OVERVIEW
Georgian tax legislation envisages five national taxes (Personal Income Tax, Corporate Tax, Value Added Tax, Excise Tax and Import Tax) and one local tax (Property Tax). There is no social security, wealth, gift or inheritance, capital gains or branch remittance taxes.
I. Personal Income Tax
1.1 Tax Rates
| Taxable Income | Tax Rates |
| Employment Income | 20% |
| Income from Economic Activities | 20% |
| Income of an Individual Entrepreneur with the status of Small Business (annual gross income less than 500,000 GEL |
1% 3% - if gross income received from the economic activities has exceeded 500 000 GEL. |
| Rental Income | 20% |
| Dividends, Interest | 5% |
| Royalties | 20% |
| Gains from the sale of property (if the residence/ land held for less than 2 years; vehicles less than 6 months) | 20% |
| Lottery income (if in excess of 1,000GEL) | 20% |
1.2 Exemptions
| Type of income |
| Income of residents and non-residents from foreign sources |
| Income of an Individual Entrepreneur with the status of Micro Business (annual gross income less than 30,000 GEL) |
| Income of an Individual Entrepreneur with no hired labor and carrying out activities listed in the order of the Ministry of Finance |
| Income from the sale of property held for more than 2 years |
| Income from the sale of vehicles held for more than 6 months |
| Income from the sale or exchange of shares or securities held for more than 2 years |
| Interest and income from the sale of securities issued by the Government, National Bank or international financial company |
| Income from transfer of property in exchange of a partner's share held for more than 2 years |
| Grants, state stipends, state scholarships, state compensations |
| Inherited or gifted property by I and II level legatees |
| Lottery earnings up to 1,000GEL |
| Income from the sale of free floating securities |
| Alimony |
| Property with a value up to 1,000 GEL gifted within a tax year, except the property gifted by the employer |
| Income of non-resident from insurance, re-insurance and lease services not related to his/her permanent establishment (branch, representative office) in Georgia |
| Income of non-resident individuals from employment at foreign diplomatic and equal representative offices |
| Income of a gambling club, gaming machines saloon and totalizer organizing persons, except income received from system-electronic games |
| Income of non-resident individuals from employment on the territory of Georgia, in maximum duration of 30 calendar days throughout a tax year, paid by non-resident employers |
1.3 Social Security Contributions
From January 1, 2019, Georgia has introduced a pension scheme. The liability for the payment of pension contributions (besides the state) is imposed on employers, resident natural person's citizens of Georgia, and foreign citizens and stateless persons permanently living in Georgia. The total percentage of the installment varies from 4% to 6% and depends on the annual taxable salaries and / or self-employed income.
| Amount of salary and / or selfemployment income [GEL] | Contribution by Employer [%] | Contribution by Employee [%] | Contribution by the state [%] | Total[%] |
| Less than 24,000 GEL | 2 | 2 | 2 | 6 |
| >24,000 and <60,000 | 2 | 2 | 1 | 5 |
| Exceeds 60,000 GEL | 2 | 2 | 0 | 4 |
II. Corporate Tax
2.1 Tax Rates
| Taxable Income | Tax Rates |
| Income of resident companies on their (worldwide and Georgian source income) | 15% |
| Georgian source income of permanent establishments (branches, representative offices of non-resident companies) | 15% |
| Income of a non-resident company doing business in Georgia without a permanent establishment | 10% |
| Dividends paid to individuals and non-resident companies not having a permanent establishment in Georgia | 5% (lower rate applicable under a relevant tax treaty) |
| Profit from the performance of oil and gas transactions | 10% |
| Interests | 5% |
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