Ex-post regulatory impact assesment (RIA) on the reform on levying profit tax in Georgia
Status: Complated
Project Milestones: Start date: 09.09.2019 End Date: 28.08.2020

In 2016 reform to levy profit tax was carried out in Georgia to accelerate economic growth in the country, create a favorable environment for starting business and production, and tax administration. The reform envisaged transferring into the Estonian model of levying profit tax, resulting in levying enterprises with taxes during profit distribution. 

The new profit tax regime entered into force on January 1, 2017. GIZ contracted ISET Policy Institute to identify outcomes of the profit tax reform of 2017 and evaluate the reform through the mechanism of the Regulatory Impact Assessment.

The objective of the project was the conduction of RIA on the new regime of levying profit tax, facilitating finding gaps pertaining to the reform, disclosing practical and legal problems, and showing alternatives for relevant amendments.

ISET Policy Institute supported the initiating authority in the entire process of RIA implementation, according to the international best practices through the following activities:

  • Facilitating the Parliament of Georgia in the establishment of the RIA group
  • Development of a detailed plan for the RIA implementation
  • Conducting thematic training sessions for the RIA drafting team on RIA methodology throughout the RIA implementation process
  • Supporting in consideration of the 2030 Agenda requirements during RIA implementation, in particular, to integrate the 2030 Agenda goals
  • Together with the Parliament of Georgia, developing ways/recommendations to eradicate gaps in the new regime of levying profit tax using quantitative and qualitative analysis methods
  • Supporting the RIA team in conducting meaningful stakeholder consultations among a broad group of stakeholders, including Ministries of Georgia and Legal Entities of Public Law, Parliament Committees, civil society organizations, and other interested stakeholders during the entire RIA process; monitor that the outcomes of the consultations are enshrined in relevant chapters of the RIA report
  • Supporting the RIA team in data collection and evaluation
  • Facilitating assessment and comparative analysis of possible alternatives produced by the Parliament of Georgia along all three dimensions of sustainability — economic, social, and environmental
  • Supporting the RIA team in the preparation of interim/final RIA reports and organization of relevant presentations. Together with the Parliament of Georgia, presenting the final report in the public consultation format.