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Georgia

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 29 April, 2020

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Employment-related measures

(e.g. state compensation schemes, training…)

  • 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 (200 GEL per month)
  • Employers will receive State subsidies for every retained job 
    • 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 me exempt from income tax 
  • 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.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

  • The Government is subsidizing 80% of six months bank loan interest expenses for small hotels
  • 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 (200 million GEL)
  • Commercial banks will be provided will 600 million GEL in long-term resources

Credit Guarantee Scheme

  • Facilities of €10,000 up to €1m
  • Terms of up to 7 years
  • Term Loans, Demand Loans and Performance Bonds
  • Three to six-month interest-only payment period (depending on the total loan duration)

Caring for villages, agriculture, regional development

  • Grants of up to 30,000 GEL
  • Agrocredit – financing annual crops :
    • Full financing of loan interest
    • The estimated total volume of loans (50 million GEL)
    • Number of beneficiaries (5,000)

Supporting amelioration activities

  • Full exemption from amelioration fees for 2020
  • Fully writing off debts accumulated in pervious years

Other measures and sources

  • The initiative also includes government payments for gas, electricity, water and cleaning bills for poor segments of the population. Additional funds will be directed to health spending including lab testing and quarantine expenditures as well as increased costs associated with hospitalization, medical treatment, and medical supplies.
  • The government is expected to a plan to help those who lost jobs due to the recent developments and other vulnerable individuals and businesses soon. The government will provide a subsidy for imports of 9 basic commodities (incl flour, wheat, pasta, rice, oil, sugar, milk powder, beans, buckwheat) and will also create a stock pile of these commodities

Main sources of information

Contact us

Legal: Kakha Rukhadze – krukhadze@kpmg.com