Georgia is a country with low tax rates and transparent tax system. The tax and customs legislation is included in the Tax Code and the supervisory authority for tax collection is the Georgia Revenue Service.
Taxation in Georgia is territorial: only income received from Georgia sources is taxed. Georgian companies are taxed on their profit produced in the country. The taxes imposed in Georgia are:
- The Corporate Profit tax of 15%;
- The Value Added Tax of 18%
- The Personal Income tax: 20%
- The Import tax: with differentiated values of 0%, 5% or 12%;
- The Property tax: up to 1%.
- A tax rate of 5% applies for Dividends and Interest.
Physical and legal persons, who are owners or users of state owned land plots, including land used for agricultural and non-agricultural purposes, are subject to land tax. The land tax depends on the quality and location of land and is not based on the taxpayer’s economic results.
The base maximum annual rate for the non-agricultural land amounts to GEL 0.24 per one square meter. The tax must be calculated by multiplying the annual base
Tax rate by the territorial coefficient and the land area. The differentiation of the land tax by territorial coefficient is made in accordance with location and zones of the land plot.
Foreign investors in Georgia benefit from an extensive double tax treaty network signed with 52 countries.
The Free Industrial Zones in Georgia have special tax rates and benefits for enterprises that operate within the designated areas. Businesses registered in the zone would benefit from relatively cheap and skilled Georgian labor, lower taxes, and easy access to the sea.
Special Trading companies are introduced to encourage the development of trade transit function within Georgia. Special Trading Company is an enterprise that for the purpose of exemption from profit tax envisaged under the Tax Code of Georgia has been granted the status of special trading company. A foreign entity that renders its economic activities in Georgia through its permanent establishment has the right to be granted the status of a Special Trade Company and register a separate permanent establishment only in case the permanent establishment renders the activities of the special trading company envisaged by the Tax Code.
The Country doesn’t have restrictions on currency convertibility or repatriation of capital & profit. Also, Georgia doesn’t have payroll, social security, capital gains, wealth or inheritance tax.
According to Global Corruption Barometer of Transparency International, 0% of interviewed reported paying bribe to the tax administration. World Economic Forum’s Global Competitiveness Report named Georgia #9 among low tax rate economies. These emphasize the simplicity and reliability of Georgian tax system.
Taxation in Georgia is one of the most advantageous in the Caucasus region. The country has low tax rates, few applicable taxes for companies and individuals and special favorable tax regimes for certain foreign investments.
Our company can assist you with detailed information about taxes, according to the type of company and business you perform.