A Critical Review of Georgian Oil and Gas Tax Legislation
6 Pages Posted: 7 Jan 2014
Date Written: September 3, 2001
This paper provides a high level review of Georgian tax law at the beginning of the 2000s in a sector that was (and still remains) key to the Georgian economy. It points out the significance of the project specific exemptions that were granted by the Georgian government to several transcaspian pipeline projects (Baku-Supsa and BTC), which were later replicated for the SCP South Caucasus natural gas pipeline system. It comments on the difficulties of developing a suitably stable and attractive regime for upstream activities. The paper also points out that like other post-Soviet countries (and unlike Russia), upon independence, Georgia chose not to accede to the USSR double-tax treaties, one exception being the treaty with Germany.
Keywords: Republic of Georgia, oil & gas taxation, production sharing agreements, double tax treaties, post-Soviet tax reform, BTC, SCP, Intergovernmental Agreement, IGA, Host Government Agreement, HGA, Transcaspian pipelines
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