Georgia Tax 2023
(Last partial update, July 2023)Georgia Tax Rates 2023
Individual Income Tax:
Georgia's individual income tax rate for 2023 is flat at 20%.Income from real estate rental is taxed at 5%.
Dividends and interest received from resident companies are tax exempt.
Self employed with annual turnover not exceeding GEL 30,000 are tax exempt.
Tax payers can choose to pay tax of 1% on their turnover when not exceeding GEL 500,000 or 3% for higher turnover.
Corporate Tax:
Georgia's corporate tax rate for 2023 is 15%.Banks and finance companies pay 20% corporate tax.
Companies in FIZ, free industrial zones, are tax exempt from income tax.
In addition they are exempt from VAT and property tax.
Capital Gains:
Capital gains of companies are taxed at 15%.For individuals the standard capital gain tax rate is 20%.
Gains from sale of residential property held for more than two years is tax exempt.
Dividend income received by a resident Georgian individual is taxed at 5%.
Residence
Georgian companies pay tax on their Georgian and worldwide income.Non -residents companies and individuals pay tax only on Georgian source income.
A foreign company is resident if the management is in Georgia.
An individual is resident if the center of living is in Georgia, or if staying in Georgia for 183 days within 12 months.
Georgia Tax Deductions
- Losses are carried forward for five years.
For losses from 2010 forwards losses can be carried forward for 10 years, subject to a confirmation by the tax office.
There is no carryback for losses. - Depreciation is deducted using the reduced balance depreciation.
- Intangible assets are depreciated according to the life length or 15% per year.
- Provisions for bad debts are allowed under certain terms.
- Donations are tax deductible up to 10% of the income.
- There is no company consolidation for tax purpose.
Georgia Deduction of Tax at Source
In Georgia tax is deducted at source from the following payments to non-resident companies:Dividend- 5%.
Interest- 5%/15%.
Royalties- 5%/15%.
Technical Fees – 4%/10%/15%.
Note: The tax withholding rates are subject to double taxation treaties.
Georgia Social Security
The contributions by the employer and the employee to pensions are subject to ceiling defined by law.Employers - Pay 2% for pension.
Note :the state also adds 1%-2% on the gross salary to pension .
Employees -Pay 2% for pension.
Self employed pay 4% for pension .
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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