Recent Changes to the Georgian Tax Code
TBC Bank Group PLC ("TBC PLC") announces that the recent amendment to the Georgian Tax Code in relation to corporate income tax will have an immediate impact on its deferred tax liability. The amendment, which comes into force on 12 June 2018, postpones tax relief for re-invested profit from 1 January 2019 to 1 January 2023 for financial institutions. As a result, TBC PLC will reverse the one-off deferred tax gain recognized in 2016. This reversal will result in an estimated GEL 14-19 million expense on the profit and loss statement and an estimated GEL 5 million reduction in equity in Q2 2018. Excluding this effect, TBC PLC expects its effective tax rate to be in the range of 9-11% in 2018.
For further enquiries, please contact:
Head of Investor Relations
Anna Romelashvili
[email protected]
About TBC PLC
TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG.
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 37.8% of loans and 38.9% of non-banking deposits as at 31 March 2018, according to the data published by the National Bank of Georgia.
