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Tax Minimization in Georgia

Tax Minimization in Georgia

Taxes are an important aspect in the management of any business in Georgia. Business owners need to comply with the tax rates, the deadline for the annual filing and payment and also with the taxes for individuals. A good tax management plan is indispensable to the wealth strategy. Tax minimization in Georgia is a possibility for companies and individuals and it is an integrate part of a tax management plan.

Our company formation agents in Georgia can provide the best and most efficient tax planning and tax minimization strategies available for Georgian businesses. With our help, you will be able to plan ahead and have a strong wealth strategy.

Tax minimization strategies

Tax minimization strategies can be applied both by small and large business owners. These strategies are different from tax evasion schemes in the sense that they are not illegal strategies of avoiding to pay the due taxes.

Businesses can claim prepayments for certain expenses in advance. Another strategy is to maximize the amount of tax deductions in the current financial year with the purpose of reducing the taxable income. For example, purchase gifts for employees or business partners or make payments for business trips.

strategy for tax minimization is using a trust to control the assets. This offers both tax effectiveness and asset protection. This strategy can be useful for high-income individuals of businesses in Georgia. Our Georgian company incorporation specialists can give you detailed information about these strategies and offer you alternative options.

Taxes in Georgia

A legal entity in Georgia has to adhere to the corporate taxation regime. The most important taxes for companies are the corporate tax, with a rate of 15%, the withholding tax or the real property tax. Individuals in Georgia are subject to taxation on their Georgian source income. Filing requirements exist for both companies and individuals and the tax year in Georgia is generally the same as the calendar year.

You can implement the strategies described above and others with the help of our company formation agents in Georgia. Please do not hesitate to contact our office in Tbilisi

Tax minimization can be of great importance for those who want to start a company in Georgia and who are the beginning of their business activity, given the fact that the first years of operations are usually the hardest. 

Thus, by applying specific tax measures as per the applicable law, the company can save a certain amount of money that can be reinvested or used for other purposes. 

Our consultants can help you start a business in Georgia regardless if you want to operate through a sole trader or a partnership or large corporate entity. 

You can rely on our team for legal assistance in setting up a subsidiary or a branch office, in the case you want to expand a business on this market. We also invite you if you want to establish a liaison office. 

Of course, for all the above company types you will have certain obligations with respect to paying taxes and submitting financial reports. 

For all these, you can rely on our team of accountants in Georgia, who have the necessary expertise in representing all types of companies (small companies benefit from more relaxed and simple accounting procedures and policies).