Taxation in Georgia
One of the main advantages of establishing a company in Georgia is its favourable tax regimes as within the country, so with the special customs regime for companies that export goods outside the country.
Foreign companies, if their place of management is located in Georgia, are taxed on their income derived from Georgian sources. However, in order to avoid double taxation, Georgia has signed tax treaties with 52 countries.
The rates of the main Georgian corporate taxes are:
- Corporate income tax: 15%;
- Value Added Tax (VAT): 18%;
- Import taxes fluctuate between 0% and 12%;
- Property tax does not exceed 1%.
There are no payroll, social security, capital gains, wealth, and inheritance taxes paid in Georgia. Also, it should be noted that excise-duties are paid only on selected types of goods, i.e., alcohol, tobacco, oil, gas.
As for the individual taxation, the residents of Georgia (individuals who reside in the country for at least 183 days per year) are taxed on their worldwide income, whereas, foreigners have to pay tax on their income derived from a Georgian source.
- Personal income tax: 20%.
Companies that operate within the Free Industrial Zones (FIZs) located on the Georgian territory, can benefit from 0% tax on corporate income, import, and property as well as significantly reduced VAT rates.