There are few legal incentives for investment in culture in Georgia. This sphere is regulated by general legislation. The Tax Code determines some tax privileges, such as exempting the following areas from tax payments: the sale and printing of tickets for theatre and circus performances, classical music concerts and museums; the import of scientific and creative books and fiction, books and magazines written by citizens of Georgia, as well as the importation of Georgian classics published abroad; and services relating to the sale of, import, distribution, delivery and printing of periodicals and fiction.
There are no special tax rules or exemptions for creative individuals.
Construction of temples and churches as charities are tax exempt in compliance with Article 172 of the Tax Code. This category of buildings benefits more from the legislation than the restoration of cultural heritage for which the law was intended.
Under the Tax Code of Georgia, restoration and reconstruction work on monuments included in the UNESCO world heritage list is exempted from VAT (18%).
In spite of long debates and drafted bills, the Law on Donations and Sponsorship has not been adopted.
To promote the film industry, the Ministry of Culture and Monument Protection of Georgia initiated an amendment to the Tax Code of Georgia which will mean that producers that obtain funding from the National Film Centre will be charged income tax only after the release of a film. Under the previous regulation, the funds allocated from the state budget were charged tax before the release of a film, which hindered film producers in their use of the funds. Film producers have been also authorised to charge the 100% depreciation on the released film as an intangible asset. Amendments to the Tax Code came into effect on 1 January 2015 in the form of additions to paragraphs 65, 66, 67 of Article 309. From July 1, 2018, the income of a person with the status of a small business has been taxed at a rate of 1%, which promotes the activities of small entrepreneurs employed in cultural industries.
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