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.

From July 1, 2018, a preferential tax regime was introduced for small businesses in Georgia, according to which the turnover tax will be 1% instead of 5%.

Many companies in Georgia use the services of non-residents and foreign companies. In this case, when working together, obligations to pay the tax deducted at source may arise. In this article, we will analyze in which cases you will have to pay this tax in Georgia.

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.

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.

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.

Competent accounting support of the business, correct preparation of reports and their timely submission to regulatory authorities ensure the safety of the company in financial terms. If declarations are submitted on time and taxes are paid in due time, you will not face fines in the tax sphere in Georgia.

In Georgia, starting from 2017, legal companies have the right not to pay profit tax if they invest in business development. Read more about what tax on dividends in Georgia.