Category: Author’s post
Georgia’s Economic Vision presentation during 17th Silk Road Tax Forum
The ‘17th Silk Road Tax Forum’ was held in Tbilisi at the joint initiative of the Revenue Service of the Ministry of Finance and the International Tax and Investment Center on 10-11 April, 2025. During the event, Lasha Khutsishvili, the Georgian Minister of Finance, pointed out the critical role of interactions within taxation for all countries along the historical Silk Road.
He also stressed the need of institutional reforms for development of a dynamic economy and improved investor relations for stricter fiscal discipline. According to Khutsishvili, the same Georgian tax system with its low taxes, provides modern methods of taxation along with customs administration.
They also discussed investments in strategic infrastructure projects such as roads, ports, energy transmission lines, digital connectivity and the importance of increasing the efficiency of tax administration and sharing international experience in this regard.
As Minister Lasha Khutsishvili stated, the Ministry of Finance approved the country’s first medium-term revenue strategy (2025–2030) at the end of last year, and the Georgian Revenue Service has updated and published a strategy for 2025-2030. Notably, Georgia is a candidate for EU membership and a full member of the European Union tax program (FISCALIS) program. It was one of the first nations to adopt base erosion and profit shifting (BEPS).
Additionally, Georgia takes part in several forums such as the Global Forum of the Organization for European Cooperation and Development (OECD), the Intra-European Organization of European Tax Administrations (IOTA), and Union of Tax Administrations of the Belt and Road Initiative (BRITACOM).
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Read moreThere are more unemployed in Kazakhstan than in Russia
According to data from the Eurasian Economic Commission, there are more than 330,000 unemployed people in Kazakhstan (3.5% of the total workforce), the only country in the Eurasian Economic Union (EEU) where the number of unemployed people has increased over the year. The increase over the year was 3.2% (27,000 people).
Meanwhile, the number of unemployed people has been decreasing in other EEU countries. Only 0.4% of the total workforce are officially unemployed in Russia (283,000 people), and their number decreased by 0.1% over a year.
The number of unemployed in Kyrgyzstan decreased from 65,100 to 48,400 people over the year (2.4% versus 1.7%) and by 8,600 people in Armenia (from 45,700 to 37,100, or 3.4% versus 2.8%).
The smallest number of unemployed people is in Belarus— 3,300 or 0.1% of the total labor force. 1,000 people found a job in the country over the year.
Totally, 704,900 or 0.8% of people were unemployed in the EEU member states at the end of February (a 14.8% downfall compared to the same date in 2024).
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Read moreEmployment tax incentives valid until the end of 2025
There have been various tax and social relief measures for employers hiring specific categories of workers in Serbia for several years now.
In general, the Personal Income Tax Act, the Social Security Contributions Act, and other by-laws define the conditions and procedures for claiming one of these seven tax relief measures. They extend two of them on a yearly basis, one is valid until the end of 2025, while four are unlimited.
Notably, an individual with whom an employer has signed an employment contract and who is registered for mandatory social security in the CROSO system is called a “newly employed person”. Nevertheless, if an employer affiliated with the current employer previously employed the person or the person is working for a currently existing affiliated entity, such employee is not a newly employed person.
According to tax advisor Svetlana Serafijanović, it is possible to use only one of the available tax incentives at a time throughout the entire duration of the measure.
Particularly, they apply tax incentives for hiring individuals from the National Employment Service (NES) to employers hiring individuals who were previously unemployed and registered with the NES.
Then, founders of companies engaged in innovation who employ themselves within their own enterprise can use tax incentives for hiring founders of innovation companies. The founders’ own company must employ them, and they must hold at least a five percent ownership stake. Moreover, legal entities must not have been affiliated by the employer or they must not generate more than 30 percent of their revenue.
This incentive fully exempts the employer from payroll tax and social security contributions for 36 months from the date of company establishment, with a maximum gross salary exemption of 150,000 dinars per month.
To use incentives for employees engaged in research and development (R&D), the employee must directly conduct research and development activities, excluding administrative or supervisory roles.
As tax advisor Serafijanović explains, the employer who is a legal entity conducting research and development within its operations for its own needs gets a 70 percent exemption from payroll tax and a full exemption from pension and disability insurance contributions till the end of the research project.
Next, highly qualified professionals relocating to Serbia for employment who have not predominantly resided in the country in the past two years and have a monthly gross salary exceeding 393,855 dinars can use incentives for newly relocated employees.
Finally, employees under the age of 40 returning to Serbia after studying abroad with the minimum gross monthly salary of 262,570 dinars get a 70 percent reduction in the tax and social security contribution base for five years from the date of signing the employment contract.
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Read moreJobs with the highest salaries in Serbia
The latest data from the Statistical Office of the Republic of Serbia for January report that some occupations deviate significantly from the country’s average salary.
For example, the production of coke and petroleum derivatives offers the highest average net salary, amounting to 330,000 dinars. Crude oil and natural gas extraction follows it with an average salary of 297,000 dinars.
Unsurprisingly, the field of information technology has been at the top spot in earnings in Serbia for many years. Particularly, software development stands out with an average salary exceeding 292,000 dinars, while some experts earn more than €5,000 per month.
Also, pilots traditionally get one of the highest salaries in the country (around 232,000 dinars).
The next field where salaries grow significantly is scientific research and development. This sector is one of the most promising career paths that offers the average salary equal to 206,000 dinars. This field is developing due to investing of substantial funds in scientific infrastructure.
The media and film industry sector can boast of the average salary exceeding 142,000 dinars. The increasing number of international productions choosing Serbia as a filming location explains the great potential of the cinematographic and television industry for high earnings.
Employees in management positions and consulting have an average income of approximately 170,000 dinars. The increasing need for expert advice in business management makes this field grow steadily.
Financial sector has traditionally been among the better-paid fields. Particularly, banking, insurance, and investment consultancy are prominent with an average salary of around 175,000 dinars.
Then, manufacturing and processing industry offers an average salary of 96,000 dinars. Although, tobacco product manufacturing stands out with the salary equal to 155,000 dinars, which proves that traditional industries can still be a source of significant income.
Marketing and market research come next, bringing an average salary of around 126,000 dinars. The increasing demand for marketing services and market analysis makes this field grow continuously.
Also, coal extraction (143,000 dinars), metal ore extraction (177,000 dinars), telecommunications (166,000 dinars), chemical production (124,000 dinars), and the production of basic pharmaceutical products (140,000 dinars) are among the highest-paying sectors.
Highly dynamic Serbian labour market is creating new opportunities for professional development. It is important to highlight that individual skills, experience, and specific competencies often influence salary levels. Other crucial factors in achieving high earnings in any sector are continuous improvement and keeping up with market trends.
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Read moreWhat international freelancers can enjoy and should pay attention to in Georgia
The announcement of the Minister of Economy and Sustainable Development of Georgia on the government’s initiative regarding letting international freelancers visit Georgia for a long term and legally work from here appeared a few days ago.
The requirements for the freelancers will be the following: filling in a quite simple application form, providing certain information ahead (personal information, employment/service contract, consent letter for passing the mandatory quarantine) and taking 14 days’ quarantine at their expense.
For resident natural persons ordinary taxation is 20% of personal income tax in Georgia. However, some people can enjoy 1% or even 0% tax in many cases.
For example, a Georgian tax resident must be physically present in the country for more than 183 days within 12 consecutive months while the 183rd (and next) day(s) fall within this concrete calendar year.
Totally, tax treaty network the Georgian is pretty wide (56 treaties).
1% tax:
A “Small Business” status belongs to a taxpayer receiving income up to 500,000 Georgian Lari (GEL-approximately 165 000 USD) per calendar year. He gets a proper certificate and enjoys a tax rate of only 1% on gross revenue.
You can also establish a company (in one day with no minimal capital requirement) and pay 0% corporate income tax if you reinvest profit in Georgia.
Worldwide taxation is not applied to natural persons in Georgia, but not any income paid from abroad is necessarily considered as being produced outside of Georgia.
For example, dividend received from a non-Georgian company, interest paid by non-resident operating abroad pensions received from outside of Georgia, capital gains from selling a share in a non-resident company (unless most of the assets of this company are immovable properties located in Georgia), profits from reselling crypto-currency will be regarded as non-Georgian (exempt) incomes.
Also, a low cost of living, friendly people, good weather, amazing nature, delicious food and wine, and enjoyable social life make Georgia an affordable country.
It is possible to rent a nice, small flat for ~300 USD and work from here or from a co-working space, also for a very affordable price.
Nevertheless, persons (natural and legal entities) providing services from Georgia abroad might have problems with VAT. It is so, because many countries (including the EU) treat services provided abroad as export-exempted from VAT with right of VAT deduction. Georgia implements this rule only in certain types of activities, listed in article 166, subparagraph “D” of the Georgian tax code.
It needs to know that the VAT (and Reverse VAT) rate is 18% in Georgia, and the registration threshold is 100,000 GEL of taxable transactions per 12 calendar months. VAT does not apply to employment income.
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Read moreIncome gaps and protest risks put Kazakhstan’s regional policy under scrutiny
Plans for implementing the country’s regional policy concept for 2025-2030 has been published on the Legalacts.egov.kz portal by Kazakhstan’s Ministry of National Economy. Significant economic disparities between regions, ongoing migration from rural areas to cities and the potential risk of mass protests are in its spotlight. Notably, regional inequality marks Kazakhstan’s economic growth. For example, the difference in gross regional product (GRP) per capita between the Atyrau and Turkestan regions is 10.7%. The Atyrau region (30%) and the cities of Astana (15.9%) and Almaty (10.2%) concentrate more than half of the country’s fixed assets.
However, mining remains the main industry (76%) in western regions, despite their overall contribution to GDP declining from 29.9% in 2019 to 25.9% in 2023. Meanwhile, the share of southern regions in GDP increased from 13.2% to 15.1%, despite the low labor productivity (approximately $10,800 per worker, compared to the national average of $23,000).
Unevenness also touches infrastructure development across Kazakhstan. Utility networks remain critically the deteriorated, while 98% of urban residents and 94.8% of rural residents have access to water supply, and 58% have access to gas supply. 64% is the wear -and-tear rate for power supply, 55.9% for wastewater systems and 53.1% for heating infrastructure.
Strain is also present in education infrastructure. Repairs are required in nearly 17.6% of schools, while the student seat shortage achieved 270,100 in 2023.
Another social issue is the unemployment rate, that surpassed national average of 4.7% in Kazakhstan’s western and southern regions. 46% of workers are self-employed in the Turkestan region and up to 9% of residents in the south live below the subsistence minimum.
NEET category, i.e. not in education, employment or training, includes approximately 400,000 young people (7.3%). A risk of social instability and growing protest sentiment is especially significant in the Mangystau, Karaganda and Turkestan regions due to the high concentration of NEET youth.
Another issue highlighting regional disparities is migration patterns. 184,800 people left the Turkestan region, while 116,400 moved out of the Zhambyl region, according to recent statistics. On the contrary, in Astana and Almaty, there was an influx of 51,500 and 43,200 migrants, respectively.
Population decline is also actual for Northern regions. The decrease consisted 40,800 residents over the past five years, while the share of elderly people in the East Kazakhstan region has attained 15.6%.
According to the policy concept, there are three groups of the regions: high-growth (Astana, Almaty and southern regions), stable (the Aktobe and Zhambyl regions) and depressed (northern regions). The plan proposes economic diversification, infrastructure modernization, measures to mitigate social risks, to prevent destabilization and to ensure sustainable development.
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Read moreThe increase of business sector turnover attained 10% in Q4
The increase of the volume of business sector turnover reached 10.0 % and amounted to 62.0 billion GEL in the IV quarter of 2024, compared to the same quarter of the previous year. Meanwhile, the growth of production value equaled 23.5 billion GEL in the reporting period (10.8 % more year-on-year).
Overall, 67.6 % of total turnover accounted for large businesses, 14.9 % for medium size businesses, and 17.5 % for small business in the reporting period. Meanwhile, large businesses generated 43.8 % of total production value, 25.1 % – medium, and 31.1percent – small businesses.
Totally, purchases of goods and services attained 33.2 billion GEL (year-on-year 8.6 % more) in the reporting period, while the purchase of goods and services for resale reached 18.8 billion GEL (year-on-year 0.6% less). In October-December 2024, business sector employed 811.8 thousand people (up 3.8 %мyear-on-year). 43.7 % of them were female and 56.3 % were male.
Out of 764.2 thousand employees, 41.7 % worked for large businesses, 21.5 % for medium, and 36.9 % – for small businesses. Enterprises reported the total personnel costs of 5 536.6 million GEL (year-on-year 10.9 % more). In the reporting period, an employee earned 2 367.0 GEL a month (170.8 GEL increase year-on-year) on average, while women earned 1 847.3 GEL (159.7 GEL increase year-on-year) a month. Average monthly salary in large business was 2 466.2 GEL, in
medium business – 2 750.1 GEL, and 1 969.8 GEL in small business.
The highest share (35.1%) in the total turnover in business sector in the reporting period accounted for the arts, entertainment and recreation. Then followed trade sector (including repair of motor vehicles and motorcycles) (33.7%), construction (7.0%), manufacturing (6.9%), transportation and storage (4.6%), and other sectors (12.7%).
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Read moreFive more foreign nationals got Neo Nomad Visa from Kazakhstan
Five more foreign citizens, including three from the United States, one from the United Kingdom, and one from Latvia, got the Neo Nomad Visa from Kazakhstan.
Professionals can reside in Kazakhstan for up to one year while working remotely for foreign employers on this visa. The Ministry of Tourism and Sports reported the following requirements on March 11: a stable monthly income of $3,000, health insurance, and a certificate of no criminal record.
Mainly IT, marketing, finance, design, and consulting experts who wish to combine work and travel are targeted by the visa.
Only five people previously received the Neo Nomad Visa: a U.K. citizen working in the energy sector and citizens of South Korea and Singapore.
As Deputy Minister of Tourism and Sports Yerzhan Yerkinbayev hopes, the visa will make Kazakhstan a “favorite place” for neo nomads in a recent interview with The Astana Times.
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Read moreIn Serbia unemployment rate achieved 8.6% in Q4 2024
As the National Institute of Statistics reported yesterday, the number of unemployed people in Serbia in the fourth quarter of 2024 was 273,100 (unemployment rate of 8.6%).
The previous data showed that the number of employed people equal to 2,894,900, and an employment rate of 51.4%.
Data from the Labour Force Survey report that the population outside the labor force was 2,462,200 people (43.7%).
The increase of the number of employed people is 50,700, compared to the fourth quarter of the previous year. Nevertheless, the decrease of the number of unemployed people is 11,600, and the downfall of the number of people outside the labor force is 65,300.
The increase of the employment rate is 1.1 percentage points, while the decrease of the unemployment rate is 0.5 percentage points. The rate of the population outside the labor force decreased by one percentage point.
The number of employed people decreased by 28,600, compared to the third quarter of 2024, while the number of unemployed increased by 16,000, and the number of the population outside the labor force raised up by 6,300.
11.9% was the overall informal employment rate. Agricultural sector demonstrated a rate of 48.5% and non-agricultural sectors – 6.8%.
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Read moreA surge of the demand for Blue-Collar Workers makes Kazakhstan Boost Vocational Training
Deputy Minister of Labor and Social Protection Askar Biakhmetov reports a growing demand for blue-collar workers in Kazakhstan, particularly in the construction, agriculture, manufacturing, and healthcare sectors.
As he stated, 979,000 job seekers were employed in Kazakhstan, including 714,000 individuals who secured permanent jobs, in 2024.
The aim of Kazakhstan’s Labor Market Development Concept is to increase the number of high-quality, well-paid jobs from 2.5 million in 2024 to 3.8 million by 2029 with the help of vocational training programs.
67,500 people took part in short-term vocational courses in 2023.
One of them is the Skills Enbek online training platform. 57,700 people used it and 14,600 secured jobs after completing one of 858 online courses (311 are free).
The statistics show that the total demand for labor over the next six years is estimated at 1.6 million workers. Biakhmetov added that around 900,000 jobs will require vocational education, including 400,000 positions in blue-collar professions.
Meanwhile, steps are taken by the government to reduce reliance on foreign labor. As Svetlana Zhakupova, Minister of Labor and Social Protection, announced, they will reduce Kazakhstan’s annual foreign labor quota from 22,000 to 15,000 in 2025.
The government’s priorities are to develop workforce through training initiatives and employment programs and to ensure sufficient skilled labor for the country’s growing economy, as Kazakhstan continues to modernize its labor market.
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