Instructions on Inventory Count
In accordance with the provisions of the Tax Code of Georgia regarding the taxauthorities right to request a taxpayer to perform stock count for reconciliationwith taxpayers accounting records, the Ministry of Finance promulgated Order#337, dated 11 April 2007 on “Procedures of performing Inventory Count at theTax Authorities Request”. The instructions provide rules of performing theinventory count by taxpayers and forms for stock count results recording fordifferent category of inventory. The new instructions came into effect in April2007.
Free Trade Agreement with Moldova
On 30 March 2007, the Parliament of Georgia ratified by resolution # 4591 theFree Trade Agreement signed between the governments of Georgia and theRepublic of Moldova.
Amendments to VAT Return
On 3 April 2007, the Minister of Finance of Georgia issued Order #304introducing changes to the instructions “On the VAT Declaration Form and Rulesof Its Filling”. Among other minor changes, VAT declaration has been slightlyamended. The instructions came into effect in April 2007.
Changes to the Law on Entrepreneurs
With effect from 1 June 2007, the Parliament adopted the law # 4581 “OnIntroduction of Changes and Amendments to the Law on Entrepreneurs”. Thus,several articles of the Law have been formulated in more detail and the rightsand obligations of shareholders in legal entities have been clarified. In addition,the tax authorities are required to issue the Extract from Entrepreneurial Registerimmediately upon request of any interested person in contrast with previouslyactive three-days waiting period.
Double Taxation Treaty between Georgia and France
The agreement on the avoidance of double taxation of income and capital gainsand prevention of tax evasion treaty signed between Governments of Georgiaand Republic of France on 4 March 2007 has been ratified by the Parliament ofGeorgia on 25 April. The effective date of the ratified treaty will be known oncethe Ministries of Foreign Affairs of the two countries exchange the notes.