Tbilisi, Georgia, May 18, 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
“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 $421 million.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
To learn more about the Netherlands-IFC Partnership Program, visit
To learn more about the Luxemburg-IFC Partnership Program, visit
To learn more about the Austrian Ministry of Finance, visit