The tax code bill sets uncompetitive conditions to resident and nonresident investors, who trade in securities, as the nonresident investors will have to pay a 15 percent profit tax, while the figure makes up 20 percent for resident investors, says Gogi Loladze, director for the Georgian Stock Exchange (GSE).He also added the new bill imposes a profit tax on the yield from the price difference of sale of securities and stakes. Under the current norms, the price difference is exempted from a profit tax for two years. Following the consultations, the government took a decision on retaining the current norm, but the decision is not reflected in the new tax code bill.
The parliament is expected to adopt the bill by a second hearing on July 1 and by a third hearing in autumn.