OREANDA-NEWS. May 20, 2011. IFC, a member of the World Bank Group, and the Ministry of Finance of Georgia signed a cooperation agreement today to work together to reduce regulatory compliance costs for micro and small businesses by training entrepreneurs on the country's new taxation regimes, helping them save time and money from the reforms.

IFC Georgia Tax Simplification Project will support the Ministry of Finance of Georgia in rolling out the reformed taxation systems for micro and small businesses introduced by the new Tax Code in January, 2011. IFC will also advise the Ministry and the Revenue Service on streamlining audit procedures, and will train auditors to help ensure transparent treatment of companies. The Ministry of Finance of Georgia will provide technical support for the project.  

“Simplified taxation regimes for businesses help legalize business, boost its development and support employment,” said Kakha Baindurasvhili, Minister of Finance of Georgia. “The cooperation agreement signed with IFC will help make the business community aware of current regulations and recent steps taken by the Government of Georgia to liberalize the tax system.”

The IFC Georgia Tax Simplification Project has supported Georgia in adopting the new tax regimes for micro and small businesses, reflected in the new tax code and secondary legislation. The new regulations help reduce administrative burden and compliance costs, and improve company operations.

“Georgia has made important progress in streamlining taxation to benefit micro and small businesses that are the key engine of employment and growth,” said Thomas Lubeck, IFC Regional Head for the Caucasus. “We welcome the government’s commitment to further progress in this area. We will support the Ministry of Finance by implementing trainings and raising awareness among entrepreneurs to enable them to fully benefit from these reforms.”

The IFC Georgia Tax Simplification Project is being implemented with financial support from the governments of the Netherlands, Luxemburg, and Austria.

To date, IFC Investment Climate Advisory Services in Europe and Central Asia has improved or eliminated over 4,000 regulatory policies and procedures. These reforms have benefitted over 200,000 businesses and helped the private sector save around USD 421 million.