Low taxes on small business in Georgia, a simple and quick registration process for any business make this country an ideal place to start or continue your business.

Living in a pandemic and uncertainty, many began to think about moving to another country, transferring their business to more profitable jurisdictions, and competently planning their finances. There are several fairly obvious reasons for this – the massive transition to remote work, the unstable situation in most areas of business, the lack of the possibility of long-term travel due to closed borders. 

VAT rates in Georgia decreased from 20% to 18% back in 2005. Domestic and foreign businessmen called it one of the main advantages of the new Tax Code.

Personal income tax in Georgia is quite high among CIS countries. Therefore, the maximum load of employer’s expenses per employee remains very low – only 20% on the accrued amount, regardless of the residence of the recipient of the funds.

Despite the fact that cryptocurrency has long been a legal tender, there is still no global understanding of how to classify and effectively tax this large element of income of individuals and legal entities. The main purpose of taxation of cryptocurrency is to combat the illegal turnover of funds. Let’s look at what taxes an investor in cryptocurrency pays if he is a tax resident of Georgia, and find out from what taxes private investors are exempt, and what taxes legal entities must pay. Also, in particular, what are the taxes in the field of cryptocurrency in Georgia, how the exchange of cryptocurrency and the sale of computing (hash) power for generation are taxed.

A double taxation agreement is usually concluded between the two countries. The agreement prescribes the rules for the collection of taxes on the income of a resident of one country received in another. The agreement specifies the types of taxes subject to the document and the legal entities to which they apply.

The 2005 reforms in Georgia reduced the total number of taxes from 21 to 6. Tax rates and profit tax in Georgia fell significantly, and as a result, in the Paying Taxes report for 2019, the country was ranked 16th among 190 participants.

Despite the global pandemic, the Georgian government is trying to make the business environment in the country attractive to investors. Considering all the challenges this year, the atmosphere for business looks stable thanks to preferential tax systems, which is a clear incentive for foreign companies to move to this country. Georgia is attracting more and more attention from the international business community as it is becoming a profitable investment destination with low taxes and simple registration rules.

Before starting your own business or getting a job in the EU, you need to study the tax system in detail. Wages and living standards in Europe are really high, but at the same time taxes can completely dash all your hopes for a bright future. In this article, we will analyze the tax systems of European countries in comparison with Georgia.