Bank of Georgia Group PLC Amendment to the current corporate taxation model (4686R)
15 June 2018 - 1:40AM
UK Regulatory
TIDMBGEO
RNS Number : 4686R
Bank of Georgia Group PLC
14 June 2018
London, 14 June 2018
Amendment to the current corporate taxation model applicable to
financial institutions
Bank of Georgia Group PLC ("the Group") announces that an
amendment to the current corporate taxation model applicable to
financial institutions, including banks and insurance businesses
("financial institutions"), has become effective from 12 June 2018.
The change implies a zero corporate tax rate on retained earnings
and a 15% corporate tax rate on distributed earnings starting from
1 January 2023, instead of 1 January 2019 as previously enacted in
2016. The current model implies a 15% tax rate charged to financial
institutions profit before tax, regardless of the retention or
distribution status. The change will have an immediate impact on
deferred tax asset and deferred tax liability balances ("deferred
taxes") attributable to previously recognised temporary differences
arising from prior periods. The re-measurement of deferred taxes is
estimated to result in a GEL 40-45 million one-off deferred income
tax expense that will be recognised in the Group's 2(nd) quarter
and half-year 2018 results. This impact is a reversal of the
one-off deferred tax gain recognised by the Group in 2016. The
Group continues to expect its effective tax rate, excluding the
one-off deferred tax impact, to be in the range of 9-11% in
2018.
Name of authorised official of issuer responsible for making
notification: Natia Kalandarishvili, Head of Investor Relations and
Funding
About Bank of Georgia Group PLC
Bank of Georgia Group PLC ("Bank of Georgia Group" or the
"Group" - LSE: BGEO LN) is a UK incorporated holding company, which
comprises: a) retail banking and payment services, b) corporate
investment banking and wealth management operations and c) banking
operations in Belarus ("BNB"). JSC Bank of Georgia ("Bank of
Georgia", "BOG" or the "Bank"), the leading universal bank in
Georgia, is the core entity of the Group. The Group targets to
benefit from the underpenetrated banking sector in Georgia through
both its retail banking and corporate investment banking services
and aims to deliver on its strategy: (1) at least 20% ROAE, and (2)
15%-20% growth of its loan book.
JSC Bank of Georgia has, as of
the date hereof, the following
credit ratings:
Fitch Ratings 'BB-/B'
Moody's 'Ba3/NP' (FC) &
'Ba2/NP' (LC)
For further information, please visit www.bankofgeorgiagroup.com
or contact:
Kaha Kiknavelidze Michael Oliver David Tsiklauri Natia Kalandarishvili
Group CEO Adviser to the Group CFO Head of Investor
CEO Relations
+995 322 444 444
+995 322 444 126 +44 203 178 4034 +995 322 444 108 (9282)
k.kiknavelidze@bog.ge moliver@bgeo.com dtsiklauri@bog.ge ir@bog.ge
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solicitation of an offer to buy any securities
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END
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