Law on Granted Goods and Income (1996)



With the aim of regulating taxation of goods and income granted to the Georgian residents by international charity, humanitarian and other public organizations, as well as a foreign government, juridical or physical person, the Georgian Parliament states:

1. The juridical person, as a recipient of the grant within the limits of a program financed and determined by the agreement made with the grant-giver (donor), is free of tax to the joint social security and medical insurance fund, state united employment fund and state traffic fund.

2. Subparagraph (a) of the first paragraph of Article 5 of the Law of the Republic of Georgia of 24 December 1993 on "Value Added Tax" (Bulletin of the Parliament of Georgia. 1993.N 12-13,Article 240) is to be statedin the following wording:
"(u): Goods intended for the elimination of the results of natural calamities, accidents and disasters, as well as goods imported through humanitarian aid and grants, goods purchased in Georgia with the means articulated by a grant agreement (Rules of getting imported goods through Georgian customs are determined by the President`s decree. While purchasing goods in Georgia by means of a grant, the grant recipient pays the value-add tax ,which will by reimbursed to him from the budget after presenting the necessary papers to the tax inspection board, within the period of to weeks)".

3.Paragraph (a) of Article 17 of the Law on Georgia`s State Budget of 1996" of 9 February 1996 is to be stated in the following wording:
"(a) Granted goods, as well as goods of humanitarian aid brought to Georgia for the climination of natural calamities, accidens and disasters. Rules of getting the the abovementioned goods through the Georgian customs are determined by the President`s deeree".

4.The first paragraph of Article 7 of the Law of the Republic of Georgia on Manufacturers' Income Tax from 21 December 1993 ( Bulletin of the Georgian Parliament N. 12-13. 1993. Article 233 ) should be appended such that subparagraph (d) reads as following:
"(d) income earned through the financed and regulated activities determined by the arement made by the grant recipient, non-manufacturing,juridical person and the grant-giver (donor) which is used for the purposed envisioned by the grant agreement".

5.Subparagraph "n" of the first paragraph of Article 3 of the Law of the republic of georgia on "Income Tax of Physical Persones" of 21 December 1993 (Bulletin of the Georgian Parliament, N. 12-13, 1993, Article 248) is to be stated in the following wording:
"(n) High schools and post-graduate scolarships, appointed by the schools as well as scholarships or other financial aid granted to physical persons by grant givers (donors)".

6.The given law is to be enacted from the moment of publication.