Georgia will join the international automatic exchange of information

Rows are thinning

The international automatic exchange of tax data covers more and more countries, and Georgia will not remain on the sidelines. Georgian Finance Minister Ivane Machavariani announced the introduction of international standards for the automatic exchange of information on financial accounts in the country by 2023. This step will serve as a powerful weapon in the fight against non-payment of taxes and will be an impetus for generating an additional source of taxable income in Georgia. This measure will also have a positive impact on the overall positive change in the attitude of businessmen and the international community towards Georgia. Now Georgia will be perceived not only as an offshore territory, but, on the contrary, as a white jurisdiction operating in accordance with international rules and standards.

The first exchange of information (AEOI) in Georgia is planned for September 2023, while the information will be transmitted for the 2022 fiscal year. Due to such structural changes, Georgia can raise its status as a country for launching international projects and increase the value of its financial and banking institutions for the international business community.

To solve the global problem of the erosion of the tax base and the fight against tax evasion, it is necessary to introduce not only an automatic exchange, but also a full-fledged mechanism for determining the tax residency of businessmen and investors. Until this issue is thoroughly worked out, Georgia will remain a tax haven in terms of hiding information about the tax status of some beneficiaries of foreign companies claiming to reduce or reduce to zero possible taxes.

When planning your business, we strongly recommend that you take a serious approach to choosing a jurisdiction for company registration. It is necessary to pay attention not only to the current status of the country chosen to start a business, but also to the prerequisites of the country in relation to the implementation of international standards and rules.

Antwort Law Company constantly monitors global trends, innovations and changes. We are always on the alert. Before you decide something, consult with professionals. The Antwort Law team always has valuable advice for you!