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taxation in georgia

There are only six taxes in Georgia, of which five (personal income tax, corporate income tax, Value added tax, excise tax and import tax) are nationwide, and one (property tax) is a local tax. There are no inheritance, wealth, property transfer, social, branch remittance or other taxes imposed in Georgia.

From 1 January 2017 a new model of Corporate Income Tax was enacted in Georgia, which means that for Georgian entities and foreign entities doing business in Georgia by a permanent establishment the retained profit will no longer be taxable until they are distributed. The main purpose of the new model is to encourage domestic and foreign investments by taxing businesses when they will extract the profits. Commercial banks, credit unions, insurance companies, microfinance organizations, and pawnshops will be switched to the new tax regime after 1 January 2023.

According to the Tax Code of Georgia, “A person/entity, which carries out an economic activity and the total amount of VAT taxable transactions carried out in any continuous period up to 12 calendar months exceeds GEL 100 000”, shall apply for a VAT registration to Revenue Service under Ministry of Finance of Georgia. A person/entity can also perform voluntary registration.

1Personal Income Tax20%
2Corporate Income Tax (Profit distribution)15%
3Value Added Tax (VAT)18%
4Excise taxvaries
5Import Tax0%, 5% or 12%
6Property Tax - companiesUp to 1 %
7Property tax — leasing companiesUp to 0.6%
8Property tax — individualsUp to 1%
9Property tax — landvaries
1Corporate Income Tax (allowable activities: IT services)exempt
2Value Added Tax (VAT)exempt
1Corporate Income Taxexempt
2Value Added Taxexempt
3Withholding Taxexempt
4Property Taxexempt
5Import Taxexempt
1Gain from sale of securities (issued by non-resident persons)exempt
2Value Added Tax (financial operations or financial services)exempt
1Corporate Income Tax (on allowable activities other than supply of fixed assets used in economic activities for more than 2 years)exempt
2Value Added Tax (inside customs warehouse)exempt
3Import Taxexempt
1Dividends paid to individuals, organizations and non-resident entities15%
2Dividends paid to resident companiesexempt
3Dividends paid on free floating securitiesexempt
4Dividends paid by an international financial companyexempt
5Dividends paid by a free industrial zone companyexempt
6Dividends paid by an agricultural cooperativeexempt
7Interest paid5%
8Interest paid to residents of offshore countriesexempt
9Interest paid to resident banksexempt
10Interest paid by licensed financial institutionsexempt
11Interest paid on free floating securitiesexempt
12Interests paid by a free industrial zone companyexempt
13Interest paid on debt securities issued by Georgian companies and listed on a recognized foreign stock exchangeexempt
14Interest paid by resident companies to the Governmentexempt
15Royalties paid to resident individuals20%
16Royalties paid to resident companiesexempt
17Royalties paid to non-residents10%
18Royalties paid to residents of offshore countries15%
19Royalties paid to the Governmentexempt
20Management fees paid to non-residents10%
21Management fees paid to residents of offshore countries15%
22Payment of income from international transportation and international communication to non-residents15%
23Payments of other Georgian source income to non-residents10%
24Payments of other Georgian source income to residents of offshore countries15%
24Costs incurred not related to economic activity, Non-documented expense, Free of charge distributions, Over limit representative expenses15%

See our blog posts about special taxation regimes in Georgia here:

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