Law No. 2347-RS on licence fees

Article 1. General Provisions This Law shall, pursuant to Article 94 of the Constitution of Georgia and the Law of Georgia on the Principles of the System of Fees, define the types and rates of the fees established by the State for granting the right to engage in License trade and/or to use thereof, the procedure for and terms of payment of these fees.

Article 2. Concept of License Fee A license fee (save the local license fees fixed by agencies of local self-government and administration) is a single mandatory sum payable to the central; budget by natural and legal persons at the rate prescribed by this Law for granting to them the right to engage in the activities defined by law and/or to use thereof, as well as for certain services rendered by the State.

Article 3. Object of Taxation with License Fee The object of taxation with a license fee is the activity, which shall, pursuant to the Law of Georgia in Licensing of Entrepreneurial Activity to other statues, be subject to licensing.

Article 4. Payers of License Fee The payers of a license fee shall be the legal or natural persons – grantees of a license for the right to engage in the activities defined by the Law of Georgia on Licensing of Entrepreneurial Activity and by other statutes.

Article 5. Rates of License Fee No. Activity Rate in GEL 1. Air carriage/transportation: a) regular international transportation 3.000 b) irregular international transportation 1.000 c) regular domestic transportation 500.0 d) irregular domestic transportation 50.0 2. Recording of Securities 500.0 3. One kind of a broker company’s activity as pee Article 23 of the 300.0 Law of Georgia on Securities Market (per each additional kind) 50.0 4. One kind of a broker’s activity as per Article 23 of the Law of 75.0 Georgia on Securities Market (per each additional kind) 25.0 5. Manufacture of medicinal, narcotic drugs and substances subject 400.0 TECHINFORMI No. Activity Rate in GEL to special control 6. Manufacture of medicinal drugs applicable veterinary medicine 400.0 7. Medical institutions activity: a) activity of a pharmacy 300.0 b) activity of a pharmacy branch 50.0 c) activity of a pharmaceutical base/depot 400.0 d) activity of a feldsher-obstetrical clinic 20.0 e) activity of a medical clinic 40.0 f) activity of a polyclinic, dispensary 100.0 g) activity of a village hospital 50.0 h) activity of a town hospital 200.0 i) the range of the activity kinds as per subparagraphs “d” to “h” is defined by the President of Georgia and is noted in the license 8. Medicines imports – 0.1% of the imported medicines’ value 9. Medicines exports 100.0 10. Technical inspection of motor vehicles by specialized centres 200.0 11. Activity of an auditor firm 300.0 12. Activity of an individual auditor 150.0 13. (Deleted) 14. Activity of a private educational and training institution 30.0 (per each specialty in addition) 10.0 15. Study of mineral resources 200.0 16. Extraction of mineral resources: a) on coal deposits 1.300.0 b) on tuff and sapropelite deposits 450.0 c) on ferrous metallic ore deposits 1400.0 d) on non-ferrous metallic ore deposits 1200.0 e) on noble metallic ore deposits 850.0 f) on rare-earth metallic deposits 600.0 g) on mining raw material deposits 1100.0 h) on non-metallic deposits: h.a) on small and medium-size deposits 900.0 h.b) on large deposits 1.800.0 i) on gems deposits 650.0 3 TECHINFORMI No. Activity Rate in GEL j) on building material deposits: j.a) on small- and medium-size deposits 900.0 j.b) on large deposits 12500.0 k) on internal water deposits: k.a) on small- and medium-size deposits 600.0 k.b) on large deposits 1800.0 l) on mud deposits 500.0 m) on carbon dioxide deposits 450.0 n) on underground thermal water deposits 550.0 o) on underground sweet water deposits 400.0 17. Extract of hard mineral recourses and utilization of processing 500.0 waste and tailings 18. Construction and operation of natural cavities, underground 300.0 structures not related to the extraction of mineral resources and the creation of the entrails objects requiring special protection 19. Trade in firearms and combat materials 100.0 20. Production of firearms and combat materials 100.0 21. Repair of firearms and combat materials 100.0 22. Receipt of a license copy 10.0 23. Insurance: a) life insurance 500.0 b) pension insurance (additional income insurance) 500.0 c) accident and sickness insurance 500.0 d) medical insurance 500.0 e) land transport insurance 500.0 f) sea transport insurance 500.0 g) cargo insurance 500.0 h) insurance of all kinds of property save the kinds as per 500.0 subparagraphs “e” to “g” of this paragraph i) insurance against financial risk 500.0 j) motor vehicle holders’ civil liability insurance 500.0 k) carriers’ civil liability insurance 500.0 l) professional liability insurance 500.0 m) default liability insurance 500.0 n) insurance against all kinds of civil liability save the kinds as 500.0 3 TECHINFORMI No. Activity Rate in GEL per subparagraphs “j” to “n” of this paragraph o) reinsurance 500.0 24. Agency in insurance 500.0 25. Banking 500.0 26. Currency exchange services 50.0 27. Stock exchange activity 2000.0 28. Central depositary activity 1000.0 29. Arranging circulation and non-circulation (instant) encouraging 1000.0 lotteries, lottos, toots and systems (electronic) games 30. Operation of casinos 1500.0 31. Operation of gambling machines 1000.0 32. Activity of natural persons engaged in gambling business 100.0 33. Design and construction: a) engineering prospecting work 100.0 b) urban development 100.0 c) design of residential, civil and public buildings and structures 100.0 d) design of industrial production and agricultural buildings and 100.0 structures e) design of energy, hydrotechnical and land ameliorations 100.0 projects f) design of water-supply, engineering systems and networks 100.0 g) examination of construction and design activities 100.0 h) conservation, restoration-reconstruction, adaptation of the 200.0 monuments of history and culture i) production of building structures 200.0 j) construction of residential, civil and public buildings and 200.0 structures k) construction of industrial and production buildings and 200.0 structures l) construction of energy projects 200.0 m) construction of engineering systems and communications 200.0 n) construction of transport projects 200.0 o) building of bridges and tunnels 200.0 p) construction of cable lines, radiotelephone and television-relay 200.0 lines, radiostations q) construction of special structures 200.0 3 TECHINFORMI No. Activity Rate in GEL r) construction of agricultural projects 200.0 s) hydrotechnical and land amelioration engineering 200.0 t) erection of technological equipment and communications and 200.0 start-up and adjustment works 34. Manufacture of metrological and measuring instruments 50.0 35. Repair of metrological and measuring instruments 50.0 36. Processing of goods on customs territory 1000.0 37. Processing of goods under customs supervision 1000.0

Article 6. Establishment of License Fee Payment Privileges 1. Privileges for payment of license fees are established by this Law. 2. The establishment of individual privileges for the payment of license fees is inadmissible.

Article 7. Procedure for payment of License Fee to Budget The crediting of a license fee for the budget is effected in accordance with the Law of Georgia on the Budgetary System and the Budgetary Powers. 2. A license fee shall be paid prior to the granting of the license. A natural or legal person applying for a license or receiving a copy of the license is obliged top submit the payment receipt together with other instruments to a respective license-granting agency. 3. The payment of a license fee is effected in the form approved by the Ministry of Finance of Georgia. 4. The overpaid sum is refunded to a license applicant within 20 days as of the date of his written statement.

Article 8. Procedure for settling disputes 1. A dispute related to the matter of a license fee is settled by a court under the procedure prescribed by the laws of Georgia. 2. The lodging of a claim with a court does not exempt the taxpayer from the payment of a license fee.

Article 9. Entry of Law into Force and Invalidated Statutory Acts 1. This Law enters into force upon publication. 2. In connection with the entry into force of this Law (save the acts on local fees adopted by local self-government and administration agencies), the following shall be deemed null and void: a) the Georgian Education Minister’s Order “On the Examination-License Costs of Non- governmental Secular Educational Institutions” No. 259 of 6 July 1995; 3 TECHINFORMI b) the Georgian Health Minister’s Order “On the Approval of License Rates Fixed for Granting Licenses to the Pharmaceutical Institutions of Georgia” No.137/0 of 10 April 1998; c) the Order by the Minister of Health Care of the Republic of Georgia No.347/0 of 31 July 1996; d) the Order by the Minister of Health Care of the Republic of Georgia No.514/0 of 1 November 1996. President of Georgia Eduard Shevardnadze Tbilisi, 23 July 1999 No. 2347-RS As amended of 9 September 1999, Law No. 2405-1s 3