From: Maddalena Honorati <mhonorati@worldbank.org>
Sent: Tuesday, August 4, 2020 1:32 PM
To: Nino Kvernadze <ninokvernadze@moh.gov.ge>; Natalie Godziashvili <ngodziashvili@moh.gov.ge>
Cc: Tamar Barkalaia <tbarkalaia@moh.gov.ge>; Tamar Gabunia <tgabunia@moh.gov.ge>; Volkan Cetinkaya <vcetinkaya@worldbank.org>; Djamshid Iriskulov <diriskulov@worldbank.org>; Mehek Marwaha <mehek.marwaha@aiib.org>; Nino V. Moroshkina <nmoroshkina@worldbank.org>; Alicia C. Marguerie <amarguerie@worldbank.org>; Lia Tavadze <ltavadze@moh.gov.ge>; Nino Gvenetadze <ngvenetadze@moh.gov.ge>; Nino Veltauri <nveltauri@moh.gov.ge>; Lika Klimiashvili <lklimiashvili@moh.gov.ge>
Subject: FW: POM and related questions

From: Maddalena Honorati
Sent: Monday, August 3, 2020 5:32 PM
To: Nino Kvernadze <ninokvernadze@moh.gov.ge>; Volkan Cetinkaya <vcetinkaya@worldbank.org>
Cc: Tamar Gabunia <tgabunia@moh.gov.ge>; Tamar Barkalaia <tbarkalaia@moh.gov.ge>; Mehek Marwaha <mehek.marwaha@aiib.org>; Nino V. Moroshkina <nmoroshkina@worldbank.org>; Natalie Godziashvili <ngodziashvili@moh.gov.ge>; Djamshid Iriskulov <diriskulov@worldbank.org>; Lia Tavadze <ltavadze@moh.gov.ge>; Nino Gvenetadze <ngvenetadze@moh.gov.ge>; Nino Veltauri <nveltauri@moh.gov.ge>; Lika Klimiashvili <lklimiashvili@moh.gov.ge>; Alicia C. Marguerie <amarguerie@worldbank.org>
Subject: RE: POM and related questions

From: Nino Kvernadze <ninokvernadze@moh.gov.ge>
Sent: Thursday, July 30, 2020 7:08 PM
To: Maddalena Honorati <mhonorati@worldbank.org>; Volkan Cetinkaya <vcetinkaya@worldbank.org>
Cc: Tamar Gabunia <tgabunia@moh.gov.ge>; Tamar Barkalaia <tbarkalaia@moh.gov.ge>; Mehek Marwaha <mehek.marwaha@aiib.org>; Nino V. Moroshkina <nmoroshkina@worldbank.org>; Natalie Godziashvili <ngodziashvili@moh.gov.ge>; Djamshid Iriskulov <diriskulov@worldbank.org>; Lia Tavadze <ltavadze@moh.gov.ge>; Nino Gvenetadze <ngvenetadze@moh.gov.ge>; Nino Veltauri <nveltauri@moh.gov.ge>; Lika Klimiashvili <lklimiashvili@moh.gov.ge>
Subject: RE: POM and related questions

Dear Maddlena,

Dear Volkan,

This is to inform you that we have tried to respond to all your questions and fill the document  with information as much as we could.  Since the process from your side might still feel difficult to understand, because there are many supporting documents (resolutions, amendments, instructions, orders, etc ) which describes the whole process separately, we suggest to have a call with involved parties and finalize the POM together.

the Annex D was very long, we made it as separate document.  Please also find answers to your questions below. However it is better to see the document first, since you might get better understanding of the process.

Best regards,

Nino

Questions:

o    Please clarify what it means for a self-employed to “registered with Revenue Service”: does it people registered for corporate/business taxes ? does it mean individuals being in the taxpayer database.

Yes  (please refer to the process chart, POM)

o    We understand there are two cases identified in the online registration system, self employed who are registered and the others We saw indeed separate data monitoring provided in SSA administrative database (downloaded from the ministry website). However, it seems that the transfer has been made only to self-employed registered. Why? When are the unregistered self-employed receive the transfer?

SSA does not undertint the question. Please refer to the process chart of the POM.

o    We understand that registration for the one-off benefit was only allowed up to July 1st . Please confirm if this is the case and whether there are plans to extend the window for application.

Extended until August 1st. 

o    Grateful if you could please provide information on the registration process for self-employed (in particular whether help was provided for opening bank accounts to those who do not have one, and whether the information campaign made it clear that informal workers should not be worried to register).

Self-employee submits an application while registering, to the RS. If its formal. If informal, no registration at RS is needed. For example nannys, they do not pay taxes, hence if they lost their job because of the covid 19, they would need only a contract as an evidence and this information should be submitted to SESA, not the RS. The special commission will discuss the evidence and within 10 days the compensation will be paid.

As for the bank accounts, there is established experience that all state allowances are transferred through bank transfers. In addition, there is an instruction available and widely spread information how to register in the system and that everyone needs a bank account. In case of need, people are assisted to open a bank account.

o    It remains unclear how the final status of “specified status” people (self employed who provided documents, but the documents are not clear enough to decide whether they are eligible or not) is decided.

Specified statuses are given to those, when for example the dates are missing, or terms.

Commission makes decisions in accordance with the criteria’s defined in the Res. N 286

o    In case the applicant is not in the taxpayers database and bank account info is correct –  is he required to register and pay taxes? The question relates to what was written on the registration process in one of the manuals you sent us  “ii. If the bank account is correct, a message will be issued, please register the type of economic activity for registration and upload the documents proving self-employment. Then click the Finish button”

This is for informal workers, meaning that this person will register economic activity as it was and the commission will make a decision whether this activity is eligible.  This type of applicant does not need registration in RS. They only need accurate evidence.

·         Temporary benefit for vulnerable households (with score between 65,000 and 100,000)

o    Please confirm  whether the temporary benefits is only for households with score between the 65,001 and 100,000 who were in the SSA database before May 1st or it is also for  households  that have registered in the database after May 1st  and are assessed with score in that range (we understand it takes a month to compute and verify the score) –  yes, but also families who are under 100001 and have three or more children between 0-16 ages.  

o    If  who register after May 1st are eligible to the temporary benefit, please clearly define the eligibility window: for example, as for the one-off benefit, would families who register before July 1st and are subsequently assessed with eligible score be eligible to the temporary benefit?

The time has extended until August 1st.

·         Unemployment benefit

o    We noted from the data monitoring table in SSA administrative database (downloaded from the ministry’s website) that about 150,000 forma employees have been laid off in May and June. This is a pretty high number corresponding to about 9% of the labor force in Georgia. Are these numbers confirmed by Revenue Service? Do you have more information on the sector of the employer and size of employer/firm.

This is a question to the revenue service. As for the numbers, this is a recent figure 146,287

o    As above, please clarify/confirm the eligibility criteria: are only workers laid off between May 4th and July 1, 2020 eligible to the benefits?

Eligible: April, May,June

o   Is yes, is there a plan to extend the window of eligibility?

The Ministry does not know yet. 

Dear Nino,

I hope this email finds you well.

We look forward to receiving the revised POM and appreciate an update on it and questions raised.

Thanks in advance

Maddalena

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