Written by Emil Goncharov
 
The tax laws in the Georgian economy are based on 6 fixed tax rates for both individuals and corporations. The country is particularly striving to attract foreign investors to make investments in various fields such as construction, hotel, manufacturing and more using low taxation and simple bureaucracy which helped Georgia to be selected as one of the 10 best countries in the world in terms of ease of doing business.
 
The taxation on individuals income in Georgia is determined by the physical location in which the income was generated. For Example, an individual who has earned income in Georgia will be taxed in Georgia. Unlike individuals, a Georgian company is being taxed for its revenue generated anywhere in the world. A company will be regarded as a Georgian company according to the control and management tests.
 
Starting 2017, Georgia began using the Estonian model (as the second country in the world to use the model after being introduced by Estonia in 2000) to incentive corporations and foreign investors. Based on this model, Georgian companies won't be taxed But only in the distribution of funds (dividend). Lets highlight it one more time - As long as a company invests its income back in business or other investments it is not taxed until it distributes its money. This is one of the biggest incentives for Georgia companies!
 
Another incentive for small/new Georgian companies is that the VAT payment (18%) is made only after the company has generated income of 100K Lari in the last 12 months.
 
In addition, Georgia has a tax treaty with over 45 countries to avoid double taxation and regulate tax laws between the 2 countries.
 
 
The applicable tax rates in Georgia