Ketevan Gudushauri



The main purpose of the research is to be assessed the important changes that implemented in Georgia in the recent period in terms of taxation, especially in the part of special taxation regimes and the Estonian model of profit tax and impact of these changes on tax revenues. Also, in the article is studied the stimulation effect of entrepreneurs, caused by tax changes. Through statistical data and developed questionnaires, as well as microeconomic, macroeconomic and dialectical research methods, was studied the work of special taxation regimes in Georgia. In order to assess the work of the Estonian model in Georgia and its impact on the budget revenues was used a doctrinal research methodology, within the framework of which Georgian and foreign literature, legal acts, decisions of legislative and executive bodies, informational documents of the Ministry of Finance and Treasury Services and the National Statistics Service were analyzed. Based on the data we built diagrams and conducted an analysis that clearly shows the successful operation of the Estonian model, which expressed in the increase of the amount of profit tax recorded in the budget of Georgia. Based on the analysis, we concluded, that despite the fact the reduction of income tax rates of individual entrepreneurs, significantly reduced the amount of tax they had paid in Georgian budget, number of micro and small enterprises, as well as fixed taxes payers has increased significantly in the last years. This indicates the expansion of local production and replacement of imported products in Georgia.
The analysis of the article will be interesting for researchers to study the current processes of taxation, which will hopefully, contribute to the optimization of taxation in Georgia.

Keywords: Georgia, Special Taxation Regime, Estonian Model, Tax Audit.

JEL Codes: H25, H71, M48

DOI: 10.37708/el.swu.v5i2.5

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