World Bank helps Georgia increase tax transparency
12 February 2014
Posted by: Author: Tatiana Smolenska
Author: Tatiana Smolenska (Tax-News)
The Investment Climate Advisory Services of the World Bank Group has helped the Georgian government streamline international taxation procedures to improve transparency, protect tax revenues, and boost investor confidence, Georgia's Finance Ministry revealed on January 23, 2014.
The Georgia Investment Climate Project has helped Georgia's Ministry of Finance develop a legal framework and will now help implement new transfer pricing rules. The new rules help the government ensure fair taxation and foster an attractive investment climate.
Nodar Khaduri, the Minister of Finance of Georgia, said: "The new rules in international taxation will help companies comply with transfer pricing regulations easily, while also ensuring public interests are protected. This is a step forward in our efforts to support private sector development in Georgia."T
he new rules allow companies to seek advance pricing arrangements, giving the private sector more clarity on transfer pricing matters. The rules are in line with the best practices of the Organization for Economic Co-operation and Development and provide guidance on issues of major concern to developing countries, providing a high level of certainty for investors regarding their obligations in Georgia.
"Multinational companies often face challenges in cross border taxation. Therefore streamlined and clear procedures in this area serve as a good stimulus for foreign investors," said Thomas Lubeck, IFC Regional Manager for the South Caucasus. "Our support in creating simple, efficient and business-friendly regulations is aimed at reducing the cost of doing business and attracting more foreign investment to Georgia."
The regulations will be published in English as well as Georgian, for maximum coverage among foreign investors, and the Georgia Investment Climate Project will offer training to private companies on the consequences of the new rules.
The Georgia Investment Climate Project is implemented by the IFC, a member of the World Bank Group, in partnership with Austria's Federal Ministry of Finance, BP and its Oil and Gas Co-venturers, and the Norwegian Trust Fund for Private Sector and Infrastructure.
This article first appeared on tax-news.com.