Other activities related to information technologies and computer services Consulting activities in the field of computer technology Computer programming, consulting and related activities In IT sector, the enterprise has the right to render the activities listed below: In order to obtain respective status the company shall either itself has been providing allowed activities for a period of more than 2 years, or the company whose representative it is. New International Company status gives reduced tax rates for eligible entities. New type of International Company status was introduced in 2020, changing the old status of International Financial Company. Entities with International Company Status Namely, if conditions are met - Free Industrial Zone entities might be subject to 0% tax on Corporate Income Tax, 0% Dividend tax, 0% Property tax, 0% Import tax and 0% VAT, 0% Reverse Charge VAT. Therefore, their aim is to create a platform for manufacturing, processing of goods and their export from Georgia.įree Industrial Zone entities are exempt from almost all taxes within the income received from mentioned eligible activities. Special Tax Regimes Free Industrial Zone Entities įree Industrial Zone entities are created for production / manufacturing, processing, provision of any kind of services within Free Industrial Zone. Customs apply to some imported goods, too. Furthermore, excise taxes are on some luxury and environmentally damaging goods, such as gasoline. This system was set up to attract foreign investment. From 2017 onward, non-distributed profits are exempt from taxation. Ĭorporate taxes are levied at a flat rate of 15%, which was enacted in 2008. Turnovers of less than 100,000 GEL is exempt. Regardless of turnover a taxpayer have to register for VAT if it produces or imports goods. Medical care, exports and education are exempt from VAT. Value-added tax (VAT) is collected at a flat rate of 18%.There is few exceptions granted, nearly all goods and services are subject to VAT. Personal Income Tax for interest, dividend and royalty is 5%.There are few allowances deductible. However, the definition of "foreign-source" is widely mis-represented, and further reading of the tax code reveals that income from abroad, earned through active work (on a laptop, for example) while physically present in Georgia, would be considered Georgian-source even if said income was never remitted to Georgia or derives from a foreign source. Foreign-source personal income is tax-exempt. Personal Income tax in Georgia are collected at a flat rate of 20% on local-source income. There are 6 flat tax rates in Georgia - Corporate Profit Tax, Value Added Tax, Excise Tax, Personal Income Tax, Import Tax and Property Tax. On local level property taxes as well as various fees are collected. The most important taxes are collected on national level, these taxes include an income tax, corporate taxes and value added tax. ![]() Taxes in Georgia are collected on both national and local levels.
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