The Georgian authorities began to fight against COVID-19 on 28 January, one month before the first confirmed case of infection was reported on 26 February. The state of emergency was declared on 21 March. The authorities’ fight against the spread of the virus is viewed as a successful example worldwide!
Tax measures
- Business entities connected with the tourism industry have had four months of property and income tax payment deferred until 1 November 2020.
- The 90-day period of car customs clearance for vehicle importers has been deferred until 1 September of this year.
- For six months, salaries of up to 750 Gel will be fully exempt from income tax.
- For salaries of up to 1,500 Gel, 750 Gel will be exempt from income tax.
- The automatic vat refund mechanism will come into force and vat surplus refunds will be doubled-this year.
Social security measures
- Citizens’ utility bills were financed for three months.
- With the help of the state, citizens were provided with the opportunity to defer loan payment for three months.
- Hired employees who have lost their jobs or are on unpaid leave will receive 1,200 Gel in assistance over a period of six months.
- In six months, assistance amounting to 600 Gel on average will be provided to approximately 90,000 families.
- The pensions of all pensioners will increase by no less than the rate of inflation, I.E., rising prices will no longer affect the real volume of pensions.
- Caring for citizens and providing them with social support: 1.035 billion Gel.
Employee and employer supportive measures
- Employers will receive state subsidies for every retained job.
- Persons employed in the informal sector or self-employed persons will receive one-time assistance of 300 Gel if they provide proof of loss of income.
Business support
- All legal entities were given the opportunity to restructure their loans.
- The state has insured the construction materials for all infrastructural projects against price spikes.
- Commercial banks will be provided 600 million Gel in long-term resources.
- Caring for the economy and supporting entrepreneurs: 2.11 billion Gel.
- Additional 500 million Gel will be allocated to support business, including:
- The credit guarantee scheme; budget-300 million Gel.
- Credit portfolios of 2 billion Gel will be issued with guarantees
- Guarantees on new loans: 90% on restructuring:30%
- The state program produce in Georgia co-financing conditions
- Increasing the period of co-financing of loans / leasing from 24 months to 36 months
- Changing the mechanism of interest co-financing
- More type of activities
- Lowering the minimum threshold for loans / leasing
- Increasing funding for circulating assets
- The credit guarantee scheme; budget-300 million Gel.
Accounting implications According to the statement of the National Bank of Georgia, regarding the given epidemiological developments due to the COVID-19 coronavirus pandemic, submission deadline for the 2019 annual report is prolonged by 45 days. Accordingly, relevant entities shall submit their audited financial reports to the National Bank of Georgia no later than June 30, 2020. Other International partners have allocated $3 billion for the county’s economy.Click here to learn more.
