Taxation in Georgia

Taxation in Georgia is a compulsory financial charge collected by a government agency to cover various public expenses through the government, and non-payment, along with evasion or resistance to payment, is punishable by law.

There are several flat tax rate in Georgia that we will cover in this article:

Value added tax (VAT): is collected at a flat rate of 18%. Nearly all goods and services are subject to VAT. Medical care, education and exports are exempt from VAT. Regardless of turnover a taxpayer has to register for VAT if it produces or imports goods. Turnovers of less than 100,000 GEL are exempt.

Personal Income tax: Tax in Georgia are collected at a flat rate of 20% on local-source income. Foreign-source personal income is tax-exempt. Personal Income Tax for interest, dividend and royalty is 5%.There are few allowances deductible.

Rent tax: 20% for commercial units and 5% for residential units, which according to the law must be paid by the property owner.

Corporate taxes: Corporations that own property, do business in Georgia, or receive income from Georgia sources are subject to corporate income tax. Corporate taxes are levied at a flat rate of 15%, which was enacted in 2008. From 2017 onward, non-distributed profits are exempt from taxation.

Important point about exports and imports in Georgia:

For exports from Georgia, all tariffs are zero, but for imports to Georgia, VAT of 18% in addition to customs tariffs varies from 0% to 12% depending on the type of imported goods.

Non-payment of taxes in Georgia is considered a crime because the country’s annual budget is provided through its payment.

The first and most important advantage of registering a company in Georgia is that, it enables you and your family to obtain residency as soon as you complete the administrative steps and register the company.

Registration of a company in Georgia is done in the shortest possible time and at the lowest cost.

The cost of registering a company in Georgia is from $200 to $900. As we mentioned, registering a company is not the only way to stay in Georgia.

If you do not have enough capital to register a company, there are other ways to obtain residency. For more information, you can contact our consultants at Ava Georgia Holding.