Agreement Possible on Paying Taxes for the Use of Natural Resources

Agreement can be achieved on the payment of taxes for the use of natural resources. The relevant amendments were introduced to the Law of Georgia about Taxation of the Use of Natural Resources through third hearing by the parliament on March 2.

The new amendments permit agreement on paying taxes for the use of natural resources. The agreement shall be achieved between the authoritative person responsible for tax-payment and Natural Resource Agency.

The agreement will allow the authoritative person to estimate amount of the tax, to reduce or/and fully or partly postpone the tax-payment when the application is submitted. It will be possible to replace the tax-payment by other obligations.

In addition to that, the subject of the agreement can be estimation of the amount, term, postpone or replace future taxes by other obligations.

When achieving agreement, the tax payment can be postponed or divided for no more than three years with annual 4%.

If the agreed obligations are breached, the authoritative person will have to pay 0.5 % of the unpaid tax for each missed calendar day but no more than 10% of entire tax amount.

The agreement can be appealed only if it is signed by un-authoritative person.

Besides that, the Natural Resource Agency shall be able to refuse to sign agreement though it will be responsible to verify its refusal.

The final decision on the agreement shall be made by the Georgian Prime-Minister. He shall estimate the amount, term and annual profit of the tax.