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NEWS

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The Role of Civil Society Organizations in the Implementation of the DCFTA

03-Aug-2018

The Role of Civil Society Organizations in the Implementation of the DCFTA

On July 25, Ms. Mariam Saghareishvili, Researcher at PMCG, participated in a working meeting about the DCFTA and the role of civil society organizations (CSOs) in its implementation. The working meeting aimed to inform CSOs about the possibilities and requirements of t...

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PMC Research Awarded Again for its Transparency

24-Jul-2018

PMC Research Awarded Again for its Transparency

PMCG is excited and proud to announce that PMC Research was recently given a 5-star rating for transparency by international organization Transparify.  Such an award is the highest possible rating issued by Transparify, and reflects exemplary transparency in PMC R...

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New Simplified Financial Reporting Standard for MSMEs

05-Jul-2018

New Simplified Financial Reporting Standard for MSMEs

On June 26, the newly simplified Financial Reporting Standard for Category IV-Entities was adopted with the goal to improve the quality and transparency of corporate financial statements, according to the decree of the Head of Service for Accounting, Reporting and Audit...

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Discussing How to Fight Corruption in Armenia

04-Jul-2018

Discussing How to Fight Corruption in Armenia

On June 29, Mr. David Lezhava, Public Policy Sector Director at PMCG, participated in a conference entitled “The anti-corruption policies and measures”, which was co-hosted by the Embassy of the Republic of Bulgaria and the EU Delegation to Armenia. Mr. Lezhava’s presen...

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Study to Identify Challenges for SMEs Seeking Access to Finance

02-Jul-2018

Study to Identify Challenges for SMEs Seeking Access to Finance

PMC Research recently launched a new project entitled “Leveraging SME Finance through Value Chains in Georgia”, designed to study the challenges facing SMEs with a particular focus on access to finance in Georgia.On June 21, Goga Khishtovani, Director at PMC Research, p...

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Discussing Opportunities and Challenges of the EU-Georgia DCFTA at Georgian Farmers Congress

21-Jun-2018

Discussing Opportunities and Challenges of the EU-Georgia DCFTA at Georgian Farmers Congress

On June 15, PMC Research participated in the Georgian Farmers Congress, an event designed to support dialogue between farmers and state bodies, a crucial aspect in the development of Georgia’s agricultural sector. Giorgi Khishtovani, Director at PMC Research, prese...

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Welcoming Our New Public Policy Sector Director

20-Jun-2018

Welcoming Our New Public Policy Sector Director

We are delighted to welcome David Lezhava to our team, as our new Public Policy Sector Director. Mr. Lezhava brings with him 20 years of sound experience in the fields of public finance and economic development, regional development, social policy and energy policy...

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Value Chain Analysis of Broccoli, Tangerine, and Raspberry in Georgia and Their Potential on the EU Value Chain Analysis of Broccoli, Tangerines and Raspberries in Georgia and their EU Market Potential

19-Jun-2018

Value Chain Analysis of Broccoli, Tangerine, and Raspberry in Georgia and Their Potential on the EU Value Chain Analysis of Broccoli, Tangerines and Raspberries in Georgia and their EU Market Potential

At the beginning of June, PMC Research hosted three public discussions and presentations in Marneuli, Mtskheta and Misaktsieli about the value chain analyses of three agricultural products, namely broccoli, tangerines and raspberries. The studies into these product...

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Discussing Georgia’s Sectoral Integration with the EU at 15th Batumi International Conference

16-Jun-2018

Discussing Georgia’s Sectoral Integration with the EU at 15th Batumi International Conference

On June 15, PMCG’s CEO and Chairman Aleksi Aleksishvili participated in the 15th Batumi International Conference “Georgia’s European Way.”Giorgi Margvelashvili, President of Georgia, Mikheil Janelidze, Vice Prime Minister and Minister of Foreign Affairs of Georgia, Irak...

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Hosting Networking Lunch with UK Trade Mission to Georgia

06-Jun-2018

Hosting Networking Lunch with UK Trade Mission to Georgia

On June 4, we hosted a networking lunch with the UK’s trade mission to Georgia.The meeting served as an excellent opportunity for public and private institutions from Georgia and the UK to meet, establish connections and discuss possible collaboration. The trade mission...

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PUBLICATIONS

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Issue 105: External Trade, January-June 2018

03-Aug-2018

Issue 105: External Trade, January-June 2018

The first half of 2018 produced some interesting figures regarding Georgia’s external trade. Even though the existing data is only preliminary, the analysis thereof unveils some curious results. Georgia’s exports and imports reached their highest point for the observed period of ...

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Issue 104: External Factors Affecting the Value of Georgian…

10-Jul-2018

Issue 104: External Factors Affecting the Value of Georgian Lari Exchange Rate

For the period of 2014 to 2017, in every first quarter of each year compared to the first quarter of the previous year, the nominal exchange rate of the Georgian Lari (GEL) against the US Dollar (USD) depreciated. This trend stopped this year though as in the first quarter of 201...

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Issue 103: Gross Domestic Product, 2017

28-May-2018

Issue 103: Gross Domestic Product, 2017

According to preliminary data, the Georgian economy is characterized by a 5.0% growth in 2017, which is the highest annual real growth rate for the country since 2012. A trend analysis of GDP is useful in comprehending the indicator relative to previous years. Furthermore, a sect...

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Support to Approximation of Georgian VAT Rules with EU VAT Legislation

26-Feb-2015
Start Date:
January, 2015
End Date: April, 2015
Region: Caucasus
Country: Georgia
Client: Ministry of Finance of Georgia
Origin of Funding: USAID/G4G

 

 

 

 






Project Description:

 

The objective of the project is to support the Ministry of Finance of Georgia (MoF) in gradual approximation of Georgian with EU legislation.

One of the priority areas of legal approximation under the Association Agreement is tax legislation, specifically value added tax (VAT). Policy and Management Consulting Group (PMCG) under the USAID / Governing for Growth in Georgia (G4G) project will develop recommendations in the VAT Approximation Action Plan for the Ministry of Finance of Georgia.

PMCG will collaborate with the MoF’s special working group and will conduct the following activities:

  • Comparative analyses of VAT Directive with the tax code provision on VAT and identify any discrepancies;
  • Prioritize the research results and the issues according to the criteria of feasibility and their impact on the private sector;
  • Organize and conduct discussions with the MoF’s working group and private sector representatives about complex VAT issues;
  • Support MoF to develop VAT Approximation Action Plan, ranking the tax code amendments according to priorities.


After clearly identifying the discrepancies in the comparative analysis, PMCG will explain the logic of provisions’ prioritization and their qualitative impact on private sector. As a result of the project, PMCG will provide a VAT Approximation Action Plan indicating the tax code amendments in order of priority.

 

Background Information:

Georgia and the European Union signed the Association Agreement (AA) on June 27, 2014. The Agreement offers Georgia a route to economic integration into the EU internal market, notably through establishing a Deep and Comprehensive Free Trade Area and constitutes a comprehensive ‘reform agenda’ for gradual approximation of Georgian legislation with that of the EU. One of the priority areas of legal approximation under the AA is the tax legislation and, in particular, the value added tax (VAT) related rules. The key EU legislation on VAT includes “Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax” (VAT Directive).

The Ministry of Finance (MoF) approached G4G with a request to provide technical assistance in analyzing the VAT Directive, prioritizing its provisions according to agreed criteria and developing recommendations on an approximation action plan. To support the process, MoF established the working group (WG) consisting of representatives from MoF’s Tax Policy Department, Revenue Service (RS) and the EU Twinning Project “Strengthening Administrative Capacity of the Georgian Revenue Service in Taxation” (EU Twinning Project). PMCG, as an implementing partner of G4G, will provide analytical support to the working group. It will prepare and bring issues to be discussed by WG members, collect feedback and lay down recommendations for legislative approximation. PMCG will also ensure the private sector’s participation in the VAT legislation review and conduct public-private consultations throughout the review process.



Follow the links below for more detailed information:

Simplification of Tax Code
USAID Georgia, Economic Prosperity Initiative – Assessment of Georgia-United Arab Emirates Double Taxation Treaty
Business Environment Improvement (BEI) Project in Kyrgyzstan
Governing for Growth in Georgia (G4G), by USAID





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