Georgia's corporate income tax rate of 15% and its business-friendly environment have made it an attractive destination for entrepreneurs and companies. Alongside the corporate income tax, businesses operating in Georgia should be aware of other taxes such as VAT, personal income tax, social security contributions, property tax, excise taxes, import and export duties, and local taxes. It is advisable to consult with a tax professional or refer to the official Georgia Revenue Service website for the most up-to-date tax regulations and requirements.
Corporate Income Tax:
Georgia operates on a territorial tax system, where only income generated from activities within the country is subject to taxation. The corporate income tax rate in Georgia is a flat 15%. This rate applies to both resident and non-resident companies engaging in commercial, industrial, or professional activities in the country.
Types of Business Taxes in Georgia:
- Corporate Income Tax: As mentioned earlier, the corporate income tax rate in Georgia is 15%. This tax is levied on the profits earned by businesses within the country.
- Value Added Tax (VAT): Georgia imposes a value-added tax (VAT) on most goods and services. The standard VAT rate is 18%. Certain goods and services may be subject to reduced rates or exemptions, such as essential food items, medicines, and exports.
- Personal Income Tax: While not directly a business tax, it is important to consider the personal income tax in Georgia, as it affects employees and individuals receiving income from employment or self-employment. The personal income tax rates in Georgia are progressive, ranging from 0% to 20%.
- Social Security Contributions: Employers and employees in Georgia are required to contribute to the social security system. These contributions fund pensions, healthcare, and social benefits. The rates vary depending on the gross salary of the employee.
- Property Tax: Property tax is imposed on the ownership of real estate properties in Georgia. The tax rate varies depending on the location, type, and value of the property. Municipalities are responsible for administering and collecting property taxes.
- Excise Taxes: Excise taxes are imposed on specific goods, such as tobacco, alcohol, fuel, and luxury items. The rates and calculation methods for excise taxes vary depending on the product.
- Import and Export Duties: Import duties may be levied on certain goods entering Georgia. The rates and regulations depend on the type of product and its country of origin. Export duties are generally not imposed in Georgia, as the country aims to encourage exports.
- Local Taxes: Municipalities in Georgia have the authority to levy local taxes on various activities, such as business licensing, advertising, and property usage. The rates and regulations for these taxes may differ between municipalities.
Georgia Revenue Service Website:
For accurate and up-to-date information on business taxes in Georgia, it is recommended to visit the official website of the Georgia Revenue Service. The website provides comprehensive information, forms, guidelines, and contact details for any tax-related inquiries.
Georgia Revenue Service Website: Official Georgia Revenue Service Website