{"id":259,"date":"2023-04-13T12:28:14","date_gmt":"2023-04-13T12:28:14","guid":{"rendered":"https:\/\/companyformationgeorgia.com\/?p=259"},"modified":"2024-04-01T13:49:00","modified_gmt":"2024-04-01T13:49:00","slug":"taxation-in-georgia","status":"publish","type":"post","link":"https:\/\/companyformationgeorgia.com\/taxation-in-georgia\/","title":{"rendered":"Taxation in Georgia"},"content":{"rendered":"\n

The level of taxation <\/strong>applicable by the Georgian authorities<\/strong> represent one of the most advantageous in its region. Georgia<\/strong> benefits from low taxes<\/strong>, applicable to both companies<\/a><\/strong> and natural persons. It is important to know that the country applies only few types of taxes <\/strong>compared to other countries and it can also offer attractive tax regimes<\/strong> for foreign businessmen interested in investing in this country. If you are interested in company formation in Georgia<\/strong>, our experts<\/strong> can help you comply with the tax requirements<\/strong>.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 Quick Facts<\/th>\n <\/th>\n<\/tr>\n<\/thead>\n
Legal framework of taxation in Georgia<\/td>\n\n

Tax Code of Georgia<\/p>\n<\/td>\n<\/tr>\n

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Taxation of income and profits<\/p>\n<\/td>\n

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Taxes apply to income received within the country, including profits made by local businesses from their activities.<\/p>\n<\/td>\n<\/tr>\n

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Corporate income tax rate<\/p>\n<\/td>\n

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– 15% (only applied when profits are distributed to shareholders),<\/p>\n

– 20% (for some financial institutions)<\/p>\n<\/td>\n<\/tr>\n

VAT rate<\/td>\n\n

18%<\/p>\n<\/td>\n<\/tr>\n

Personal income tax rate<\/td>\n\n

20% of income for Georgian tax residents<\/p>\n<\/td>\n<\/tr>\n

Withholding tax rate on dividends<\/td>\n\n

5%<\/p>\n<\/td>\n<\/tr>\n

Other taxes in Georgia<\/td>\n\n

– customs duties,<\/p>\n

– excise tax,<\/p>\n

– property tax,<\/p>\n

– land tax, etc.<\/p>\n<\/td>\n<\/tr>\n

Tax exemptions and exclusions<\/td>\n\n

– social security contributions,<\/p>\n

– capital gains tax,<\/p>\n

– wealth tax,<\/p>\n

– insurance tax,<\/p>\n

– stamp tax, etc.<\/p>\n<\/td>\n<\/tr>\n

Tax residency<\/td>\n\n

If someone spends more than 183 days in the country during 12 months.<\/p>\n<\/td>\n<\/tr>\n

Number of double taxation treaties<\/td>\n58 (approx.)<\/td>\n<\/tr>\n
Taxes for Free Industrial Zones companies<\/td>\n\n

Most taxes are exempt.<\/p>\n<\/td>\n<\/tr>\n

Tax number for legal entities<\/td>\n\n

YES<\/p>\n<\/td>\n<\/tr>\n

Georgian fiscal year<\/td>\n\n

Calendar year (January 1st – December 31st)<\/p>\n<\/td>\n<\/tr>\n

Investment incentives<\/td>\n\n

– foreign tax credit,<\/p>\n

– Free Industrial Zones incentives,<\/p>\n

– special trading company status,<\/p>\n

– incentives for international companies, etc.<\/p>\n<\/td>\n<\/tr>\n

Assistance<\/td>\n\n

Our partner accountants in Georgia can help with taxation matters.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n

The Tax Code<\/strong> is the main rule of law which provides the legal framework regarding the taxation of natural persons and legal entities<\/strong> and it refers to local taxes<\/strong> and customs taxes<\/strong> as well. <\/p>\n\n\n\n

The country\u2019s main tax authority<\/strong>, which has the right to supervise the manner in which taxes <\/strong>are applied and collected here, is the Georgia Revenue Service<\/strong><\/a>. <\/p>\n\n\n\n

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