What are the taxes and VAT in Georgia?
Income tax, VAT, profit tax and small business.
Short answer
In Georgia, income tax is 20%, VAT is 18%, corporate profit tax of 15% is paid only on distributed profit, and dividends are taxed at 5%. An individual entrepreneur with small business status pays 1% of turnover up to 500,000 GEL a year. VAT registration is required once turnover over 12 months exceeds 100,000 GEL.
Why
- Rates and rules are set by the Tax Code of Georgia.
- Profit tax follows the Estonian model: no tax is due until profit is distributed.
- Small business status is not available for all activities, for example some consulting services.
Details
Georgian tax residency is usually acquired by spending 183 days or more in the country within 12 months. Returns and payments are filed online through the Revenue Service portal.
Tip
Keep records of income and file returns on time on rs.ge, as late penalties are charged automatically.
What may differ
Rules change and depend on citizenship and status, so check the official website or a lawyer before applying.
People also ask
- What is the income tax rate in Georgia?
Sources
- Tax Code of GeorgiaChecked at:
- Revenue Service of GeorgiaChecked at:
This answer is for reference only and is not legal advice. Fees and rules change, so check official websites.
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