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GEO

RUS

4 winners of Community Development Initiative grant competition gained the status of Agricultural Cooperative

The component Development Of Agricultural Cooperatives is implemented within the Community Development Initiative program. The grant competition Development of Agricultural Cooperatives announced by Regional Development  Association (RDA)  in Samtskhe-Javakheti region is completed. From  47 participant  groups 12  were trained on grant application filling, 4 best projects were selected for financing. Main activities  of  selected groups are  cultivation of potato and potato seed production, cattle breeding and diary production, bee-keeping and sheep-breeding. All 4 groups have already registered in the Public Registry and received the status of Agricultural Cooperative.
 

 

Agricultural Cooperative is the Legal Entity of Private Law created according to the Georgian laws about Entrepreneurs and Agricultural Cooperatives.

 

After receiving the status of Agricultural Cooperative cooperatives  are exempted from taxes till 2017 and also enjoy other benefits:

  • Cooperative is exempted from income taxes;

  • Cooperative property including leased  property  used for agricultural activities is not the subject to property taxes;

  • Income and grant received from agricultural activity is not taxable with profit taxes;

  • Salary  of  agricultural cooperative employees is not the subject of  income taxes;

  • Issued dividends are not taxed;

  • Regarding annual turnover no income tax limit is imposed on Agricultural Cooperatives, while for LTD it comes up to 200 000GEL;

  • Agricultural Cooperative enjoys the advantage  of receiving grant (gift);

  • The government plans free trainings, target programs and different capacity building programs for the entities employed in Agricultural Cooperatives;

  • Agriculture Cooperative as an union is considered to be solvent and credit resources are more available for them;

  • Agricultural Cooperatives enjoy all tax benefits that are valid with respect to agriculture.

 

The goal of  Development of Agricultural Cooperative component is:

  • The union of farmers for creation  successful model of Co-operative farming;

  • To promote the revival of  rural and agriculture;

  • The development of family farming, creation their cooperatives and strengthening viability;

  • Enhance productivity of agriculture entrepreneur, increase of competitiveness and  access to services.

Community Development Initiative (CDI) is initiated and funded by BP and its co-ventures in Baku-Tbilisi-Ceyhan (BTC) and  South Caucasian Pipeline (SCP) companies.  Regional Development Association (RDA) is the project implementer partner. 

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