not to pay to the budget the withheld and payable income tax from the up to 750 GEL salary paid to the employee if the wages received by the employee from the same employer during one calendar month does not exceed 1,500 GEL.

The initiators of the bill explain the tax cut would apply to more than 550 thousand people employed in more than 42 thousand companies. The amount of tax relief in the income tax is 270 million GEL.

Besides, amendments envisage a possibility of VAT taxation of the property rent and leasing services during the reported period if the corresponding amount has been paid.

“This change will help companies avoid incurring additional tax liabilities, which will place a heavy burden on their financial situation,” the bill reads.

In addition to the above, the property tax exemption in 2021 would apply to individuals engaged in tourism, hotel, and restaurant businesses.

“This tax benefit will apply to more than 1000 companies, which employ more than 30 thousand people. The amount of tax relief in the property tax is 45 million GEL,” the draft reads.

The initiators of the amendments demand the bill to be considered as soon as possible.

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