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IFC and Georgia Partner to Help Micro and Small Businesses Reduce Compliance Costs


In Tbilisi
Tamar Barbakadze, IFC
Phone: +995 32 23 43 00/01/02
E-mail:
TBarbakadze@ifc.org

Mariam Khoperia, Georgian Ministry of Finance
Phone +995 32 26 12 85
E-mail:
pr@mof.ge


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 project.  


“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.


About IFC

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.

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To learn more about the Netherlands-IFC Partnership Program,
visit
www.minbuza.nl/en/home.
To learn more about the Luxemburg-IFC Partnership Program,
visit
www.mf.public.lu.
To learn more about the Austrian Ministry of Finance,
visit
http://english.bmf.gv.at.