{"id":2030,"date":"2020-04-10T00:44:56","date_gmt":"2020-04-10T00:44:56","guid":{"rendered":"http:\/\/inc.ge\/?page_id=2030"},"modified":"2023-01-24T00:44:51","modified_gmt":"2023-01-23T20:44:51","slug":"taxation-in-georgia","status":"publish","type":"page","link":"https:\/\/inc.ge\/ru\/business-in-georgia\/taxation-in-georgia\/","title":{"rendered":"Taxation"},"content":{"rendered":"
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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.<\/span><\/p>\n

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.<\/span><\/p>\n

According to the Tax Code of Georgia, \u201cA 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\u201d, shall apply for a VAT registration to Revenue Service under Ministry of Finance of Georgia. A person\/entity can also perform voluntary registration.<\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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#<\/th>BASIC TAXES<\/th>RATE<\/th>\n<\/tr>\n<\/thead>\n
1<\/td>Personal Income Tax<\/td>20%<\/td>\n<\/tr>\n
2<\/td>Corporate Income Tax (Profit distribution)<\/td>15%<\/td>\n<\/tr>\n
3<\/td>Value Added Tax (VAT)<\/td>18%<\/td>\n<\/tr>\n
4<\/td>Excise tax<\/td>varies<\/td>\n<\/tr>\n
5<\/td>Import Tax<\/td>0%, 5% or 12%<\/td>\n<\/tr>\n
6<\/td>Property Tax - companies<\/td>Up to 1 %<\/td>\n<\/tr>\n
7<\/td>Property tax \u2014 leasing companies<\/td>Up to 0.6%<\/td>\n<\/tr>\n
8<\/td>Property tax \u2014 individuals<\/td>Up to 1%<\/td>\n<\/tr>\n
9<\/td>Property tax \u2014 land<\/td>varies<\/td>\n<\/tr>\n
#<\/td>TAX RATES FOR A VIRTUAL ZONE COMPANY<\/td>RATE<\/td>\n<\/tr>\n
1<\/td>Corporate Income Tax (allowable activities: IT services)<\/td>exempt<\/td>\n<\/tr>\n
2<\/td>Value Added Tax (VAT)<\/td>exempt<\/td>\n<\/tr>\n
#<\/td>TAX RATES FOR FREE INDUSTRIAL ZONE COMPANY<\/td>RATE<\/td>\n<\/tr>\n
1<\/td>Corporate Income Tax<\/td>exempt<\/td>\n<\/tr>\n
2<\/td>Value Added Tax<\/td>exempt<\/td>\n<\/tr>\n
3<\/td>Withholding Tax<\/td>exempt<\/td>\n<\/tr>\n
4<\/td>Property Tax<\/td>exempt<\/td>\n<\/tr>\n
5<\/td>Import Tax<\/td>exempt<\/td>\n<\/tr>\n
#<\/td>TAX RATES FOR AN INTERNATIONAL FINANCIAL COMPANY<\/td>RATE<\/td>\n<\/tr>\n
1<\/td>Gain from sale of securities (issued by non-resident persons)<\/td>exempt<\/td>\n<\/tr>\n
2<\/td>Value Added Tax (financial operations or financial services)<\/td>exempt<\/td>\n<\/tr>\n
#<\/td>TAX RATES FOR A SPECIAL TRADING COMPANY<\/td>RATE<\/td>\n<\/tr>\n
1<\/td>Corporate Income Tax (on allowable activities other than supply of fixed assets used in economic activities for more than 2 years)<\/td>exempt<\/td>\n<\/tr>\n
2<\/td>Value Added Tax (inside customs warehouse)<\/td>exempt<\/td>\n<\/tr>\n
3<\/td>Import Tax<\/td>exempt<\/td>\n<\/tr>\n
#<\/td>OTHER TAXES<\/td>RATE<\/td>\n<\/tr>\n
1<\/td>Dividends paid to individuals, organizations and non-resident entities<\/td>15%<\/td>\n<\/tr>\n
2<\/td>Dividends paid to resident companies<\/td>exempt<\/td>\n<\/tr>\n
3<\/td>Dividends paid on free floating securities<\/td>exempt<\/td>\n<\/tr>\n
4<\/td>Dividends paid by an international financial company<\/td>exempt<\/td>\n<\/tr>\n
5<\/td>Dividends paid by a free industrial zone company<\/td>exempt<\/td>\n<\/tr>\n
6<\/td>Dividends paid by an agricultural cooperative<\/td>exempt<\/td>\n<\/tr>\n
7<\/td>Interest paid<\/td>5%<\/td>\n<\/tr>\n
8<\/td>Interest paid to residents of offshore countries<\/td>exempt<\/td>\n<\/tr>\n
9<\/td>Interest paid to resident banks<\/td>exempt<\/td>\n<\/tr>\n
10<\/td>Interest paid by licensed financial institutions<\/td>exempt<\/td>\n<\/tr>\n
11<\/td>Interest paid on free floating securities<\/td>exempt<\/td>\n<\/tr>\n
12<\/td>Interests paid by a free industrial zone company<\/td>exempt<\/td>\n<\/tr>\n
13<\/td>Interest paid on debt securities issued by Georgian companies and listed on a recognized foreign stock exchange<\/td>exempt<\/td>\n<\/tr>\n
14<\/td>Interest paid by resident companies to the Government<\/td>exempt<\/td>\n<\/tr>\n
15<\/td>Royalties paid to resident individuals<\/td>20%<\/td>\n<\/tr>\n
16<\/td>Royalties paid to resident companies<\/td>exempt<\/td>\n<\/tr>\n
17<\/td>Royalties paid to non-residents<\/td>10%<\/td>\n<\/tr>\n
18<\/td>Royalties paid to residents of offshore countries<\/td>15%<\/td>\n<\/tr>\n
19<\/td>Royalties paid to the Government<\/td>exempt<\/td>\n<\/tr>\n
20<\/td>Management fees paid to non-residents<\/td>10%<\/td>\n<\/tr>\n
21<\/td>Management fees paid to residents of offshore countries<\/td>15%<\/td>\n<\/tr>\n
22<\/td>Payment of income from international transportation and international communication to non-residents<\/td>15%<\/td>\n<\/tr>\n
23<\/td>Payments of other Georgian source income to non-residents<\/td>10%<\/td>\n<\/tr>\n
24<\/td>Payments of other Georgian source income to residents of offshore countries<\/td>15%<\/td>\n<\/tr>\n
24<\/td>Costs incurred not related to economic activity, Non-documented expense, Free of charge distributions, Over limit representative expenses<\/td>15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div>
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See our blog posts about special taxation regimes in Georgia here<\/a>:<\/span><\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div>

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