Investors purchase shares to earn a return on their investment. They expect regular dividends as profit. For many minority shareholders, dividends are the only income from specific business ventures. Minority shareholders hold little control over corporate decisions. Corporate directors and majority shareholders dominate the dividend process. They prepare annual accounts, call shareholder meetings, and decide […]
In today’s globalized economy, multinational enterprises often operate across several jurisdictions, engaging in cross-border transactions within their corporate groups. While these arrangements are a natural part of international business, they also create the risk of shifting profits to low-tax jurisdictions. Recognizing these risks, Georgia has developed a comprehensive transfer pricing (TP) framework that closely follows
Significance and Key Principles of Transfer Pricing Read More »
In October 2024, Georgia introduced a landmark change to its transfer pricing framework, one that significantly reshapes the way cross-border financing arrangements are evaluated. With the addition of Article 141 to Order №423 of the Ministry of Finance, the Revenue Service has been granted explicit authority to reclassify certain loans as equity contributions. This change
Debt-to-Equity Reclassification in Georgia: Insights into the Revenue Service’s Approach Read More »
The Labour Code of Georgia (the Labour Code) forbids contractual terms that weaken employee protections and declares them void. Employers must ensure that termination decisions respect equality and non-discrimination. This means providing equal treatment, preventing harassment, offering reasonable accommodation, and carrying the burden of proof in discrimination disputes. Grounds for Termination The Labour Code provides
Lawful Termination of Employment: Key Considerations for Employers in Georgia Read More »
The rise of digital currencies has prompted many countries to update their tax systems. Georgia has become one of the more attractive jurisdictions for crypto investors and blockchain businesses, offering clear rules and several exemptions. The Georgian Tax Code, alongside ministerial rulings, establishes how income from crypto transactions is taxed and under what circumstances exemptions
Taxation of Crypto Assets in Georgia: Rules, VAT Treatment, and VASP Regulation Read More »
Value Added Tax (VAT) plays a key role in Georgia’s tax system, and understanding the rules for registration is essential for businesses and entrepreneurs operating in the country. Businesses can register for VAT under the Tax Code of Georgia in two ways: mandatory registration, where the law requires registration once specific thresholds or conditions apply, and voluntary
Rules for Mandatory and Voluntary VAT Registration in Georgia Read More »
The Law of Georgia on Entrepreneurs in Georgia establishes a clear and modern framework for companies, shareholders, directors, creditors, and other stakeholders. It draws inspiration from European Union directives and aims to bring Georgian corporate law closer to international standards. Modern Rules for Business Operations The Law introduces a more transparent approach to company operations.
In recent years, thermal cameras have become increasingly common in Georgia across various industries, including hospitality, retail, transportation, and corporate offices. Initially popularized during the COVID-19 pandemic as a tool for temperature screening, these devices continue to be used today for health, safety, and security purposes. While thermal cameras can help businesses identify potential risks
Protecting Personal Data in Georgia’s Thermal Screening Era Read More »
Public Registry’s Verification Practice The LEPL National Agency of the Public Registry (Public Registry) has adopted a practice of subjecting documents issued and apostilled abroad to an additional verification procedure. When applicants submit such documents, the Public Registry may send them to the Ministry of Foreign Affairs of Georgia (MOFA) or the relevant embassies/consulates. The
Public Registry’s Verification of Foreign Apostilled Documents in Georgia Read More »
Due to the practice of the National Agency of Public Registry of the Ministry of Justice of Georgia (the Public Registry), the unilateral right of the landlord to terminate registration of the lease agreement upon early termination of the agreement cannot be enforced. Registration Requirement for Long-Term Leases A lease agreement with more than one
Unilateral Termination of Registered Lease Agreement Read More »