Tax Law in Georgia, Tbilisi
Tax resident employees
Non-tax resident employees
Tax resident business
Non-tax resident business
What are the main taxes that potentially apply to a business vehicle subject to tax in your jurisdiction (including tax rates)?
Corporate income tax (CIT) in Georgia, Tbilisi
VAT in Georgia
Property tax in Georgia
Property tax payable by local or foreign enterprises. This is payable if the enterprise has immovable property in Georgia. The tax arrangements in relation to property tax are defined in the following way:
- for the resident enterprise (a Georgian company or a branch/permanent establishment of a foreign entity) it is payable on assets, uninstalled equipment, unfinished construction registered on its balance sheet as fixed assets, and on its leased property; and for the non-resident (foreign) enterprise it is payable on property based in Georgia (including property that has been transferred under a lease, rental agreement, usufruct or any similar agreement).
Withholding Tax in Georgia
Withholding tax on various payables (for example, interest, royalties, dividends, and salaries/benefits of employees). The tax return must be filed by the 15th day of the month following the respective reporting month. Tax rates differ depending on the type of payable, for example:
Dividends paid in Georgia
Dividends received in Georgia
Interest paid in Georgia
- Non-commercial legal entities.
- Non-residents with no permanent establishment in Georgia.
IP royalties paid in Georgia
- interest, dividends and royalties are subject to a withholding tax rate of 5%;
- other payables to non-residents is subject to a withholding tax rate of 10%;
- salaries and other employee benefits are subject to a withholding tax rate of 20%; and
- dividends, royalties and other payables made to offshore/tax haven residents are taxed at a rate of 15%.
Excise Tax in Georgia
Georgian transfer pricing rules generally follow OECD transfer pricing principles and apply to cross-border transactions between a:
- Georgian company and related foreign company.
- Georgian resident company and an unrelated foreign company registered in a tax haven jurisdiction or offshore country.
How are imports and exports taxed:
- VAT at a rate of 18% (calculated from the customs value of the imported goods).
- Import tax at various rates (0%, 5% or 12%) depending on the type of product.
- The Netherlands
- United Arab Emirates
Our team of professional attorneys can provide you with:
- General legal and financial consultations in the field of tax law;
- Relationship with tax authorities on behalf of the Customer;
- Appeal of orders or decisions received by the tax authority on tax violations in the system of the Ministry of Finance and the court;
- Representation on disputes relating to tax requirements (tax and / or fines, imposing penalties) and protection of legitimate interests of a taxpayer;
- Proceedings and representation of procedures related to restructuring of overdue tax and debt debts with relevant authorities;
Agency in Georgia
Distribution in Georgia
Franchising in Georgia
- Bilateral obligations.
- Duration of the contract.
- Provisions on termination or extension of the contract.
- Other essential clauses.