Taxes in Georgia: The Main Business Rates in One Table

Most taxes in Georgia are flat rates with no brackets. The rate you pay on business income is 0%, 1%, 15% or 20%, depending on the legal form and tax status of your business. An individual entrepreneur who does not apply for Small Business Status pays 20% of profit and not 1% of turnover. This post lists the main business tax rates in one table, then covers who pays each tax, on what, and when.

Tax Rates in Georgia: Main Rates Table

Tax or regime	Rate	Who pays it	Charged on
Personal income tax	20%	Employees, and individual entrepreneurs with no special status	Salary, or business profit after documented expenses
Small Business Status	1%, and 3% above ₾500,000	Individual entrepreneurs who hold the status	Turnover, with no deductions
Micro Business Status	0%	Individuals with turnover under ₾30,000 a year and no employees	Turnover
Corporate income tax	15%	LLCs	Profit when it is distributed
Dividend tax	5%	Individual and foreign shareholders, withheld by the company	Dividends paid by a Georgian company
VAT	18%	Businesses with taxable turnover above ₾100,000 in any 12 months	Goods and services supplied in Georgia
Reverse VAT	18%	Any business that buys a service from abroad, VAT registered or not	The value of the service bought
Pension contributions	2% from the employee and 2% from the employer	Employers and employees in the pension scheme	Gross salary
Capital gains	5%, 20% or 0%	Individuals selling property	The gain on the sale
Property tax	Up to 1%	Companies, and individuals above a family income threshold	The value of the property
Virtual Zone	0% corporate tax	LLCs that hold the status	Income from IT products created and exported
International Company Status	5% on profit, 5% on salaries, 0% on dividends	LLCs with at least two years in a permitted activity and local substance	Profit, salaries and dividends

Capital gains and property tax are not single rates. Both depend on what is taxed, and capital gains also depends on how long the asset was held. This post leaves out import duty and excise, which only concern a business that ships physical goods into or out of Georgia.

Which Taxes Apply to Each Business Type

Individual entrepreneur (IE) and LLC are legal forms. Small Business Status, Micro Business Status and Virtual Zone are tax statuses with their own applications, and the tax on business income follows the status.

Business type	Tax on business income	Taxes on top, when their conditions are met
IE with no special status	20% of profit, with documented expenses deducted	VAT, reverse VAT, payroll taxes on staff
IE with Small Business Status	1% of turnover up to ₾500,000, 3% above it	VAT, reverse VAT, payroll taxes on staff
Micro Business Status	0% on turnover under ₾30,000	Reverse VAT. Employees are not permitted, so there are no payroll taxes
LLC	15% on distributed profit, 0% on profit kept in the company	5% dividend tax, VAT, reverse VAT, payroll taxes on staff, property tax
Virtual Zone LLC	0% on qualifying exported IT income	5% dividend tax, 20% salary tax, reverse VAT, and VAT if other Georgian revenue passes the threshold

Personal Income Tax: 20% Flat Rate

Individuals pay income tax at one flat rate, 20% of taxable income, under Article 81 of the Tax Code of Georgia. There are no brackets and no progressive rates.

Two groups pay it:

• Employees. The employer withholds 20% from the salary and pays it to the Revenue Service by the 15th of the month after the salary was paid.
• Individual entrepreneurs with no special status. They pay 20% on business income, with documented business expenses deducted.

The general rule taxes a resident individual on income from anywhere in the world. A separate exemption in the Tax Code covers income that is not Georgian-source, so a resident’s foreign-source income is not taxed in Georgia. Non-residents owe Georgian tax only on what they earn from Georgian sources.

Residency is decided mainly by the 183-day test, and a separate high-net-worth route does not depend on days. The annual income tax return is due before 1 April and covers income that was not already declared monthly or taxed at source.

Small Business Status: 1% of Turnover

Small Business Status is a tax regime for individual entrepreneurs, granted by the Revenue Service after the IE is registered. Turnover up to ₾500,000 a year is taxed at the 1% rate, and costs cannot be deducted from it. An entrepreneur who invoices ₾200,000 in a year owes ₾2,000, whatever the costs were. The declaration is due by the 15th of every month for the month before, including months with no income.

Four conditions decide whether the rate applies:

• Turnover. Above ₾500,000 the rate rises to 3%, and exceeding the ceiling in two consecutive years revokes the status from 1 January of the third year. It is not settled whether the 3% is charged on the full year’s turnover once the ceiling is crossed or only on the part above ₾500,000, and published sources split on it.
• Activity. Government Resolution No. 415 of 29 December 2010 excludes consulting, legal, medical, architectural, notarial and auditing services, among others.
• Source. The rate covers Georgian-source income only, which for services generally follows where the work is performed.
• Timing. Income invoiced before the status applies is taxed at 20% and is not corrected later.

1% of turnover equals 20% of profit at a net margin of 5%. Below that margin, the standard 20% on profit costs less.

Micro Business Status: 0% Under ₾30,000

Micro Business Status exempts business income from tax where annual turnover is under ₾30,000 and there are no employees. The list of eligible activities is narrower than for Small Business Status, and ordinary trade and resale are restricted more tightly. A micro business has less to file than the monthly declaration required under Small Business Status, but it still has to report to the Revenue Service.

Crossing ₾30,000 or hiring an employee starts a deadline of 15 calendar days to apply for Small Business Status, under rules amended in March 2026. If the application is late, income earned from 1 January of that year until Small Business Status is granted is taxed at 20%. On ₾25,000 of income earned in that period, the tax is ₾5,000.

Corporate Income Tax: 15% on Distributed Profit

A Georgian LLC pays 15% corporate income tax on profit only when the profit is distributed. Profit kept in the company is taxed at 0%, with no ceiling and no time limit. The LLC’s corporate tax declaration is still filed every month by the 15th, and a month with no distribution needs a declaration that shows nothing owed.

The Tax Code treats each of these transactions as a distribution and taxes it at 15%:

• a dividend, whether the shareholder receives money or an asset
• a cost that has nothing to do with the business, or one that is not documented
• goods, services or money handed over free of charge
• interest charged at a rate higher than the Ministry of Finance’s annual ceiling, currently 24%
• a loan made to an individual or to a non-resident
• representation costs beyond the permitted limit

A personal expense paid from the company account falls under the second item, so it is taxed at 15% in the same way as a dividend. A dividend paid by one Georgian company to another is not taxed again at 15%. Since 1 January 2023, a bank, credit union, microfinance organisation or other lender has paid 20% corporate income tax in place of the 15%.

Dividend Tax: 5% Withheld at Source

When a Georgian company pays a dividend, it withholds 5% under Article 130 of the Tax Code and pays the shareholder the rest. The rate is the same for a Georgian individual, a foreign individual and a foreign company. The company pays the withheld tax to the Revenue Service on the same monthly cycle as its other declarations.

The 5% is charged after the 15% corporate tax. On ₾100,000 of distributed profit, the two taxes total ₾19,250, which is 19.25% of the profit.

Step	Amount
Profit distributed	₾100,000
Corporate income tax at 15%	₾15,000
Dividend paid out	₾85,000
Dividend tax at 5%	₾4,250
Shareholder receives	₾80,750

The 5% does not apply when one Georgian company pays a dividend to another, or when the dividend comes from negotiable securities. Georgia has double taxation treaties with more than 55 countries, and a treaty can reduce the rate, in some cases to 0%. A reduced rate is not applied automatically and generally has to be claimed by filing the treaty certification with the Revenue Service, including proof of tax residency in the treaty country, before or at the time of payment.

VAT and Reverse VAT: 18%

The standard VAT rate is 18%. VAT registration is compulsory when a business’s taxable turnover over any 12 months in a row goes above ₾100,000, and the business has 2 working days from that point to apply. VAT is declared and paid every month by the 15th. Reclaiming VAT on purchases from Georgian suppliers requires Qualified VAT status, which is a separate approval.

Reverse VAT applies when you buy a service from a supplier outside Georgia, such as software, hosting or a foreign contractor. You declare and pay 18% of the value of the service, so a ₾2,000 foreign invoice carries ₾360.

Three treatments apply instead of the standard 18%:

• No VAT is charged on financial services, medical care, education or sales of land, and a business supplying them cannot recover the VAT on its own costs.
• Exported goods carry a 0% rate, and the exporter can still recover the VAT paid on its costs.
• A service sold to a client outside Georgia is typically not subject to Georgian VAT.

Payroll Taxes and Pension Contributions

An employer withholds 20% income tax and, for staff in the pension scheme, a 2% pension contribution, then pays a further 2% from its own funds. The income tax on a salary is calculated after the employee’s pension contribution is deducted.

Step	Amount
Gross monthly salary	₾3,000
Employee pension contribution, 2%	₾60
Income tax, 20% of ₾2,940	₾588
Net pay to the employee	₾2,352
Employer pension contribution, 2%	₾60
Total cost to the employer	₾3,060

The state adds up to 2% on top, depending on the annual salary. The scheme runs under the Law of Georgia on Funded Pension, with contributions collected since 1 January 2019.

The scheme is mandatory for Georgian citizens and for foreigners with a permanent residence permit. A foreign employee without one is outside the scheme, with no contribution withheld and none owed by the employer. Payroll and pension declarations are filed on rs.ge and paid by the 15th of the month after the salary was paid.

Capital Gains Tax: 5%, 20% or 0%

Georgia has no separate capital gains tax. An individual’s gain on a sale is taxed under the personal income tax rules, and Article 82 of the Tax Code sets the exemptions.

Asset sold	Rate	Exempt when
Apartment or house with its land	5%	Owned for more than 2 years
Vehicle	5%	Owned for more than 6 months after title registration
Other property, such as land, business interests and movable assets	20%	Owned for more than 2 years and not used in economic activity
Negotiable securities	0%	Always

Holding shares to collect dividends, or a residential property to collect rent, does not count as economic activity for the two-year exemption.

Property Tax: Up to 1%

A company pays up to 1% a year of the average net book value of its taxable property, with separate rules for leased assets. An individual is liable only once the family’s income for the year passes a level set by the Ministry of Finance. Above that level the rate depends on the income band: well under 1% of the property’s market value in the lower bands and close to 1% in the higher ones.

Declaration Deadlines for Each Tax

Tax	Who files	Deadline
1% or 3% on turnover	IE with Small Business Status	15th of the following month, zero-income months included
Corporate income tax	LLC	15th of the following month, including months with no distribution
VAT and reverse VAT	VAT-registered businesses, and any business that owes reverse VAT	15th of the following month
Salary tax and pension contributions	Employer	15th of the month after the salary was paid
Dividend tax	Company paying the dividend	15th of the following month, with the company’s other declarations
Capital gains	Individual who sold property or another asset outside business activity	15th of the month after the sale

Every declaration is filed on rs.ge, the Revenue Service portal, which is in Georgian throughout. A business files a declaration every month for each tax that applies to it, and we prepare and file those returns for clients before the 15th.

The other tax deadlines in the year are the annual income tax return before 1 April and individual property and land tax by 15 November. Separate from tax, companies in a reporting category file annual financial statements with SARAS, the Service for Accounting, Reporting and Auditing Supervision, by 1 October. A declaration filed late for a month with no income falls under the same automatic penalty and interest rules as any other late filing.