TBC Bank Group announced that this recent amendment to the Georgian Tax Code in connection with corporate taxes can have an instant effect on its deferred tax liability.
The amendment, which will come begins on 12 June 2018, postpones tax relief for re-invested take advantage of January 1, 2019 to January 1, 2023 for banking companies.?As a byproduct, TBC will reverse the one-off deferred tax gain recognized in 2016.
This reversal results in a projected 14-19 million GEL expense over the profit and loss statement, as well as estimated 5 million GEL loss of equity during Q2 of 2018. Excluding this effect, TBC expects its effective tax rate to remain in the range of 9-11% in 2018.