PwC Georgia Tax & Law Brief

Transcription

1 PwC Gergia Tax & Law Brief The Order #137/04 f the President f the Natinal Bank f Gergia Prepayment and refinancing f credit Alienatin f the lan t the third party Financial expenses The financial rganizatin may impse the cmmissin fee r liquidated damages fr full r partial prepayment r refinancing f credit. In case f transfer f lan receivables r therwise assign lan agreements, the Financial Organizatin shall put in the transfer cntract bligatin f the transferee t fllw ethical rules in accrdance with Cde f Ethics f the Financial Organizatin. The Financial Organizatin shall adhere t the rules f recrding, cnsideratin and reprt t the NBG f custmer claims even in cases when the lans are transferred r therwise assigned. Under the amendments the fllwing shall als be qualified as financial expense: Expenses defined/claimed by a Financial Organizatin due t failure t cmply with any f the terms prvided fr by the Agreement, if the requirement / inspectin f this cnditin can be made befre the credit / depsit prduct is issued. Expenses defined/claimed by a Financial Organizatin fr any cnditinal receipt f the financial prduct, if this cnditin is already envisaged by the cntent/nature f the financial prduct. Similiar amendments related t the financial expenses are als made in the Order #2/04 f the Natinal Bank f Gergia n Interpretatin f the Effective Interest Rate and Financial Expenses Impsed n the Brrwer fr the Purpse f Article 625 f the Civil Cde f Gergia. The amendments will enter int frce frm 1 Nvember Surce: Legislative Herald f Gergia, 26 September

2 The Order # 23 f the Gergian State Insurance Supervisin Service A new Article has been added t the rule f enfrcement f the insurer s cmpulsry administratin, liquidatin and bankruptcy prceedings, which determines the rules f realizatin f assets discvered/recvered after cmpletin f bankruptcy/liquidatin prceedings, in particular: Realizatin f newly discvered / recvered assets Such asset will be autmatically deemed t bankrupt / liquidated insurance cmpany s prperty and the Supervisry Service will have the right t dispse it fr the purpse f distribute the asset t the insurer s creditrs. If such asset is a cash, it will transfer t a special accunt f the liquidated / bankrupt insurer s unclaimed amunt fr the purpse f further distributin accrding t the adjusted sequence f the insurer s bligatins. If such asset is a mn-mnetary material asset, the Supervisry Service will issue and individual administrative act defining the rules its further dispsal t fulfill the insurer s bligatins. Surce: Legislative Herald f Gergia, 14 September 2017 Amendments t the Gergian Tax Cde Adjustment f creditable Crprate Incme Tax amunt fr January 1, January 1, 2017 reprting perids The annex #1 1 was added t the III part f the mnthly Crprate Incme Tax (CIT) Return. The annex shuld be filled in with a purpse t adjust creditable CIT amunt n dividends, which are distributed frm the net prfits related t January 1, January 1, 2017 perids. Particularly, it shuld be filled in the fllwing circumstances: If CIT liability accrued n the prfits f January 1, January 1, 2017 reprting perids was paid after the dividend distributin and/r If CIT liability n the prfits fr January 1, January 1, 2017 reprting perids was accrued after distributin f dividends frm the same perid prfits. The instructin hw t fill the annex is als prvided in the amendment. Surce: The Legislative Herald f Gergia, 4 September

3 Amendments t the rder N290 issued by the Minister fr Finance f Gergia Abut apprval f the instructins fr mvement and registratin f prducts n the custms territry f Gergia Time fr temprary strage f gds/terms fr defining a custms prcedure Guarantee After defining custms prcedure (ther than exprt), perid fr strage f gds in the custms warehuse, als in the event f temprary strage f gds in the custms warehuse, the perid fr submitting custms declaratin is decreased frm 5 years t 180 calendar days. This will effect legal relatins raised frm 14 July, In terms f gds delivered fr strage in the custms warehuse befre 14 July, 2017 this rule will effect frm the 1 st January, The Gergian Revenue Services is entitled t increase this term n lnger than by 180 calendar days. Presenting a guarantee becmes necessary while imprting fuel, lubricants and ther auxiliary materials intended fr supply nbard fr the dmestic civil flights r aviatin wrks. Surce: The Legislative Herald f Gergia, 4 September 2017 The Order #15 f the Head f Accunting, Reprting and Audit Supervisin Service Financial Statements The rule fr submissin f the statements and audit pinin, as well as rules fr simplified submissin f the financial statements, publicatin f the submitted infrmatin, reprting prtal structure and custmer registratin fr the third categry enterprise has been apprved. Surce: Legislative Herald f Gergia, 21 September 2017 The Draft Law f Gergia n Cmpulsry Insurance f Civil Liability f the Owner f a Vehicle Registered in a Freign Cuntry The Parliament f Gergia has passed n the 1 st hearing the draft law n Cmpulsry Insurance f Civil Liability f the Owner f a Vehicle Registered in a Freign Cuntry and Mving in the Territry f Gergia. Accrding t the draft law: Cmpulsry Insurance Center The Cmpulsry Insurance Center (the Center) - a nn-cmmercial legal entity based n the membership f insurers is established.

4 Civil liability insurance Damage that will nt be cmpensated Insurance cntributin Damage related t the health Damage related t the prperty Term fr apply t the Center Center s regress right Electrnic database The wner (the driver) f the vehicle registered in a freign cuntry shall insure its civil liability n the vechicle fr the full perid f his stay n the territry f Gergia. The insurance shall cver any damages incurred as a result f incident invlving the vehicle. The draft law defines the cmpulsry insurance terms and damages that will nt be cmpensated by the insurers, including damages caused by the ther party s deliberate actin, damage caused thugh the cmpetitin, testing and training f the vehicle within the specially allcated areas etc. The insurance premium, i.e. the amunt f insurance cntributin is determined in accrdance with the categries f vehicles and the insurance perid. The amunt f insurance limit fr each individual s health, wrking capacity and life damage is 30,000 GEL. The ttal limit f cmpensatin fr each insurance case is 300,000 GEL. The amunt f insurance limit fr each individual s damage t prperty is 25,000 GEL. The ttal limit f cmpensatin fr each insurance case is 50,000 GEL. In rder t demand the cmpensatin, an individual shall apply t the Center in writing within 60 calendar days frm the accident date. After cmpensatin f the individual, the Center may issue a regress claim t the persn respnsible fr the damage. In rder t prvide with the relevant infrmatin fr cmpulsry insurance, an electrnic database is created. Surce: The Parliament f Gergia, 20 September 2017 The Draft Amendments t the Law f Gergia n Agricultural Land Ownership The Parliament f Gergia has passed n the 1 st hearing the draft amendments, accrding t which: Acquisitin f the land plt by the Banks / MFOs Exceptin frm the mratrium The mratrium n the acquisitin f the prperty rights n agricultural land plts shall nt be applicable t the cmmercial banks / micrfinance rganizatins whse wnership rights are established within the banking activities. In additin, cmmercial banks shall alienate the land plt t the authrized persn within the 2 years after btaining the prperty rights. The relevant term fr micrfinance rganizatins is 1 year. The Gvernment f Gergia will have the discretinary authrity t make exceptins frm the mratrium. Surce: The Parliament f Gergia, 20 September

5 The Draft Amendments t the Law f Gergia n Insurance The Parliament f Gergia has passed n the 1 st hearing the draft amendments, accrding t which: Self-financing Cmpulsry internal auditing The Supervisry fee The financing f the LEPL State Insurance Supervisin Service (the Supervisry Service) will be carried ut thugh payment the supervisry fee (self-financing). Under the current versin f the law, the Supervisry Service is financing thugh the State budget. The insurer s activities are subject t internal audit inspectin, the main purpse f which is t mnitr the legality f insurers nging activities, its adequacy and efficiency; t assess the internal management system and cntrl prcedures. The internal audit authrity is exercised by the Internal Auditr, r the structural unit established specially fr this purpse - Internal Audit service, whse head and staff are appinted and dismissed by the Supervisry Bard The internal Audit Service / Internal auditr is independent while perfrming its activities and has the reprting bligatins befre the insurer s Supervisry Bard. The latter als apprves the annual audit prgram. The rate f supervisry fee and the payment rules are defined. The insurer shall pay the current supervisry fee at the rate f the previus calendar year supervisry fee, n later than 10 January 25 percent, n later than 10 April 25 percent, n later than 10 July 25 percent, and n later than 10 Octber 25 percent. Surce: The Parliament f Gergia, 20 September 2017 The Draft Amendments t the Civil Prcedure Cde f Gergia Prvisinal measures The Parliament f Gergia has passed thrugh 1 st hearing the draft amendments, accrding t which n prvisinal measures will be applicable t the prize funds under the Law f Gergia n Lttery, Gambling and Winning Games, i.e. the amunt whse receipt is recgnized as the winning ticket hlder s right. Surce: The Parliament f Gergia, 20 September

6 Let s talk Fr a deeper discussin f hw this issue might affect yur business, please cntact PwC Gergia PwC in Gergia ffers Integrated Assurance, Tax, Legal and Advisry services. PwC Netwrk glbally emplyees 208,109 peple in 756 lcatins acrss 157 cuntries wh share their thinking, experience and slutins t develp fresh perspectives and effective practical advice. Sergi Kbakhidze Directr, Tax & Law Practice sergi.kbakhidze@ge.pwc.cm Tel: PwC Gergia Tax Services includes tax advisry services, tax reviews and tax cmpliance, transfer pricing cmpliance, representatin during tax disputes, tax structuring, duble tax treaty advice, tax due diligence supprt, custms matters and thers. Van Ggelia Head f Legal Practice van.ggelia@ge.pwc.cm Tel: PwC Gergia Legal Services ffers a full range f legal supprt in crprate and cmmercial law, crprate rerganizatins, crprate secretarial wrk, M&A, cmpetitin cmpliance & litigatin, secured transactins, emplyment law, immigratin, cnstructin law and ther. With ver 2,400 lawyers acrss mre than 80 cuntries, we have the bradest gegraphical cverage f any legal services netwrk in the wrld. This publicatin has been prepared fr general guidance n matters f interest nly, and des nt cnstitute prfessinal advice. Yu shuld nt act upn the infrmatin cntained in this publicatin withut btaining specific prfessinal advice. N representatin r warranty (express r implied) is given as t the accuracy r cmpleteness f the infrmatin cntained in this publicatin, and, t the extent permitted by law, PwC des nt accept r assume any liability, respnsibility r duty f care fr any cnsequences f yu r anyne else acting, r refraining t act, in reliance n the infrmatin cntained in this publicatin r fr any decisin based n it PwC. All rights reserved. PricewaterhuseCpers Gergia LLC refers t the PwC netwrk and/r ne r mre f its member firms, each f which is a separate legal entity. Please see fr further details.