Tax in Georgia

Who is the tax authority?

The Revenue Service of Georgia (RS) administers tax and customs under the Ministry of Finance. Filings are submitted through the eRevenue Service portal at rs.ge. Tax disputes go through RS internal review, the Tax Disputes Council, and the administrative courts.

The governing statute is the Tax Code of Georgia (Law 3591-IIs of 17 September 2010) — a single codified instrument covering all taxes. CPA Georgia, regulated by the Service for Accounting, Reporting and Auditing Supervision (SARAS), is the principal credentialed accounting profession.

Georgia is an EU candidate country (status granted December 2023). It is a member of the OECD BEPS Inclusive Framework and has ratified the MLI. Georgia is not a member of the Eurasian Economic Union.

What is the tax year and when are returns due?

Georgia's tax year is the calendar year (1 January to 31 December). Wage earners have tax fully withheld monthly by employers.

Who counts as a Georgian tax resident?

An individual is a Georgian tax resident under the Tax Code if either of these conditions is met:

• Physically present in Georgia for at least 183 days in any 12-month period ending in the relevant tax year
• Holds High Net Worth Individual (HNWI) status under specific Georgian-investment thresholds

Residents pay tax on worldwide income (with certain foreign-source exclusions). Non-residents pay tax only on Georgian-source income at flat or schedular rates. Treaty residency tie-breakers apply under Georgia's ~57 bilateral DTA network where two jurisdictions both treat a person as resident.

Deep-dive: see expat and cross-border tax in Georgia for the practical rules around mid-year moves.

What are the personal income tax rates?

Georgia applies a single flat rate for most personal income — one of the lowest flat rates in Eastern Europe and the South Caucasus region.

Mandatory pension contributions (post-2018 scheme) add 2% employee-side, 2% employer-matching, and 2% state-matching for employees up to age thresholds. Qualifying medical expenses and certain other deductions reduce taxable income. Salaried employees have most obligations satisfied through monthly PAYE withholding.

Deep-dive: see self-employed tax in Georgia for how the flat rate applies to sole-trader and freelance income.

How does Georgian corporate tax work?

Georgia's corporate income tax follows the Estonian distributed-profits-only model, adopted on 1 January 2017. This makes Georgia the world's third jurisdiction to adopt this framework — after Estonia (2000) and Latvia (2018).

Withholding on non-resident dividends is 5% (treaty rates apply). Royalties default 5%; technical-services 10%; interest 5%. Transfer pricing follows OECD principles with documentation requirements progressively expanded. Pillar Two has not yet been formally transposed — in-scope MNE groups should monitor EU-accession alignment.

Deep-dive: see small business tax in Georgia for the sole-trader versus incorporated comparison.

What are the VAT and indirect tax rates?

Georgia's VAT is governed by the Tax Code. The standard rate of 18% applies to most goods and services supplied in Georgia.

VAT registration becomes mandatory once annual turnover exceeds GEL 100,000. Below that, registration is voluntary. Reverse-charge applies to imported services. Foreign suppliers making B2C digital-services sales into Georgia are subject to VAT under successive Tax Code amendments. Excise Tax applies on alcohol, tobacco, fuels, and specified goods.

Deep-dive: see VAT in Georgia for the full registration and filing mechanics.

How are cryptoassets taxed?

Georgia has no dedicated cryptoasset tax law. The Revenue Service maintains a generally permissive position — individual trading at a non-business level falls outside standard PIT scope under successive RS interpretive positions.

Mining and trading-frequency activity is business income taxed at applicable rates. Crypto received as employment compensation is taxable under the standard PIT framework at GEL-equivalent value on receipt. The National Bank of Georgia has issued advisory communications on cryptoasset risks but has not imposed prohibitions.

Deep-dive: see crypto taxation in Georgia for the Revenue Service position applied in practice.

Free Industrial Zones and International Company status

Georgia operates several tax-incentive frameworks that significantly reduce effective rates for qualifying businesses.

The Virtual Zone Person regime provides 0% PIT on IT-services exports for individuals registered under specific eligibility criteria. These three frameworks — FIZ (0%), International Company (5%), and Virtual Zone (0% PIT) — form Georgia's core incentive stack for technology and maritime businesses.

What is the treaty network?

Georgia has approximately 57 active bilateral tax treaties — a large network for the South Caucasus region. The US–Georgia treaty (inherited from the 1976 USSR–US convention plus the 1996 protocol) has been in force since 1996. Georgia signed the OECD MLI in June 2017 with successive ratification.

Georgia has ratified the MLI (signed June 2017). Standard statute of limitations is 6 years from the tax year; extended for fraud or non-filing. As an EU candidate (December 2023), Georgia is progressively aligning tax acquis chapters.

Deep-dive: see tax treaty relief in Georgia for the bilateral rate schedules.

Where does Georgia sit in the South Caucasus and EU-candidate cohort?

Georgia occupies a distinctive position in the South Caucasus — combining a liberal flat-tax model with active EU accession talks and a pro-investment corporate framework.

EU candidate status and tax-acquis alignment

Georgia was granted EU candidate status in December 2023. Accession negotiations are ongoing and the tax framework is progressively aligning toward EU directives.

Georgia's legal system follows civil law, shaped by post-Soviet reforms, the 2003 Rose Revolution liberalisation, and increasingly by EU acquis alignment. The system is not a member of the Eurasian Economic Union — a deliberate strategic distinction maintained since the 2008 Russo-Georgian War.

Common pitfalls and penalties

Foreign nationals and companies regularly encounter the following traps when operating in Georgia:

Currency framework

Georgia's currency is the Georgian Lari (GEL), which floats freely. The National Bank of Georgia manages monetary policy but does not peg the exchange rate. Tax returns and payments are denominated in GEL.

When should you talk to a Georgian tax pro?

Some situations in Georgia are straightforward through the eRevenue portal. Others are genuinely complex:

• Your company is making a distribution and the 20% CIT charge applies
• Setting up a Free Industrial Zone entity or applying for International Company status
• You are an in-scope MNE group assessing Pillar Two exposure under the distributed-only model
• You have cross-border income from a DTA partner country (US, UK, Germany, Netherlands, etc.)
• You arrived in Georgia post-2022 and are unsure whether the 183-day residency test triggered
• You hold or are applying for HNWI tax-residency status
• You received a Revenue Service audit notice or back-tax query
• You are a Virtual Zone Person or applying for that status

You can find vetted Georgian practitioners through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the RS website (rs.ge) or with a licensed Georgian practitioner before filing.