Taxes in Georgia
Georgia is a country with low tax rates and transparent tax system. Tax and customs legislation is unified under one tax code and the collection of taxes and supervision of the tax environment is provided by Georgia Revenue Service. All tax administration procedures and customs clearances are online/web-based. There are only 6 flat taxes in Georgia. Only property tax is a local tax, all other taxes are national.
Types and rates of taxes and time periods for payment
There are state wide and local taxes:
Joing-State wide taxes are as follows:
Who is an income taxpayer?
Income taxpayer is:
Resident natural person or the person who is actually in the territory of Georgia for 183 days or more within any continuous 12 calendar months;
- Resident natural person or the person who is actually in the territory of Georgia for 183 days or more within any continuous 12 calendar months;
- Non-resident natural person, receiving income from the source of payment in Georgia.
Income Tax rates:
- Taxable income earned by resident natural persons who are not subject to taxation in the source of payment in Georgia, are taxed at 20 percent.
Incomes subjecting to taxation at the source of payment are taxed:
- Salary – 20%
- Dividends – 5%
- Rates – 5%
- Royalties – 20%
Value Added Tax
A person registered or obliged to be registered as a VAT payer.
A company in Georgia can become a VAT payer if it is registered voluntarily for this purpose or if its activity falls into the category of businesses that must register for VAT purposes. Compulsory VAT registration is required for taxpayers who, in a period of 12 months, perform economic activities that have an accumulated value of VAT taxable transaction that exceeds GEL100,000. At the same time, this is necessary for companies that produce or import excisable goods into Georgia or for legal entities established after a reorganization
Vat rate amounts to 18% of taxable turnover
Excise taxpayer is a person who:
- Produces excisable goods in Georgia;
- Imports excisable goods in Georgia;
- Exports excisable goods;
- Deliveries natural gas condensate and/or natural gas for vehicles;
- Renders mobile communication services.
Object of taxation:
- A taxable transaction;
- Import of excisable goods;
- Export of excisable goods.
Taxes, the obligation of which arises with regard to the classification of goods in the customs territory of Georgia, when importing goods, a person may incur the following taxes:
Import tax – 5% or 12% of the customs value of goods or a fixed rate