Tax Code Bill Sets Uncompetitive Conditions to Resident and Nonresident Investors, says Georgian Stock Exchange Director

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.